Majority of Private Car Sellers Put Funds Toward The Purchase of Another Vehicle - Duh

LOS ANGELES--Los Angeles is the “city of the automobile” and with more than five million registered vehicles(a), Los Angeles is one of the most car-crowded places in the country. With all the cars and drivers here, Angelenos buy and sell millions of cars every year. A survey conducted by AutoTrader.com, the ultimate automotive marketplace, revealed attitudes and opinions among adult drivers in the metro Los Angeles area regarding selling a vehicle privately, as well as how they intend to use the proceeds of a vehicle sale.

According to this survey, Los Angeles residents feel that selling a car is a stressful activity that is more concerning than traveling in an airplane (72%). Amazingly, a majority (56%) of Angelenos surveyed feel more comfortable with speaking in front of a crowd than they do with finding a new owner for their automobile. The process of selling a car doesn’t have to be a nail biter because AutoTrader.com makes it easy to list a car for sale, determine the right asking price, and find the widest pool of qualified shoppers across the nation.

AutoTrader.com not only eliminates stress, but helps private sellers net much more than trading in a car.

Selling Privately vs. Trading It In

• Of the consumers who participated in the AutoTrader.com survey, the vast majority at 93% agree that there is more money to be realized via selling their cars privately vs. trading it in.
• Consumers think that by selling a vehicle privately they can make from $500 to $3,000 more than the value that would be offered in a trade-in transaction.
• Sixty percent of Los Angeles residents would put the extra money toward the purchase of another vehicle, while just 10% would use it pay bills, 5% would put it in the bank and 2% would spend on their children’s education.
• Angeleno attitudes toward how to spend the extra money realized from a private vehicle sale track closely with the national average, with national consumer opinion results coming in at 57% reporting they would put the money toward the purchase of another car, 13% would pay bills down, 7% would put it in the bank, and 2% would allocate the funds toward their kids’ education.

Selling a Vehicle Privately – Consumer Attitudes About The Transaction

• Angelenos feel the strain of a vehicle selling transaction 15% more than the national average opinion reported by consumers located in other parts of the U.S. who also participated in the same AutoTrader.com survey.
• Angelenos have less concern than consumers in the national pool when it comes to several aspects of selling a vehicle, including knowing where to advertise their car for sale (just 3% are concerned vs. 7% of national respondents), figuring out how to price their car to sell (14% in Los Angeles vs. 16% nationally), and writing advertising copy that will entice buyers (2% in Los Angeles vs. 3% nationally).
• Ironically, in a city awash with new and used cars buyers, Angelenos are most anxious about finding a buyer and waiting for the car to sell. The 20% of respondents who reported this concern could be motivated by the fact that living in Los Angeles without a car can be very challenging when it comes to getting to work, doing errands, etc.
• Twenty percent of Angelenos reported that haggling over the price would be challenging, as compared to 22% of the national respondents in other markets.
• Across the nation, very few consumers express concern regarding transaction details such as completing state motor vehicle paperwork (4% for both), cleaning up their car to prepare to sell it (3% for both), letting a stranger drive their car (4% in Los Angeles vs. 5% nationally, or getting stuck with a bad check (2% in Los Angeles vs. 3% nationally).

"AutoTrader.com provides a tremendously cost-efficient and effective way for car owners to sell their own vehicle," said Scott Whiteside, vice president and general manager of private seller advertising, AutoTrader.com. "For most, selling a vehicle is not a frequent occurrence; generally people only need to sell a vehicle once every several years. AutoTrader.com provides an easy, step-by-step user experience that better addresses the needs of the typical vehicle seller."

For consumers seeking the perfect new or used vehicle, AutoTrader.com is the nation’s best online marketplace, with 3 million vehicle listings and more than 13 million qualified buyer visits each month.

As an automotive marketplace, AutoTrader.com helps consumers find and sell vehicles but never handles the transmission of payment between buyers and sellers. Individual parties involved in a vehicle transaction are urged to pay with, or accept only a certified bank check or cash.

(a) Source: Federal Highway Administration

About the Study

AutoTrader.com’s TrendEngine team conducted random telephone surveys among 501 national adult residents and 254 Los Angeles-based adult residents in September, 2007. All respondents indicated plans to buy a car within the next 12 months, or had bought a car in the past 12 months.

Free Custom Research Available to Media from AutoTrader.com

Consult the AutoTrader.com TrendEngine and Media Relations team to provide you with the facts, data and trends you need for your next story. With over 3 million vehicle listings and more than 13 million unique monthly visitors, AutoTrader.com is uniquely equipped to provide automotive reporters and analysts with unbiased, statistically significant and highly timely vehicle supply and demand data, revealing key industry insights and trends.

Visit an AutoTrader.com Media Relations team member at booth W-9, in the West Hall Lobby, during the Los Angeles Auto Show Press Days, November 14 – 15 at the Los Angeles Convention Center, to learn more about how the TrendEngine can assist you.

About AutoTrader.com

AutoTrader.com, created in 1997 and headquartered in Atlanta, Ga., is the Internet's leading auto classifieds marketplace and consumer information website. AutoTrader.com aggregates in a single location more than 3 million vehicle listings from 40,000 dealers and 250,000 private owners, which provide the largest selection of vehicles attracting more than 13 million qualified buyers each month. Through innovative merchandising products such as multiple photos and comprehensive search functionality, AutoTrader.com unites buyer and seller online - dramatically improving the way people research, locate and advertise vehicles.

AutoTrader.com is a majority-owned subsidiary of Cox Enterprises. The venture capital firm Kleiner Perkins Caufield & Byers is also an investor.