Automotive Industry Trends

Where is the used vehicle industry headed?

Several trends in recent years have changed the used car marketplace dramatically. The driving force behind these four trends is the same - the increased consumer demand for more information before they make a purchase decision. Source: Dohring Company

How big is the used vehicle market?

In 1999, 43.3 million used vehicle transactions occurred with a total value of $361 billion (average selling price of $8,830/vehicle). Source: 2003 Used Car Market Report, ADESA The Internet "More used-vehicle buyers are turning to the Internet in their automotive shopping process than ever before, according to the 2004 J.D. Power and Associates Used Study. The study is based on the online shopping habits of late-model used-vehicle buyers (five model-years old or newer). Currently, fifty-four (54) percent of all used-vehicle buyers use the Internet as part of the vehicle shopping process-up from 43 percent in 2003 (Press Release ? July 7, 2004) Source: J.D. Power & Associates Automotive Internet Visits Among all used-vehicle buyers, 36 percent say their make and model decisions were impacted by information found online?up from 29 percent in 2003?while 22 percent were impacted in their selection of sellers?up from 16 percent. Among automotive Internet users, 85 percent say the Internet impacted the price they paid for their vehicle, and 66 percent say it impacted which make or model to purchase Source: J.D. Power & Associates Superstore As traditional auto dealers undergo consolidation nationwide, used car superstores are aggressively entering the market. "49% of consumers surveyed would prefer to shop and purchase from a used car superstore because of large selection and variety." Source: Dohring Company Certification Program Most auto manufacturers now offer some sort of used car certification program in an effort to ensure used vehicle quality. "28% of consumers surveyed would prefer to shop for a used vehicle at a new car dealership with a manufacturer's certification program." Source: Dohring Company Disclosure Many states nationwide have enacted laws forcing sellers of used vehicles to accurately represent the condition of the vehicle and disclose any potential problems. CARFAX Vehicle History Reports enable auto dealers to provide detailed information about a used vehicle. "93% of consumers surveyed want dealerships to provide a record of used vehicle history." Source: Dohring Company