Driving A Better Deal: The Internet Is Changing The Face Of Buying Cars In Canada
Nearly Two-thirds Of Canadian Internet Users Have Used The Internet To Search Online For Vehicle Prices, Features Or Other Information
Vancouver, B.C. -- The Internet is changing the way Canadians are buying new and used vehicles. Online Canadians1 are increasingly turning to the Internet to help them in the vehicle purchase process. A full 63% of online Canadians are reporting that they have used the Internet to search online for vehicle prices, features or other information according to a recent study by Ipsos-Reid. This is a little higher than the proportion taking part in many other online activities such as searching for real estate information (51%), comparison shopping online (49%) or conducting online banking (53%). The results are even more significant when looking at those who have purchased a new or used vehicle within the past two years. Among those who have recently purchased a vehicle, four-in-five (80%) have searched online for vehicle prices, features or other information.
"The high level of use of the Internet in the vehicle purchase process is quite significant as online Canadians represent a very substantial portion of the car buying public," says Rhys Gibb of Ipsos-Reid. "The Internet is a great way for sellers to influence a large group of potential customers." The survey results show that well over one-third of online Canadians (38%) report purchasing a new (16%) or used (22%) car in the past two years.
The primary advantages of using the Internet as a vehicle purchasing resource are related to having greater access to information. Topping the list is the advantage of being able to easily shop and compare vehicle prices (42%). The second biggest advantage is that the Internet is a good source of information for features, specifications, colours, etc. (31%). Another advantage, according to some, is not having to deal with salespeople to get this kind of information. Just over one-quarter of those using the Internet as a vehicle buying resource (28%) list this as an advantage.
"The Internet is really changing the way online Canadians are buying cars and dealers and salespeople will need to adjust to this new reality," says Gibb. "Information is a key tool for those looking to purchase a vehicle and the Internet helps to level the playing field between buyers and sellers. Sellers used to have exclusive access to such information as Blue Book values and prices of cars to dealers. Now, savvy buyers can track down this kind of information online and maximize their chances of getting a good deal on a vehicle, or simply reducing the haggle-factor."
Of course, the Internet does have its limitations for people looking to purchase a vehicle. First and foremost among these is the lack of the physical presence of the vehicle. People want to feel and touch a car, get behind the wheel and take it for a test drive. One-third of those who have used the Internet as a vehicle-buying resource list the inability to touch the car and kick the tires as a disadvantage. Another 9% say the biggest disadvantage is that they can't take the vehicle for a test drive, while 8% worry that the information online may not be current. The salesperson still has a key role. Seven percent of online Canadians list a disadvantage of the Internet is that lack of a salesperson to talk to, to ask questions of and get impressions from.
Still, when people do venture online for information about their new car or truck, they tend to have very positive experiences. In fact, 87% of those who looked for vehicles online agree that the Internet allowed them to look at more vehicles than they otherwise would have been able to look at. In addition, 82% say that the Internet met their expectations as an information resource for vehicles, while 81% say they would recommend the Internet as a vehicle-buying resource to others.
By far, the leading online third-party site for information on new or used vehicles for Canadians is AutoTrader. When asked, 32% of all online Canadians report visiting AutoTrader. This is double the next most common mention, Autonet.ca at 16% ,with Carguide in a solid third place at 14%. One notable exception is the province of Quebec. The most popular site among Quebecers is Autonet.ca. This is likely due to the fact that Autonet.ca, a service of Quebecor Media, also has a full French version of their English site to help serve the province.
The most popular manufacturer's site among online Canadians is the General Motors site, GM.com. Just over one-third of online Canadians (35%) report having visited the GM site. This is followed by Ford at 28% and Toyota at 25%.
The "Canadian Inter@ctive Reid Report" is the largest, most comprehensive and authoritative source of its kind about quarterly Internet trends in Canada. The results are based on two separate data collection instruments. In the first, 1,000 web users from Ipsos-Reid's Canadian Internet Panel are surveyed online. Panelists are chosen through random telephone surveys conducted on an ongoing basis across Canada. Results are complemented by a further 1,000 interviews via telephone with Canadian adults in order to verify results of the panel, and track issues among non-Internet users. Telephone interviews for this release were conducted between March 19 and 28, 2003 while the online data was collected between March 31 and April 3, 2003. These data are statistically weighted to reflect the population proportions of regular online users by online expertise and regional distribution. Our panelists represent approximately 15.2 million Canadian adult Internet users who are online for one hour a week or more (there are a total of 18.3 million adults who have Internet access).
With a national sample of 1,000 (for each component), one can say with 95% certainty that the overall results are within a maximum of 1773.1 percentage points of what they would have been had the entire population of Canada's regular online users been surveyed. The margin of error will be larger for sub-groupings of the survey population.
For more information on this release, please contact:
Rhys Gibb
Senior Research Manager, Ipsos-Reid
604.257.3200
1Defined as a Canadian adult who spends at least one hour online per week.
"The high level of use of the Internet in the vehicle purchase process is quite significant as online Canadians represent a very substantial portion of the car buying public," says Rhys Gibb of Ipsos-Reid. "The Internet is a great way for sellers to influence a large group of potential customers." The survey results show that well over one-third of online Canadians (38%) report purchasing a new (16%) or used (22%) car in the past two years.
The primary advantages of using the Internet as a vehicle purchasing resource are related to having greater access to information. Topping the list is the advantage of being able to easily shop and compare vehicle prices (42%). The second biggest advantage is that the Internet is a good source of information for features, specifications, colours, etc. (31%). Another advantage, according to some, is not having to deal with salespeople to get this kind of information. Just over one-quarter of those using the Internet as a vehicle buying resource (28%) list this as an advantage.
"The Internet is really changing the way online Canadians are buying cars and dealers and salespeople will need to adjust to this new reality," says Gibb. "Information is a key tool for those looking to purchase a vehicle and the Internet helps to level the playing field between buyers and sellers. Sellers used to have exclusive access to such information as Blue Book values and prices of cars to dealers. Now, savvy buyers can track down this kind of information online and maximize their chances of getting a good deal on a vehicle, or simply reducing the haggle-factor."
Of course, the Internet does have its limitations for people looking to purchase a vehicle. First and foremost among these is the lack of the physical presence of the vehicle. People want to feel and touch a car, get behind the wheel and take it for a test drive. One-third of those who have used the Internet as a vehicle-buying resource list the inability to touch the car and kick the tires as a disadvantage. Another 9% say the biggest disadvantage is that they can't take the vehicle for a test drive, while 8% worry that the information online may not be current. The salesperson still has a key role. Seven percent of online Canadians list a disadvantage of the Internet is that lack of a salesperson to talk to, to ask questions of and get impressions from.
Still, when people do venture online for information about their new car or truck, they tend to have very positive experiences. In fact, 87% of those who looked for vehicles online agree that the Internet allowed them to look at more vehicles than they otherwise would have been able to look at. In addition, 82% say that the Internet met their expectations as an information resource for vehicles, while 81% say they would recommend the Internet as a vehicle-buying resource to others.
By far, the leading online third-party site for information on new or used vehicles for Canadians is AutoTrader. When asked, 32% of all online Canadians report visiting AutoTrader. This is double the next most common mention, Autonet.ca at 16% ,with Carguide in a solid third place at 14%. One notable exception is the province of Quebec. The most popular site among Quebecers is Autonet.ca. This is likely due to the fact that Autonet.ca, a service of Quebecor Media, also has a full French version of their English site to help serve the province.
The most popular manufacturer's site among online Canadians is the General Motors site, GM.com. Just over one-third of online Canadians (35%) report having visited the GM site. This is followed by Ford at 28% and Toyota at 25%.
The "Canadian Inter@ctive Reid Report" is the largest, most comprehensive and authoritative source of its kind about quarterly Internet trends in Canada. The results are based on two separate data collection instruments. In the first, 1,000 web users from Ipsos-Reid's Canadian Internet Panel are surveyed online. Panelists are chosen through random telephone surveys conducted on an ongoing basis across Canada. Results are complemented by a further 1,000 interviews via telephone with Canadian adults in order to verify results of the panel, and track issues among non-Internet users. Telephone interviews for this release were conducted between March 19 and 28, 2003 while the online data was collected between March 31 and April 3, 2003. These data are statistically weighted to reflect the population proportions of regular online users by online expertise and regional distribution. Our panelists represent approximately 15.2 million Canadian adult Internet users who are online for one hour a week or more (there are a total of 18.3 million adults who have Internet access).
With a national sample of 1,000 (for each component), one can say with 95% certainty that the overall results are within a maximum of 1773.1 percentage points of what they would have been had the entire population of Canada's regular online users been surveyed. The margin of error will be larger for sub-groupings of the survey population.
For more information on this release, please contact:
Rhys Gibb
Senior Research Manager, Ipsos-Reid
604.257.3200
1Defined as a Canadian adult who spends at least one hour online per week.
