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://www.shipcarsnow.com

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2010 Dealer Survey: Online Wholesale Used Car Buying & Shipping

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