#CONSUMERS USE SOCIAL MEDIA MORE FOR VEHICLE PURCHASE

Latest News Social Networks Guide Dealership Selection Online dealership reviews on social media networks are now playing the most important role in the dealership selection process. The Spring 2013 Automotive Social Media and Reputation Trend Study released by Digital Air Strike included an in-depth analysis of how 650 U.S. dealers use social media and an online survey of 2,000 consumers who purchased a vehicle in the last 6 months. The majority of car buyers said they consider review sites as "helpful" in their decision as to where to purchase a vehicle. The study found that 24 percent of consumers consider online review sites to be the "most helpful" factor, exceeding all other factors including the 15 percent of car buyers who consider dealership websites "most helpful". The study also showed that review sites are becoming increasingly important in organic search. Eighty-one percent of car buyers who use review sites said they look at review scores in search results. The dealer component of the study revealed that, on average, five review sites show up in search results. Car buyers use the top five sites 13 percent more than just 6 months ago. The most popular review sites are Cars.com (61 percent, previously 55 percent), Edmunds.com (54 percent, previously 50 percent),), Google Plus Local (37 percent, previously 44 percent), Yelp (14 percent, no change), and Yahoo (11 percent, no change) - the same rank order as the October 2012 study. The study went on to reveal that there is a 43 percent probability that a consumer will search for a local dealer on Facebook using Facebook's new Graph Search. The study revealed 67 percent of car buyers search for local business using mobile devices with 41 percent having "checked-in" to a local business using their mobile device. Additional Facebook findings include: There is a 59 percent probability that a consumer will trust a review from a Facebook friend more than reviews on other sites. 27 percent of car buyers click on mobile ads on Facebook. There is a 45 percent probability that a consumer will view the dedicated feed for brands in the forthcoming Facebook News Feed. Clicks on automotive dealership Facebook ads more than doubled from October 2012 to April 2013 - from 16 percent up to 39 percent.

FEW BUYING INCENTIVES FOR CAR PURCHASE

Automotive incentives shrank again in October, even as dealerships continue to ring up healthy sales numbers. According to Edmunds.com's True Cost of Incentives report, the auto industry spent $2,124 per vehicle in October, down 3.3 percent from September and down 1.4 percent from October 2011. Edmunds.com reported in September that incentives fell for the first time in five months, even as the auto industry produced its best monthly SAAR of the year. Just last week, Edmunds.com projected that October will deliver the second-highest monthly SAAR of the year at 14.8 million light vehicles, a figure that ultimately may be affected slightly by the damage caused by Hurricane Sandy along the Mid-Atlantic seaboard. Ford was the only manufacturer out of the top six auto companies to increase its month-to-month incentive spending in October. The Detroit automaker's incentive spending climbed 2.7 percent from September to $2,788 per vehicle. Honda's incentive spending fell the most of any major automaker, sliding 15.6 percent from September.