IDC Predicts the Internet Will Influence Almost Half of U.S. Online Used-Car Sales by 2004

FRAMINGHAM, MA – MARCH 1, 2001 – According to IDC, two out of every five used-car purchases in the United States in 2004 will be influenced by the Internet. This ratio represents a $164 billion opportunity for companies using the Internet to sell used cars. In recognition of this growing industry, IDC recently published a bulletin that covers this area, U.S. Online Used Car Market: Competitive Scorecard.


"Competition among players in the online used car industry is heating up," said Jonathan Gaw, research manager for IDC's Consumer eCommerce program. "As it does, technology will fade as a significant differentiator among the online firms. Consequently, those who succeed will be those with extensive Internet reach, depth of inventory and distribution, and the ability to balance the needs of used car dealers with ease of use for consumers."

According to IDC, simple business models are working best for players in the online used car space. Early leaders in the industry, such as,, Yahoo!, and eBay, are succeeding using a model that most closely resembles traditional newspaper classified advertisements, while trusted auto manufacturers are struggling to balance the interests of their franchise dealers with the need for a good customer experience online.

IDC believes franchise car dealers will capture the bulk of online used car sales, with independent dealers lagging by two years or more and person-to-person sales even further behind. "Regardless of the players, winners will be those who focus hardest on inventory management and development, quality control, and services integration," Gaw said.

IDC's recently published bulletin U.S. Online Used Car Market: Competitive Scorecard (IDC #B23660) evaluates the state of competition in the U.S. online used car market. Specifically, it ranks competing vendors based on their alignment with the evolving market opportunity and their ability to gain market share.

IDC also recently published Going, Going, Gone: An Analysis of Consumer Preferences in the Use of Online Dynamic Pricing Models (IDC #B23384). This bulletin analyzes dynamic pricing models, including online auctions, a strategy being employed by eBay and in the consumer space and Manheim Auctions in the business-to-business area.

To purchase either bulletin or for more information, contact Demetra Georgakopoulos at 1-800-343-4952, extension 4496, or at

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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