ATLANTA – AutoTrader.com is giving dealers another way to attract shoppers to their new car inventory with the new Price Markdown feature, which enables dealers to systematically subtract the amount of special offers from the price of their vehicles. With this tool, dealers are able to more easily highlight the affordability of their new cars and entice shoppers who may be undecided between a new and used vehicle.
Previously, dealers were able to advertise that special offers were available for their vehicles, but the Price Markdown feature takes that to the next level by enabling them to markdown the advertised price of their vehicles, moving the vehicle into a lower price bracket online. With an easy-to-use tool, dealers can select to have special offers of any type—OEM offers and custom offers—systematically applied to their listings by vehicle make. For each make, dealers can also select whether the offer amount is subtracted from the MSRP or retail price.
“We continually strive to provide more value to our dealer customers, and this new feature is one more way we’re accomplishing that goal. Multiple studies have shown that price, and price-related issues such as discounts and specials, top the list of factors that influence shoppers to purchase a particular vehicle,” said Chip Perry, president and CEO at AutoTrader.com. “With the new Price Markdown feature, dealers are able to more visibly advertise the affordability of their new car inventory and entice shoppers who are sitting on the fence between buying a new or used car.”
The majority of consumers are undecided between a new and used car when they begin the car shopping process. According to the 2011 Automotive Buyer Influence Study, almost half (45%) of new vehicle buyers who visited AutoTrader.com began their search looking for a used car. While special offers, dealer rebates and incentives are important to used vehicle buyers, they are significantly more important to new vehicle buyers, who rank it as the third most important reason to shop online.
Further, a November 2011 survey of shoppers on AutoTrader.com showed that price is by far the most important factor consumers consider when deciding what vehicle to purchase. A full 88% of respondents selected “price” when asked to indicate their top three most important factors in that survey.
“Properly merchandising new car inventory is critical to attracting car shoppers online, and this most recent enhancement enables dealers to speak to the number one deciding factor for shoppers—price. But beyond the importance of the overall price, shoppers want to feel like they’re getting a good deal on their car, making it important for dealers to advertise their discounts and other incentives,” Perry continued.
Atlanta-based AutoTrader.com, created in 1997, is the Internet’s ultimate automotive marketplace and consumer information website. AutoTrader.com aggregates in a single location millions of new cars, used cars and certified pre-owned cars from thousands of auto dealers and private sellers and is a leading online resource for auto dealers, individuals and manufacturers to advertise and market their vehicles to in-market shoppers. The company also provides a robust suite of software tools for dealers and manufacturers to help them manage and market their vehicle inventory and display advertising on the Internet. AutoTrader.com continues to grow key business metrics, including revenue, profitability and site traffic. Today, AutoTrader.com attracts millions of unique monthly visitors who utilize the site to review descriptions, photos and videos of vehicles for sale; research and compare vehicles; review pricing and specials; and read auto-related content like buying and selling tips and editorial coverage of major auto shows and automotive trends. AutoTrader.com operates one other auto marketing brand, AutoTraderClassics.com. AutoTrader.com also owns used vehicle management software company vAuto, Kelley Blue Book (Kbb.com), HomeNet Automotive, a leading provider of online inventory management and merchandising solutions for the automotive retail industry and VinSolutions, a leading provider of end-to-end solution platforms for dealers. AutoTrader.com is a majority-owned subsidiary of Cox Enterprises. Providence Equity Partners is a 25 percent owner of the company and Kleiner Perkins Caufield & Byers is also an investor. For more information, please visit www.autotrader.com.