Buying No Fun, New Consumer Survey Says; CarsDirect.com Study Shows Buyers Believe They Pay Too Much, Spend Too Much Time Shopping -- and They Still Don't Get the Vehicle They Want
8 September 1999
Buying No Fun, New Consumer Survey Says; Buyers Believe They Pay Too Much, Spend Too Much Time Shopping -- and They Still Don't Get the Vehicle They Want
SHERMAN OAKS, Calif.--September 7, 1999--Americans may be in love with their cars, but they're far less enamored of shopping for them. That's the overriding conclusion of the just-released CarsDirect.com Car Buying Survey, which polled 1,000 Americans to uncover how they felt about their most recent car-buying experience. Dissatisfaction is widespread: almost 36 percent of the respondents said they paid too much for the vehicle; 28 percent said they spent too much time on the purchasing process; and 24 percent didn't get exactly the color or options they wanted.Car shoppers also lamented that they "didn't understand the financing terms" (9 percent) and "waited too long for delivery" (6 percent).
The survey contained its share of revealing insights: women proved to be less confused by financing terms than men; married people are more attuned to -- and turned off by -- the time-consuming nature of car shopping than singles; the higher the level of education, the less satisfying consumers find the traditional car-buying process; and, Gen X stereotypes aside, younger car shoppers are willing to forgo options and indulgences in the cars they buy.
"For many people, buying a car is an ordeal," said Scott Painter, CEO of CarsDirect.com, the first Internet car company, which commissioned Market Facts to conduct the survey. CarsDirect.com is the first nationwide online source that lets consumers research, price, select, finance, order and take delivery of a new vehicle.
"The car buying experience many of us face is fraught with hassle, uncertainty and confusion," Painter said. "That's why CarsDirect.com aims to turn car-buying into something enjoyable -- and to ensure that customers are satisfied at every step of the transaction. We want people to get all the information they need, eliminate the pricing mystery, and get the car they want, when they want it."
A demographic breakdown of survey respondents provides further clues about car-buying concerns:
-- Men and women (36.3 percent vs. 36 percent, respectively) were almost equally likely to believe they paid too much for their last car. Men were slightly more likely to express frustration with time spent on the buying process (30 percent vs. 26 percent), but women were more than twice as likely to say that delivery took too long (9 percent vs. 3.5 percent). -- Interestingly, men were twice as likely to be confused by financing terms as women (8 percent vs. 4 percent). -- Married folks were far more likely to complain about the time spent with the process than did single people (33 percent vs. 21 percent). -- Age likewise plays a role: Respondents in the 55-64 age group were most likely to have concerns about price (45.5), but they were least likely to worry about the time spent buying a car (13 percent). The most impatient car buyers were those in the 25-to-34 group (40 percent), but the youngest buyers, aged 18-24, were most likely to end up with a car without the features and options they wanted (36 percent). -- Car-buyers with the highest incomes (over $75,000) complained most about the amount of time buying a car takes (39.5 percent). Those with the lowest incomes didn't worry about time as much (16 percent). -- Education matters, too: The higher the degree of education, the less the respondents felt they paid too much (27 percent for post-graduates, 34 percent for college and 42 percent for high school or less). But post-graduates were almost twice as likely as those with a high school education to say they didn't get the features and options they hoped for (41 percent vs. 21 percent). -- Regional differences indicate that those in the South (41 percent) were most likely to feel they spent too much. Midwesterners also griped about the price of their last car (40 percent). Westerners were least likely to believe they shelled out more than they should have (22 percent).
The CarsDirect.com Car Buying Survey of 1,000 Americans was conducted July 27-28, 1999 by Market Facts, Inc. TeleNation. The margin of error is +/- 3 percentage points. For a copy of the survey results, please call 818/719-9299, or visit the CarsDirect.com Web site (www.carsdirect.com).
About CarsDirect.com
CarsDirect.com is a revolutionary new Internet company that lets consumers complete the vehicle purchase transaction online. With CarsDirect.com, shoppers can research, price, design, order and finance a new car or truck over the Web -- selecting from among 2,500 makes and models by every major manufacturer.
Unlike referral services, which point people to a dealer to accomplish the transaction, CarsDirect.com takes the customer from inquiry through financing right up to delivery -- online.
Based in Los Angeles, CarsDirect.com is an idealab! company. Its investors include Goldman Sachs, Foundation Capital, idealab! Capital Partners, MSD Capital L.P., and Primedia Ventures, among others.
