BUY HERE PAY HERE

BUY HERE PAY HERE

BUYER STUDY

ABOUT THE STUDY

In October 2010 and January 2011, the National Alliance of Buy Here, Pay Here Dealers (NABD) and teamed up for a groundbreaking study to define the consumer profile of the average Buy Here, Pay Here (BHPH) customer and to understand the unique shopping needs of this customer segment. The two-part study included qualitative focus groups conducted in Los Angeles and Dallas and a national quantitative online survey among 606 BHPH buyers who purchased within the previous 18 months. The Findings The results of this study affirm for the first time many common perceptions among the BHPH community about the priorities and behaviors of BHPH customers. There are also some new findings about their Internet usage as well as the amount of research BHPH shoppers are conducting prior to visiting a dealership. Finally, we identify key messages that BHPH dealers can focus on to more effectively target their advertising and influence BHPH shoppers during the shopping process.

CONSUMER PROFILE OF THE AVERAGE CUSTOMER

BHPH BUYER

58% Female 39 Years Old $50k Annual Income 60% Married Excellent/Very Good Credit Rating

4 OUT OF 5 BHPH CUSTOMERS CONDUCT RESEARCH PRIOR TO VISITING THE DEALERSHIP

According to the study, 81% of BHPH vehicle buyers said they performed either "some" or "a great deal" of research as part of the car shopping process before going to a dealership compared to the 19% who stated they conducted "very little" research.

19%

Very Little

43%

Some

38%

A Great Deal

81%

70% OF BHPH SHOPPERS REGULARLY USE THE INTERNET

BHPH shoppers use the Internet as much as traditional shoppers for general purposes. However, BHPH car buyers do not use the Internet for car shopping as much as traditional car buyers.

70%

Use the Internet

30%

Do Not Use the Internet

With four out of five shoppers conducting research prior to visiting a dealership coupled with the high percentage of BHPH customers already online, the implication is that there is an opportunity for BHPH dealers to reach and influence BHPH shoppers by tapping into the online automotive space with advertising messages and information that resonate with the BHPH consumer.

IT'S IMPORTANT FOR BHPH DEALERS TO ALIGN THEIR ADVERTISING MESSAGES WITH THE UNIQUE NEEDS OF BHPH SHOPPERS

The need for financing approval drives the car shopping process for BHPH shoppers. In fact, nearly two out of three BHPH customers enter the vehicle shopping process with securing financing and/or identifying a dealer as their first priority. While this information is in line with what the BHPH industry has long suspected, the key is to align your advertising messages with the shopping priorities of your customer base. Effectively communicating the right messages in your advertising may dramatically improve the chances of turning a shopper into an actual customer.

FIRST STEP IN THE SHOPPING PROCESS

40%

59%

36%

64%

Determine Dealership Financing Find a Vehicle I Am Interested In

Determine Dealership Financing Find a Vehicle I Am Interested In

KEY MESSAGES TO COMMUNICATE

Focus on Approval Since approval is BHPH shoppers' #1 concern, messages about financing approval should take precedence in BHPH dealer advertising ? both online and offline.

Talk about Speed of Process When making a dealership selection, many BHPH shoppers are interested finding a dealer who can handle the vehicle purchase process quickly, according to the study. The good news is that 83% of BHPH dealers complete the car buying process in 2 hours or less. As a result, this message is an important one to include in your advertising. For example, "Get Your Car in Less Than 2 Hours!"

Consider Reporting Customer Payments to Credit Bureaus Only 37% of BHPH customers' payments appear on their credit report; however, 63% of BHPH customers would like their payments reported. As a result, BHPH dealers should consider using messages like, "We Can Help You Rebuild Your Credit." Just be sure that if you advertise this message, then follow through on it. Also, don't forget to vet this message with your legal counsel.

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