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Auto Dealers Drive Internet Car Shopping Growth, NADA Says

12 November 1999

Auto Dealers Drive Internet Car Shopping Growth, NADA Says

    WASHINGTON, Nov. 11 -- Franchised new-vehicle dealers
continue to lead the development of automotive Internet retailing, according
to new research from the National Automobile Dealers Association.
    NADA's survey of Internet utilization found the number of dealerships with
Web sites increased to 74 percent in 1999, up from 61 percent the previous
year.  The NADA study also determined that 45 percent of those dealerships
currently without Web sites plan to be on the Internet within the next six
months.
    NADA found that most dealer Web sites are now interactive, letting
customers view inventory and check prices. Nearly 40 percent of dealer sites
allow customers to complete finance applications online and 42 percent allow
customers to schedule service appointments.
    While the majority of dealer sites averaged approximately 50 hits per
month, 14 percent received more than 500 hits each month. Only 9 percent of
dealer sites topped 500 hits per month last year. Ninety-seven percent of
dealerships with Web sites have dedicated staff to maintain and monitor their
sites and 95 percent have salespeople specifically assigned to handle
Internet-generated inquiries.
    In addition to their own sites, more than 50 percent of dealerships
subscribe to one or more third-party Internet shopping services, such as Auto-
By-Tel or CarPoint, up from 31 percent last year.
    The National Automobile Dealers Association represents more than 19,500
franchised new-car and -truck dealers holding nearly 40,000 separate
franchises, domestic and import.