AutoTrader.com Establishes Itself as Leading Destination Among Used Vehicle Buyers Online
2 November 2000
AutoTrader.com Establishes Itself as Leading Destination Among Used Vehicle Buyers Online
ATLANTA--Nov. 2, 2000--AutoTrader.com is the leading Internet destination for buyers of used vehicles, according to the 2000 Used Autoshopper.com Study conducted by J.D. Power and Associates, the leading international marketing information firm recognized by many in the automotive industry as the voice of the customer.The study, which analyzed the shopping patterns of used vehicle buyers, ranked websites according to the number of visits consumers made when shopping for a used vehicle. Based on responses from more than 6,000 consumers nationwide who recently purchased a 1995 to 2000 model used vehicle, 21 percent of buyers who located their vehicle online used AutoTrader.com to do so.
Thirty-four percent of used vehicle buyers log on the Internet to help them during the shopping process, an 8 percentage point increase over 1999 study results, when only 26 percent of used vehicle buyers utilized the Web.
Although the used vehicle market is not considered as "sexy" as the new vehicle market, the Internet may ultimately have a greater impact on the former. According to the study, used vehicle buyers go online looking for specific vehicles for sale, while new vehicle buyers log on to research facts and figures such as vehicle pricing or specifications. The Internet provides these consumers a vital tool that was once the job of the newspaper classifieds.
"Consumers are increasingly aware of the usefulness of our site over newspaper classifieds because they are able to streamline and simplify the buying and selling process in ways never thought possible," said Chip Perry, president and CEO, AutoTrader.com. "By using AutoTrader.com, sellers-both dealers and private owners-can significantly reduce the cost of advertising and curtail their dependence on traditional outlets."
The study reveals changes in the way people utilize advertising when buying and selling vehicles. The number of Internet classifieds is expected to surpass newspaper classifieds within the next four years as more people head to this medium. During the past year alone, the number of people finding their used vehicle online nearly doubled, while those using newspaper classifieds has decreased.
A recent study by market research firm IDC reveals that consumers' increased confidence and familiarity with the Internet in general is generating more revenue in sales of used vehicles online. U.S. Internet sales of used cars may increase 15-fold to more than $164 billion annually by 2004.
About AutoTrader.com
AutoTrader.com is the leading Internet destination and marketplace in the United States for buyers and sellers of used cars, light trucks, vans and sport utility vehicles and for consumers seeking information regarding automotive products and services, such as insurance, financing and warranties. AutoTrader.com utilizes the power of the Internet and its ability, through its exclusive strategic alliances, to aggregate in a single location an extensive network of industry participants and a comprehensive database of automotive information to create an open marketplace that is local, regional and national in nature. AutoTrader.com contains approximately 1.5 million used vehicle listings.
AutoTrader.com, formerly AutoConnect.com, was formed in 1997 as a majority-owned subsidiary of Manheim Auctions, Inc. which has been in business since 1945 and is the world's largest operator of wholesale auto auctions. Manheim Auctions, a wholly owned subsidiary of Cox Enterprises, Inc., a leading media conglomerate, is AutoTrader.com's principal stockholder and one of AutoTrader.com's strategic partners. Other investors in AutoTrader.com include entities with which AutoTrader.com has also formed strategic relationships, such as Trader Publishing Company, ADP, Inc., eBay, Inc. and the venture capital firm, Kleiner Perkins Caufield & Byers.
About J.D. Power and Associates
Headquartered in Agoura Hills, Calif., J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on actual responses from millions of consumers annually. J.D. Power and Associates can be accessed through the Internet at www.jdpa.com.