Car Buying CyberShoppers Still Value Dealer Relationship
15 July 1999
Car Buying CyberShoppers Still Value Dealer RelationshipAnnual CyberShopper Survey Reveals Internet User Auto Buying Trends And Preferred Auto Web Site Features DENVER, July 14 -- While 83 percent of American Internet users who are likely to purchase a new or used vehicle in the next year plan to go online to gather information prior to making their next automotive purchase, consumers still value certain aspect of their dealer relationship. Ninety-two percent say it is still important to maintain a relationship with a local dealership for information and service for a vehicle purchased online. Moreover, nearly two-thirds of respondents (61 percent) want to buy a vehicle from a dealer located near their home or office, according to the annual CyberShopper '99 Survey of 1,000 American Internet users. "These findings prove that dealers still are an integral part of the online car buying process," said Michael Kranitz, president of DriveOff.com Inc., a sponsor of the annual CyberShopper Survey. "Although consumers are becoming more comfortable shopping and even purchasing vehicles from the Internet, they still value the after-market service relationship that only a local dealer can provide." A J.D. Power and Associates survey released Monday reaffirmed that in just one year, 25 percent more car buyers used the Internet to help them shop for their vehicle. CyberShopper '99 sheds deeper insight into the explosive growth of automotive e-commerce -- the top three consumer demands from automotive web sites are comparison shopping (82 percent), getting the absolute lowest price (77 percent), and obtaining a guaranteed price on a vehicle (65 percent) before ever stepping foot inside a dealership. According to CyberShopper '99, 85 percent of respondents want the online ability to compare the actual dealer invoice to the sticker price, 81 percent would like to price out options on various models, and 76 percent want to compare vehicles feature-by-feature. These percentages speak to the tremendous influence the Internet is having on the traditional and online auto buying process. "The Internet is educating auto buyers and empowering them to make better purchasing decisions," Kranitz said. "It saves consumers time and helps them avoid the frustration that traditionally arises during the research and negotiating process." Auto dealers also may be interested in knowing that 42 percent of respondents said they would surf the Internet three or more months prior to making a purchase, visiting an average of seven automotive web sites prior to making a purchase. If respondents have vehicle inquiries, nearly two-thirds (60 percent) prefer an electronic response compared to the 28 percent who want to be contacted by telephone. In addition, 57 percent of the respondents who plan to use the Internet in their next vehicle purchase, plan to use the web to research new vehicles as opposed to used. Regardless of the make and model of the vehicle being researched, 89 percent of those surveyed report being somewhat or very satisfied with the Internet sites they did visit while shopping online. "The high level of consumer satisfaction with the online automotive e-commerce experience and the overall increase in Internet purchases, leads us to believe that nearly half of America's online population will use the Internet to shop for and purchase a vehicle in the next two years," Kranitz said. "As technology improves, consumers become more secure about shopping online, and automotive web sites respond to greater consumer demands, that amount could skyrocket." About CyberShopper '99 CyberShopper '99 is the third annual survey of the buying habits of America's online population. More than 1,000 American Internet subscribers were surveyed via telephone. The margin of error for the total survey results is plus or minus 3.1 percentage points. This error margin increases in subgroups within the data. The survey, funded by automotive e-commerce company, DriveOff.com Inc. and e-business solutions provider, Navidec Inc., is conducted annually by MGA Communications, a Denver-based marketing communications and research firm. The complete report can be purchased for $795 by calling 800.797.7565 or visiting http://www.navidec.com/cybershopper. DriveOff.com Inc. DriveOff.com Inc. provides world-class auto buying and information web sites including DriveOff.com, USWheels.com, CarWizard.com and LeaseSource.com. The company is developing its premier Web site, DriveOff.com, which will provide consumers with binding price and monthly payment quotes online, allowing them to complete their entire vehicle transaction by visiting the site. DriveOff.com Inc., based in Englewood, Colorado, is a wholly owned subsidiary of e-business solutions provider, Navidec Inc. . Its corporate web site is located at http://www.DriveOff.com. All statements in this press release, other than historical facts, are forward looking statements. These statements are based on certain assumptions and analyses made by Navidec in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to a number of risks and uncertainties, including general and economic business conditions, demand for automobiles, competition from other automotive online services, market acceptance of its online automotive solutions, the ability of Navidec to reach agreements with local media partners and other risk factors indicated from time to time in Navidec's filings with the Securities and Exchange Commission. Those filings are available online at http://www.freeedgar.com.