1. DE
A LIX
Automobile Shopping Behavior 2007
Research Insights for Dealix Customers

2. DE
Highlights of 5 Major Industry Studies in 2007
A LIX
> 2007 New and Used Autoshopper Studies
> 1 million leads from 1,140 dealerships representing 35 brands
matched with DMV data to assess sales rates and time to close
> Two consumer surveys:
- 550 vehicle shoppers and purchasers
- 1000 vehicle purchasers||
> 2100 dealerships in eMystery shop campaigns [20 brands]
> 20 onsite visits to top performing dealers

3. DE Key Insights for Your Dealership
A LIX
> All customers are “internet customers”
> 3rd party leads are essential to reach 20-25% of shoppers
> Many shoppers have a different timeline than your sales team
> You only have one shot to win over a shopper
> Excellent lead management practices increase close rates 2-3X

4. DE Consumer Shopping Process
1.
-
-
-
A
Should I be in market?
LIX
Resale value/condition of current vehicle
Change in vehicle needs
“Gotta have” new model
2. Which models meet my needs?
- Price, styling, reliability, size
- Previous experience
- Advice from friends
3. Where should I purchase?
- Price
- Convenient location
- Service

5. DE Metrics Through the Funnel
A
Awareness
LIX
Measures of Success
→ Change in awareness
→ Improvement in familiarity
Familiarity
→ Improvement of opinion
→ Click on ad
Consideration → Click to site
→ Build a vehicle
Visit Dealer
→ Search inventory
→ Search for dealer info
Purchase
→ Request a quote

6. DE All customers are Internet customers
A
Car shoppers are
qualifying dealers
LIX
by researching
online & using
search for vehicle
dealership
research
Base: Total Respondents (550)
Q4 When researching auto dealerships, which of these online search engines
did you use to obtain information? (Please select all that apply.)
QS10Which of the following resources ‘did you use to gather information while
shopping for your new vehicle?’ OR ‘are you using to gather information while
shopping for your new vehicle?’
Q0You mentioned that you used the resources shown below to research and
shop for new vehicles. How did you reach each of these websites?
Yahoo! Search Marketing Proprietary and Confidential. © 2007. All Rights Reserved.

7. DE Requests for online quotes are steady
60%
50%
A Percent of New-Vehicle Buyers
LIX
Submitting a Request for Online Dealer Referral
Visited Dealer
40% Found Online
% of All Buyers
30%
39%
20%
10% 20% 21% 21% 22%
0%
2004 2005 2006 2007
Based to new-vehicle buyers
Source: J.D. Power and Associates 2004-2007 New Autoshopper.com Studies

8. DE 23% of used vehicles sold are sourced online
30%
25%
A Method that Led to Used Vehicle Purchased
Newspaper Classifieds
LIXClassified Ad Magazines Online Classifieds
% of All Buyers
20%
15%
23%
10%
16%
14%
11% 11% 12%
5% 10%
9%
5% 5%
0%
2003 2004 2005 2006 2007^
Based to late model used-vehicle buyers
Source: J.D. Power and Associates 2003-2007 Used Autoshopper.com Studies

9. DE Key Insights for Your Dealership
A LIX
> All customers are “internet customers”
> 3rd party leads are essential to reach 20-25% of shoppers
> Many shoppers have a different timeline than your sales team
> You only have one shot to win over a shopper
> Excellent lead management practices increase close rates 2-3X

10. DE The new-vehicle shopping process takes
about 3 months for the average shopper
A
Decide it was
time to purchase
Purchase Milestones of New-Vehicle AIU's
Shop vehicles
on the Internet
LIX Decide on
model
Purchase
new vehicle
11.7 10.4 6.3
14.7 11.0 7.6 0
Decide on type Start visiting
of vehicle dealers
Start actively
researching vehicles
16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
Weeks Before Purchase (Mean)
Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.

11. DE One-third of new-vehicle buyers purchase within
1 month of deciding they need a new vehicle
25%
20%
A Shopping Timeline of AIU's
22%
LIX 18%
34% Shopping Process
One Month or less
15%
15%
13%
13%
10%
10% 8%
5%
2% 27% Shopping Process Decide time to buy
Over Six Months
0%
53 or 25 to 52 21 to 24 9 to 20 5 to 8 4 3 to 2 1 week
more
Weeks Before Purchase
Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.

12. DE The process is not much different for
late-model used vehicle buyers
A
Decide it was
time to purchase
Purchase Milestones of Used-Vehicle AIU's
Shop vehicles
on the Internet
LIX
Decide on
model
Purchase
new vehicle
13.8 9.9 6.9
14.9 10.9 10.1 0
Decide on type Start visiting
of vehicle dealers
Start actively
researching vehicles
16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0
Weeks Before Purchase (Mean)
Source: 2007 J.D. Power and Associates Used Autoshopper.com Study. Based to AIUs. Preliminary Data

13. DE Over one-third of new-vehicle buyers
seriously consider only one model
40%
35%
30%
A 34%
Number of Vehicles Considered
LIX
30%
25%
20%
20%
16%
15%
Loyal
10%
5%
0%
One Two Three Four or More

14. DE Consumers consider multiple brands
A
Consumers visit an
average of 6 LIX
dealerships, but
they visit only one
dealership per
brand
Base: Total Respondents (550); Those Responding
QS6 Please select the statement that best describes your consideration of each
make listed below.
QS7 How many dealerships did you visit for each make?
Yahoo! Search Marketing Proprietary and Confidential. © 2007. All Rights Reserved.

15. DE Geographic area of consideration grows
A
A third of consumers
will drive more LIX
than 20 miles
from home
68% of consumers are not
willing to travel more than
20 miles
32% of consumers are
willing to travel farther than
20 miles
Base: Total Respondents (546)*
* Don’t know responses removed
QS8 Again thinking about the dealerships you visited, think about how far each
dealership was from your home. In miles, please tell us the distance
between your home and the farthest dealership you visited for each make.
Yahoo! Search Marketing Proprietary and Confidential. © 2007. All Rights Reserved.

16. DE Key Insights for Your Dealership
A LIX
> All customers are “internet customers”
> 3rd party leads are essential to reach 20-25% of shoppers
> Many shoppers have a different timeline than your sales team
> You only have one shot to win over a shopper
> Excellent lead management practices increase close rates 2-3X

17. DE Overall conversion is steady
A
One Million New Car Leads
LIX
45% of leads did not
convert
55% of leads
converted
Based on registration information supplied by R. L. Polk & Co.
Sales/leases have been adjusted for matching efficiency by a factor of 1.36,
which represents a 73% historical match rate
The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.

18. DE Lost opportunity is still high
A LIX
Sold at “intended”
dealership
90% closed at a dealer
other than the one the
lead was sent to – “lost
opportunity”
Based on registration information supplied by R. L. Polk & Co.
Sales/leases have been adjusted for matching efficiency by a factor of 1.36,
which represents a 73% historical match rate
The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.

19. DE All “missed” sales
A LIX
Sold at “intended”
dealership
Based on registration information supplied by R. L. Polk & Co.
Sales/leases have been adjusted for matching efficiency by a factor of 1.36,
which represents a 73% historical match rate
The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.

20. DE Too many leads go unanswered
A
Overall responsiveness LIX 2007
68.6%
Response time average (hrs) 7.1
More than 30% of leads going unanswered.
Quality of responses:
Answered the shoppers questions 28.6%
Use brand or product highlight 25.5%
2007 Cobalt National eMystery Shop, Base: 2,111
The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.

21. DE Lead response time is slow
A
Overall responsiveness LIX 2007
68.6%
Response time average (hrs) 5.4
20% of consumers
Quality of responses: want a response within 4 hours or
they’ll go someplace else.*
Answered the shoppers questions 28.6%
Use brand or product highlight 25.5%
2007 Cobalt National eMystery Shop, Base: 2,111
* “Cars Online 06/07: Understanding the Dynamics of Consumer Buying
Behavior and Customer Loyalty” CapGamini
The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.

22. DE Poor lead handling contributes to
brand defection
A
Why did you purchase a different brand than you submitted an online
inquiry about?
LIX Of those that switched
brands, 23% did so
because of poor
dealer interaction
Poor or no Bad dealer
response experience
QV5 - Those who said they purchased a different make/brand than submitted an
inquiry about (301) Which of the following reasons describe why you purchased
another make/brand than you submitted an online inquiry about?
The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.

23. DE Quality of lead response is poor
A
Overall responsiveness LIX 2007
68.6%
Response time average (hrs) 5.4
Quality of responses:
Answered the shoppers questions 25.0%
Use brand or product highlight 25.5%
2007 Cobalt National eMystery Shop, Base: 2,111
The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.

24. DE eMystery National Shop
2005 vs. 2007
A
Overall responsiveness LIX 2005
69.7%
2007
68.6%
Response time average (hrs) 6.5 5.4
Quality of responses:
Answered the shoppers questions 25.9% 25.0%
Used brand or product highlights 30.4% 19.5%
2007 Cobalt National eMystery Shop, Base: 2,111
2005 Cobalt National eMystery shop, Base: 3,576
The Cobalt Group, Inc. Proprietary and Confidential. © 2007. All Rights Reserved.

25. DE The Impact of Dealer Lead Execution
Cumulative Close Rates vs. Lead-to-Close Time
18%
16%
14%
A LIX
12%
3X
10%
8%
6%
2X
4%
2%
0%
0-30 days 31-60 days 61-90 days 91+ days
High Performering Dealers Low to Avg Performing Dealers

26. DE Key Insights for Your Dealership
A LIX
> All customers are “internet customers”
> 3rd party leads are essential to reach 20-25% of shoppers
> Many shoppers have a different timeline than your sales team
> You only have one shot to win over a shopper
> Excellent lead management practices increase close rates 2-3X