Table of Contents
Scope and Themes
-
- What you need to know
- Definition
- Data Sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
-
- Dealership revenues plummeted in 2008 and continued to fall in 2009
- Sales of both new and used cars in steep decline
- Used vehicle supply declined as a result of poor sales, fewer trade-ins
- Wholesale auction sales down; industry goes online
- The internet is now an essential element of car buying process
- Credit has loosened, though many consumers still face barriers
- “Cash for Clunkers” spurs summer buying
- More dealerships close in 2009 than any other time on record
- More than a third of respondents are still buying cars
- Dealers use creative methods to attract consumers to showrooms
- Automakers use direct communication to repair brand image
- Ad spends declining since 2003; explosive growth seen in internet ads
- Consumer survey results
Insights and Opportunities
-
- Embrace stimulus initiatives, shake hands with the government
- Rise of electric vehicles could provide opportunity for savvy dealers
- Dealers can help transition consumers to online buying
Inspire Insights
-
- Trend 1: Simplicity and Convenience
- Convenience means far more ease and portability
- Dealerships will benefit by allowing convenience to start from home
- Trend 2: Ego Is All
- Let’s be honest ourselves: ego is (still) all
- Dealerships massaging consumer ingenuity at their own expense
Market Size and Forecast
-
- Key points
- Dealership revenues plummeted in 2008, continued to fall in 2009
-
- Figure 1: Total sales at new car dealerships, at current prices, 2004-09
-
- Figure 2: Total sales at new car dealership, at inflation-adjusted prices, 2004-09
Segment Performance
-
- Key points
- Both new, used car sales see steep decline
-
- Figure 3: U.S. sales at new car dealerships, by segment, 2005 and 2008
Segment Performance—New Vehicles
-
- Key points
- New vehicle revenue in steep decline
-
- Figure 4: U.S. sales of new vehicles at new car dealerships, 2001-08
- Number of vehicles sold, sticker prices fall
-
- Figure 5: Number of new vehicles sold and average selling price, 1997-2008
Segment Performance—Used Vehicles
-
- Key points
- Used vehicle revenue in steep decline
-
- Figure 6: U.S. sales of used vehicles at new car dealerships, 2001-08
- Dealership supply of used vehicles declined, sticker prices rose in 2009
Segment Performance— Service and Parts Sales
-
- Key points
- Service and parts sales flat, account for all net profits
-
- Figure 7: U.S. sales of service and parts at new car dealerships, 2001-08
Automobile Auctions
-
- Key points
- Wholesale closed auction sales down
- Wholesale auctions heading online
- eBay Motors offers consumers an assist into auction market
Online Car Buying
-
- Key points
- The internet now an essential element of car buying process
- Majority of respondents disagree with having to research/order car online
-
- Figure 8: Attitudes towards online buying, by gender, October 21-November 2, 2009
- Young respondents more open to purchasing online
-
- Figure 9: Attitudes towards online buying, by age, October 21-November 2, 2009
- Households earning $100K or more inclined to purchase/order cars online
-
- Figure 10: Attitudes towards online buying, by household income, October 21-November 2, 2009
Market Drivers
-
- Credit loosening up, though many consumers still face barriers
- Cash for Clunkers driving consumers back to showrooms
- More dealerships close in 2009 than any other time on record
Who is Buying Cars?
-
- Key points
- More than a third of respondents still buying cars; more buying used
-
- Figure 11: Who purchased or leased a new vehicle in last 24 months, by gender, October 21-November 2, 2009
- Respondents aged 18-24 purchasing used at greater rates than older peers
-
- Figure 12: Who purchased or leased a new vehicle in last 24 months, by age, October 21-November 2, 2009
- Households earning less than $25K least likely to purchase cars
-
- Figure 13: Who purchased or leased a new vehicle in last 24 months, by household income, October 21-November 2, 2009
- Midwest respondents buying used cars at greater rates than other regions
-
- Figure 14: Who purchased or leased a new vehicle in last 24 months, by region, October 21-November 2, 2009
Who is Buying Cars – Last 12 Months
-
- Key points
- Respondents show no increase in purchases over past 12 months
-
- Figure 15: Who purchased or leased a new vehicle in last 12 or 24 months, by gender, October 21-November 2, 2009
- Respondents aged 18-24 more likely to have purchased in past 12 months
-
- Figure 16: Respondents who purchased or leased a new vehicle in last 12 or 24 months, by age, October 21-November 2, 2009
- Households earning $25K or less purchasing the least in both time periods
-
- Figure 17: Respondents who purchased or leased a new vehicle in last 12 or 24 months, by household income, October 21-November 2, 2009
Brand Qualities
-
- Dealers using creative methods to attract consumers to showrooms
- Dealers looking to capitalize on the growth of hybrids
- Dealers, third party websites reaching out to Hispanics
Innovation and Innovators
-
- vAuto helps dealers manage used-vehicle inventory
- Hyundai extends successful, innovative Assurance program through 2010
- Automakers use direct communication to repair brand image
- AutoNation expands online business with AutoDirect
Advertising and Promotion
-
- Ad spends declining since 2003; explosive growth seen in internet ads
-
- Figure 18: Dealership media spend, by segment and annual total, 2002-07
- Social media allows auto dealers to interact with consumers personally
- Television spots promoting website visits
-
- Figure 19: Toyota ad, 2009
-
- Figure 20: Hyundai ad, 2009
- Local dealerships promote financing and low prices to buy now
-
- Figure 21: JM Lexus ad, 2010
-
- Figure 22: Tim Dahle Nissan ad, 2009
- Third party seller AutoTrader.com emphasizes choices
-
- Figure 23: AutoTrader.com ad, 2009
Where Cars Are Purchased
-
- Key points
- Most cars bought at dealerships, brand loyalty has less impact in recession
-
- Figure 24: Where most recent vehicle in last 24 months was purchased/leased, by gender, October 21-November 2, 2009
- Respondents aged 18-24 more open to non-dealership channels
-
- Figure 25: Where most recent vehicle in last 24 months was purchased/leased, by age, October 21-November 2, 2009
- Highest-income households prefer single-brand dealerships
-
- Figure 26: Where most recent vehicle in last 24 months was purchased/leased, by household income, October 21-November 2, 2009
What Incentives Are Influencing Purchasing
-
- Key points
- Low financing rates, warranty influencing respondent purchasing the most
-
- Figure 27: Incentives to purchase/lease a vehicle in last 24 months, by gender, October 21-November 2, 2009
- Warranty most important to respondents aged 18-24, 65+
-
- Figure 28: Incentives to purchase/lease a vehicle in last 24 months, by age, October 21-November 2, 2009?
- Respondents earning $25K or less more inclined to Cash for Clunkers
-
- Figure 29: What incentives compelled respondents to purchase/lease a vehicle in last 24 months, by household income, October 21-November 2, 2009?
Satisfaction of Car Buyers
-
- Key points
- Women buyers more satisfied in all areas of buying process
-
- Figure 30: Satisfaction with aspects of car buying process, by gender, October 21-November 2, 2009
- Respondents aged 18-24 most concerned, least satisfied with test drive
-
- Figure 31: Satisfaction with aspects of car buying process, by age, October 21-November 2, 2009
- Dealers achieve satisfaction on far ends of household income spectrum
-
- Figure 32: Satisfaction with aspects of car buying process, by household income, October 21-November 2, 2009
Attitudes of Car Buyers — Dealer Work Ethic
-
- Key points
- Respondents expect more from dealers during recession
-
- Figure 33: Attitudes towards dealership work ethic, by gender, October 21-November 2, 2009
- Greater household income, greater expectations of dealerships
-
- Figure 34: Attitudes towards dealership work ethic, by household income, October 21-November 2, 2009
Attitudes of Car Buyers — Automaker Difficulties
-
- Key points
- Respondents divided on sense of automaker responsibility
-
- Figure 35: Attitudes towards automaker difficulties, by gender, October 21-November 2, 2009
- Youngest respondents less likely to hold automakers accountable
-
- Figure 36: Attitudes towards automaker difficulties, by age, October 21-November 2, 2009
- Most affluent households blame automakers for difficulties at greatest rates
-
- Figure 37: Attitudes towards automaker difficulties, by household income, October 21-November 2, 2009
Attitudes of Car Buyers — “Cash for Clunkers”
-
- Key points
- Young, middle aged respondents open to new “Cash for Clunkers” program
-
- Figure 38: Attitudes towards “cash for clunkers,” by age, October 21-November 2, 2009
- Middle-income households open to new “Cash for Clunkers” program
-
- Figure 39: Attitudes about “cash for clunkers,” by household income, October 21-November 2, 2009
Attitudes of Car Buyers — Attention to Needs
-
- Key points
- Majority of respondents feel car dealers often ignore their needs
-
- Figure 40: Attitudes towards dealers’ respect for their needs, by gender, October 21-November 2, 2009
- Respondents aged 25-34, 35-44 feel their needs more slighted by dealers
-
- Figure 41: Attitudes towards dealers’ respect for their needs, by age, October 21-November 2, 2009
Race and Hispanic Origin
-
- Key points
- Hispanic respondents more likely to be buying cars than whites, blacks
-
- Figure 42: Who purchased or leased a new vehilce in last 12 or 24 monhts, by race/Hispanic origin, October 21-November 2, 2009
- Hispanic respondents brand loyal; blacks prefer multi-brand dealerships
-
- Figure 43: Where most recent vehilce in last 24 monhts was purchased/leased, by race/Hispanic origin, October 21-November 2, 2009
- Hispanics, blacks prefer low financing, warranties than whites
-
- Figure 44: Incentives used to purchase/lease a vehilce in last 24 monhts, by race/Hispanic origin, October 21-November 2, 2009
- Black, Hispanic respondents more satisfied with play area for children
-
- Figure 45: Satsifaction with aspects of car buying process, by race/Hispanic origin, October 21-November 2, 2009
- Hispanic respondents more open to online buying
-
- Figure 46: Attitudes towards online car buying, by race/Hispanic origin, October 21-November 2, 2009
- Black, Hispanic respondents most open to second “Cash for Clunkers”
-
- Figure 47: Attitudes towards “cash for clunkers,” by race/Hispanic origin, October 21-November 2, 2009
- Hispanic respondents most likely to feel needs ignore
-
- Figure 48: Attitudes towards dealers’ respect for their needs, by race/Hispanic origin, October 21-November 2, 2009
Cluster Analysis
-
- Thrifties
- Traditionalists
- Deal Makers
- Cluster characteristics
-
- Figure 49: Car buying clusters, October 2009
- Figure 50: Where cars are purchased, by car buying clusters, October 2009
-
- Figure 51: Incentives used, by car buying clusters, October 2009
- Figure 52: Satisfaction levels for buying process, by car buying clusters, October 2009
-
- Figure 53: Buyer attitudes towards buying process, by car buying clusters, October 2009
- Cluster demographics
-
- Figure 54: Car buying clusters, by gender, October 2009
- Figure 55: Car buying clusters, by age group, October 2009
- Figure 56: Car buying clusters, by income group, October 2009
-
- Figure 57: Car buying clusters, by race, October 2009
- Figure 58: Car buying clusters, by Hispanic origin, October 2009
- Cluster methodology
Appendix: Other Useful Consumer Tables
-
- Attitudes towards dealership work ethic and age
-
- Figure 59: Attitudes towards dealershp work ethic, by age, October 21-November 2, 2009
- Attitudes towards “Cash for Clunkers” and gender
-
- Figure 60: Attitudes towards “cash for clunkers,” by gender, October 21-November 2, 2009
- Attitudes towards dealership respect for needs and household income
-
- Figure 61: Attitudes towards dealers’ respect for their needs, by household income, October 21-November 2, 2009
- Attitudes towards dealership work ethic and race and Hispanic origin
-
- Figure 62: Attitudes towards dealershp work ethic, by race/Hispanic origin, October 21-November 2, 2009
- Attitudes towards automaker difficulties and race and Hispanic origin
-
- Figure 63: Attitudes towards automaker difficulties, by race/Hispanic origin, October 21-November 2, 2009
Appendix: Trade Associations
Back to top