• by Karl Greenberg , October 8, 2008

Irvine, Calif.-based Internet auto research and shopping site Autobytel says 56% of dealers are seeing slower sales, with domestic dealers reporting bigger sales declines.

Autobytel's findings are from a survey of hundreds of dealers nationwide, via Survey.com, on dealer perceptions of the current new and used vehicle markets, and how they are dealing with it.

The survey found that 73% of domestic dealers report sales are down vs. 48% of import dealers, with 26% of domestic retailers having declines of 25% or more, as opposed to 11% of import dealers.

The firm also says that 77% of dealers are refocusing on follow-up processes/lead conversion, while 69% report increasing their focus on Internet marketing, or making it a larger part of their overall marketing spend.

In fact, Autobytel says half of the dealers surveyed opined that follow-up and lead conversion will be more important than used vehicle or service departments in the current economic bog. Per the survey, 91% of dealers are either increasing or maintaining their Internet marketing spend, despite tighter budgets.

Honda, Hyundai and Nissan were the brands with the highest number of dealers saying they would boost Internet spend. The firm says domestics are more pikely to concentrate on the used-vehicle sales to remain profitable.

Autobytel says half of Honda and Hyundai dealers, and 40% of Nissan dealers, report that sales are up. Seventy-two percent of GM dealers and 65% of Toyota dealers surveyed reported sales declines so far this year, and 15% of GM dealers versus 11% of Toyota dealers reported sales gains.

A majority (52%) predict that a meaningful sales recovery will not take place until at least the second half of 2009.

Forty-nine percent of dealers are bullish on gasoline. They think the high gas prices and the shift to fuel-efficient vehicles is just part of a cycle--and that gas prices will retreat and larger vehicles will make a comeback. Forty-six percent believed the opposite, per the firm.