The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

2010 Chrome Consumer Survey Reveals Changes in Vehicle Buying Behavior


PHOTO (select to view enlarged photo)

PORTLAND, Ore.--Chrome ® Systems Inc., a subsidiary of DealerTrack Holdings, Inc. and an industry leader in managing automotive data, today announced the results of the 2010 Chrome Consumer Survey, which highlights significant shifts in the way consumers are researching and purchasing vehicles in 2010 compared to the previous year. Among the survey's key findings were:

  • Necessity has become the primary driver for vehicle purchases. ( See Big Family-Lots of Friends) In what may be a sign of the economy's continued softness, fewer respondents said they purchased or leased a vehicle simply because they wanted something new (21% in 2010, down from 32% in 2009). The number one reason cited for purchasing or leasing a new vehicle was the current vehicle being unreliable or broken down (26%, up from 19% in 2009).

  • Vehicle availability influences consumers' choice of dealerships. 20% of respondents chose a dealer based on specific online inventory listings, up from 15% last year. Dealer loyalty is eroding, as only 24% said they selected a dealer because they or someone they knew had previously purchased or leased from that dealer, down from 37% in 2009.

  • Brand loyalty is diminishing. Compared to 2009, consumers are less likely to want to purchase the same brand of car they previously owned (35% in 2010 versus 39% last year).

  • More than four out of five car-buyers shop online first. 83% of respondents said they were likely to shop for a vehicle online before making a purchasing or leasing decision. Among those researching vehicles on OEM and dealer websites, price and preferred equipment selection was cited as the leading factor in purchase decisions.

  • Concerns about fuel economy have waned with the stabilization of gas prices. While fuel economy is critical to about half the consumers, (54%, down from 60% in 2009), vehicle price (74%), body style (68%) and overall appearance and styling (59%) rank higher as must-have features.

"It is no surprise that the sluggish economy has changed consumer' vehicle purchasing habits, and this survey highlights some of the critical shifts in sentiment," said Amit Maheshwari, general manager, DealerTrack Data Services. "The need for a strong online presence is greater than ever as price, availability and convenience can convert an online review of inventory into a relationship with a dealer."

Mr. Maheshwari continued, "Building upon the results from last year's survey, we are able to see marked shifts in consumer vehicle purchasing trends that will help trend-conscious auto retailers make decisions that drive traffic to their websites and stores. As consumers become more research-savvy, dealers should aggressively manage their inventory, stocking in-demand new and used vehicles and pricing them to sell quickly and profitably."

About Chrome (www.chrome.com)

Chrome provides vehicle content, software, technology and services to deliver complete enterprise solutions to all segments of the automotive retail industry. Chrome pioneered the technology behind electronic vehicle configuration with the introduction of PC Carbook®, and since 1986 has collected, analyzed and enhanced "raw" automotive data from all manufacturers.

Ed Note:Although Chrome admittedly pioneered the use of the floppy disc for automotive data, The Auto Channel pioneered the publication of New Car Data on the web...we bought "raw" data from Chrome and configured it for the web and for car buyers to use in their research. In 1996 The Auto Channel management met with Chrome management at the NADA meeting in Las Vegas and showed them "The Internet"; an agreement was consummated in which chrome would sell their data to The Auto Channel, so while Chrome was selling PC Carbook floppy disks to dealers for $99 per month, The Auto Channel developed the software and built the platform to become the first web site to offer new car data including MSRP and Invoice prices at no charge to consumers via The Auto Channel website. In 1996 The Auto Channel and Chrome entered into a mutual Non-Disclosure Agreement to pursue a partnership to develop and expand the availability of new car data over the web. Until The Auto Channel agreement Chrome had no web presence. In February 1997 a principal of The Auto Channel visited with Chrome's management in Portland, Oregon to discuss the details of the joint venture to disseminate the Chrome Raw Data using The Auto Channel's formatting and proprietary software. Well they didn't live up to our agreement and decided that they would take what they learned from us and do it themselves. So much for pioneering...oh well.

Chrome Systems Inc. is a subsidiary of DealerTrack Data Services, Inc., a DealerTrack Holdings, Inc. company .