Adults Are Purchasing Cars Based on Desire vs. Need, Study Analyzes Automotive Purchasing Behavior

BALTIMORE, Md.--May 2, 2005--Vertis, a leading provider of targeted advertising, media, and marketing services, today announced the results of its proprietary Customer Focus(R) 2005: Automotive study, which reveals that the number one reason for many consumers to buy a new car is simply because they want one. For 36 percent of new car purchasers their desire for a new automobile will lead them to make a purchase within the next 12 months.

"The large number of adults looking to purchase a new car gives marketers an opportunity to communicate with their consumers when it's timely and relevant," said Janice Mayo, senior vice president, marketing, at Vertis. "Direct mail has proven to be an effective way to connect with adults because it offers information that can help educate consumers prior to a future auto purchase."

The study also revealed that 43 percent of adults who plan to purchase a new vehicle responded to direct mail by visiting a dealer in person, while 28 percent visited a sender's Web site and 14 percent called an 800 number. Since direct mail from an automotive dealer can help educate consumers on future purchases, it is also an effective medium to increase visits to a dealership.

The Vertis Customer Focus(R) 2005: Automotive study shows the following additional findings, which provide insight into which adults are more likely to purchase a new vehicle, and their motivations for doing so.

Top Reasons Why Adults Are Buying New Cars

-- 8 percent of the new car purchasers said they are motivated to purchase a new car because of their current auto's mechanical problems (See Figure A)

-- 11 percent of new car purchasers are planning on buying a new vehicle within the next 12 months because they need one for work, while 4 percent need one because they have a new driver in the family and 3 percent can afford a better car

-- Only 5 percent of new car purchasers are planning on making a purchase within the next 12 months based on lower prices, lower interest/financing or price incentives

Men More Likely to Purchase a New Car

-- 24 percent of single Generation Y (1977-1994) men stated they plan to purchase a new vehicle within the next 12 months (See Figure B)

-- In comparison, 16 percent of Generation Y women have plans to purchase a new vehicle within the next 12 months (See Figure C)

-- 20 percent of men with a household income of $75,000+ and some college education have plans to purchase a new automobile within the next 12 months

-- Similarly, 15 percent of women with a household income of $50,000+ and some college education reported they plan to purchase a new automobile within the next 12 months

Main Incentives Motivating Adults to Visit a Dealership

-- 32 percent of Generation X (1965-1976) adults were motivated to visit a dealership based on price incentives; five percent more than the average adult (See Figure D)

-- Generation X adults are 9 percent more likely than total adults to be motivated by a special financing offer, while Generation Y adults are six percent more likely than total adults to be motivated by the same factor

-- Of the Younger Baby Boomers (1956-1964) surveyed, 21 percent said a rebate offer motivates them to visit a dealer when shopping for an automobile, compared to 16 percent of total adults

-- Generation Y adults are 5 percent more likely than total adults to be motivated by a special trade-in offer

What Makes Auto Loan Applicants Open Direct Mail?

-- 66 percent of direct mail readers who plan to apply for an auto loan said they are more likely to open a package that looks interesting (See Figure E)

-- Of the direct mail readers who have plans to apply for an auto loan, 64 percent are more likely to open a piece based on the timing of its arrival

-- For 60 percent of direct mail readers who plan to apply for an auto loan, having their name on the front of the envelope will influence their decision to open

-- 57 percent of direct mail readers who plan to apply for an auto loan are more likely than total adults to open packages that contain a special offer or discount

About Customer Focus(R)

Customer Focus(R) is Vertis' proprietary annual study tracking consumer behavior across a wide variety of industry segments -- home improvement, furniture, grocery, sporting goods, home electronics, optical, insurance, credit cards, nonprofit, financial, retail, office supplies, and discount stores -- and media including advertising inserts, direct marketing, and the Internet. The survey was first conducted in 1998 and, in subsequent years, has been expanded and modified to identify emerging consumer behavior patterns and track shifts in consumer practices and motivations.

Since its inception, Customer Focus(R) has proven to be one of the nation's most comprehensive examinations of consumer behavior. The survey of 2000 adults -- conducted by one of the nation's leading field research companies in August/September 2004 -- measures both general and industry-specific shopping trends, and Vertis provides the significant data as a value-added service to its clients.

To acquire a customized Customer Focus(R) 2005: Automotive study or speak to a Vertis executive, please contact Michelle Metter or Maria Amor at 619-234-0345.

About Vertis

Vertis is the premier provider of targeted advertising, media, and marketing services. Its products and services include consumer research, audience targeting, media planning and placement, creative services and workflow management, targeted advertising inserts, direct mail, interactive marketing, packaging solutions, and digital one-to-one marketing and fulfillment. Headquartered in Baltimore, Md., with facilities throughout the U.S. and the U.K., Vertis combines technology, creative resources, and innovative production to serve the targeted marketing needs of companies worldwide. To learn more about Vertis, visit www.vertisinc.com.

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