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ROCHESTER, Mich. — A new report shows that older buyers are
leading the way in auto industry recovery, with dealership experience the key
factor in purchasing vehicles.

Automotive research firm Foresight Research has released its
2012 Dealership Experience Strategy Report, noting a need for dealerships to
refocus marketing to more seasoned buyers, who more often choose a dealership
based on inventory and selection, no price haggling, financing availability,
quick quote response and the dealer website.

"The auto industry recovery is being fueled by older buyers,"
said Steve Bruyn, chief executive officer of Foresight Research. "In addition
to their buying power, they bring different shopping and buying behaviors
including more reliance on their dealership experience."

Foresight Research Executive Vice President Ron Hein says
the study defines older buyers as those ages 55 and up. That demographic has
seen a steady increase, from 25 percent of all buyers in 2008 to 40 percent in
2011.

Buyers in the 35- to-54 age group dropped from 48 to 37
percent in that period, while buyers age 18 to 34 have remained fairly steady,
dropping from 27 to 23 percent.

"Perhaps the aging baby boomers were not hit so severely by
the economy," Hein explained. "They have disposable income, and they are able
to qualify for financing."

Other findings note changes in brand and dealership loyalty,
the company said.

"With older buyers we historically have seen higher levels
of brand and dealership loyalty — that is not the case today. Manufacturers and
dealers must refocus their marketing to seasoned buyers," said Bruyn.

Hein said the study showed a high degree of both segment and
brand switching among older buyers, and an increase in minivan and pickup truck
purchases. Dealership loyalty dropped to 47 percent in 2011, from 58 percent in
2010.

"They may switch segments for looks or fuel economy, and
switch brands at the same time," Hein said.

He noted the change in dealership loyalty could be
attributed to dealership closings, particularly in rural areas or buyers just
deciding to try something new.

"It's a dynamic that's something dealers have to be wary of,
if they're banking on a good portion of their customers returning. That might
not be the case," he said.

The top elements in dealership choice among older buyers
were vehicle selection, a comfortable shopping experience, service department
and a courteous, knowledgeable salesperson.

Based on interviews with 7,851 new vehicle buyers in the
U.S., the 2012 Dealership Experience Strategy Report showed that older buyers
engage in fewer shopping activities and are influenced by fewer forms of
marketing communications. The report analyzes buyer behaviors throughout the
shopping and purchase process to examine the role the dealership plays in the
purchase compared to 16 other forms of marketing communications, from
traditional advertising channels to auto shows, events and sponsorships, word
of mouth, and print articles.

Influential marketing messages received by the buyers were
measured and rank-ordered, and compared to messages typically communicated by
dealerships.

Topping the report's list for dealership experiences that
influenced sales  — among buyers of all
ages — were Lexus, Infiniti, Lincoln and Mercedes-Benz.

Buick, Audi, Mazda, Mini Cooper, Cadillac and Honda showed
significant improvement over previous data, Hein said.

"Even though the auto industry is mature in the U.S., it's
always dynamic," he said. "And it's the older buyers who are driving recovery."