Link between the internet and used-car sales

Internet – a global network connecting million of computers and therefore, enabling exchange of information has completely overhauled the way we look at almost everything in our lives. However, the current age is not just about exchanging information, but it is about how fast information gets from Point A to Point B. The customers today, demand not just accurate and detailed information but they want it fast.

And the same holds true for the auto industry.

It is only rational, that a potential car buyer will turn to Internet to research about a new or used car he or she is interested in. In case of a new car, the Internet houses all the possibly first-hand information, detailed and accurate information within minutes a particular car is introduced in the market.

And incase of a used car as well, an increased number of people are heading towards their desktops to research, gather information and bringing home a four-wheeler. A used car seller on the other hand, is also taking up to the online world to spread the word and get a quote.

J.D Power Asia Pacific has brought to the table some interesting facts about car buying process and the role of internet, while doing so in their latest report titled J.D Power Asia Pacific 2013 India Sales Satisfaction Index Study (SSI). Given below are some of the findings of the study.

An increasing number of vehicle shoppers are considering a used vehicle during their new car buying process. The reason for this could easily be traced – among other things – to the falling value of the Indian rupee and the corresponding increase in cost of the vehicles.

  • 13 per cent of new vehicle buyers considered a used vehicle during their shopping process, a 10 per cent increase over the past three years.

  • 37 per cent of new car buyers who considered a used car used the Internet during their shopping process.

  • In contrast, only 27 per cent of buyers who did not consider a used car used the Internet while, shopping.

  • Shoppers who consider a used vehicle use the Internet to search for information regarding vehicle financing, including trade-in options, and service-related aspects.

  • In comparison, shoppers who do not consider a used vehicle use the Internet primarily to look for vehicle features and specifications.

The study, now in its 14th year also examined seven factors that contribute to new car buyers' overall satisfaction with the sales experience, which are listed below in order of importance.

  • Delivery process.

  • Delivery timing.

  • Salesperson.

  • Sales initiation.

  • Dealer facility.

  • Paperwork.

  • Deal.

Furthermore, for the first time in 2013, the stud also examined sales satisfaction in two vehicle segments: luxury and mass market (The results of the luxury segment will be announced in mid-September).

Customers who are highly satisfied with the overall purchase experience have higher levels of advocacy and loyalty toward the dealership and the vehicle brand, compared with highly dissatisfied customers.Overall sales satisfaction in the mass market segment is 841 index points on a 1,000-point scale, a 21-point increase from 2012.

Among the 13 brands ranked in the mass market segment, Honda and Maruti Suzuki rank highest (in a tie) with a score of 849. Hyundai, Mahindra and Toyota follow in the rankings, with all three brands tied at 841.

The 2013 India Sales Satisfaction Index (SSI) Study is based on responses from 8,434 new-vehicle owners who purchased their vehicle between September 2012 and April 2013, and includes evaluations of more than 71 models within the mass market category. The study was fielded from March to July 2013.

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