Ninety three percent of auto dealers who use the Internet for business transactions say their dependence on e-commerce will increase in the future, according to a study released April 18 by AutoTrader.com, an Internet classifieds destination and automotive marketplace for used-car buyers and sellers.

The nationwide study of automobile dealers who contract with at least one online automotive shopping and referral service, conducted in December 2000, confirms dealer attitudes about the Internet's current and future impact and importance on dealers' used- and new-car retailing business.

Eighty percent of dealers who use an online automotive shopping service view online classifieds as a valuable tool for their business. Most dealers expect to increase their ad budget percentages that are allocated to the Internet, relying more heavily on sites such as AutoTrader.com.

The study also found that AutoTrader.com is the most frequented site among dealers who list their inventory with an online automotive shopping service. Seventy five percent of dealers surveyed are more familiar with AutoTrader.com than any other automotive-related company on the Internet.

"Dealers are our most important audience, as well as our toughest critics," said Chip Perry, president and CEO, AutoTrader.com. "Results from the study reaffirm that AutoTrader.com stands out from the crowd and gives dealers what they want and need to be successful -- a cost-effective way to advertise all of their inventory to many quality buyers."

Auto dealers also rate AutoTrader.com higher than all online automotive sites on the following superior site attributes: least expensive overall cost of service, least expensive cost per sales lead and per sales transaction. Twenty-one percent of dealers rated AutoTrader.com better than all competitors for overall cost.

AutoTrader.com also ranks as the most user-friendly site for placing used car classified listings, with 32 percent of dealers rating it as better than competitors for ease of placing a classified ad online.

"AutoTrader.com is key to our success because it gives visibility to our dealership," said Bert Kohn, president, Chicago Auto Imports. "Our business increased 25 percent since we joined and now we spend 75 percent less than we used to on advertising. We've had customers from all over the country stop by our lot after seeing one of our cars on AutoTrader.com."

Despite the diversity of business models among new versus used-car shopping sites, the key metrics most dealers use for selecting an auto shopping site are the same (listed in order of importance): quality of leads, traffic volume on the site, the quantity of leads and a well-known or recognized brand were all factors considered by dealers.

AutoTrader.com was viewed as having a superior business model over competitors, due in part to the company's inventory database of vehicles, which is in part supplied by Manheim Auctions, the world's largest operator of wholesale auto auctions. More than 500,000 units in AutoTrader.com's online inventory are generated by Manheim.

About AutoTrader.com

AutoTrader.com is an Internet destination and marketplace for buyers and sellers of used cars, light trucks, vans and sport utility vehicles and for consumers seeking information regarding automotive products and services, such as insurance, financing and warranties.

AutoTrader.com, through its strategic alliances, aggregates in a single location an extensive network of industry participants and a comprehensive database of 1.5 million vehicle listings and automotive information to create an open marketplace that is local, regional and national in nature.

AutoTrader.com was formed in 1997 and is a majority-owned subsidiary of Manheim Auctions, Inc. which has been in business since 1945 and is the world's largest operator of wholesale auto auctions.

Manheim Auctions, a wholly owned subsidiary of Cox Enterprises, Inc., a media conglomerate, is AutoTrader.com's principal stockholder and one of AutoTrader.com's strategic partners. Other investors and strategic partners include Trader Publishing Company, ADP, Inc., eBay, Inc. and the venture capital firm Kleiner Perkins Caufield & Byers.