John,
here's an interesting development...Article...
Superstore interest declines, Internet rises, study shows...
Copyright c 1998 Nando.net
Copyright c 1998 Reuters
NEW ORLEANS, La. (February 1, 1998 1:13 p.m. EST nando.net) - The number of people likely to buy from a used car superstore dropped last year, while those who would consider buying a vehicle through the Internet more than doubled, according to a survey released Sunday.
Despite increased awareness of the used car superstore concept, which offers wide selection often at no-haggle prices, the number of people who would definitely buy a car from one tumbled to 8 percent in the last 12 months from 15 percent, the survey by the Dohring Co. Inc. found.
Superstore chains such as AutoNation and Carmax have been expanding rapidly in the last year and a half, sending shock waves through traditional franchise dealers. The study found awareness of superstores jumped to 31 percent from 22 percent last year.
But Dohring Senior Vice President Rik Kinney said the survey's findings could signal that the superstore concept may not prove to be as popular as some had predicted.
The report of 1,253 responses was released at the annual convention of the National Automobile Dealer Association, which represents the country's approximately 23,000 auto dealers. The margin of error was 2.8 percent. Dohring officials said it funded the survey itself.
One of the concerns people had with superstores was they could be impersonal, Kinney said, with 27 percent citing that as an issue. That could mean the non-confrontational approach superstores advocate has limited value, he said.
"People go into a store needing to be sold," he said.
Meantime, 10 percent of respondents said they would buy a new car or truck over the Internet without a test drive, up from 4 percent in the 1997 survey.
Nearly half of those questioned said they may use the Internet for their next purchase, while 32 percent said they already have looked up information on the Internet.
The most popular piece of information consumers look up is price, followed by specific models and features. Internet usage also spans all age groups. A quarter of those who said they would use it were over 50; 38 percent were 35 to 49; and 37 percent ranged from 18 to 34 years old.
Other survey findings:
--the number of people likely to buy a sport/utility vehicle continues to rise, to 19 percent from 12 percent, while car demand continues to fall, to 49 percent from 54 percent;
--about 23 percent of respondents would consider buying an electric vehicle;
--the number of people who would prefer to buy a higher-end used vehicle for $15,000 instead of a new car or truck at the same price rose to 62 percent from 57 percent;
--61 percent of buyers preferred to negotiate a price compared to 21 percent who disliked the process.
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I don't think I'm ready to buy a car over the net, but from what I hear it's one of the fastest Web Development efforts going.
A new HUGE site is about to be launched www.cars.com What it will do is intergrate used cars, parts, new cars and even junk yard parts into one package, on one website.
I believe this type of effort if done correctly will be very successful.
Could be another amazon.com
Michael |
