Used-car buyers increasingly using the Internet to go shopping, prefer certified pre-owned cars

More used-car buyers are now turning to the Internet to find a good deal, rather than visiting used car lots or dealerships...

According to J.D. Power’s 2009 Used Vehicle Market Report, Internet shopping has reached parity with visits to dealer lots as the primary method for buyers to locate used vehicles.

The report finds that the percentage of used-vehicle buyers (in the US) who rely on the Internet as a method for locating vehicles for sale has increased from 40 percent in 2008 to 46 percent in 2009, which is equal to the percentage of buyers who visit dealer lots as their primary shopping method. Furthermore, 31 percent of buyers found the vehicle they ultimately purchased on the Internet, compared with 28 percent of buyers who found their vehicle by visiting dealerships.

‘Internet shopping provides prospective buyers with the opportunity to search through enormous amounts of specific vehicle information without ever leaving home, allowing for a more efficient medium of matching buyers with unique used vehicles in the market,’ says Arianne Walker, director of marketing and media research at J.D. Power and Associates. ‘In light of this, dealers should expect the Internet to continue to increase in importance among used-vehicle shoppers and adjust their online presence accordingly.’

The report also finds that awareness of certified pre-owned (CPO) vehicle programs is strong, with more than 60 percent of used-vehicle buyers indicating they intend to purchase certified pre-owned vehicles at the start of their shopping process. ‘Automotive marketers have worked intently to provide information to the public about certified pre-owned programs, but the benefits of these programs can be complex to explain,’ says Walker. ‘However, explaining the value of CPO programs to prospective buyers may carry long-term benefits. There has been a slight increase in the number of repeat buyers of certified vehicles-up from 22 percent in 2008 to 24 percent in 2009. This indicates that buyers of CPO vehicles are increasingly loyal and should be considered an important segment of used-vehicle buyers in their own right.’

With an increasing number of websites in India that allow people to shop for used cars, as well as car manufacturers in India also adding certified pre-owned cars as an integrated business division, the above trends are very likely to be applicable to our market.