Dealers Give Automotive Internet High Marks

Dealerships Cite Improved Sales, CRM and Cost Efficiencies, According to Autobytel Survey

IRVINE, Calif., Feb. 22 -- In honor of the Automotive Internet's 10th anniversary, Autobytel Inc. recently surveyed car dealers nationwide to find out how the Internet has impacted their dealerships -- and to what effect. The majority of dealer respondents credit the Internet with improvements across virtually every dealership department -- from sales and customer retention, to finance and insurance and parts and service, to marketing and operations.

According to the Autobytel survey, dealers agree that the Internet/online technologies have:

   *  lowered marketing/sales costs (66%),
   *  improved customer relations (84%),
   *  made it easier to manage customer information (92%),
   *  helped them retain more sales customers (78%),
   *  helped them retain more service customers (53%),
   *  increased the number of financing customer (65%), and
   *  helped them provide marketing/sales information more easily and
      quickly (96%)

Responses were similarly positive when dealers were asked to either agree or disagree with a series of assertions about the Internet's impact on their dealerships. For example, 80% either "strongly agreed" or "agreed" that the Internet has helped them sell more new vehicles, while 77% strongly agreed/ agreed that it has helped them sell more used vehicles.

The Internet's most positive impact, according to dealers, may be in the area of CRM. Sixty-two percent strongly agreed/agreed that they've successfully used the Internet to retain more customers who previously purchased a new or used vehicle from their dealership. Eighty-eight percent strongly agreed/agreed that the Internet has improved customer relationship management, overall, at their dealership.

"10 years ago, many dealers were skeptical about the Internet's impact on their traditional way of doing business," said Autobytel Inc. President and CEO Jeffrey Schwartz. "Our survey sheds light on how retailers have since evolved to take advantage of the medium's unique communications and marketing abilities. In just 10 short years, dealers have gone from being notorious 'techno-phobes' to one of the most technically-advanced retail segments in the world."

Autobytel.com, the very first online auto information and buying website, went live in March 1995.

Survey conducted among Autobytel Inc. dealers during January 2005. For complete results, contact Joe Foster 323.960.1360.