Monthly used-vehicle Internet sales per new-car dealership declined in 1999, according to a study by ADT Automotive Inc.
The study indicates the Internet was involved in an average of 2.3 used-vehicle sales per month, per dealership in 1999, compared with an average of 3.3 vehicles per month, per dealership in 1998.
The report defines Internet transactions as those that occur when a consumer uses the Internet to get information about dealerships, vehicles or prices.
The Internet was involved in the sale of an average of 5.3 new vehicles per franchised dealership per month - the same as in 1998, according to the report.
The report is interesting in light of the numerous Internet used-vehicle sites such as AutoTrader.com and CarDay aimed at new-car dealers and consumers.
Tom Kontos, director of strategic planning and market analysis at ADT, a wholesale auto auction company in Nashville, Tenn., said it is difficult to gauge how many used-vehicle sales involve the Internet because the report does not include dealerships that do not have Web sites but generate sales from referral services. It also omits data from independent used-vehicle dealers who get Internet referrals, he said.
The report shows that 4.1 million new vehicles were leased in 1999. It predicts lease volume will stabilize between 3.5 million and 3.9 million units over the next four years. Of those off-lease vehicles, between 1.8 million and 1.9 million will be marketed through auctions for the foreseeable future, the report predicts.
The report also says 40.9 million used vehicles were sold in 1999 at an average price of $8,828. The total market value of those vehicles was $361 billion.