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

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

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2010 Dealer Survey: Online Wholesale Used Car Buying & ShippingMarch 8, 2010#A Union Pacific CompanyWhy is Auto Transportation Important to Online Sales? Cars are everywhere!Wholesale used car trading is growing rapidly on the webUpstream, simulcast, 24x7 online Online Auctions are becoming global markets

oddly in many cases, shipping has been left to online buyers to sort outEven with upstream salescars must transfer from seller to buyerOnline buyers can not ignore transportation so they limit their buying zone

Auto Transportation is the silent engine behind the explosion of e-commercePeople buy online because its easy and they get delivery direct to their homeConvenience factor doesnt yet exist in used car market

Online trading fulfills its potential when both buying and shipping are made easy

#A Union Pacific Company2Survey sent to 5,853 dealers in January 2010 via rental of Automotive News email list

169 responses, 3% response rateMedian dealer bought 30% of total used inventory online

41% dealers sell 500-1000 new/used cars per year

90% Franchised 10%Independent

2010 Dealer Survey - Demographics#A Union Pacific Company2010 Dealer Survey - ResultsWhy dealers buy onlineSaves time & expenseIts easyBetter 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 concerns30.0% Inventory needs met locally14.0% Concern with vehicle condition reports2.0% Other reasons#A Union Pacific Company2010 Dealer Survey - ResultsWhat dealers say about auto transportation64.2% want options. Let me choose between expedited delivery or lowest cost18.4% I want lowest cost delivery. 17.4% Speed is all that matters. Ill 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]. #A Union Pacific Company2010 Dealer Survey Outlook42% of wholesale cars sourced online 2010 vs 39% in 2009 - trending upwardOf those purchasing same or less in 2010, reasons included:Weak economy/salesGood local supplyEasier to buy locally#A Union Pacific Company

ShipCarsNow = Nationwide Delivery Network Using All Transport Modes


AlaskaPuerto Rico and US Virgin Islands

Rail, truck & vessel connecting all U.S. major marketsTruck for regional moves; fuel-efficient rail for longer distance shipmentsCo-loading of new and used cars makes rail more accessibleMore options, more capacity, better valueEasy-to-use; fully transactional onlinewww.ShipCarsNow.com

Union PacificNorfolk SouthernCSX

#A Union Pacific Company2010 Dealer Survey - SummaryIn 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.

It doesnt have to be that way. ShipCarsNow offers both expedited truck and lower cost rail shipping options.

Dealers surveyed said they would buy more if buying and shipping are more integrated online.

Dealers, just like other consumers, want shipping optionsSpeedy delivery to protect a customer orderLow cost delivery to fill inventory needs while protecting the bottom line

#A Union Pacific CompanyResources for Used Car Data2009 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

#A Union Pacific CompanyAboutWe are a Union Pacific Company Trusted name & leader in transportationDelivering over 6 million cars annually

We deliver autos nationwideSpeedy truck deliveryEconomical and green rail options

We make it easy to ship cars!Easy-to-use, no hassle, online www.shipcarsnow.comOne call, we do it all 1-866-207-3360

#A Union Pacific Company