Two experts from Standard & Poor’s and J.D. Power offered cautiously positive outlooks for the U.S. economy and for the U.S. auto industry to some 300 auto dealers and industry participants during the recent Western Automotive Conference, sponsored by J.D. Power and the National Automobile Dealers Association (NADA).
Beth Ann Bovino, U.S. chief economist for Standard & Poor’s, said that the U.S. is in its fourth year of recovery with an average growth rate of 2%. On a global level, she cited challenges to be faced including a slowdown in China, the remaining effects of the debt crisis in the Eurozone, and spikes in global oil prices.
In addressing current conditions in the U.S., Bovino said the Fed is focusing on creating jobs and is offering incentives for businesses to invest and hire, which will lead to higher growth. She said there has been robust demand and hiring in the private sector in spite of shocks. Continue reading ›
For a fourth consecutive year, overall new-vehicle initial quality in Malaysia improves significantly, according to the 2013 Malaysia Initial Quality Study (IQS), based on responses from more than 3,100 new-vehicle buyers during the first two to six months of ownership.*
The 2013 Malaysia IQS findings are encouraging because the automotive market in Malaysia is becoming increasingly competitive with a rising number of new models, which makes it essential for brands to produce high-quality cars and trucks. Continue reading ›
Through the first half of November 2013, sales returned to a stronger pace than in September and October—which were hampered by negative external factors, including the U.S. government shutdown in October and the pull forward of Labor Day sales with two less selling days in September—according to an auto sales forecast update from J.D. Power and strategic partner LMC Automotive.
Retail new-vehicle deliveries in November are expected to reach 1.03 million units—up 4% from November 2012 on a selling-day adjusted basis*. This figure translates to a 13.0 million-unit seasonally adjusted annual selling rate (SAAR), which is higher than the year-to-date level of 12.8 million units.
Fleet sales on a selling-day adjusted basis are expected to account for 16% of the sales mix in November, which is 3% lower than a year ago and consistent with the low fleet share that has held throughout 2013. Continue reading ›
Satisfaction is highest among new-vehicle buyers who are presented with pricing/payment options on a computer screen or a tablet (833 on a 1,000-point scale) during the sales process, according to our 2013 U.S. Sales Satisfaction Index (SSI) Study, which is based on responses from 29,040 new-vehicle buyers or lessees, who completed their transaction in April or May 2013.
Using technology continues to make a major difference in enhancing the buyer’s or lessee’s sales experience at the dealership. Specifically, when a dealership salesperson uses a tablet device during the sales process with new-vehicle buyers, satisfaction is 52 points higher on average (844) than when a salesperson does not use a tablet during the sales experience (792). Satisfaction with a salesperson using a computer printout (820) receives the next highest score, followed by verbal price quotes (792); and lastly, written figures (780).
Our 2013 U.S. SSI Study finds that tablets are proving to be particularly versatile and effective tools and may help maintain consistency during the sales process, while providing accessible and dynamic product information. Yet, we also see that tablet usage among dealership salespeople remains relatively limited—only 10% of dealership salespeople use these devices. On a positive note, that’s still up from 7% in 2012. Continue reading ›
“The U.S. auto industry has enjoyed remarkable revenue growth this year,” Deirdre Borrego, J.D. Power vice president of client services, said during a presentation at the October J.D. Power Automotive Marketing Roundtable (AMR) in Las Vegas, NV. “From a consumer standpoint,” she said, “there are specific market forces that have kept sales strong and transaction prices high.” Borrego pointed to four key drivers:
• Long-term loans are a key enabler. Nearly one in three 2013 sales to date was facilitated by a loan of 72 months or longer. Extended terms, combined with. . .
• . . . Low interest rates have allowed consumers to buy a richer mix of vehicles while keeping their monthly payment within their household budget.
• Strong residuals enable manufacturers to offer attractive leases to consumers, again with desirable monthly payments.
• Tight used-vehicle supply is another key factor. The average price of a used vehicle increased by roughly $3,000 since 2008 to reach $18,800 so far this year. This drives stronger in-equity positions for existing owners, improving purchasing power or removing barriers to entry. Continue reading ›
J.D. Power’s Deirdre Borrego, vice president, U.S. Client Services, spoke to industry participants at the October J.D. Power Automotive Marketing Roundtable in Las Vegas, NV. about the U.S. auto market’s recovery and the fundamentals in the market that are driving strong demand.
Highlights from her talk include analysis from the Power Information Network® (PIN) and J.D. Power’s strategic partner LMC Automotive:
• Retail sales to individual consumers in 2013 are expected to reach 12.8 million units which is back to pre-recession levels.
• The real story isn’t just about sales growth. It’s also about transaction price growth. We’ve seen exceptional performance with prices (consumer facing prices net incentives) increasing by about $3,000. Continue reading ›