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2010 Dealer Survey: Online Wholesale Used Car Buying & Shipping
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2010 Dealer Survey: Online Wholesale Used Car Buying & Shipping


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The 2010 Dealer Survey illustrates why online sales are important for the auto industry. Http:// …

The 2010 Dealer Survey illustrates why online sales are important for the auto industry. Http://

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  • 1. 2010 Dealer Survey: Online Wholesale Used Car Buying & Shipping
    March 8, 2010
  • 2. Why is Auto Transportation Important to Online Sales? Cars are everywhere!
    Wholesale used car trading is growing rapidly on the web…
    • Upstream, simulcast, 24x7 online
    • 3. Online Auctions are becoming global markets
    … oddly in many cases, shipping has been left to online buyers to sort out
    • Even with upstream sales…cars must transfer from seller to buyer
    • 4. Online buyers can not ignore transportation so they limit their buying zone
    Auto Transportation is the silent engine behind the explosion of e-commerce
    • People buy online because it’s easy and they get delivery direct to their home
    • 5. Convenience factor doesn’t yet exist in used car market
    Online trading fulfills its potential when both buying and shipping are made easy
  • 6.
    • Survey sent to 5,853 dealers in January 2010 via rental of Automotive News email list
    • 7. 169 responses, 3% response rate
    • 8. Median dealer bought 30% of total used inventory online
    • 9. 41% dealers sell 500-1000 new/used cars per year
    • 10. 90% Franchised 10%Independent
    2010 Dealer Survey - Demographics
  • 11. 2010 Dealer Survey - Results
    Why dealers buy online
    Saves time & expense
    It’s easy
    Better inventory selection available
    How far away will dealers buy online?
    27.2% I shop locally within 200 miles (60% in 2009)
    47.8% I shop regionally within 500 miles (30% in 2009)
    25.0% I shop nationwide (10% in 2009)
    Dealers who buy w/in 200-500 miles asked: what factors discourage buying farther away?
    54.0% Transportation concerns
    30.0% Inventory needs met locally
    14.0% Concern with vehicle condition reports
    2.0% Other reasons
  • 12. 2010 Dealer Survey - Results
    What dealers say about auto transportation
    64.2% want options. Let me choose between expedited delivery or lowest cost
    18.4% I want lowest cost delivery.
    17.4% Speed is all that matters. I’ll pay more for faster delivery.
    If Internet Auctions offered integrated shipping, would you buy more online?
    67.4% of dealers surveyed said yes (vs 88% in 2009)Comment: Online shipping of vehicles has gotten easier. Some Internet auctions now offer shipping links and there are more auto transportation web sites.
    Dealer comments about online trading:
    “It seems arbitration is further complicated with greater distance”
    “I would be more comfortable with the transaction [if it were integrated].”
  • 13. 2010 Dealer Survey – Outlook
    • 42% of wholesale cars sourced online 2010 vs 39% in 2009 - trending upward
    • 14. Of those purchasing same or less in 2010, reasons included:
    • 15. Weak economy/sales
    • 16. Good local supply
    • 17. Easier to buy locally
  • ShipCarsNow = Nationwide Delivery Network Using All Transport Modes
    • Rail, truck & vessel connecting all U.S. major markets
    • 18. Truck for regional moves; fuel-efficient rail for longer distance shipments
    • 19. Co-loading of new and used cars makes rail more accessible
    • 20. More options, more capacity, better value
    • 21. Easy-to-use; fully transactional
    Union Pacific
    Norfolk Southern
    Puerto Rico and US Virgin Islands
  • 22. 2010 Dealer Survey - Summary
    • In other areas of e-commerce, location of the product is generally irrelevant to the online buyer … but when dealers buy used cars online, they often have to worry about shipping and where the cars are located.
    • 23. It doesn’t have to be that way. ShipCarsNow offers both expedited truck and lower cost rail shipping options.
    • 24. Dealers surveyed said they would buy more if buying and shipping are more integrated online.
    • 25. Dealers, just like other consumers, want shipping options
    • 26. Speedy delivery to protect a customer order
    • 27. Low cost delivery to fill inventory needs while protecting the bottom line
  • Resources for Used Car Data
    2009 Market Report, Mid-Year Edition, Manheim Consulting
    PULSE, Latest Economic Indicators, 2009 Mid-Year Recap, Adesa
    US Light Vehicle Outlook, IHS Global Insight, presentation to ShipCarsNow/Union Pacific 1/20/2010
    AutoRemarketing Magazine
    Used Car News Magazine
  • 28. About
    We are a Union Pacific Company
    Trusted name & leader in transportation
    Delivering over 6 million cars annually
    We deliver autos nationwide
    Speedy truck delivery
    Economical and green rail options
    We make it easy to ship cars!
    Easy-to-use, no hassle, online
    One call, we do it all 1-866-207-3360