Automotive Digest – US Sales / Satisfaction & UK Web Sites

The median price paid for a new vehicle in the US in 2004 is $26,000 - up from $25,500 in 2003, according to J.D. Power & Associates - with Jaguar and Lexus in joint first place for sales satisfaction. Meanwhile Nielsen//NetRatings has released its first Automotive Sector Spotlight report, looking at UK automotive web site traffic.

According to the J.D. Power & Associates 2004 Sales Satisfaction Index (SSI) StudySM, satisfaction with dealerships' vehicle prices has actually increased despite the price rise, due largely to lower interest rates and aggressive financing incentives. The rate of interest on car loans has fallen from an average of 4.8% in 2003 to 4.5% in 2004 with zero-percent financing, offered mainly by domestic brands, continuing to play an important role. Eleven percent of buyers financed their new vehicle with a 0% interest rate in 2004 compared to 9% in 2003. 'Buyers are willing to pay a higher sticker price as long as the interest rate is low and they can afford the payments' according to Senior Vice President Scot Eisenfelder.

Both the leading makes made their biggest improvements in the areas of dealership facility and price. Jaguar improved its SSI score by 24 points over 2003 and scored highly in ratings of the salesperson. Lexus improved 14 index points and leads in dealership facility and delivery. HUMMER, which expanded into the mainstream market with the H2 in 2003, is the most improved brand in the study, up 29 points over 2003.

For the industry overall however, customer satisfaction with the vehicle delivery process has declined, with noticeable drops relating to the cleanliness of the vehicle, timeliness of delivery and the amount of time the salesperson spends explaining vehicle features. 'At a minimum, customers expect that their new vehicle will be clean and in good condition', says Eisenfelder, 'and surprisingly this is not always the case. Declining gross margins for dealers are placing more pressure on salespeople to make the sale and, consequently, they are too often ignoring delivery... this can have a dramatic effect on sales satisfaction with the dealership'.

The study is based on responses from 39,335 buyers and lessees of new vehicles and was in the field in August and September 2004. J.D. Power is online at www.jdpower.com

The AA is the UK's most popular automotive web site according to the first published research from the Nielsen//NetRatings Automotive Sector Spotlight report, released today.

In September, nearly one third of all visitors in the category went to the AA web site, which includes a travel planning tool, a car buyer's guide and general information and advice for motorists. The separate AA Services site, ranked number 19 in the report, includes AA insurance, finance and membership related services.

The research also measures the time visitors spend on sites. By this definition, sites selling secondhand vehicles fare well - AutoTrader runs the 'stickiest' site in the top 30, with visitors spending an average 38 minutes on the site per month; eBay Motors is second with just over 25 minutes. A number of car manufacturers also keep visitors on their sites for a considerable amount of time, including BMW, Renault, Vauxhall, Honda, Toyota and Ford.

The research is based on 125,000 people on Nielsen//NetRatings UK MegaPanel (r), and will be updated on a monthly basis. The report is broken down into sub-sectors including Automotive Information, Automotive Manufacturers, Multi-category Automotive and Parts and Accessories. Demographic data includes age, gender and income level for visitors.

The agency's web site is at www.nielsen-netratings.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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