December 2008

Study finds 75 percent of new vehicle buyers research via Internet before deciding

WESTLAKE VILLAGE, CA— New-vehicle buyers are using the Internet more than ever when researching vehicle information, according to a just- released J.D. Power and Associates 2008 New Autoshopper.com StudySM.

The study finds that 75 percent of new-vehicle buyers in 2008 are using the Internet during their shopping process, compared with 70 percent in 2007. This year marks the largest year-over-year increase in online shopping since 2001. The total amount of time shoppers spend online researching automotive information has also increased since 2007—up 12 percent to more than six and a half hours. Meanwhile, the number of Web sites being visited by new-vehicle shoppers has remained relatively flat since 2007, which suggests that consumers have become more engaged with the sites they currently visit.

Automotive manufacturers can further engage shoppers through consumer-generated content on the Web. According to the study, nearly 70 percent of automotive Internet users (AIUs) utilize consumer-generated content while shopping for a new vehicle. In particular, vehicle ratings and reviews are the most popular form of consumer-generated content, with 63 percent of AIUs utilizing this resource. Additionally, 95 percent of AIUs who use consumer ratings and reviews say that the information is “helpful.” Dealer ratings and reviews are also popular among new-vehicle shoppers, with 38 percent of AIUs utilizing the resource, and 87 percent of those find the information “helpful.”

The study also finds that different types of automotive Web sites have specific benefits that satisfy the information and shopping needs of consumers. For example, shoppers view independent, third-party sites—such as Edmunds.com and Kelley Blue Book (kbb.com)—as being most useful for researching vehicle pricing and for providing ratings, reviews and forums. Conversely, shoppers view manufacturer Web sites as most useful for their information on vehicle model options, features and specifications, while dealer sites are perceived as being most useful for inventory information.

The report notes that Kelley Blue Book (kbb.com) is the most visited independent Web site, with 44 percent of automotive Internet users visiting the site. Additionally, Edmunds.com is the most useful independent Web site among automotive Internet users. Edmunds.com shoppers are 42 percent more likely than consumers using other independent, third-party sites to say that the reviews, forums and ratings are the most useful information on the site.

The 2008 New Autoshopper.com Study is based on the self-reported shopping habits of 27,901 new-vehicle buyers. The study was fielded from May to July 2008.