Despite Market Stabilization, Desire for Alternative-Fuel Vehicles, Angst About Gas Prices Still Exists IRVINE, Calif., Sept. 5
IRVINE, Calif., Sept. 5 /PRNewswire/ -- The latest Kelley Blue Book
http://www.kbb.com Marketing Research study of in-market new-vehicle shoppers
reveals the auto industry's recent push of attractive financing
(http://www.kbb.com/kbb/NewCars/HasIncentives.aspx) and incentives
(http://www.kbb.com/kbb/NewCars/HasIncentives.aspx) offers has led to
increased consideration for gas-guzzling vehicles such as SUVs
(http://www.kbb.com/kbb/NewCars/SUV.aspx) and trucks
(http://www.kbb.com/kbb/NewCars/Pickup.aspx). As gas prices
(http://www.kbb.com/kbb/green-cars/Default.aspx) have decreased in the past
month, increased incentives offers such as low interest rates, employee
pricing discounts and cash-back rebates have contributed to a resurgence in
interest for large vehicles. However, despite the recent market
stabilization, consumers indicate they are still concerned about gas prices
and very interested in alternative-fuel vehicles
(http://www.kbb.com/kbb/green-cars/Default.aspx).
Current consideration levels for SUVs and trucks are at 32 and 22 percent
respectively, significantly higher in both categories when compared to the
previous few months since the summer 2008 gas-price surge began. While gas
prices have come down in recent weeks, auto manufacturers simultaneously have
been piling on attractive incentives to help drive interest in the larger
fuel-thirsty vehicles that have been sitting on dealer lots all summer, and
also with the hopes of clearing the remaining 2008 inventory to make way for
the 2009 models (http://www.kbb.com/kbb/NewCars/default.aspx) in the annual
summer sell-down period.
While the availability of attractive incentives on larger vehicles has
increased, traffic has dropped on kbb.com for vehicles that are not heavily
incentivized. Kbb.com traffic to hybrid
(http://www.kbb.com/kbb/NewCars/Hybrid.aspx) vehicles was down 33 percent from
July to August 2008, and interest in sedans
(http://www.kbb.com/kbb/NewCars/Sedan.aspx) also dropped 11 percent in the
same time period. However, many gas-guzzlers that had wallet-friendly
incentives available in August saw a surge in kbb.com traffic at the same time
due to the attractive offers:
Kbb.com Shopper Activity Month-Over-Month from July - August 2008
Vehicle Increase in Traffic Available Incentives
on kbb.comAugust 2008
2008 Dodge Ram 1500 $5,000 - $6,000 Cash Back
Regular Cab + 21% 0% Financing
$2,000 Cash Back
2008 GMC Yukon + 21% 2.9% Financing
Employee Discount for Everyone
$1,000 - $3,000 Cash Back
2008 Ford Expedition + 9% 3.9% Financing
Not only have incentives recently helped to increase consideration for
larger vehicle segments, they also have affected timing and specific vehicle
purchases. Thirty-four percent of in-market new-vehicle shoppers indicate
that incentive and rebate offers have shortened the timing of their next
vehicle purchase, and 21 percent say the availability of incentives have
convinced them to consider a vehicle they normally would not have considered.
An additional 28 percent say that incentives availability caused them to
purchase a vehicle they already had in mind.
The recent financing and incentives push by automakers has proven to
entice the American car-shopping public. The latest Kelley Blue Book
Marketing Research study reveals that 38 percent of new-car shoppers find a
low financing rate most appealing when it comes to automotive finance and
incentive offers, with a cash-back rebate or simplified "no-haggle" pricing
coming in distant seconds (12 percent each, respectively). Only 10 percent
say they find employee pricing programs most attractive, and a mere one
percent say they find free gas or cash-card programs as the most attractive
offer.
However, despite the market stabilization due to decreased gas prices and
increased incentives, consumers say they are still concerned about gas prices.
With the average cost of gas hovering around $3.76 or more per gallon, 53
percent of in-market new-vehicle shoppers say they have changed their mind
about what type of vehicle to purchase next. A large portion of SUV
considerers say they are also considering sedans (28 percent), crossovers
(27 percent) and hybrid/alternative-fuel vehicles (20 percent) over any other
segment for their next new-vehicle purchase.
With the majority of people (61 percent) saying they are concerned that
gas prices will either stay the same or go higher in the next 30 days,
new-vehicle shoppers are still very interested in more fuel-efficient models.
The latest Kelley Blue Book Marketing Research study indicates that six in 10
people are considering a more fuel-efficient vehicle, with more than a quarter
saying they are "definitely interested" in hybrids
(http://www.kbb.com/KBB/green-cars/hybrid-cars.aspx) (39 percent), hydrogen
(http://www.kbb.com/KBB/green-cars/hydrogen-cars.aspx) fuel-cell vehicles
(36 percent), plug-in hybrid electric
(http://www.kbb.com/KBB/green-cars/electric-cars.aspx) vehicles (25 percent),
biodiesels (http://www.kbb.com/KBB/green-cars/diesel-cars.aspx) (25 percent)
and battery electric vehicles (25 percent).
On average, consumers are willing to spend $2,052 more for an
environmentally friendly (http://www.kbb.com/kbb/green-cars/Default.aspx)
vehicle. In addition, 60 percent of in-market new-car shoppers say it is
important to purchase a vehicle from a brand that is environmentally friendly,
with Toyota (http://www.kbb.com/KBB/NewCars/Toyota.aspx) and Honda
(http://www.kbb.com/KBB/NewCars/Honda.aspx) topping their list of brands that
build the most fuel-efficient vehicles.
"Auto manufacturers are 'buying their way' back into the SUV and truck
segments with attractive incentives as a temporary fix to their sales crisis
situation, driving more car-buyers to consider purchasing these larger
vehicles, which has led to stabilization in the current marketplace," said
Rick Wainschel, senior vice president of marketing and analytics for Kelley
Blue Book and kbb.com. "However, in this situation what the manufacturers
really seem to be buying is time until they can increase production of more
fuel-efficient models, which the latest Kelley Blue Book Marketing Research
indicates the American car-buying public wants. The residual angst over gas
prices and the increased desire for more fuel-efficient cars appears to be
here to stay, no matter how attractive the current incentives are to buy a
large vehicle."
The latest kbb.com Marketing Research study was conducted on Kelley Blue
Book's kbb.com among 1,000 in-market new-vehicle shoppers during August 2008.
About Kelley Blue Book (http://www.kbb.com)
Since 1926, Kelley Blue Book, The Trusted Resource(R), has provided
vehicle buyers and sellers with the new and used vehicle information they need
to accomplish their goals with confidence. The company's top-rated Web site,
http://www.kbb.com, provides the most up-to-date pricing and values, including
the New Car Blue Book(R) Value, which reveals what people actually are paying
for new cars. The company also reports vehicle pricing and values via
products and services, including software products and the famous Blue Book(R)
Official Guide. Kbb.com is rated the No. 1 automotive information Web site
among both new and used vehicle shoppers, and half of online vehicle shoppers
visit kbb.com. Kbb.com is a leading provider of new car prices
(http://www.kbb.com/kbb/NewCars/default.aspx), car reviews
(http://www.kbb.com/kbb/NewsAndReviews/default.aspx) and news
(http://www.kbb.com/kbb/LatestNews/Default.aspx), used car blue book values
(http://www.kbb.com/kbb/LatestNews/Default.aspx), auto classifieds
(http://www.kbb.com/kbb/Classifieds/default.aspx) and car dealer
(http://www.kbb.com/kbb/FindaDealer/Default.aspx) locations. No other medium
reaches more in-market vehicle shoppers than kbb.com.
SOURCE Kelley Blue Book
