This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

J.D. Power And Associates Reports: New-Vehicle Shoppers Are Considering More Models, As Concerns Regarding Reliability Diminish

WESTLAKE VILLAGE, Calif., Jan. 16, 2013 /PRNewswire/ -- As perceptions of both reliability and actual vehicle dependability improve, new-vehicle shoppers are considering more models before making their purchase decision, according to the J.D. Power and Associates 2013 Avoider Study SM released today.

(Logo: http://photos.prnewswire.com/prnh/20050527/LAF028LOGO-a)

The study, now in its 10 th year, examines the reasons consumers do not consider—or avoid—particular models when shopping for a new vehicle.

As vehicle reliability improves across the industry, new-vehicle shoppers now consider an average of 3.3 vehicles in 2013, compared with 3.1 in 2012 and 2.9 in 2010. Additionally, fewer shoppers (21%) in 2013 purchased their vehicle without cross-shopping other models, compared with 26 percent in 2012 and 29 percent in 2010.

The study finds that only 17 percent of new-vehicle shoppers avoid a model due to its reputation for reliability, compared with 19 percent in 2012 and 21 percent in 2009. Not only has the perception of reliability and dependability improved, but also the actual quality of vehicles has improved, as the average number of problems per 100 vehicles (PP100) after three years of ownership has decreased to 132 PP100 in 2012[1] from 170 PP100 in 2009.

"Improved actual and perceived reliability has leveled the playing field, allowing many manufacturers to be considered among new-vehicle shoppers that may not have been considered in the past," said Jon Osborn, research director at J.D. Power and Associates. "Factors, such as gas mileage, styling and comfort, play an important role in the decision-making process. The study findings suggest that marketing a brand image is just as important as building reliable vehicles."

The styling of the model, and the image it portrays, are among the primary reasons new-vehicle shoppers avoid particular models. One-third (33%) of shoppers avoid a model because they do not like its exterior look or design, while 19 percent of shoppers do not consider a model because they don't like its interior look or design. The study finds that the image a model portrays plays an important part in avoidance. Nearly one in five (17%) new-vehicle shoppers avoid a model because they don't like the image it portrays.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.87 -58.31 -2.96%
NASDAQ 4,636.1050 -140.4030 -2.94%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs