``How Much Should I Really Expect to Pay for That Car?''
IRVINE, Calif.--Nov. 19, 2002--96% of Online Survey Respondents Feel Estimated Market Price Will Enhance Their Ability to Get a Fair Price on Their Next Car or Truck
Autobytel Inc. , the Internet's largest new car buying service, has rolled out its new vehicle "street" pricing guide, Estimated Market Price(TM) (or EMP(TM)), across all of its websites: Autobytel.com, Autoweb.com, Carsmart.com and Autosite.com. The new EMP research data provides the average selling prices -- what buyers have actually paid at dealerships -- for hundreds of popular new makes, models and trim levels. Fair market pricing information, like that provided by EMP, has been identified by online car shoppers as among the most sought after -- and currently least found -- categories of automotive information. In fact, 96% of participants in a recent Autobytel online survey feel EMP will enhance their ability to get a fair price during their next vehicle purchase.
"MSRP and invoice pricing are useful benchmarks for consumers, but they don't necessarily reflect the real world," said Autobytel President and CEO Jeffrey Schwartz. "For example, a hot new model will almost certainly end up costing more than MSRP, while a less popular model can often be purchased for below invoice. EMP provides the elusive information that consumers really want to know -- which is, how much, on average, is this car really selling for at dealerships? What can I realistically expect to pay?"
Before the advent of online car buying, the only pricing model available to car shoppers was manufacturer's suggested retail price (MSRP), a pricing guideline that is determined by manufacturers before the vehicle ever hits the showroom floor. When Autobytel.com launched in 1995, the company made "invoice pricing" -- what the dealer pays the manufacturer for a car or truck -- available to millions of car shoppers. But while invoice pricing provided a new level of pricing transparency, it didn't factor in market conditions like consumer demand, rebates and incentives, etc., all of which influence a vehicle's selling price. EMP moves beyond these models, letting consumers know what vehicles are already selling for on average across the nation.
EMP was developed by Autobytel Inc.'s vehicle data and content division, AIC (Auto Information Center), which created the industry's first "street pricing" database and has featured EMP on its AutoSite consumer site since Spring 2000. It is based on real-world sales data gathered directly through the financing and insurance software system used by thousands of dealers nationwide. This data is factored in with current market conditions and extensive information about dealer incentives and profit margins to provide a uniquely market-sensitive average selling price for every trim/series level available on hundreds of popular new makes and models.
According to another Autobytel customer survey, a car buyer's perception that he or she is receiving a "fair price" is the single most significant factor in the decision to buy. According to Schwartz, EMP should have a significant -- and positive -- industry impact, not only because of the sheer size of Autobytel's online audience, but because of how far along these consumers are in the car-buying process. "Once again, Autobytel is changing the way cars are bought and sold. By bridging consumer and retailer price expectations, we're helping to create a more efficient, enjoyable experience for both car buyers and car sellers."
Autobytel Survey Confirms Consumer Demand for EMP
A recent Autobytel online survey(a) soliciting consumer feedback on EMP has met with enthusiastic response, with a full 96% of respondents indicating that they feel EMP would enhance their ability to get a fair price during their next vehicle purchase.
Asked to name the factor that would be most useful in the car-buying process, most (45%) responded `the national average selling price of a vehicle' -- which far outpaced respondents' preference for currently popular information like `vehicle features and options' (26%), `reliability information' (21%) and `safety information' (7%).
The survey also suggests that today's information-savvy consumers are moving beyond sticker price and MSRP. Only 26% indicated that they found MSRP useful when researching the price of a vehicle, with 45% responding that they found invoice price `somewhat useful as a starting point when researching the price of a vehicle.' Fifty-six percent of respondents indicated that they would not want to pay MSRP for their next vehicle, and 35% replied that they never expect to pay invoice for a vehicle.
About Autobytel Inc.
Autobytel Inc. , a leading Internet automotive marketing services company, helps retailers sell cars and manufacturers build brands through marketing and CRM (customer relationship management) programs. Autobytel Inc. owns and operates the popular websites Autobytel.com, Autoweb.com, Carsmart.com and Autosite.com, as well as AIC (Automotive Information Center), a leading provider of automotive marketing data and technology. Autobytel Inc. generated an estimated four percent of all domestic new vehicle sales -- $17 billion in car sales in 2001 -- for dealers through its services. Autobytel Inc. is the largest syndicated car-buying content network, reaching millions of unique visitors as they are making their vehicle buying decisions. Autobytel Inc. content and technology has potential exposure to over 90 percent of total web traffic(b).
(a) Survey conducted on Autobytel car-buying site, AutoWeb.com from 9/10/02 - 9/12/02
(b) Jupiter Media Metrix October 2001 Digital Media Audience Report (Autobytel Inc. sites are the unduplicated audience of the Autobytel and Autoweb properties and Carsmart.com. The car-buying and ownership category as defined by Autobytel. Autobytel Inc. provides content to Yahoo! Inc., AOL websites, MSN.com and Lycos.com. The unduplicated audience of these four sites accounts for over 90 percent of total traffic.)