New Car Online Price Shoppers Most Likely to Stick With Requested Brand and Model According to Polk Study

New Car Buyers 14 Times More Likely to Buy Intended Make Than General Population; Average Buying Window 50 Days

IRVINE, Calif., Sept. 8 -- According to a recent study by R. L. Polk & Co.* two out of three consumers who submitted a new vehicle Purchase Request through Autobytel bought a vehicle -- with 42% buying a new vehicle and 25% opting to buy used. Autobytel customers who bought a new vehicle were 14 times more likely to buy their intended make than the general population during the same period.* In addition, the study shows that the average online purchasing cycle is just over 50 days, suggesting a need for dealers to reassess traditional methods for serving the online customer.

"The Polk study confirms what we have always known -- our online customers are serious about purchasing," said Autobytel Inc. President and CEO Jeffrey Schwartz. "With a purchasing window that extends well beyond the first contact, it's crucial that dealers utilize the tools and best practices that will help them build a relationship with their online customers during this expanded and critical buying phase."

The study found that two-thirds of car buyers who bought or leased a vehicle after submitting a Purchase Request through Autobytel did so within 90 days, with one-third doing so within the first 30 days. The likelihood to purchase tapered off each month following Purchase Request submission with the average time between vehicle request and purchase significantly longer for more expensive brands -- e.g., 2.5 months for Porsche buyers -- than for moderately priced makes like Hyundai, Subaru and Suzuki, which each averaged just over 30 days.

According to Dennis Colome, Autobytel's Director of Dealership Performance Coaching and Best Practices, these findings highlight the need for dealers to not only respond immediately to online leads, but also to maintain regular points of communication during the critical weeks thereafter. "Dealers often think of the online Purchase Request as an end, rather than a beginning," said Colome. "Excellent prospect and showroom management tools supporting a communications strategy that keeps the dealership front of mind for the buyer is the silver bullet for closing Internet sales."

Internet Sales Best Practices for Turning More Online Buyers Into Showroom Customers

Below are some tips from Autobytel's Performance Coaching Program, which provides easy-to-implement best practices to help dealers build relationships with Internet customers.

   -- Treat Internet Leads Like Showroom Customers -- Translate the
      traditional meet and greet, fact finding discussion, inventory walk
      and product presentation, etc. to the Internet -- the key is to build
      a relationship with the customer
   -- Maintain Regular Points of Communication -- Expand the
      industry-standard 2-email initial point of contact with weekly
      broadcast emails, each offering a value proposition, complemented by
      periodic low-pressure phone calls to stay in touch and encourage a
      showroom appointment.
   -- Provide Helpful Inventory Options -- Many online buyers have champagne
      tastes on a beer budget and tend to aim high when they submit purchase
      requests and 25% of new car buyers will switch to a used vehicle. So,
      in addition to providing information on the requested vehicle, dealers
      should quote a comparable vehicle that is 10% less expensive, provide
      information about the lowest priced vehicle in the category, and
      suggest some used and/or CPO options. In other words, when it comes to
      price quotes, work to expand the discourse from a simple 'yes or no'
      conversation to a more general dialogue about the customer's needs and
      priorities, and how you can best serve them.

* Study is based on nearly 50,000 new Autobytel new vehicle Purchase Requests tracked from March 2003 to November 2003