| According to the National Automobile Dealers Association (NADA), the number of new-car dealers with a presence on the Internet is at an all-time high, with more than 80 percent of dealerships now on the Web. This is an increase of 8.4 percent in just six months. The NADA survey also indicates that two-thirds of the dealers not yet on the Internet will be there in the next six months.
Meanwhile, new-car shoppers are heading to their computers in record numbers before cruising showrooms in an effort to save money. U.S. auto dealers report that buying a new vehicle using an Internet online buying service saves an average of $490 compared to showroom shopping, according to a study recently released by auto consulting firm J.D. Power and Associates.
The majority of the dealers online offer at least some interactivity, allowing users to send e-mail, order online, or get financing. NADA and the Cobalt Group are currently developing an Internet portal which would link consumers directly to dealer Web sites.
According to Chris Denove, senior director of J.D. Power’s retail and distribution practice, over half the auto buying public shops online, and about five percent of them are expected to make an online auto purchase this year. In addition, most dealers participating in the study said customers who are referred through an online buying service are given a discounted price quote up front without having to make an offer. Also, many dealers offer to bring a new car or light truck to the customer’s home for a test drive.
“There’s so much competition to get Internet customers that dealers are providing excellent prices,” Denove said. “They see the Internet buyer as incremental or found business. Therefore, they’re more willing to sell a vehicle at a heavily discounted price.”. |
