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From...

Web auto buyers a no-show

October 22, 1998
Web posted at: 9:45

by Bob Wallace

(IDG) -- More than half of the car and truck dealers in the U.S. now have their own Web sites, but most of them aren't selling many vehicles, according to a recent survey of 1,000 dealerships.

But that isn't necessarily unexpected or bad news, experts said. Instead, it's evidence of the role dealerships play in providing different -- rather than competing -- information and services from the giant auto manufacturers.

Sixty-one percent of franchised new car and truck dealers have Web pages, but the dealers claim they sell an average of only 5.3 vehicles per month over the Internet, according to the survey conducted by the National Automobile Dealers Association (NADA). That's up from five per month last year. Why the low sales numbers?

"The focus of dealers that have [Web] pages is to market their dealerships and get people to come in, not necessarily to complete a transaction [online]," said Tom Webb, chief economist at Washington-based NADA. Dealers are using the Net to build relationships with prospective customers and strengthen bonds with current customers, he added. "As a result, I wasn't surprised by the low sales figures."

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Even beyond sales, most dealership Web sites aren't heavily used. Half of the respondents get one to 50 hits per month, according to the survey, while only 10% get more than 500 hits per month. And one to 50 hits per month is low, Webb said.

Experts said usage is light because consumers first go to the manufacturer's Web site, which often helps shoppers locate the dealer with the vehicle they seek. Others access popular independent sites such as Auto-by-Tel and Microsoft Corp.'s CarPoint.

But site visits could increase if auto industry experts are correct in their prediction that dealerships will gradually decrease spending on massive newspaper advertisements and instead direct readers to their Web sites.

Today, dealer Web pages focus on promoting the dealership -- its products, services and people.

And because many dealerships have multiple franchises -- selling Toyotas as well as Hondas, for instance -- owners provide information on cars made by rivals. That's verboten on corporate sites but is done on independent sites.

Yet, because most shoppers visit the manufacturer's site first, dealers are less likely to try to make their sites sales tools and instead focus on items not covered by the big car companies.

Using the Net

"The Web is another way to do business and communicate with customers, but it's not necessarily a vehicle sales tool," said David Abatsis, general manager at Acton Ford in Acton, Mass. The dealership uses its site to let people schedule service appointments, order parts, buy accessories such as truck bedliners and mud flaps and check out used cars, he added. Consumers also can print out service discount coupons from the site.

Acton Ford's site provides hot links to Ford Motor Co.'s Web page and to its preowned vehicle Web page, Abatsis said.

Dealer Web pages are mandatory for others, too.

"You have to be on the Web because it's an important [medium] that provides people information -- and that keeps you in the game," said Rick Evans, owner of Huntington Beach Chrysler-Plymouth-Jeep in Huntington Beach, Calif.

But sales from the Web site aren't substantial, he added. "There's a lot of looking but not a lot of buying."

Sales are expected to increase as more consumers become comfortable using the Web to shop for vehicles, Evans said.

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