Now that additional safety features and driver assistance programs are becoming the norm in new cars, customers are shifting their attention to other tech-perks while searching for their next vehicle. And as shoppers become more interested in infotainment and more music/video-based technology, dealers have to decide how to best satisfy their customers’ wants and needs.

Backing up this assertion, a study from J.D. Power and Associates indicates vehicle owners have come to “expect” additional safety features and are now turning their attention more to infotainment technologies in their vehicle.

This may be of particular importance to dealers, as ABI Research predicts that OEM connected car system shipments are also expected to grow from 8.22 million in 2012 to 39.5 million in 2016.

Commenting on this consumer trend, Mike VanNieuwkuyk, executive director of global automotive at J.D. Power and Associates, said,  "While vehicle owners remain very interested in technologies that make their vehicle safer, they are turning their attention more and more toward features and technologies that allow them to be productive, connected and entertained while in their vehicles.

"Given the variety of interests from consumers, automakers will be challenged to pursue technologies that fit their consumer’s interests in order to attract them to their products,” he added.

The company’s 2012 U.S. Automotive Emerging Technologies Study  released recently  “measured vehicle owner interest and purchase intent for emerging automotive technologies, both before and after market price is revealed,” officials explained.

The company also highlighted what the top-five considered technologies — based on vehicle owners who indicate that the "definitely" or "probably" would purchase in their next vehicle — both pre-price and at market price are, as follows:

And though these features are growing in importance to consumers, not surprisingly, purchase interest declines across all features when a price is introduced.

What this Trend Means for Dealers

To look into what this consumer trend means for dealers, Auto Remarketing received feedback from AutoTrader.com site editor Brian Moody.

When asked what is most important to vehicle owners now, Moody touched on fuel economy, as well as infotainment systems, which he noted is especially important to consumers who cross-shop brands.

“Overall, I think that shoppers will likely continue to focus on good fuel economy. People now accept that small, non-hybrids can get 40-plus MPG, but they’re now looking for larger cars and crossovers to do the same (Buick LaCrosse, Chevrolet Impala, Camry Hybrid),” said Moody.

“Still, the infotainment piece is important and can be a key differentiator for many shoppers when comparing cars across brands. Technology should make people’s lives easier, not more complicated. So ease of use will become a major selling point in the near future”, he continued. “Important features include streaming Bluetooth audio, voice control over iPod, smartphone connectivity and navigation, as well as the ability to use third-party apps utilizing the car’s factory-installed controls.”

And how does this shift in consumer interest effect dealers?

Moody noted that it is time for new and used dealers to not only stock cars with infotainment features, but market them as well.

“New and used dealers should certainly start looking to stock cars with these desirable features so they have the exact car a shopper is looking for. Bluetooth, streaming Bluetooth audio and a USB port are becoming expected at many price points,” Moody surmised.

“Additionally, dealers need to be sure to highlight these technology features prominently when they merchandise their inventory online at sites like AutoTrader.com. These features can be a strong differentiator, so it’s important that dealers emphasize these differentiating factors when marketing their inventory online. And finally, dealers need to have training on how these systems work, how to update them and what kind of value they add for a variety of buyers,” he continued, noting that dealers must work to stand out from other rooftops regarding available technology in their units.

But as consumers look for more infotainment features in their next vehicle purchase, the following question arises: Is it profitable for used-car dealers to put aftermarket infotainment systems in their pre-owned units?

Moody noted there isn’t one right answer.

“If the question is whether dealers should be putting in aftermarket infotainment systems in used cars, the answer isn’t cut and dry. Aside from the cost of the equipment and installation of an aftermarket system, there are additional considerations that dealers will need to be aware of. Installing an aftermarket system will increase the time that the vehicle is in the dealer’s possession but not able to be sold, so it will ultimately increase the number of days it takes to turn that vehicle,” he explained.

“Additionally, installing aftermarket systems increase the burden on the dealer, as they will need to ensure that they have the right expertise to avoid the following: voiding the manufacturer’s warranty, overloading the powertrain to the point of failure and introducing additional reliability concerns that they’d ultimately be responsible for,” he continued.

On the other hand, Moody also asserted that the “right infotainment features in the right market could make the car sell quicker.”

But ideally, Moody noted that the desired tech features should be part of the original car when the dealer acquires it.

“Ultimately, shoppers will expect many information and tech features to be part of the original car. So, dealers should look to acquire used cars with the latest tech features already installed,” he stressed.

“Shoppers will very likely expect a car like a 2009 Ford Focus to have Sync. Dealers that focus more on low-price vehicles, however, probably don’t need to worry about this since bargain hunters may not expect the latest tech features,” he further noted.

As Consumer Interest Shifts, Car System Shipments to Grow

Looking in more details at the findings of ABI Research — which, again, suggested  that connected car system shipments likely reach 39.5 million in 2016 — the company also found that connected automotive infotainment continues to “steal the limelight,” when it comes to the aforementioned shipments.

And which countries and OEMs will be on the forefront of this climb?

The company explained that though the U.S. and Western Europe remain the leading regions, “car OEMs such as GM, Toyota, Nissan, Hyundai and Mercedes Benz increasingly look to China as the next major expansion area for launching connected car solutions in order to maintain or enhance their competitive position in this fledgling market.”

Dominique Bonte, vice president and group director, telematics and M2M at ABI Research, noted, “Clearly the automotive industry has moved on from looking at telematics and connected car solutions as a nice premium add-on option to seeing bringing connectivity to the car as an essential tool to create more value to the end user, driving loyalty via advanced CRM-based customer experience tools and strengthening their overall branding and positioning in an increasingly competitive market.

"In the US, connected car solutions have already become a must-have, the dynamics of which were set in motion by Ford,  with almost every single OEM now having launched solutions including Chrysler, coming to the party rather late with their enhanced Uconnect offer,” he continued.

Moody commented on the surge in OEM infotainment releases, noting, “Technology can be a huge differentiator for vehicles, and OEMS have been making big strides in this arena. Uconnect in the upcoming 2013 Dodge Dart is very compelling with lots of features that go head-to-head with Ford’s Sync and MyFordTouch.

“Toyota recently added Entune, OnStar has beefed up its offerings and even budget friendly Kia has an information and entertainment feature called UVO. Acura and Lexus continue to offer very robust systems that do a lot but are easy to use. Technology moves at a fast pace, so there will always be risks that need to be accounted for, but as long as OEMs do the right thing by the owners of their products, this trend will continue,” he added.

And though infotainment systems are expected to lead the surge, ABI Research officials explained that traditional safety and security functionality “remains important from an OEM perspective, due to either historical reasons (US – GM OnStar) or driven by mandates such as eCall in Europe, ERA-GLONASS emergency calling in Russia, and the Contran stolen vehicle legislation in Brazil.”

The Next Step in Automotive Technology

Past the realms of safety and infotainment, the next frontier in automotive technology almost rings of "a car that drives itself."

“One of the newest, and the most expensive, technologies included in this study is autonomous driving mode — a feature that allows the vehicle to take control of acceleration, braking and steering, without any human interaction,” explained J.D. Power.

This new development was also part of the company’s 2012 U.S. Automotive Emerging Technologies Study.

Though this technology is still being developed and tested, 20 percent of all vehicle owners say they "definitely would" or "probably would" purchase it in their next vehicle after learning the estimated market price of $3,000, J.D. Power reported.

And  prior to learning the price, interest for this technology was at 37 percent.

And though it may seem consumers could potentially be wary of technology that takes the control of a vehicle out of their hands, the study found that vehicle owners are nearly as likely to select fully autonomous driving mode as they are to select semi-autonomous driving technologies such as emergency stop assist ($800), traffic jam assist ($800) or speed limit assist ($800).

That said, consumers are still voicing concern about this new technology.

VanNieuwkuyk  noted, "Consumers are still learning about how autonomous driving technology could be used in their vehicles.

"Many owners are skeptical about releasing control of their vehicle and would like to see the technology proved out before they adopt it,” he added.

And according to the study, men seem the most interested in fully autonomous driving.

“Vehicle owners with the highest interest in fully autonomous driving at market price are males (25 percent), those between the ages of 18 and 37 (30 percent) and those living in urban areas (30 percent), the company shared.

And for anyone who has ever experienced the frustration sometimes associated with parallel parking, this tool could be a welcome development.

“The study also finds a high degree of interest (41 percent) in fully autonomous driving among vehicle owners who expressed interest in the automatic parallel parking feature, further illustrating similar interest in both semi-autonomous and fully autonomous driving modes,” the company further explained.

Lastly, the study found that interest in autonomous driving mode differs among premium and non-premium vehicle owners.

After learning the price, interest in the feature is at 18 percent among non-premium vehicle owners and at 31 percent among premium owners, the company concluded.