This past year we saw a massive increase used automotive Internet usage (AIU) rate, as 68% of all used-vehicle buyers went online during the vehicle shopping process versus 63% in 2009.  The dramatic rise has narrowed the gap between used- and new- AIU rates.

There are many fac tors at work.  One is the poor economy, which has forced some would-be new-vehicle shoppers to buy used.  Since the traditional new-vehicle buyer is more likely to shop online,  the used AIU rate would be pushed up.

Another factor is the increasing Internet penetration among the U.S. population.  As shown below, large increases in overall Internet penetation mirror corresponding changes in the used-vehicle AIU rate.  More people going online = more used shoppers going online.

It’s not just that more people happen to be online – better and more relevant content is also drawing them in.  Inventory will always be king when it comes to used-vehicle shopping and there’s so much more of it available.  It’s no longer just about cars.com vs. Autotrader.  These days, robust inventory tools are available on other third-party sites, OEMs (particularly for CPO) and many dealer siters.  Further, dealer are doing a better job of harnessing SEO/SEM to drive traffic to their dramatically improved sites.

This week I decided to check out automotive iPad apps.  These first-generation entries are at times engaging, but ultimately I often found than frustrating and rather limited.

Let’s start with one of my favorite usability rants: hot spots.  They’re quick, which is probably why three OEM iPad apps incorporate them.  They’re also dirty – pretty hyperlinks that force users to repeatedly hunt to find information.

The iPad is a touch pad.  Hot spots don’t create the level of engagement that is possible when users interact directly with the screen; they’re just a porting of a flawed navigation scheme to a new platform.

Interfaces fit more naturally with a touch environment are far more interesting and fun.  The MB Classic app utilizes the familiar iTunes album navigation, which makes it immediately usable.  Selecting a card then leads to high-quality images with technical data and an audio overlay.

BMW’s X3 Catalogue also creates some compelling interactions.  The primary interface is like a magazine, with scrollable thumbnails that leads to high quality imagery, 360s, and video.  There’s also an intuitive quick colorizer.  I especially like the interior X-ray – it’s engaging, feels natural on a touch screen, and fits into the magazine concept.  The only major downside is length – 34 pages feels really long, even to someone interested in all the content.

The Audi A8 experience doesn’t start off well.  It’s a huge download (611MB) and requires you to watch a one-minute video intro.  The start menu is also problematic, as it’s cluttered and not much better than a hot spot interface.

Further in, we get high quality video and imagery.  The 360 spin + colorizer is fun, but the link to the main site to complete the configuration process is awkward.  Other animation such as turning knobs and dials is rather limited.

Least impressive is the Honda CR-Z Experience, which falls short nearly across the board.  Aside from the problematic hot spots, the other primary means of navigation is swiping through screenshots of information.  Swiping is just the cost of entry on smart phones and doesn’t bring anything new to the game.  What’s worse is that the content is uninspiring, comprised almost entirely of dark screenshots accompanied by small, low-contrast text doesn’t draw in the user.

Despite some initial stumbling, these early movers are at least trying to figure out what they can accomplish on touch pads.  There are no Angry Birds-type home runs (granted, that’s a nearly unreachable standard), but I do expect to see some interesting and innovative offerings over the next year.

It’s no secret that auto manufacturers are creating better vehicles than ever before – safer, more feature-rich, higher quality, and more reliable.  Data from our Vehicle Dependability Study, which surveys owners of three-year-old vehicles regarding the number of problems experienced in the prior twelve months, backs the assertion of improved reliability.  As illustrated below, these five high-volume brands have each dramatically reduced their problem incidence since 2005.  In fact, Ford’s is now nearly on par with long-time industry leaders Honda and Toyota.

But consumer sentiment is often divorced from reality.  The domestic brands continue to carry poor reliability perceptions borne out of decades of actual poor performance.  The 2010 Avoider Study, which examines the reasons consumers fail to consider (i.e. avoid) particular new models, shows that Chrysler, Chevrolet, and Ford are all avoided by greater than 20% of vehicle buyers because of reliability concerns.  The latter two have made inroads (carried at least partly by better actual performance) and decreased their reliability avoidance by three and seven percentage points, respectively, over the past six years.  Meanwhile, Chrysler’s reliability avoidance continues to worsen.

The Toyota and Honda corporations have long enjoyed stellar reputations for reliability.  For Acura and Honda, those perceptions have remained remarkably steady for the past six years, never rising above 7% avoidance.  Conversely, the steady drum of recalls and poor PR has negatively impacted Toyota and Lexus, with 15% and 6% of avoiders, respectively, citing reliability concerns.  Interestingly, corporate sibling Scion, which has largely avoided the fallout, actually experienced an improved reliability perception in 2010.

The Toyota saga illustrates how quickly brand reputations – even those which have been painstakingly crafted over years – can turn.  Mercedes-Benz went through a similarly painful period ten years ago, when the Chrysler takeover and new product launches created numerous vehicle reliability issues.  It has taken the company the remaining part of the decade to recover its once sterling image.  Toyota Motor Corporation must continue its redoubled efforts to produce great products and earn back its position as a reliability leader.