Jumpstart Automotive Group made some interesting observations around a particular demographic of car shoppers in its recent Today’s Auto Shoppers study conducted in conjunction with Ipsos Connect.
Among the most notable finding: Hispanic shoppers like to buy new cars. They place a high value on quality and brand reputation. And they’re not generally looking to trade in their vehicles.
Libby Murad-Patel, vice president of strategic insights and analytics for Jumpstart Automotive Group, said that automakers and dealers would do well to pay attention to these and other insights gleaned from the study.
“It was an interesting group to dig a little deeper into,” Murad-Patel told Auto Remarketing about the Hispanic-specific stats from the study, which sought to understand how auto shoppers conduct research and to inform automakers and dealers how to win them over.
A big reason why Hispanic buyers gravitate toward new, Murad-Patel said, is that they often plan to hold onto a vehicle for a while, then pass it down to a family member.
“They look to get longevity out of the vehicle,” she said, adding that they don’t tend to trade in their vehicles.
“Trade-in values are really important in the auto space; that’s a big top-of-mind consideration for many shoppers. But we found that that wasn’t necessarily as important among Hispanic shoppers.”
The study found that more Hispanics — younger men, in particular — by new cars as compared to the total population: 71 percent vs. 64 percent. And 45 percent of them are in the market for a new car every 1 to 3 years, versus 37 percent for all study participants.
For study participants as a whole, the top 5 influencers to purchase were:
—Quality and reliability
—Gas mileage
—Price point
—Brand reputation
—Safety
—Tech
Hispanics, however, place brand reputation second on the list.
The top five brands owned by Hispanics: Ford, Toyota, Honda, Chevrolet, Nissan); this mirrors the top five brands in the market based on volume.
When looking at the top five brands for which Hispanics outpaced the total population (within this study) in ownership, they are: Tesla, Mercedes-Benz, Audi, BMW and Toyota.
“Thinking about the next vehicle they’re looking to purchase (within the next three months), the same brands rose to the top in highest percentage (though some shifting of rank), but there was much larger interest in mainstream brands such as Hyundai and Kia (compared to ownership) and we saw a lot of interest in luxury brands,” Murad-Patel said.
Other findings:
—Hispanics showed higher propensity to use a mobile device while shopping at a dealership (48 percent said they have done that, compared to 39 percent in the total population). They were more likely to look up vehicle reviews and rankings than the total population, but are also doing more comparison shopping and searching inventory.
—Although many people are making their decision in a shorter timeframe, Hispanics did outpace the general population when it comes to the one- to four-month shopping process (28 percent versus 24 percent).
—Although Hispanic shoppers rank purchase price higher than monthly payment,
monthly payment is a higher consideration for them than any other group.
“They were really more focused on purchase price overall. A lot of (Hispanic buyers) really weren’t looking to finance; they wanted to pay cash,” Murad-Patel said.
“It was very much value-driven,” she continued. “When it comes to that purchase price, they want a good deal but they want to make sure they’re getting the long-term value.”
Car buyers are getting more satisfaction, it seems, according to new data from the American Consumer Satisfaction Index (ACSI).
Consumer satisfaction with automobiles is up 3.8 percent to 82 on ACSI’s 100-point scale.
And while luxury cars have dominated the driver satisfaction rankings for years, the top tier is now evenly split between mass market and luxury vehicles.
“The rise of mass-market vehicles may well be at the expense of luxury brands in the sense that buyers now see little differentiation between luxury cars and regular ones,” said Claes Fornell, ACSI chairman and founder. “If there is little difference, why pay more? Exclusivity may not be enough.”
Among 24 auto brands tracked by the ACSI, 16 saw improvement while five — three of which are premium brands — saw declines. The most notable decline was for Volkswagen, which is enmeshed in the emissions-cheating scandal known as Diesel-gate. Volkswagen dropped 3 percent to 78.
“The combination of fines and fallen stock price are a big hit to Volkswagen’s finances, but it may prove even harder to recover from the reputational hit the company will take for deceiving customers and the general public,” said David VanAmburg, ACSI director. “Many customers or would-be customers could be turned-off of VW for life and it’s hard to put a value on that.”
Good news for domestic automakers
All domestic automakers improve customer satisfaction overall this year, and the highest-scoring car is now an American brand. Ford’s Lincoln took the lead at 87, a 5-percent gain. Honda claimed second place with an 8-percent gain to 86, while Toyota and BMW each advanced 4 percent, placing these luxury and mass-market brands in a tie for third place at 85.
Lexus, which previously held first place, is now matched by GMC (+8 percent), Subaru (+2 percent) and Nissan’s Infiniti — the leading gainer with a 9-percent jump to 84. Audi (up 6 percent) and Chevrolet (up 5 percent) follow close behind at 83. The rest of the industry came in below the industry average. The Ford brand edged up 3 percent to 81, catching up with Mercedes-Benz (-2 percent) and Hyundai (unchanged).
Nissan moved 4 percent higher to 80, matching Mazda (unchanged), while Chrysler climbed 7 percent to join Cadillac, Buick, Kia and Mitsubishi at 79. Acura fell 8 percent to 76 at the bottom of the category.
“Year-to-date sales are looking pretty flat, and demand for cars may slacken some,” says VanAmburg. “But the good news for Detroit is that higher levels of customer satisfaction will make it more competitive.”
Among domestic automakers, Ford kept its lead, stepping up to 84, followed by GM (81) and Fiat Chrysler (78). In comparison with foreign-made autos, which have long had the highest customer satisfaction, domestics are catching up, rising to 81 overall. European automakers also fared better, matching Japanese and Korean manufacturers at 82.
The ACSI report is based on 3,776 customer surveys collected in the second quarter of 2016 that looked at customer experience benchmarks ranging from driving performance and dependability to vehicle safety, comfort and exterior appearance.
The report is available for free download at www.theacsi.org/news-and-resources/customer-satisfaction-reports/reports-2016/acsi-automobile-report-2016.
As collectors and enthusiasts gather for the glitz and glamour of the Pebble Beach Tour d’Elegance as part of Monterey Car Week, Edmunds.com has revealed some interesting insights into the day-to-day vehicle choices of America’s wealthiest drivers.
Turns out, most opt for practical over posh.
According to an analysis of January-May 2016 vehicle registration data from Polk, the most popular vehicle for households earning more than $250,000 is the Ford F-150 — consistent with the rest of the car-buying public (i.e. all households earning less than $250,000). Also in the top 10 for both groups are the Honda Accord and the Honda CR-V.
The key differentiator between the wealthiest buyers and the general public is their taste for trucks and SUVs — nine of the top 10 most popular vehicles in the top income bracket are trucks or SUVs, compared to six out of 10 for all buyers.
More than 53 percent of cars registered to the wealthiest Americans are SUVs, compared to just more than 40 percent of all buyers.
“America’s wealthiest car buyers are all-in on the trend toward bigger vehicles,” said Edmunds.com executive director of industry analysis Jessica Caldwell. “And they’re not just gravitating toward luxury brands — eight of the 10 most popular vehicles among these buyers are non-luxury vehicles. It suggests that affluent buyers are satisfied with the technology, utility and performance that mainstream brands have to offer.”
After the F-150, the nine bestselling cars for buyers in this $250,000-and-over demographic were: Jeep Grand Cherokee, Jeep Wrangler, Lexus RX, BMW X5, Ford Explorer, Toyota Highlander, Honda Pilot, Honda CR-V and Honda Accord.
When Edmunds analysts sorted the list to identify which vehicles had the highest share of buyers who earn more than $250,000, exotics from Jaguar, Audi, Ferrari, Aston Martin and Bentley dominated. Still, purchases of these top 10 vehicles represented only 0.7 percent of the total number of vehicles registered by this group.
“There will always be an interest in and market for high-end exotic vehicles, as this week’s event in Monterey reminds us,” Caldwell said. “But overall, most of the wealthiest Americans look for their vehicles to perform the same kind of functional tasks that everyone else does.”
Jumpstart Automotive Group made an interesting discovery when analyzing brand interest among desktop and mobile visitors to its range of sites during a one-year period.
When comparing shoppers’ interest in the first half of 2016 versus all of 2015, Jumpstart noticed that truck segments decreased in shopping consideration while car segments increased. This seems to fly in the face of sales trends that show trucks are outperforming cars.
However, when comparing full-year 2015 to full-year 2016, truck segments showed growth while many high-volume car segments (sedans, compacts, coupes) were down.
“Although sales data may continue to show that trucks are outperforming cars in noticeable ways, it is very interesting to see that many car segments remain top-of-mind for consideration among desktop and mobile shoppers,” stated Libby Murad-Patel, vice president of strategic insights and analytics for Jumpstart.
Looking more closely at the data, one sees that truck segments — SUV/CUVs (down 2 percent), trucks (down 5 percent) and vans (down 3 percent) — actually decreased in shopping consideration through desktop and mobile searches when comparing activity in H1 2016 versus FY 2015
Car segments — sedans (up 4 percent), sport cars (up 2 percent), compacts (up 2 percent), coupes (up 2 percent) and performance cars (up 2 percent) — increased during the same time period.
But when looking at the first half of 2015 vs. the first half of 2016, one sees that truck segments — SUV/CUV were up 8 percent; trucks were up 5 percent; vans were up 3 percent — showed growth.
Meanwhwhile many high-volume car segments (sedan down 13 percent, compacts down 5 percent and coupes down 14 percent) were softer.
However, sports cars (up 4 percent) luxury exotics (up 12 percent) and alternative fuel vehicles (not trim or options; up 6 percent) showed growth.
“This is important data for OEMs and dealers to recognize as they build their digital marketing strategies for the balance of 2016 and entering 2017, particularly as the new models come onto the lots,” Murad-Patel said.
Rounding out the data for full-year 2015 vs. first half of 2016:
- Luxury exotics: down 8 percent
- Hatchback/wagon: no change
- Alternative fuel (not trim or options): down 4 percent.
Rounding out the data for first half 2015 vs. first half 2016
- Performance: Up 38 percent
- Hatchback/wagon: Down 3 percent.
About the data:
Body Style: Defined as the main body type (high-level)
—Vehicles in the Alternative Fuel segment are ONLY offered in a Hybrid or Electric, it’s not a drivetrain option (e.g. Chevy Volt, Nissan Leaf, Toyota Prius)
—Luxury Exotic includes brands/models from Ferrari, Lamborghini, etc.
—Performance includes Corvette, Camaro, Mercedes AMG, Mustang, etc.
Jumpstart Automotive Group, a division of Hearst Autos, connects automotive marketers with tar shoppers and enthusiasts through partnerships with: Car and Driver, Road & Track, U.S. News Best Cars, J.D. Power Cars, NADAguides, Autoweek.com, Autobytel, Autolist, Daily News Autos, LeftLane, CarSoup and CarBuzz.
Beware, drivers of older Honda Accords and Civics: Yours continue to be the most stolen vehicles in the U.S.
That’s according to the National Insurance Crime Bureau’s annual Hot Wheels report identifying the 10 most stolen vehicles in the nation. The report examines vehicle theft data submitted by law enforcement to the National Crime Information Center (NCIC) and determines the vehicle make, model and model year most reported stolen in 2015.
“While older vehicles still dominate our Hot Wheels most stolen list, the number of late-model vehicles with anti-theft protection on the list goes to show that technology isn’t foolproof,” said NICB president and chief executive officer Joe Wehrle. “Criminals are doing their best to defeat anti-theft technology through hacking and other means while, at the same time, manufacturers and others are working to improve security.
For 2015, the most stolen vehicles* in the nation were (total thefts in parentheses):
1. 1996 Honda Accord (52,244)
2. 1998 Honda Civic (49,430)
3. 2006 Ford Pickup (full size) (29,396)
4. 2004 Chevrolet Pickup (full size) (27,771)
5. 2014 Toyota Camry (15,466)
6. 2001 Dodge Pickup (full size) (11,212)
7. 2014 Toyota Corolla (10,547)
8. 2015 Nissan Altima (10,374)
9. 2002 Dodge Caravan (9,798)
10. 2008 Chevrolet Impala (9,225)
The following are the top 10 2015 model year vehicles stolen during calendar year 2015:
1. Nissan Altima (1,104)
2. Chrysler 200 (1,069)
3. Toyota Camry (923)
4. Toyota Corolla (776)
5. GMC Sierra (670)
6. Dodge Charger (666)
7. Hyundai Sonata (632)
8. Chevrolet Malibu (629)
9. Chevrolet Impala (594)
10. Chevrolet Cruze (586)
“Far too often, drivers leave their vehicles unlocked or with the keys inside, making it way too easy for an opportunistic thief,” Wehrle said. “And as we noted recently, many stolen cars are not reported as typical thefts to police because many of today’s thefts are financial crimes involving complicated VIN switching, cloning, straw buyers, illegal exports and other sophisticated criminal methods.”
NICB advises all drivers to review its four “Layers of Protection”:
Common Sense: Lock your car and take your keys. It’s simple enough, but many thefts occur because owners make it easy for thieves to steal their cars.
Warning Device: Having and using a visible or audible warning device is another item that can ensure that your car remains where you left it.
Immobilizing Device: Generally speaking, if your vehicle can’t be started, it can’t be stolen. “Kill” switches, fuel cut-offs and smart keys are among the devices that are extremely effective.
Tracking Device: A tracking device emits a signal to the police or to a monitoring station when the vehicle is stolen. Tracking devices are very effective in helping authorities recover stolen vehicles. Some systems employ “telematics,” which combine GPS and wireless technologies to allow remote monitoring of a vehicle. If the vehicle is moved, the system will alert the owner and the vehicle can be tracked via computer.
Click here to view stolen vehicles by state.
Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800-TEL-NICB (800-835-6422), texting keyword “fraud” to TIP411 (847411) or submitting a form on our website. Or, download the NICB Fraud Tips app on your iPhone or Android device.
* Note: This report reflects stolen vehicle data contained in NCIC and present in the “NCIC mirror image” when accessed by NICB on March 5. NCIC records may contain errors based on inaccurate entries submitted by reporting agencies. Full size pickups include half ton and larger capacity models for all makes. Total thefts is the aggregate for each make/model with model year indicating the most stolen model year of all model years for each listing.
In an effort to help edgy parents who walk into your showroom or submit an inquiry through your store website, U.S. News & World Report released a list of six vehicles the publication classified as the 2016 Best Cars for Teens. These models have advanced safety features, new technologies for novice drivers, top crash test scores and excellent long-term value.
The 2016 Best Cars for Teens also has options for a range of family budgets. The list covers models with prices starting below $20,000 and going up to more than $40,000. Top picks have advanced active safety features, such as rearview cameras, parking sensors, blind spot detection and forward collision mitigation. Some models also include new parental control technologies that allow parents to set geographic, time and speed limits and monitor their new drivers using smartphone apps.
The group includes:
Best under $20,000: Chevrolet Sonic
Best $20,000 to $25,000: Kia Soul
Best $25,000 to $30,000: Mazda Mazda3
Best $30,000 to $35,000: Hyundai Sonata
Best $35,000 to $40,000: Ford Fusion Hybrid
Best $40,000 and over: Nissan Murano
“Having a new driver in the family is both exciting and nerve-wracking,” said Jamie Page Deaton, managing editor of U.S. News Best Cars.
“Although it’s expensive, parents should consider investing in newer models because they have many more safety features than cars made just five years ago,” Page Deaton continued. “The 2016 Best Cars for Teens are some of the safest options on the road, giving parents a little peace of mind.”
According to IHS Automotive forecasts, 55 percent of annual global new vehicle sales in 2020 will be vehicles that are connected. At that time, nearly half of the global fleet of vehicles in operation will be connected.
And the future, it seems, is here, as a recent IHS Automotive global consumer survey called Connected Cars found that advanced technologies and increased connectivity are driving consumer preferences as they consider new vehicles.
IHS Automotive analysts surveyed more than 4,000 vehicle owners in the United States, China, Germany and United Kingdom who intend to buy within the next three years. The goal was to understand which services are must-haves for these buyers, as well as to gain an understanding on how much they would be willing to spend for these services.
This is the fourth annual survey of its kind from IHS Automotive, part of IHS Markit. Manufacturers and technology suppliers can use these findings to help address market needs as they develop new solutions for the global marketplace.
ADAS leads consumer preferences
While advanced driver assistance systems (ADAS) are most desirable among global survey respondents, consumers don’t exactly want to pay for these advancements. Traditionally packaged within vehicles as part of optional features like leather seats and high-end infotainment systems, consumers expect advanced safety systems to be included in new vehicles at no charge — since electronic stability control systems and pre-charged brakes have become standard equipment on a global scale.
Of the global audience, U.S. consumers are most willing to pay for ADAS features, indicating they would be willing to spend between $427 and $505, depending on the feature. This is in line with current market prices.
Software updates worth paying for, consumers say
A total of 74 percent of consumers who own a vehicle with an infotainment system are willing to pay for software updates that improve or add functionality to their vehicle, and the response was universally global. In the U.S., 89 percent of millennials surveyed indicated they would pay for a software update — and more than 90 percent of millennials in China agreed they would be willing to pay.
Navigation apps most popular for in-car use of smartphones
When using smartphones in vehicles, the most often used apps by consumers while in their vehicle were those intended for navigation, as indicated by 52 percent of respondents globally. Apps for weather were second, with 41 percent of respondents, and 37 percent of consumers reported using both music and news apps while in their vehicles.
These features are the most popular for embedded displays in audio and navigation systems. Despite a recent resurgence in popularity. Podcasting apps registered very low among the audience surveyed.
Navigation apps are particularly popular in China, with 56 percent of respondents using them, compared to respondents in Germany (55 percent) and in the U.S. (54 percent). In China, ongoing construction of new roads and highways likely makes drivers more dependent on navigation apps. China also diverged from the other regional respondents by being more likely to use music apps (43 percent), social networking (37 percent) and driver’s aids (30 percent) in the car when compared to average.
However, communications apps are much more popular in Germany (33 percent), China (24 percent) and the UK (20 percent) when compared to the U.S. (14 percent).
Autonomy preferences vary; millennials are on board
Nearly one third of survey respondents in all age categories indicated they would ride in a self-driving vehicle and purchase one. Twenty-five percent suggested that while they would ride in one but would not purchase one.
However, millennials are excited about autonomy — when analyzing responses from millennials, more than half are ready to be driven in one and would purchase one; while nearly 75 percent are comfortable with artificial intelligence driving the vehicle. Recent IHS Automotive forecasts indicate 21 million vehicles with some form of autonomy will be sold in 2035 — and with substantial growth between now and then, it’s possible millennials could make up a large share of the initial customer base for these vehicles.
A handful of alternative-fuel vehicles are among the fastest-selling late-model used cars this year, and the market for these vehicles may be approaching an affordability “sweet spot” in pre-owned.
That’s according to a study from iSeeCars.com, which analyzed more than 2.2 million sales of 1- to 3-year-old cars from January through May.
With average days on market at 19.7, the Toyota Prius plug-in hybrid was the fastest-selling late-model vehicle, one of five alternative-fuel vehicles to crack the top 10.
Its days-to-sell dropped from 38.1 in the year-ago period.
“The dramatic decrease in days on the market is at least partially due to the fact that 54 percent of these cars were sold in California and the distribution of the stickers that allow plug-in hybrids to be used in California's HOV carpool lanes with a single occupant has reached its limit, pushing up demand for used cars that already have this privilege,” iSeeCars chief executive officer Phong Ly said in the analysis.
Prices for the model also dropped 17 percent, which may have played a role as well.
Same goes for the Nissan LEAF electric, which was the second-fastest seller. Its days to sell dropped from 38.7 to 24.3, and its prices fell $2,219, according to iSeeCars.
Meanwhile, the Tesla Model S (26.1 days) was third, and the other two alt-fuel rides in the top 10 were the Lexus CT 200h hybrid in seventh (29.4 days) and the Toyota Highlander Hybrid in eighth (29.6 days).
Pricing ‘sweet spot’
In its analysis, iSeeCars breaks down the days on market by vehicle category, and compares each category to where it stood in 2015. The same chart also shows the year-over-year changes in price.
For electrics, the average days on market decreased from 37.6 to 29.2 and prices were down $3,830 (or 15.2 percent).
For plug-in hybrids, days-on-market fell from 42.5 to 40.7, with prices decreasing $1,214 (5.1 percent)
Hybrids took 38.2 days to sell, down from 43.2 days in the same period of 2015. Prices were down 3.7 percent (or $889).
Gas-powered vehicles took 42.5 days to sell, up from 41.3 days a year ago. Prices were off a percent (or $242).
“For these fastest-selling cars, the market may have hit a sweet spot where the pricing of these particular alternative fuel cars has dropped enough to make these cars more desirable,” Ly said.
Granted, Ly said that this doesn’t apply to all alt-fuel models.
But the iSeeCars analysis does point out gains in consumer confidence when it comes to performance, range, safety and battery life for alt-fuel vehicles.
And now, consumers may be feeling a bit more comfortable about their prices, too.
A new survey from AutoMD.com indicated that the lengthening vehicle ownership cycle is impacting vehicle purchasing.
Conducted online among more than 1,000 vehicle owners, the survey revealed that 59 percent of participants who said they planned to purchase within six months would be opting for a pre-owned vehicle, with three quarters saying that their purchase decision would be influenced by the cost of replacement parts.
And while price trumped every other purchase decision factor, knowing a vehicle will last 10 years was the second most important influencer.
In addition, the survey showed that consumers want a “good deal,” with the majority defining a good deal as at or below invoice pricing. And they are opting for third-party research sites and Google, not dealership websites, to make sure they get that deal.
“At AutoMD.com, we have been reporting for years on the lengthening vehicle ownership cycle. This survey indicates how that extended vehicle lifecycle is impacting consumer vehicle purchase decisions," said Tracey Virtue, vice president of AutoMD.com.
“Clearly, many consumers embrace the notion of a pre-owned vehicle as a viable primary vehicle, and are looking to keep them running for the long term," Virtue continued.
Other survey highlights
When asked what kind of vehicle they would purchase for their next primary vehicle, only one in four said they plan to buy new, but 76 percent will purchase a pre-owned vehicle, and more than half (55 percent) are opting for a vehicle that is more than 2 years old.
When asked what kind of vehicle they were most likely to buy as their next primary vehicle, here’s how the responses landed:
—A pre-owned vehicle, older than 2, but less than 10 years old: 45 percent
—A new vehicle: 24 percent
—A pre-owned vehicle, less than 2 years old: 21 percent
—A pre-owned vehicle, more than 10 years old: 8 percent
—A pre-owned vehicle and a real fixer upper: 2 percent
And, confirming the lengthening buy cycle, 32 percent said their current primary vehicle is 6 years or older, with 12 percent reporting that they are driving a vehicle that is more than 10 years old.
Replacement parts key consideration
Some vehicles are more costly to repair than others because their replacement parts are more expensive. So when asked if that would be a consideration when purchasing their next vehicle, 74 percent of respondents said yes.
Interestingly, of the 26 percent who said it would not be a consideration, more than half said it was because it either did not occur to them or that they did not know where to look for that information. For the rest, style/brand trumped replacement parts cost.
Vehicle price top influencer
Not surprisingly, when asked what would influence their vehicle decision most, price came first, but knowing that the vehicle would last for 10 years was No. 2.
When asked about what would most influence their next primary vehicle purchase, respondents ranked the choices this way:
—Price (I will be shopping within a certain budget range): 23 percent
—Longevity, knowing that car will last for at least 10 years: 18 percent
—Utility (I will shop for a vehicle based on practical considerations — big enough for kids/family; useful for hauling; 4WD because I live in the mountains, etc.): 17 percent
—Cost to repair (I will shop for a vehicle that is not costly to maintain): 15 percent
—Fuel-efficiency/gas mileage: 14 percent
—Style (I will make my decision based on the vehicle's appearance, trim etc.): 14 percent
The majority of respondents said they would be looking for a vehicle that was about the same, or less than, the price of their current vehicle, although more than one third were willing to pay more. And they are looking for a good deal, with 62 percent saying they define a “good deal” as being at or below invoice pricing.
Brand breakdown
Although most of these consumers are focused on pre-owned purchases, nearly half said they were likely to purchase the same brand as their current vehicle, with 29 percent reporting they would choose a different brand.
Only 11 percent were interested in a hybrid or electric vehicle, reflecting how low on the list of top purchase influences fuel efficiency ranked.
When asked specifically what brand they would pick, Ford was chosen by the largest number, followed by Chevrolet and Toyota.
Third-party sites and Google
The survey showed third-party research sites such as Edmunds.com and Kelley Blue Book were ranked as the most valuable online resources when making a vehicle purchase decision.
Google tied with third-party buying sites such as Autotrader and TrueCar as second most valuable.
Dealership websites ranked second to last in value.
The AutoMD.com survey was conducted among 1,142 vehicle owners in 2015 and 2016.
Car-buying college grads may discover that picking a major was easier than choosing from among the hundreds of vehicles out there.
To help make the car-buying process a little easier for them, Autotrader has compiled a list of the nine models it thinks young adults should have on their shopping lists.
Three of those models — Chevrolet Equinox, Lexus CT and Hyundai Sonata — are certified pre-owned units.
“CPO cars merit close consideration, as they offer many of the benefits of a new car, like low mileage and bumper-to-bumper limited warranties, without the new-car price tag,” said Brian Moody, executive editor at Autotrader.
Also making the list were Fiat 500X, Honda Civic, Kia Soul, Mazda3, Scion iA and Subaru Crosstrek.
“All of the vehicles we picked for this list are fun, reliable and thoughtfully designed — perfect choices to fuel the next phase of your journey,” Moody said, adding that all cars on the list carry a price tag under $25,000 and at least 30 highway mpg.
Autotrader also offered three pearls of wisdom for young buyers:
— CPO vehicles offer the best of both worlds. Consider certified pre-owned cars first, as they are lower-cost alternative that gets you into a nearly new car. CPO vehicles are late-model, low-mileage vehicles that have been fully inspected according to manufacturer guidelines and come with a warranty. You can likely get a CPO vehicle in a higher trim level (or class) for the same price as a lower-end new car.
— Credit has a bigger impact than you might think. Your credit score has a big impact on the deal you can get, as well as the programs and promotions for which you qualify. It not only determines how good your interest rate will be, it also affects your monthly payments over the life of the loan. Most advertised deals are for people with excellent credit, which many young car buyers haven’t yet built.
— There are two kinds of test drives. The test drive you do when you're shopping should be different from the one you do when you're ready to buy — and these should happen on different days. When you’re shopping, get behind the wheels of two or three of the models you’re considering to find out which ones are as good in the real world as they are on paper. Once you’ve made your choice, take a long, thorough test drive on a different day in the exact vehicle you plan to buy.
For a more detailed look at Autotrader's picks, click here.
