Price is Still the Biggest Deterrent to New-Vehicle Shoppers
Most new-vehicle shoppers have a pretty strong sense of what they are looking for before they set foot on a dealer's lot. They typically know which brand and type of vehicle they're looking for, along with a preferred color, engine or transmission choice, and which comfort and safety options they want, as well as a certain price range, of course. New-vehicle shoppers are equally discerning when it comes to crossing models off their shopping list and cite a variety of reasons for rejecting certain vehicles.
The J.D. Power and Associates 2006 Escaped Shopper StudySM provides insight into the specific reasons why shoppers consider a particular model, but ultimately purchase a different make or model. Price is the reason cited most frequently by consumers - 36% of survey respondents say they rejected a model because the "total price is too high," followed by "total monthly payment is too high." Interestingly, buyers in the premium segment, where the perception is that price is not as important, rejected premium brands at roughly the same rate as those in the non-premium segment.
New-vehicle shoppers are increasingly citing gas mileage as a reason for rejecting a vehicle. Nearly 17% of survey respondents (third-highest reason in the study) cite gas mileage as a reason for vehicle rejection - up from 13% in 2002. In particular, sport utility vehicles and pickup trucks have the highest rejection levels due to gas mileage. Many buyers in those segments, citing gas mileage as a reason, will opt for a smaller, lighter vehicle that will still meet their needs.
As consumers continue to focus on price and fuel economy as reasons for buying - and rejecting - vehicles, auto manufacturers that offer affordable, fuel-conscious models that still provide the functionality that consumers demand will have a clear advantage when it comes to appearing - and remaining - on buyers' shopping lists.
