ATLANTA -

There’s an interesting dynamic that’s occurring when consumers go about trying to figure out what car to buy.

Both used- and new-car shoppers are spending less time conducting research, but are devoting more of that time to the Web, according to a study released today by AutoTrader.com.

Interestingly enough, those two trends go hand-in-hand.

Isabelle Helms, AutoTrader’s senior director of research, told Auto Remarketing that consumers are shifting from off-line research methods to online methods, and are getting better information in a more efficient fashion.

Because of this, they’re able to complete the research process quicker.

Helms spoke with Auto Remarketing about the 2013 Polk Automotive Buyers Influence Study, which was commissioned by AutoTrader.

The study found that the average used-car buyer who uses the Web during their shopping process will conduct 15.25 hours of research. That is down 2.75 hours from 2011.  The decrease is even greater on the new-car side, where the research allotment went from 19 hours to 13.75 hours.

Those same used-car buyers are spending 11.75 of their 15.25 research hours on the Web; that’s up from 11 of their 18 hours in 2011, a 61-percent share.

Likewise, the new-car buyers in the group are spending 10 of their 13.75 research hours on the Web; in 2011, it was a smaller proportion, as they spent 11.5 of their 19 research hours online.

What’s more, 76 percent of used-car buyers say they use the Internet in the car-shopping process, up from 71 percent in 2011. As for new-car buyers, 75 percent use the Web, also up from 71 percent two years ago.

Importance of Referrals

In its data set, AutoTrader's numbers illustrate not only the growth of the Web in the car-shopping process, but also the decline in other avenues.

Just looking at the used-car data alone, the data indicates that only 17 percent of all used buyers turned to newspapers during the shopping process, down from 26 percent in 2011.  AutoTrader also dubbed TV (18-percent penetration to 12-percent), outdoor ads (11 percent to 7 percent), direct mail (9 percent to 4 percent) and radio (7 percent) as having “significant” declines from 2011 to 2013.

But even though the Web dominates both the used- and new-vehicle research processes as the most often touted source of research, it’s important to pay close attention to the No. 2 source, says Helms.

That would be the “referral from family/friend” category. While penetration is down slightly for both new- and used-car buyers, it’s still vital to the process for many consumers.

A third of used-car buyers say their use a family/friend referral, down from 34 percent in 2011, and 30 percent of new-car shoppers do the same (down from 32 percent).

“Relying on trust is still very important to car buyers,” Helms said. She suggested it’s still a big component of the process.

“Often times, to confirm your decision,” she added.

Used Vs. New: How They Use the Web

It’s safe to say that both new- and used-car buyers are not only using the Web in greater numbers, but it’s also becoming a more integral part of their process itself.

However, there are some differences between the parties when it comes to how, exactly, they use the Internet.

Taking all buyers who said the used the Web, AutoTrader found that used-car buyers were much more likely (51 percent) to use the Web to check out actual vehicles for sale than new-car buyers (36 percent).

Helms said that dealers have a firm grasp on merchandising used cars online, but there’s some room for growth on the new-car side.

Used-car buyers also shop a bit differently than those on the new-car side, she added.

Looking at some other statistics among buyers who researched online, there is a greater likelihood that a new-car buyer is using the Internet to find a special offer (40 percent) compared to the chance that a used-car shopper is doing the same (27 percent).

Another staggering difference between used and new buyers is when they were asked which of the sources they used in the shopping was most influential in their choice of dealership.

Among Internet users, 62 percent of used-car buyers pointed to the Web, versus 47 percent of new-car buyers. 

One of the reasons Helms gave for this discrepancy was that locating the dealership that has the exact used car a shopper is looking for is likely to be harder to finding the store that has their choice of new car.

“For used-car shoppers, you’re looking for a needle in a haystack,” she said. “And the Internet is going to help you find that.”

Regardless of used or new, the Internet was by far the dominant driver. In this same group of shoppers that used the Web, family/friend referrals (13 percent) was second on the list for used buyers.

For new-car buyers, 12 percent cited referrals and 12 percent said the driver was because they “drove by/walked in.” 

Eleven percent said it was due to a “prior experience.”

A Common Misconception

Here’s something dealers might be surprised to learn: the initial contact that most buyers make — whether they’re going for a used or new vehicle — is typically not via phone, email, chat or text.

“The reality is that most consumers walk into a dealership completely unannounced,” Helms said.

In fact, 62 percent of all used-car buyers’ initial contact with the dealer is when they walk in the door. For new-car buyers, that number jumps to 67 percent.

Just 26 percent of used buyers and 21 percent of new-car buyers will phone the dealer to get things started. Nine percent of used buyers turn to email and 11 percent of new-car buyers go that route.

Chat was used 1 percent of the time in making initial contact for both new and used. Texting was at 1 percent for used buyers and less than 1 percent for new buyers.

So why the tendency not to use technology to reach the dealer? As Helms put it, consumers are afraid the response from the dealer will be a bit overwhelming for them.

The important thing for dealers to do, she said, is to be a consultant and understand the consumer’s shopping stage at that point.

“Deliver the information they need wherever they are in the shopping process,” Helms said.

Looking at Millennials in particular, the numbers are a bit different.

Just under half (48 percent) of used buyers in this age bracket turned to either the phone (30 percent), email (16 percent), chat (1 percent) or text (1 percent). On the new-car side, 43 percent did the same (22 percent used phone, 17 percent used email, 1 percent chatted and 3 percent texted).

Lastly, in summing up the study, Helms offered the big takeaway dealers should find in this study: they should shift more of their efforts to the Web.

“That’s where dealers need to be and that’s where they need to invest, as well as the OEMs,” she said.

Joe Overby can be reached at joverby@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.