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Posts Tagged ‘new car buyers’

‘Under Water’ Trade Ins Hitting New High Water Levels

New car buyers taking bigger hits to get new vehicles.

by on Nov.28, 2016

New car buyers are trading in vehicles with more negative equity than ever — almost $5,000 on average.

A new statistic reveals that these days if Americans want a new car, truck or utility vehicle, they’ll do just about whatever it takes to get a deal done — including taking a huge hit on their trade in.

According to Edmunds.com, about 32% of all vehicles traded in on a new vehicle through September this year were “upside down.” That is to say, the owner owed more on the vehicle than it was worth, and the number is rising. It was 30% for the same period last year.

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That negative equity averaged $4,832. In short, add $5K to the price of that next vehicle being purchased. (more…)

High-Tech Safety Features “APEAL” to Consumers, Finds New JD Power Study

European luxury makers overwhelmingly dominate 2016 APEAL study.

by on Jul.27, 2016

BMW's new 750i is expected to bolster the company's sales, but it's also improving its image with buyers.

New vehicle buyers have come to expect – and appreciate – the latest in high-tech safety systems. And those manufacturers who offer such technologies as blind-spot detection and forward collision warning scored especially well in the latest J.D. Power APEAL study.

Designed to go beyond traditional quality and reliability numbers, APEAL probes buyers about what features they find most exciting – and which are likely to get them back into showrooms to buy the same model or brand in the future. The results of the 2016 study show European brands such as Porsche, BMW and Jaguar, that offers the broadest suites of safety gear coming out on top.

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“Technology-enabled safety features help drivers feel more comfortable and confident while driving their vehicles,” said Renee Stephens, vice president of U.S. automotive quality at J.D. Power. (more…)

Auto Brand Loyalty Hits Highest Level in a Decade

More choices, great lease rates help push numbers upward.

by on Jun.29, 2015

New car buyers are remaining loyal to the brands they're getting out of, according to a new study.

New vehicle buyers are visiting dealership in droves these days, and more often than not, they’re sticking with the brand that brought them there, according to a new study.

IHS Automotive reports that brand loyalty among new car buyers is up to 52.8% in the first quarter of this year with several makes enjoying new high-water marks for loyalty, including Chevrolet, GMC, Infiniti, Jeep, Land Rover, Lexus, Lincoln, Mazda, Mitsubishi, Nissan, Porsche, Subaru and Volvo.

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New vehicle sales in the U.S. through May are tracking for sales in excess of 17 million units in 2015 and June sales are only expected to continue the trend, according to Alec Gutierrez, senior analyst, Kelley Blue Book. (more…)

Drone Delivery? Car Shoppers Look to the Future

Survey finds most buyers won’t want to share cars.

by on Mar.25, 2015

New car buyers are looking for more flexibility in the buying process.

Why bother to drive to the showroom when you can have your next car delivered by drone. At least, that’s what some shoppers had in mind when asked how they’d like to buy a car in the future.

The survey found that a sizable number of shoppers would prefer never to have to step foot in a showroom. But it also suggests that Americans still would prefer to own vehicles rather than sharing them as a way to hold down costs.

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“The automotive industry continues to evolve before our eyes, especially when it comes to the types of cars manufacturers are producing,” said Scot Hall, executive vice president of Swapalease.com, which commissioned the survey of 2,500 drivers and shoppers. But the industry also needs to rethink the way it sells and finances vehicles, Hall added. (more…)

Consumers Expect Gas Prices to Rise Sharply Again

Increase of 50% over next two years likely, finds new study.

by on Feb.19, 2015

Gas prices are expected to rise in the near term after falling for several months.

Consumers may relish the sharp slump in fuel prices during the last few months, but they anticipate prices will eventually rebound – and want automakers to continue putting a premium on fuel economy, according to a new survey.

In the early weeks of the New Year, motorists in more than 40 states were paying less than $2.00 a gallon, according to industry reports. But the new study by the Consumer Federation of America (CFA) predicts prices will surge back to around $3.20 a gallon within two years. Looking five years out, meanwhile, they expect to be paying around $3.90 a gallon at the pump.

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“There’s a good reason why today’s car buyers still believe fuel efficiency is important—they understand that gas prices always go back up,” said Jack Gillis, CFA director of Public Affairs and author of The Car Book.  (more…)

Lenders Cutting Back on Subprime Loans

Credit challenged getting fewer loans and less money.

by on Sep.03, 2014

Lenders are loaning less money, less often to subprime and deep subprime buyers these days.

While auto sales sizzled in August and have been brisk for the year, the lenders helping to move that metal are no longer relying on the subprime buyers to keep the good times rolling.

The percentage of new vehicle loans going to consumers in the subprime and deep subprime segments was at 15.1% in Q2 2014, down from 22.1% in Q2 2013, according to Experian Automotive. Subprime buyers have credit scores ranging from 619 down to 550 while deep subprime is anyone below 550.

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The numbers are still higher than the low of 10.2% during the depths of the recession in 2009, the current figures are still well below the prerecession level highs of 16.6% in Q2 2008 and 19.9% in Q2 2007, the company reported. (more…)

Gen Y Now Buying More Cars than Gen Xers

Both still behind Baby Boomers in purchases.

by on Jul.31, 2014

A new J.D. Power survey says Millennials may just want to own cars after all. In fact, they are buying new cars in greater numbers than Gen Xers.

While a number of recent studies have suggested that Millennials would prefer to text rather than drive, they’re apparently beginning to buy cars, as well as iPads, in ever-increasing numbers.

In fact, Gen Y now is generating a larger share of U.S. new vehicle sales than older Gen Xers, according to a new survey by J.D. Power and Associates. But both groups still lag well behind Baby Boomers who continue to be the largest group of car buyers in the U.S.

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“As Gen Y consumers enter new life stages, earn higher incomes and grow their families, their ability and desire to acquire new vehicles is increasing,” said Thomas King, a J.D. Power vice president. (more…)