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Consumer Preference for Used Car Superstores Drops Fifty Percent in Last 12 Months

1 February 1998

Consumer Preference for Used Car Superstores Drops Fifty Percent in Last 12 Months

  National Study Finds Consumer Interest in Used Car Superstores Has Declined

    NEW ORLEANS, Feb. 1 -- A national automotive consumer study
released today found that used car superstores may have stalled in their drive
to gain market share from new car dealers.  The study found that, despite
increased awareness and much hype, consumer willingness to buy from a used car
superstore has dropped significantly.
    According to the study, conducted by The Dohring Company, Inc., new car
dealers could continue to dominate used car sales by effectively marketing and
selling cars under a manufacturer's certified program.  The study also found,
however, that new car dealers without a manufacturer's certified program place
last in terms of consumer preference.
    The study, released here at the annual convention of the National
Automobile Dealers Association held in New Orleans, found that new car dealers
with a manufacturer's certified used car program are preferred over used car
superstores by a ratio of nearly eight-to-one (53 percent to 7 percent).
    "While new car dealers with a manufacturer's certified used car program
could enjoy a tremendous competitive advantage, I would caution against
overconfidence," stated Rik Kinney, senior vice president of The Dohring
Company.  "Consumer awareness of these programs remains low, at just
22 percent.  Unless traditional new car dealers can effectively market these
preferred, automaker-backed programs, the used car marketplace remains an open
battlefield."
    Consumer awareness of used car superstores has increased dramatically;
from 22 percent in 1997 to 31 percent in 1998.  Approximately three out of ten
consumers are aware of used car superstores by name.  Consumer willingness to
buy from a used car superstore, however, fell significantly in the last year,
showing a decrease of twelve percent.
    The study also found that consumer interest in shopping a new car
dealership with a manufacturer's used car program has increased sharply from
34 percent in 1997 to fifty percent in 1998.  Eleven percent of consumers
would prefer to purchase their next used vehicle from a private party; seven
percent from a used car superstore; five percent from an independent used car
dealer; three percent from a used car auction and three percent from a new car
dealer without a manufacturer's certified used car program.
    The study was completed in January 1998, with a random sample of 1,253
qualified consumers from all 50 states.  The poll's margin of error is
+/- 2.8 percent.
    The Dohring Company, Inc. is North America's largest provider of custom
market research to the retail automotive industry.  The Glendale,
California-based firm has conducted over 4,000 studies for automobile dealers,
automotive dealer advertising associations, automakers and suppliers, and more
than one million vehicle buyer interviews.

SOURCE  The Dohring Company, Inc.