What would you say is Edmunds’ main mission?
Edmunds' goal is to help consumers find the perfect car and to make car buying and selling as easy as possible. According to our data regarding website visits among in-market car shoppers, we found out that 51% of consumers prefer third-party companies, while 43% choose dealers and 22% prefer automakers. Edmunds’ role as a neutral player that provides insights on vehicles and empowers consumers during the car shopping process offers us the opportunity to become an online automotive marketplace that does not come with the pressure associated with the actual retail experience. Although I am not necessarily a car hobbyist, I do relish the experience of buying a new car and this is exactly why I dream to turn Edmunds into the best and easiest place for car buying and selling.
Which is the specific methodology that you are employing to construct reviews and ratings?
Our editors drive 3,000 cars per year across over 500,000 miles so there is a lot of effort and energy being poured into our ratings and reviews. Every vehicle is put through the exact same paces and we are looking at various aspects (design, drivability, tech elements, safety, etc.) that might be of interest for consumers. We have a ten-point system in place but every model over eight points can be considered a winner as it is incredibly hard to score perfectly due to the tradeoffs associated with all these categories. Electric vehicles in particular are a growing segment for which Edmunds has established a proprietary testing methodology. We collect data and develop content across five principal areas that are critical to consumers: range anxiety, charging awareness, battery lifespan, total cost of ownership and showroom locations. In this respect, we have actually seen how EVs are beginning to overtake SUVs in terms of research interest.
Three years ago, there were zero entries for electric cars in the Edmunds search bar while today six out of the top twenty most researched vehicles are EVs.
What tools do you provide so that shoppers can make more informed purchasing decisions?
Edmunds’ long-term focus has been empowering car shoppers with transparent out-the-door pricing; our tools are designed to give consumers a clear sense of what a car actually costs after all the taxes and fees have been applied. Our monthly payment and auto loan calculators have grown especially relevant with interest rates rising and leases dropping as low as 17% compared to 31% of a couple of years ago. We also offer price drop notifications across vehicle inventory and deal rankings that inform consumers whether prices for listed vehicles are good, great or otherwise. For vehicle owners, Edmunds’ free appraisal tool provides accurate, competitive price estimates and instant online cash offers. Across our EV listings, our website includes maps that offer an accurate view on the expected range, as well as calculated fuel costs for each vehicle. We are also going to be overlaying showroom locations on our range maps since certain EV retailers like Polestar or Rivian can be found only in select locations. Our EV incentives tool helps consumers easily find tax credits, incentives and rebates that may apply to their purchase or lease of an EV. Last but not least, we work with Recurrent to obtain accurate battery lifespan information, which is extremely vital to shoppers in the used EV market.
How do you envision the future of Edmunds in the context of this fast-changing marketplace?
Our ambition is to become the number one online marketplace for cars while also securing a leadership position in the electric vehicles space. Fortunately, the data we collected shows that around 40% of consumers are now comfortable buying cars online thanks to factors like convenience, transparent pricing and limited or no-person interaction - which is the unsung impact of the pandemic. Considering all of these, our main goal is to double down on resources geared toward the consumer trend of buying online, and we hope that we will be able to achieve this plan in five- or ten-years’ time. Partnering up with major publicly traded auto retailers is only the first step towards harnessing this shift that is conquering the auto market. Now that there are so many companies that offer good prices for a trade-in, it seems that there is a place for third parties to create a marketplace for selling second-hand cars. We are already testing out this experience and in ten years we would love to be known as the main hub where you could come and compare offers.
