JD Power: New Cars that Buyers Avoid
This is the time of year when all the "best lists" come out -- from best books and best songs to lesser-known contests such as best meteor shower and best, uh, well let's just say that Kim Kardashian won. And it wasn't for her debit card. But sometimes it's also useful to take a look at the products that buyers stayed far away from.
J.D. Power and Associates uses tactful phrasing in publishing what it calls its annual "Avoider Study." The company surveys 25,000 owners who bought new cars last May, asking them what models they considered. If there seemed to be an obvious model missing from their list, the researchers asked why. For example: Let's say a buyer bought a Honda Accord but didn't even consider chief rival Toyota Camry. Power researchers then asked why not.
In that case, the reason is obvious: Toyota's much-publicized recalls for sudden acceleration and other problems led to worries about reliability, and a much higher rate of shoppers avoiding Toyota models than a year ago. American carmakers had a good year: Many fewer shoppers worried about the future of brands belonging to General Motors and Chrysler than they did in the 2009 survey, when both companies were headed toward bankruptcy and a government bailout. (In the cases of GM's now-extinct Hummer, Pontiac and Saturn those worries turned out to be justified).
While brands from Detroit have made sizable gains in reliability in recent years, you may still have outdated ideas about them. "Perceptions about reliability are slow to change, and some brands have a negative consumer perception that is at odds with reality," says Kerri Wise, director of Automotive Research for J.D. Power. Three of the four remaining GM brands -- Cadillac, Chevrolet and Buick -- have proved more reliable than consumer may think, she says. In a recent Consumer Reports survey, 69% of GM models had a better than average reliability rating. (See New Cars: The Best Deals on the Most Reliable Models).
Ford is a different case, with above average reliability ratings and an improving reputation among buyers, said Wise. Ford is one of several brands with a lower "rate of avoidance" than in last year's study. The others are Korean corporate siblings Hyundai and Kia, which have had very strong sales this year, as well as one GM brand, GMC, and the Dodge RAM pickup made by Chrysler.
When it comes to consumer taste in cars, looks still count. While all the sober reasons like price, reliability and manufacturer's reputation figure into the equation, exterior styling tops the list of why people avoid a model. About 35% of those surveyed gave that reason, and interior styling made the top five list of reasons to avoid a model.
In fact, styling is so crucial that it can change the perception and success of a model. Let's take a closer look at styling and other issues that affect consumers' car shopping decisions:
Successful Remakes Sometimes a redesign is a huge hit, sharply increasing the number of buyers willing to consider that model. That worked for 2010 versions of the Cadillac SRX and Kia Sorento -- both crossover
utilites -- and the Ford Taurus sedan, according to the Power study. The most dramatic change came for the Taurus, which is suddenly the choice of drivers who are trading in luxury brands. (See Ford Taurus: Luxury Car? Better Believe It ). "Taurus is getting consideration from people who never looked at Ford before," says Power analyst Kerry Wise.
Love it or Hate It Having a universally acclaimed design is the goal for car companies. But having a polarizing design isn't bad either, Wise says. She
cites the funky Nissan Cube, pictured at left, which some shoppers adore and others hate. Such designs create controversy and buzz, which often translates into strong sales.
High Maintenance Costs Worries about high maintenance expenses keep buyers away from entire brands, Wise says. This happens especially with luxury brands, where tales of ridiculous bills for routine maintenance -- true in the past, but less so now -- have scared buyers away. This is so much an issue that luxury and even mainstream brands have begun offering free maintenance.
Choosing a car is a highly personal decision. When it comes to design, you don't need anyone to tell you if you like the looks of that car or not. But if you are choosing partly on issues such as reliability, make sure you have up-to-date information and not just a bygone brand image.
Photos courtesy of the manufacturers
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