Internet Shaping The Automobile Marketplace In Canada

Convenience, Ability to Compare Prices and Comparison Shop, Access to More Detailed Information and Time Saving are the Main Benefits Internet Canadians Associate with Using the Internet for Vehicle Purchases

Three-Quarters of Internet Canadians Believe That the Internet Benefits Vehicle Consumers; Two-Thirds Prefer A Website with Multiple Brands/Features Over Single Brand Websites

Toronto, ON - An Ipsos-Reid poll commissioned by Autobytel.ca and released today reveals that the Internet is fast becoming an integral part of how Canadians shop for and purchase their vehicles. Half (48%) of Canadians who have access to the Internet have used the Internet to "find information about a vehicle, such as pricing, specifications or for comparison shopping for with other vehicles." A further one-in-every-ten (10%) say that they have initiated or completed a vehicle purchase on the Internet.

These are the findings of an Ipsos-Reid poll conducted between August 17 to 24, 2000. The poll is based on a randomly selected sample of 1,500 adult Canadians. With a sample of this size, the results are considered accurate to within 177 2.6 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population been polled. Sixty-three percent (n=944) of the sample reported that they had access to the Internet from home, work and/or another location. With a sample of this size, the results are considered accurate to within 177 3.2 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population who have access to the Internet been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were statistically weighted to ensure the sample's regional and age/sex composition reflects that of the actual adult population according to the 1996 Census data.

Half of Canadians with Internet Access Have Used It for Comparison Shopping for Vehicles; One-In-Every-Ten Have Used It to Initiate or Complete A Vehicle Purchase

Half (48%) of Canadians with access to the Internet say that they have "used the Internet to find information about a vehicle, such as pricing, specifications, or for comparison with other vehicles." An additional 10% indicate that they have initiated or completed a vehicle purchase over the Internet.

• BC (54%) and Saskatchewan/Manitoba (54%) residents are more likely than Ontario (46%), Alberta (48%), Quebec (47%) and Atlantic (46%) residents to have used the Internet for automobile research/information.
• This is also true for younger (18-34 years, 51%) and middle-aged (35-54 years, 48%) Canadians (vs 39% 65 years/older), men (57% vs 38% women) and higher income households ($60,000/more 54%, $30,000-$59,000 46% vs Less $30,000 36%).

Two-Thirds of Internet Canadians are Likely to Use the Internet in Their Vehicle Purchasing Process in the Future and Think That the Internet Will Become the Main Way for Consumers to Research and Purchase Vehicles

Two-thirds (65%) of Internet Canadians indicate that they are very or somewhat likely "to use the Internet in the future to either research or purchase a vehicle." The same number (65%) strongly or somewhat agree that "eventually the Internet is going to become the main way for consumers to research or purchase vehicles."

• Likelihood of using the Internet for future vehicle purchasing is particularly high (70%) among those who report that they intend to purchase a vehicle in the next year .
• BC (75%) and Ontario (71%) residents report a somewhat higher likelihood of using the Internet for future automobile purchasing compared with residents in Alberta (68%), Saskatchewan/Manitoba (67%), Atlantic Canada (62%) and especially Quebec (48%).
• This is also true for younger (18-34 years, 70%) Canadians (vs 63% 35-54 years, 59% 65 years/older), men (70% vs 61% women) and higher income households ($60,000/more 71%, $30,000-$59,000 63% vs Less $30,000 53%).

Convenience, Ability to Compare Prices and Comparison Shop, Access to More Detailed Information and Time Saving are the Main Benefits Internet Canadians Associate with Using the Internet for Vehicle Purchases

Convenience (28%), ability to compare prices (25%), ability to comparison shop (24%), access to more detailed information (17%), and time saving (12%) are the main benefits Internet Canadians associate with using the Internet for vehicle purchases. Other reasons include as a general information source (8%), cost savings (5%), and don't trust dealers, don't wish to haggle, availability and access to consumer reviews/ratings at 2% each.

Three-Quarters of Internet Canadians Believe That the Internet Benefits Vehicle Consumers; Two-Thirds Prefer A Website with Multiple Brands/Features Over Single Brand Websites

Three-quarters (77%) of Internet Canadians strongly or somewhat agree that "being able to research and purchase vehicles using independent online vehicle research/buying services" benefits consumers. Consequently when asked, "if you were buying a vehicle and wanted to use the Internet to help in your decision-making and purchasing process" two-thirds (63%) would prefer to "go to a site that offers multiple brands, features, etc. for you to make comparisons," compared with only 19% who would prefer to "go to a site that offers only one make of vehicle such as Ford, GM or Toyota, etc," and 13% who would prefer to "go to a local dealership's website."

• A strong majority of all regional and demographic groups believe that the Internet benefits automobile consumers and prefer a multiple brand site.

For more information on this news release, please contact:

Chris Martyn
Senior Vice President &
Managing Director
Ipsos-Reid
416-324-2900