Automobile dealers, having first embraced the Internet as a virtual “welcome mat” for consumers, are increasingly going online to find and purchase used vehicle inventory, a new study reveals.

According to the study by Q2 Brand Intelligence of Seattle, 94 percent of automobile dealers report having a Web site for consumers and 78 percent report using the Internet for business operations, including:

• The challenge of finding quality used vehicles to sell (15 percent) now ranks a close second to the perennial challenge of maintaining great customer service through the recruitment and retention of solid employees (17 percent).

• To help address inventory issues, 31 percent of dealers are turning to the Internet to locate quality inventory and 12 percent are purchasing vehicles at Internet auctions.

“These are meaningful percentages considering that just a few years ago there were no Internet facilities available for dealers to stock their lots,” Q2 Brand Intelligence Vice President David Bauer said.

“A significant evolution in dealers’ perception of the Internet is well underway. Initially, dealers considered the Internet a threat, likely as a result of the onslaught of new online business-to-consumer competition. Next, dealers embraced the Internet themselves to extend their market presence through their own tailored Web sites. Now, it’s becoming clear that the early adopters among dealers are recognizing that Internet technology can also help them solve operational issues, such as conveniently finding quality inventory – one of their biggest business challenges.”

Commissioned by Autodaq Corporation (www.autodaq.com), an automotive remarketing company that provides the infrastructure and technology to facilitate the business-to-business trade of used vehicles on the Internet, the survey of 250 dealer principals, general managers, used-car managers and buyers also found that when using the Internet to purchase vehicles:

• 73 percent of dealers want notification when vehicles they prefer become available

• 72 percent want a database of available vehicles that is “totally searchable”

• 66 percent want a fast and easy way to find specific vehicles for their customers

• 60 percent want to lower the purchasing and time costs associated with traditional physical auctions

• 46 percent want online bidding 24 hours per day.

Autodaq commissions surveys quarterly to gain further insight into the evolving impact of the Internet on participants in the wholesale automotive market, and uses that insight to rapidly develop and deploy improved products and services for its customers.

“Through consistent market research and other feedback methods, we keep our fingers on the pulse of the industry and stay connected with our customers in order to quickly determine and address their needs,” said Ellen Taverner, Autodaq vice president of marketing. “Once we’ve defined a new market need, we’re able to rapidly implement a solution on our Internet auction sites within just six to eight weeks.”

About Q2 Brand Intelligence

Q2 Brand Intelligence (www.q2brand.com) is a brand research and business strategy firm providing business solutions driven by custom strategic marketing research.

Q2 has helped develop and refine the business and branding strategies for more than 400 companies, from new ventures to the Fortune 100, and has experience with more than 3,000 quantitative and qualitative research studies. Q2 has offices in Seattle and Boston.

About Autodaq Corporation

Autodaq Corporation (www.autodaq.com) is an automotive remarketing company that provides the infrastructure and technology to facilitate the business-to-business trade of used cars on the Internet, as well as professional remarketing services that include remarketing management, lease maturity management, strategic marketing, vehicle sourcing, and sales and leadership training.

Based in Menlo Park, Calif., Autodaq is a privately held company; its investors include August Capital, Madison Dearborn Partners, Zilkha Ventures, Clayton Venture Group, and several angel investors from the Internet and automotive industries.