Automotive Market Research

Guide to Automotive Market Research

Conduct successful automotive market research to find the best deal
By Jeffrey Lindblom

Thanks to the wealth of information available through your home computer, automotive market research has never been easier. Without proper preparation, the decision to buy or lease a car can be stressful. Make sure you utilize the valuable resources the US auto market puts at your fingertips, which includes information at manufacturers’ websites. Spend the time now to avoid spending the cash later.

Early in your car market research, you must make some fundamental decisions. Do you want a new or used car? Do you want to lease or purchase? Your choice depends on what you expect the automotive market share of used cars to be in a few years. An excess of used cars, especially your make and model, makes your car less valuable. Consider these factors when conducting your research:

1. How have cars retained value for the make and model you want?

2. Has the body style changed recently or will it change within a soon?

3. Would a lease work better or will you put more miles on it than the lease allows in the monthly mileage cap.

4. Should you wait to buy until market conditions turn in your favor?

Action Steps

The best contacts and resources to help you get it done

Read automotive market research magazines You can find an online version of many car market research magazines that examine automotive market trends. Some magazines, such as Consumer Reports, require a subscription or fee for 'premium' information. These trade publications can provide valuable insight into the American auto market.

I recommend:  Review “MotorTrader,” which offers a free collection of articles about the automotive market share of new and used cars.

Check the value history of the car model you want You can get an idea of the resale value for the car for the next three or five years by reading reports of models that have high retained values.

I recommend:  Look at information from IntelliChoice, which presents "SmartChoice Highest Retained Value Award Winners." Kelley Blue Book also offers its take with the "Best Resale Value Awards."

Research dealerships' reviews Choose a dealership with a strong history of quality customer support. In addition to talking to people you know, look at websites devoted to providing this information. There is no substitute for a personal walk through of any dealership with which you are considering a long-term relationship.

I recommend:  DealerRater.com offers a list of dealers with reviews and a collection of automotive market research articles. Dealershipratings.com is a little less flexible about how to begin your search, but offers articles on how to compare dealerships. Search dealers at Mydealerreport.com by state, city or brand.

Tips & Tactics

Helpful advice for making the most of this Guide

• Look at your own finances before researching the auto market. Make a reasonable assessment of what you can afford and stick with it.
• Print out comparison charts and make notes on specific models as you research and highlight critical features.
• Do not request email quotes from dealers. The quotes will be little more than list price or advertised specials and it's an open door for spam.