Study:
Gas Mileage Increasingly Important Factor to New-Vehicle Buyers
in Choosing One Model Over Another
Gas
mileage is once again becoming an important factor in deciding
which new vehicle to purchase, according to the J.D. Power and
Associates 2003 Escaped Shopper StudySM released recently. Gas
mileage is now fifth on the list of reasons new-vehicle buyers
reject one model over another -- up from 13th in 2002.
"Between
the concerns over the Middle East, high gas prices and the growing
trend toward larger and more powerful engines, it is not surprising
that 15 percent of new-vehicle buyers cite gas mileage as a reason
for rejecting a vehicle they once considered buying," said
Chris Denove, partner at J.D. Power and Associates.
The
study, which examines the reasons new-vehicle shoppers reject
vehicles they consider, finds that shoppers are most concerned
with price-related factors, making them likely to purchase the
least expensive model on their consideration list.
"Brands
such as Hyundai, Kia, Suzuki and Mitsubishi are rarely considered
exclusively, however, they are able to maintain high closing ratios
when they're cross-shopped against other makes," said Denove.
"Such brands tend to place a greater emphasis on competitive
pricing and value, and that is one of the strongest lures in the
market."
Incentives
continue to play a significant role in the decision to purchase
or reject vehicles. Among all vehicles rejected, 16 percent are
rejected for lack of sufficient rebates/incentives, and 14 percent
are rejected because they do not offer sufficiently attractive
financing incentives. Domestic manufacturers appear to be satisfying
customers with incentive packages. The percent of domestic vehicles
rejected for lack of financing incentives has dropped from 15
percent in 2001 to 12 percent in 2003.
"Many
manufacturers that have ratcheted up their incentive marketing
dollars to combat a down economy have found themselves in an incentive
spiral that has proven difficult to exit," said Denove. "Consumers
are likely to expect incentives such as low-interest financing,
particularly from domestic manufacturers, for years to come."
The
2003 Escaped Shopper Study is based on responses from 32,330 new-vehicle
owners.
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