TrueCar-Shopper-Report-2011 by huanghengdong



Online Automotive Buyer
Behavior Report 2011

First Annual Report
TrueCar, Inc. initiated a nationwide survey with market researcher
Synovate, to gauge the new and used car auto purchasing opinions
and behaviors of consumers who research online prior to making an
auto purchase.   The following report reveals the results of the
analysis and offers new insight regarding the 21st century,
automotive e-shopper.

The study was conducted October 10th - 15th, 2010 with 1000
males and female adults, 18 years of age or older in the contiguous
U.S.A. The sample is balanced to be representative of the general
population based upon region, gender, age, and household income
data from the U.S. Census Bureau.
 Q. When going to purchase a new or used vehicle, please indicate your
    agreement with the following statements:

            85% of new car shoppers and 86% of used car shoppers believe that knowing
 A.         what someone else paid for the same car within the last 30 is very helpful.
                                                                                                   New Car Buyers

                                                                                                   Used Car Buyers

            Information about what everyone else paid for the                                           89%
            same car within the last 30 days would be helpful.                                      86%

                                                   I trust the brand.                               85%

                 I would value having a good friend in the car                                    76%
                                                    business.                                     80%

                                              I will get a good deal.                       60%

                                   I will be pressured by the dealer.                      58%

             The dealer will have the vehicle I want on the lot.                          56%

             I know (to the dollar) that the price I get will be a                        55%
                                              fair or great deal.                     46%

                           The dealer will have the upper hand.                           53%

                                    It will be a pleasant experience.                 45%

                                                   I trust the dealer.            40%

                                I will pay too much for the vehicle.            31%

Survey by             TrueCar Report, 2011                                                                           1
 Q. When going to purchase a new or used vehicle, please rank each of
    the following in order of importance when choosing a dealership:

            When choosing a dealership to purchase a new or used vehicle, the two most important factors are price (78%)
 A.         and trust (70%)

                                  I will be able to get a good price                                78%

                                                              Honesty                            70%

                           I will have a haggle-free experience                        39%

            The dealer will have the vehicle I want on the lot                    30%

                                              Great service department           25%

                     Previously bought from that Dealership                     19%

                               Dealer is in a convenient location           16%

                                                        I will save time    14%

                                        Dealer has professional staff      9%

Survey by              TrueCar Report, 2011                                                                                2
  Q. When buying a vehicle, how valuable would it be to know what
     others have paid for the identically equipped vehicle in your area
     over the last 30 days?

                                                      90% of respondents agree that having information
            Agree                          90%   A.   about what others paid for their vehicle in the past
                                                      30 days would be helpful.
     Disagree             10%

  Q. Before going to a dealer, how valuable would it be to require the
     dealer to provide you with their best no-haggle, upfront selling
     price as a starting point for the process and as a way to help you
     decide which dealer to buy from?

                                                      Over 90% of in-market new car buyers believe it
            Agree                          91%   A.   would be valuable to require a dealer to provide a
                                                      no-haggle upfront selling price.
     Disagree             9%

Survey by           TrueCar Report, 2011                                                                     3
 Q. Indicate how much you agree or disagree with the following
    statement - “If trading-in or selling a vehicle to a dealer, I know
    that the dealer will either not give me a fair trade-in price or they
    will make it up on some other part of the transaction, either on the
    price of the car I am buying or on my financing.“

            82% of car shoppers agree that the dealer will not provide a fair price during a trade-in or will make profit on
 A.         the vehicle through other services (i.e. financing, extended warranties).

                          Strongly Agree                                         45%
                                                                                                82% of those
                                                                                                surveyed agree
                                             Agree                         37%

            Neither Agree or Disagree                     13%

                   Somewhat Disagree                 3%

                      Strongly Disagree              2%

Survey by             TrueCar Report, 2011                                                                                     4
 Q. How much do you think a dealer makes as profit on the sale of a
    $40,000 vehicle?

            $0 - $500          2%
                                                                        Over half of respondents believe dealers
                                                                  A.    make at least a $4,000 profit (10%) on a
                                                                        $40,000 car sale.
      $500 - $1,000                       9%

   $1,000 - $2,000                             16%

   $2,000 - $3,000                             17%

   $4,000 - $5,000                                         27%

    $5,000 or more                                          28%

 Q. How much do you think is fair?

            $0 - $500                     9%
                                                                        Consumers believe that on average, dealers
                                                                  A.    should make nearly $1800 or 4.5% on a
      $500 - $1,000                                        28%          $40,000 car.

   $1,000 - $2,000                                          30%

   $2,000 - $3,000                                   23%

   $4,000 - $5,000                        9%

    $5,000 or more           1%

Survey by          TrueCar Report, 2011                                                                              5
 Q. If you were the member or subscriber of a trusted organization
    and found out that they offered a car buying service which could
    save you money, time and the hassle of negotiating, how likely
    would you be to use their service to purchase your vehicle?


                                                Very Likely                  Somewhat Unlikely

                                                Somewhat Likely              Very Unlikely
              15%                               Neither Likely or Unlikely


                                                       80% of respondents would likely use a car buying service to save
                                                A.     money and time.

 Q. When purchasing a new vehicle, if you knew you could get a
    guaranteed average savings on your new car purchase, how far
    would you drive to a dealership?


                                                Less Than 15 Minutes         45 - 60 Minutes          I wouldn't drive any
                                                                                                      amount to save
                                                15 - 30 Minutes              60 - 90 Minutes          $2,300.
                  15%            13%
                                                30 - 45 Minutes              More Than 90 Minutes

                                                       3 out of 10 shoppers are willing to drive an hour to achieve this
                                                A.     savings.


Survey by                TrueCar Report, 2011                                                                                6

      About Us
      TrueCar. Inc. is a revolutionary online automotive solutions, a TrueCar Inc. company, private labels its auto
      provider on a mission to change the way cars are bought           buying and technology platform and Certified Dealer
      and sold. The company is pioneering the automotive                network to more than 50 of the nation’ s leading affinity
      industry’s adoption of upfront, transparent pricing by distrib-   brands.
      uting timely and accurate transactional data on what other
      people actually paid for a particular vehicle locally, region-
      ally and nationally. As a complement to the
      new car pricing solution, provides price
      confidence around used car trade-in values.

      This report and the information contained herein is for your      The information contained in this report may include techni-
      noncommercial, personal use on an “as-is, as available”           cal inaccuracies or typographical errors. Neither TrueCar
      basis and may be used by you for informational purposes           nor any of its parents, subsidiaries, affiliates, or their
      only. TrueCar makes no representations or warranties,             respective partners, officers, directors, employees, or
      express or implied, with respect to the information               agents shall be held liable for any damages, whether direct,
      contained in this report and the results of the use of such       incidental, indirect, special, or consequential, including
      information, including but not limited to implied warranty of     without limitation lost revenues or lost profits, arising from
      merchantability, fitness for a particular purpose, and non-       or in connection with your use or reliance on the information
      infringement.                                                     presented in this report.

      Contact Us
      TrueCar Inc.
      225 Santa Monica Blvd, 6th Floor
      Santa Monica, CA 90401
      (800) 200-2000

      Visit us at

TrueCar Report, 2011                                                                                                                     7

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