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More Dealers Use the Internet to Accelerate Sales, NADA Says

2 March 2000

More Dealers Use the Internet to Accelerate Sales, NADA Says

    WASHINGTON, March 1 -- The Web presence of new-car dealers is
at an all-time high, 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 80.3 percent, an increase of 8.4 percent in just six
months.  Ninety-three percent of these sites are interactive, allowing the
customer to send e-mail, order online or obtain financing. However, "Many
dealers need to improve the flexibility of their Web sites," said NADA Chief
Economist Paul Taylor. Currently, only 42 percent of dealer Web sites allow
customers to schedule a sales or service appointment. The NADA study also
determined that two-thirds of those dealerships currently without Web sites
plan to be on the Internet within the next six months.
    The NADA survey found that Web site usage varied by region. Eighty-three
percent of dealers in the Northeast have Web sites, followed by 80 percent in
the West, 77 percent in the South and 67 percent in the Midwest.
    To support dealers' efforts to actively serve Internet customers, NADA and
The Cobalt Group are developing a comprehensive Internet portal that will link
consumers directly to dealer Web sites, giving them instant access to over
half a million new and used vehicles. The site is expected to be operational
in May. NADA and Cobalt will also offer Web site development and hosting
capabilities for dealers who want to upgrade their current Web sites and for
those dealers currently without Web sites.
    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.