The evolution of the path to purchase.

1. Into the Minds
of Consumers
The evolution of the path to purchase
for used vehicle buyers.
www.carproof.com/insights

2. Welcome,
Our industry is innovating faster than ever as technology and connectivity are becoming
essential components of the vehicle experience. Once reserved for luxury vehicles, features
like self-parking, touchscreen infotainment systems, and smartphone integrations are widely
available, even in the most affordable vehicles.
Technological advances have also affected the vehicle path to purchase, as consumers spend
substantial amounts of time researching their next vehicle online. To satisfy this demand,
new services have emerged that range from vehicle listing sites, to innovative lead generation
strategies, and even online car buying. The internet has become a key part of the path to
purchasing a used vehicle.
All of these changes inspired CARPROOF to take a fresh look at how used vehicle buyers go
from recognizing they need a vehicle, to closing the deal and driving off the lot. Into the Minds
of Consumers will help our industry better understand the path to purchase for today’s used
vehicle buyers – especially why they’re looking, where they’re looking, and the best strategies
to reach them.
Technology is changing the way used vehicle buyers shop, and we’re excited to help our
industry partners better reach used vehicle buyers in our hyper-connected society. Please
enjoy the results of our study, and we look forward to bringing you more exciting research in
the future.
Drew Harden
Manager, Marketing Insights
askdrew@carproof.com
Into the Minds of Consumers – the study: The findings presented herein are based on two Canadian studies: A cross-Canada consumer study of
used car buyers with an N of 476, where qualifying participants had made a used car purchase within the past two years; and a dealer intercept
study with an N of 165, where qualifying participants were currently engaged in the used car shopping funnel. Results of the consumer study were
normalized to ensure an accurate cross-Canada representation. Unless otherwise noted, the statistics presented herein are based on the results
of the consumer study, and are focused on those who purchased their most recent used vehicle from an independent or franchised dealership.

3. CARPROOF research has discovered two key paths to
purchase for today’s used vehicle buyers. First, there
are Car-hunters, used vehicle buyers who go straight
to the internet and focus on finding the perfect vehicle,
without considering which dealership they will buy it
from. Second, there are Dealer-deciders, used vehicle
buyers who talk to their friends and family to find a
dealership with a great reputation, so they can shop
that dealership for their next vehicle.
Into the Minds of Consumers – Powered by CARPROOF 2
The evolution of the
path to purchase.

4. 60%of used car shoppers are
Car-hunters
40%of used car shoppers are
Dealer-deciders
Car-hunters are searching for
their ideal used vehicle, with
little concern about who they buy
it from. Car-hunters account for
60% of used vehicle buyers,
and the most important resources
in their vehicle search are online
listings, on both independent
listing websites and dealership
websites.
In order to reach a Car-hunter, a dealership
needs to maintain comprehensive, up-to-date
listings. Car-hunters will visit a dealership once
they find the exact car they’re looking for online;
attracting the business of Car-hunters is all
about online listings.
Dealer-deciders are searching
for a dealership with a great
reputation, then they will shop
that dealer’s lot to find their
next vehicle. Dealer-deciders
account for 40% of used vehicle
buyers, and the most important
resources in their vehicle
search are the advice of friends
and family and their own past
experience.
Dealer-deciders are looking for a dealer they
can trust to help them through the purchase
process; attracting the business of tomorrow’s
Dealer-deciders is all about providing a great
experience for customers today.
3 Into the Minds of Consumers – Powered by CARPROOF
Putting all of this together, a dealership attracts Car-hunters through comprehensive
online listings. The dealership then gives these Car-hunters a great purchasing
experience, the Car-hunters share their experience, and the dealership gains a great
reputation. This great reputation brings in the Dealer-deciders, which results in the
dealership unlocking the entire used vehicle market.

5. The path to purchasing
a vehicle actually begins
before a consumer even
knows that they’re looking.
Into the Minds of Consumers – Powered by CARPROOF 4

6. Even before beginning their
research, consumers already
know a lot about their next
used vehicle. This comes as
no surprise – CARPROOF’s
odometer data indicates that
the average vehicle in Canada
is logging almost 24,000 km
per year.
That means drivers have plenty of time to
evaluate what they like and dislike about their
own vehicle, and just as much time to evaluate
all the other vehicles on the road.
Among all used vehicle buyers, 88% know
how much they’re willing to spend on their
next vehicle before starting their search.
Perhaps more importantly, only 37% know
which dealership they will buy from before
they start researching. What does this
mean for dealers?
of used vehicle buyers can still be
won over during their research process.
63%
5 Into the Minds of Consumers – Powered by CARPROOF
Before researching, consumers already know:
88%
85%
60%
53%
37%
The price range they are looking for
What type of vehicle they will buy
The make of vehicle they will buy
The model of vehicle they will buy
The dealer they will buy from

7. Into the Minds of Consumers – Powered by CARPROOF 6
What motivates
consumers to start
their search?
Our research has uncovered many reasons consumers
start searching for a used vehicle, and those reasons
can be classified into two categories – needs and wants.
43%
17%
20% 20%
Car-hunters Car-huntersDealer-deciders Dealer-deciders
“I will buy my next
used vehicle from
whichever dealer has
the right car for me –
but I’m going to find
that car online first.”
“I’ve known which
vehicle I want for a
long time, and I know
the salesperson from
dealership x, so I’ll go
buy it from them.”
“I will find my next
used vehicle by
shopping a dealer
my friends and
family recommend.”
“I had a great
experience buying
my last car – I’ll go
buy my next car
from that same
dealership.”
Earnable customers Determined customers
Is it just Dealer-deciders that start their vehicle
search knowing where they will purchase their
next car? No.
Take a look at the graph below, and you’ll see how it’s possible for a dealership
to earn the business of both Car-hunters and Dealer-deciders.

8. 7 Into the Minds of Consumers – Powered by CARPROOF
What motivates consumers to start their search?
36%
want a car
This group of buyers is shopping
proactively – they want a vehicle.
They account for 36% of used
vehicle buyers, and most of them
are focused on what they can get
from their next vehicle, instead
of what is wrong with their
current vehicle.
They could be interested in a specific feature,
or it may just be time for an upgrade.
Although this group is not the majority of the
market, they do represent a large proportion
of the higher-end used vehicle market. Among
want buyers, 36% are spending over $20,000 on
their next vehicle. But their higher budget also
means they’re more particular; our data shows
they are often frustrated by a general lack of
vehicle information or selection.
64%
need a car
This group of buyers is reacting
to a problem with their current
vehicle – they need a vehicle.
They account for 64% of used
vehicle buyers, and almost
half of them don’t have a
functional vehicle.
Those who do have a functional vehicle are
facing major repair costs; they’ve run the
numbers and replacing their current vehicle
seems more logical than fixing it.
Buyers that need a new vehicle are slightly
more budget-conscious than those that want
one. Only 56% of need buyers intend to spend
more than $10,000 on their next vehicle, in
comparison with 69% of want buyers.
35% Costly repairs
20% Previous vehicle does not work
8% Major accident
1% Stolen
9% Specific feature
8% Upgrade
8% New job
4% Additional car
3% Having a child
1% Got married
1% First car
1% Dealer proactive upgrade
1% Won/inherited money
64% Need
36% Want

9. Into the Minds of Consumers – Powered by CARPROOF 8
Once a consumer has
recognized it is time to
purchase a used vehicle,
they will take one of two
paths to purchase.
They may become a Car-hunter and head online to look for
the perfect vehicle. Or, they could become a Dealer-decider
and focus on the advice of their friends and family to find the
perfect dealership.

10. Into the minds of
Car-hunters
Accordingly, almost every
online car shopping resource is
focused on helping consumers
find that perfect car – rather
than helping them find a
dealership.
Online listing sites like Kijiji and AutoTRADER
make filtering vehicles by make, model,
price, and type – the same factors that most
consumers are already decided on when
they begin their used vehicle search – a
prominent part of their search tools. This
allows Car-hunters to quickly narrow down
their options.
9 Into the Minds of Consumers – Powered by CARPROOF
Car-hunters make up the majority of used
vehicle buyers. A Car-hunter will search
the internet until they find the exact vehicle
they want to buy, then they will purchase
that vehicle from whichever dealership has
it available.

11. Reaching Car-hunters
With Car-hunters being so heavily invested in
online research, a dealer needs to maintain
current and comprehensive online vehicle
listings to attract them. This includes a
significant presence on independent listing
sites, followed up with comprehensive listings
on the dealer’s own website.
Among Car-hunters,
47% make a listing website
the first website they visit.
This number is more than double the next
most popular option, which is the 19% who
start their online search on a dealer website.
The most popular listing site for Car-hunters
is AutoTRADER, which is used by 38% of
Car-hunters, followed closely by Kijiji, which
is used by 34%. Some listing sites also maintain
regional popularity, such as craigslist in B.C.
and LesPAC in Quebec.
Into the Minds of Consumers – Powered by CARPROOF 10
of Car-hunters will visit an online listing site
and/or dealer website during their vehicle
search, and 39% believe these websites are
the most influential sources of information
for vehicle research. However, independent
listing sites and dealership websites do
influence Car-hunters in different ways.
80% It’s clear that independent listing sites and
dealership websites are not interchangeable,
instead they form a road that brings
Car-hunters into the dealership. Reaching
Car-hunters requires the dealer to pave
this road with comprehensive online listings
in both locations – if one is missing, the
Car-hunter will search elsewhere.
Informing Car-hunters
There are certain things used vehicle buyers
want to know about their next used car, and
conveniently for dealers, their priorities are
the same regardless of whether they’re a
Car-hunter or a Dealer-decider. Used vehicle
buyers want to know that a vehicle is in top
current condition, as well as its mileage,
accident history, and maintenance history.
Ensuring these factors are prominently
included in any source of vehicle information
can give a dealer the edge over their
competitors.
Car-hunters typically
finish their online research
on a dealership website.
When Car-hunters visit a
dealership to see a vehicle
they found online, 52%
find that vehicle on the
dealership’s website.

12. What consumers want to know about a vehicle:
11 Into the Minds of Consumers – Powered by CARPROOF
89%
88%
81%
80%
61%
52%
42%
25%
Top current condition
Mileage information
Previous accident information
Maintenance and service history
Type of previous owners
(personal, commercial, rental)
Open recall information
Number of previous owners
Location of vehicle during
previous ownership

13. Even though accident history
is so important, one in five
Car-hunters believe a lack of
information regarding accident
history is one of their top pain
points when buying a used car.
But this doesn’t mean that a
Car-hunter is going to walk
away from a vehicle that has
a little history.
Meanwhile, out of the 2.2 million vehicle
history reports (VHRs) run by CARPROOF in
2015, only 36% came back with accident or
damage history. Dealers that are upfront
with consumers by posting a VHR with their
online listings will build a foundation of trust
before they even meet face-to-face, increasing
the likelihood of a pleasant (and successful)
dealership visit.
Into the Minds of Consumers – Powered by CARPROOF 12
of Car-hunters are
open to buying a
vehicle that has been
in an accident.63%
What private buyers want to know about a vehicle:
How do private buyers compare?
So far, we’ve been focused on dealership buyers, but it’s important to see how
private buyers compare. Consumers who buy cars privately are significantly less
concerned with vehicle information than those who buy from dealers. For a dealer
trying to win over private buyers, focusing on a vehicle being in top current condition
is still the way to go. Private sellers aren’t investing money in reconditioning, so
dealers should highlight just how much work was done to get that vehicle into top
current condition. That could also alleviate the number one reason for a buyer to go
private – price. 54% of private buyers bought privately because of price. Focusing
on top condition shows consumers that they get what they pay for, so buying from
a dealership becomes a better value.
Top current
condition
Previous
accident information
Maintenance and
service history
Mileage
information
80% 74% 69% 67%

14. Once a Car-hunter is ready to
move from searching online to
buying in the dealership, there
are a few things dealers can do to
increase the odds of converting a
Car-hunter into a satisfied buyer.
Car-hunters show up at the dealership ready to
buy – 44% will buy from the first dealership they
visit. A typical Car-hunter also has their financing
in order; 61% of Car-hunters buy their vehicles
with cash, and only 15% see access to financing
as a pain point, compared to 24% of Dealer-
deciders. What does bother Car-hunters is closing
the deal – 42% of Car-hunters find negotiation to
be a pain point, while 30% are frustrated by too
much paperwork. Streamlining paperwork and
negotiation is key to providing Car-hunters with
a satisfactory experience.
After the paperwork is done, Car-hunters who
purchase financing or service/warranty contracts
often leave the dealership uncertain about the
fairness of these extra purchases. We believe
this is because Car-hunters are so focused on
finding the right vehicle, they don’t spend time
researching these extras. But, this doesn’t mean
that Dealer-deciders always feel they’re getting a
fair deal. Both Car-hunters and Dealer-deciders
need a better explanation of their finance and
warranty / service offers. This way they’ll leave
the dealership confident they got a fair deal,
which will boost the dealership’s reputation.
13 Into the Minds of Consumers – Powered by CARPROOF
Car-hunters on the lot
Great 2%
Unfair 14%
Don’t know 23%
Unfair 25%
Fair 19%
Fair 34%
Fair 50% Fair 55%
Unfair 13%
Don’t know
66%
Don’t know
42%
Don’t know 12%
Unfair 24%
Great 0%
Great 13% Great 8%
Car-hunters – How would you rate
the fairness of the deal you received?
Dealer-deciders – How would you rate
the fairness of the deal you received?
Financing: Financing:
Service/Warranty: Service/Warranty:
Don’t Know
65.56%

15. Into the Minds of Consumers – Powered by CARPROOF 14
Dealer-deciders account for the other 40%
of used vehicle buyers in Canada. These
used vehicle buyers start their search by
finding the dealership they want to buy from,
then they shop that dealership for a vehicle.
Dealer-deciders choose a dealership because
of its reputation – the dealer may have earned
this reputation when they made their last
sale, or a sale many years ago, but the
Dealer-decider is there (or back) because
the dealer did everything right during a past
sale. Earning the business of Dealer-deciders
is a dealership’s reward for satisfying
yesterday’s Car-hunters.
Offline resources are the most important
sources of information for Dealer-deciders.
41% of Dealer-deciders believe the dealership
visit was the most influential source of
information during their vehicle purchase,
followed by the 23% who state that friends
and family were the most influential source.
When Dealer-deciders do use online resources,
they don’t use very many. Only 30% of Dealer-
deciders use more than one online resource,
significantly less than the 56% of Car-hunters
who use more than one online resource.
Into the minds of
Dealer-deciders
In order for Dealer-deciders
to make a particular dealership
their first choice, dealers need
to build a great reputation.
That reputation is earned by
creating satisfied Car-hunters.
73%
83%
36% 33%
11% 5%
1 or
more
1 or
more
2 or
more
2 or
more
3 or
more
3 or
more
Offline resources used
while researching vehicles:
Car-hunters Dealer-deciders
87%
69%
56%
30%
21%
11%
1 or
more
1 or
more
2 or
more
2 or
more
3 or
more
3 or
more
Online resources used
while researching vehicles:
Car-hunters Dealer-deciders

16. Dealer-deciders on the lot
Dealer-deciders choose the vehicle they want
to buy after they arrive on the lot. And since the
dealership visit is the most important source of
information to a Dealer-decider, it is essential
that these customers receive a lot of assistance
finding their vehicle.
The fact that these customers already trust
the dealer they’re visiting also shows up at the
back-end of their deal. Most Dealer-deciders,
55%, will finance their purchase, and 36% will
trade-in their vehicle – higher than the 39%
and 30% (respectively) of Car-hunters who
do the same. Interestingly enough, 24% of
Dealer-deciders also find access to financing to
be among their top two pain points, so providing
clear financing information and finance-oriented
promotions could improve the experience for
this credit-hungry group of customers.
Dealer-deciders are equally interested in vehicles
with accidents as their Car-hunter counterparts,
albeit, with a slight twist. 58% of Dealer-deciders
are comfortable buying a vehicle that has been
in an accident. However, where only 1% of
Car-hunters would buy a vehicle with a major
accident, 7% of Dealer-deciders would. Again, these
customers have come to the dealership because of
its great reputation, so it appears that their trust in
the dealer makes them more likely to trust a vehicle
that was once in a substantial accident. Dealers
can maintain that trust by making VHRs readily
available, allowing the customer the chance to see
just how well-repaired the vehicle is, plus, it never
hurts to point out how much money they’ll save.
15 Into the Minds of Consumers – Powered by CARPROOF
Reaching Dealer-deciders doesn’t happen
overnight. The top three motivations for a
Dealer-decider to visit the dealership they
buy from all involve relationships that existed
before the beginning of their vehicle search.
In fact, the most important motivation to
choose a dealership is a recommendation
from friends or family, or the Dealer-decider’s
previous experience.
The desire to purchase a specific vehicle still
plays a role in motivating a Dealer-decider,
but it only motivates 15% of Dealer-deciders
to visit the dealership they buy from. This is
far less than the 39% of Car-hunters who do
the same. Reaching Dealer-deciders is about
establishing relationships and developing a
positive reputation, a process that starts with
satisfying Car-hunters.
25% Recommended to me by friends/family
25% Previously purchased from the dealership
20% Knew someone at dealership
16% Good interaction with dealership before visit
15% Close to home
15% Wanted to see a specific vehicle I saw online
14% Visited a similar dealership, went looking for better deal
13% Saw/heard an ad from the dealership
9% Prominent promotion on AutoTRADER or Kijiji
8% Strong online reviews
6% Close to other dealerships I was visiting
5% Found through brand manufacturer website
What motivates Dealer-deciders to visit the dealership they buy from?
Reaching Dealer-deciders

17. Into the Minds of Consumers – Powered by CARPROOF 16
Improving the dealer experience
It’s challenging to improve a
used vehicle buyer’s purchase
experience without knowing
exactly what these buyers
believe should be improved.
The purchase experience is crucial – after
all, a dealership needs to provide a great
purchase experience to develop the kind of
reputation that attracts Dealer-deciders.
For all used vehicle buyers, better visibility
into accident history is the most desired
enhancement to their dealership purchase
experience. The next most requested change is
simplified paperwork, followed closely by more
cars being available at a single location.
Essentially, there is no single trick to increasing
customer satisfaction – it’s about tightening
the whole purchase process. This could mean
including a vehicle history report with every
online listing, having a few more vehicles on the
lot, and trying to make paperwork as fast and
simple as possible.
Although we don’t want to spend too much time tooting our own horn – we found that
when customers see VHRs online, they start avoiding the cars that don’t have a VHR.
In fact, 81% of online VHR viewers disqualify vehicles from their search if they don’t
have a VHR attached. So tightening up the sales process with an online VHR may bring
more business to the dealer, on top of increasing satisfaction.
30%
28%
25%
Better visibility
into vehicle history
information
Simplified car buying
paperwork
More cars available at
a single location to
view / compare
What do consumers wish was different about the car buying process?

18. Building a successful dealership means
attracting and satisfying the two types of used
vehicle buyers, Car-hunters and Dealer-deciders.
This is done by utilizing two things many dealers
already have – a great inventory, and an even
better buying experience.
The process begins with the 60% of used vehicle buyers who are Car-hunters. A Car-hunter
is driven to find their ideal used vehicle, not caring which dealership it comes from.
The best way for a dealer to attract Car-hunters is through posting comprehensive listings
on independent listing sites, as well as their own dealership’s website. When a Car-hunter
visits the dealership, they’ve already found the exact car they want online, and they’re ready
to buy. It’s the dealer’s job to provide a great purchase experience, so the Car-hunter will tell
their friends and help the dealership develop a great reputation.
The reward for satisfying the Car-hunters is unlocking the remaining 40% of used vehicle
buyers, the Dealer-deciders. A Dealer-decider is looking for a dealership with a great reputation,
and they will shop that dealership for the right vehicle. Dealer-deciders look for a dealership
by talking to their friends and family, and reflecting on their previous buying experiences.
Dealers with the right inventory and comprehensive online listings – something any dealer
can work on today – can immediately attract Car-hunters. But it takes a great customer
experience and a hard-earned reputation to earn the business of the Dealer-deciders, and
unlock the entire used vehicle market.
17 Into the Minds of Consumers – Powered by CARPROOF
In conclusion

19. CARPROOF, a unit of IHS Inc. (NYSE: IHS), is a world-class
data company that creates insight through information for the
automotive industry. Offering solutions in vehicle history,
appraisal, valuation and more, the CARPROOF name is
synonymous with trusted, impartial and comprehensive used
vehicle data. CARPROOF’s products are used by dealerships,
vehicle manufacturers, consumers, major auctions, governments,
insurance providers and police agencies across Canada, to help
users buy, sell and appraise vehicles with full transparency.
Based in London, Ontario and founded in 2000, CARPROOF has
been named one of Canada’s 50 Best Managed Companies, and
was also honoured with Deloitte’s 2013 Technology Fast 50™
and Fast 500™ awards. For more information about CARPROOF,
visit www.carproof.com.

20. 1.866.835.8612
insights@carproof.com
130 Dufferin Ave., Suite 1101
London, ON N6A 5R2
www.carproof.com