Cars.com Online CPO Insights Presentation Nov 2012

2012 Cars.com Online CPO Shopper InsightsDavid Greene

Manager, Advertiser Insights

Objectives and Methodology

CPO Shopper Demographics

Motivations for CPO Consideration

Internet Role in Shopping Process

Conclusion

Today’s Agenda

Objectives

Objectives

• To gauge awareness of certified pre-owned vehicles (CPO) among consumers

• To understand more about consumer influences and motivations for purchasing or considering a CPO vehicle

• To better understand how car shoppers use their mobile devices in the decision making process

Methodology

CPO Insights Study

• Online Panel via Qualtrics

• June 2012

• CPO Shoppers n=590

• CPO Purchasers n=288

• Internet used to research/shop

Mobile Car Shopper Study

• Online Panel via Nielsen

• June 2012

• Auto Shoppers n=748

• Auto Purchasers n=754

• Mobile device used to research/shop

• Mobile apps, mobile websites, Internet





Conclusion

Today’s Agenda

Household Income

Q: Please choose the category that roughly includes your total annual household income before taxes.

65%

78%

All CPO Shoppers: $45,000+

Mobile CPO Shoppers*: $50,000+

63% New Shoppers

*Source: Mobile Web and App Usage for Automotive ShoppersConducted on behalf of Cars.com by Nielsen, September 2012

**Source: Nielsen @Plan, Q2 2012; Shoppers that will definitely or probably purchase a new/used vehicle in the next six months.

All Auto Shoppers**: $50,000+

58% Used Shoppers

Age: Percent of Shoppers 35+ Years Old

Q: Which of the following groups include your age?

58%

60%

All CPO Shoppers Mobile CPO Shoppers*

60% New Shoppers

All Auto Shoppers**: 35+ years old

*Source: Mobile Web and App Usage for Automotive ShoppersConducted on behalf of Cars.com by Nielsen, September 2012

**Source: Nielsen @Plan, Q2 2012; Shoppers that will definitely or probably purchase a new/used vehicle in the next six months.

51% Used Shoppers

Education

Q: What was the last year of school you completed?

36%

15%

College graduate Post-grad work

Source: Nielsen @Plan, Q2 2012; Shoppers that will definitely or probably purchase a new/used vehicle in the next six months.

9% New Shoppers

New Shoppers: 20%

Other CPO Shopper Demographics

Caucasian

Married

73%

58%

Q: Prior to considering a Certified Pre-Owned vehicle, did you visit a dealership to see:?





Conclusion

Today’s Agenda

Before considering CPO

Visited a dealership to see a NEW car

Visited a dealership to see a USED car

70%

69%


CPO Shoppers Intend to Research and Shop Much Longer Than New Buyers

Q: You’ve indicated you’ve shopped for a used or Certified Pre-Owned vehicle. When do you plan to purchase or lease a vehicle?

* New Vehicle Buyers from J.D. Power and Associates 2012 New Auto Shopper Study

17%

35%

28%

20%

38%

28%

15%

9%

1 month or sooner 1-3 months 4-6 months 7-12 months

CPO Shoppers

New Vehicle Buyers*

Number of vehicles considered at beginning of shopping process

Q: Approximately how many different vehicle models were you considering when you first used the Internet in your current or most recent vehicle

shopping process?

6%

44%

36%

14%

1 2 to 3 4 to 6 6+

CPO buyers spend less than originally planned

Q: What was the price of the Certified Pre-Owned vehicle you purchased, excluding tax, license, trade-in, rebate, etc.?

5%

10%

15%

20%

25%

30%

< $10,000 $10K-$14K

$15K-$19K

$20K-$29K

$30K-$39K

$40,000+

Perc

ent

of C

PO

S

hoppers

/Buyers

Price Planning to Spend

CPO buyers spend less than originally planned

Q: What was the price of the Certified Pre-Owned vehicle you purchased, excluding tax, license, trade-in, rebate, etc.?

5%

10%

15%

20%

25%

30%

< $10,000 $10K-$14K

$15K-$19K

$20K-$29K

$30K-$39K

$40,000+

Perc

ent

of C

PO

S

hoppers

/Buyers

Price Spent Price Planning to Spend

How much is CPO worth?

Q: Certified Pre-Owned vehicles, unlike other used vehicles, have been inspected, repaired, and given a warranty. Knowing that, how much extra should a Certified Pre-Owned vehicle cost, compared to a similar used non-certified vehicle?

22%

54%

25%

< $1,000 $1,000-$2,500 $2,500+

85%

49%

Half of CPO Purchases Fall Into OEM Programs

CPO Shoppers intending to buy OEM CPO

CPO Buyers that purchased OEM CPO

Q1: You mentioned that you are planning to purchase or lease a used or Certified Pre-Owned vehicle. Which of the following are you most likely to consider purchasing or leasing? Mark all that apply.

Q2: You mentioned that you purchased or leased a Certified Pre-Owned vehicle in the past six months. Which of the following best describes the Certified Pre-Owned vehicle that you most recently purchased?

Higher CPO Intent Than Purchase Among Mobile Shoppers

5%

10%

15%

20%

25%

30%

35%

NewCPOUsed

Perc

ent

of

Shoppers

/Buyers

Intenders Purchasers

Source: Mobile Web and App Usage for Automotive ShoppersConducted on behalf of Cars.com by Nielsen, September 2012

Top 10 Reasons Shoppers Consider CPO

Q: Which of the following are the most important factors that influenced you to consider a Certified Pre-Owned vehicle? Please select all that apply.

60%

55%

51%

47%

42%

39%

38%

30%

28%

23%

Quality/ Reliability

Lower price than new vehicle

Peace of mind that it's a quality vehicle

Certified warranty is backed by OEM

Brand reputation

Lower mileage than a non-certified

Just as good as a brand new vehicle

I want an extended warranty

Vehicle Reviews

I can afford more features/options

Top 10 Reasons Shoppers Consider CPO: TRUST


60%

55%

51%

47%

42%

39%

38%

30%

28%

23%





Brand reputation




Vehicle Reviews


Top 10 Reasons Shoppers Consider CPO: VALUE


60%

55%

51%

47%

42%

39%

38%

30%

28%

23%





Brand reputation




Vehicle Reviews


Top 11 Reasons Shoppers Consider CPO


↓

↓

↑

Luxury Shopper

Differences60%

55%

51%

47%

42%

39%

38%

30%

28%

23%

22%





Brand reputation




Vehicle Reviews


It allows me to afford a luxury vehicle





Conclusion

Today’s Agenda

Where do shoppers first learn about CPO?

20%

14%

12%

11%

11%

9%

7%

Dealership staff

TV ad

Prior experience

3rd Party vehicle information site

Dealership website

Friend/family member

OEM website

Q: Where did you first learn about Certified Pre-Owned vehicles?

Less than 2.5%: While servicing my car or while at the mechanic; Newspaper or magazine advertisement; Other Social networking website; Magazine or newspaper article; Radio advertisement; Online advertisement

Did the Internet Change or Influence Your Decision?

Q: On a scale of 1 to 5 where “1” means “No Influence” and “5” means “Strong Influence”, how much does your use of the Internet influence the following?

Make or model

CPO or new/used

Price to pay

Where to purchase

NoInfluence

StrongInfluence

What are CPO shoppers doing on the Internet?

Q: In the past six months, have you used the Internet to: (Mark all that apply)

What car do I want?

How much should I

pay?

Where should I buy it?

92%

69%

64%

53%

43%

33%

33%

Research vehicle

Determine brands to consider

Determine type of vehicle I want

Learn about CPO programs

Read dealership reviews

Learn about negotiating price

Research extended warranty programs

What are CPO shoppers doing on the Internet?

Q: In the past six months, have you used the Internet to: (Mark all that apply)

92%

69%

64%

53%

43%

33%

33%

Research vehicle

Determine brands to consider

Determine type of vehicle I want

Learn about CPO programs

Read dealership reviews

Learn about negotiating price

Research extended warranty programs

But don’t call

me, I’ll call you!

Find vehicle

& dealership

Interacting with Dealers Through the Internet

66%

46%

43%

39%

29%

28%

21%

17%

10%

Browse vehicle listings and read about options

Find dealership address

Find dealership phone number

E-mail a dealership for a price quote

Negotiate price through email

Have a dealership contact me by email

Have a dealership contact me by phone

Instant message or online chat

Don't want to interact through Internet

Q: Thinking about your recent online vehicle shopping experience, and how you might shop for vehicles in the future, how would you prefer to use the Internet to interact with vehicle dealerships while car shopping? (Please select all that apply)

Device Usage for Vehicle Shopping

39% 49%

88%

Cell Phone Tablet PC/laptop

How important was each device in your vehicle shopping process?Percent of shoppers indicating 4 or 5, where 5 = extremely important, and 1 = not important.Source: Mobile Web and App Usage for Automotive ShoppersConducted on behalf of Cars.com by Nielsen, September 2012

Percent of Mobile Shoppers Indicating High Importance

How Important Is Mobile?

43%36%

Source: Google/OTX, The Mobile Movement, U.S., April 2011

71%

35%

How important is mobile to auto shoppers?

Mobile device supplemented vehicle search, but most research done on PC/laptop

Info researched on mobile device is essential factor in decision to purchase specific vehicle


Mobile Shoppers Access Automotive Content Wherever They Are


79%

58%54%

50%43% 43% 40%

Home Watching TV

While waiting

Work In a car Restaurant Dealership

Auto Information Researched While At a Dealership


57%

22%

14%

12%

9%

Pricing Information

General Information

Vehicle Feature Information

Vehicle Information

Information About Reviews





Conclusion

Today’s Agenda

Key Takeaways

CPO Shopping Cycle is Longer

17%

35%

28%

20%

1 month or sooner

1-3 months 4-6 months 7-12 months

Key Takeaways

NEW car

USED car

70%

69%


CPO shoppers also consider new and

used, non-certified vehicles prior to certified

vehicles.

Before considering CPO, visited dealership to

see:

Key Takeaways

CPO shoppers are motivated by value, and they want a vehicle they feel they can trust.

Messaging to CPO shoppers:

• Peace of mind

• Long-term cost savings of CPO

• CPO is smart decision

2012 Cars.com Online CPO Shopper InsightsDavid Greene

Manager, Advertiser Insights

[email protected]@GreeneCars

dealers.cars.com/cpo

Thank you!

Cars.com Online CPO Insights Presentation Nov 2012

Automotive

Transcript of Cars.com Online CPO Insights Presentation Nov 2012