RAB Instant Background - Auto Dealers
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- Dominick Mathews
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1 RAB Member Benefits: RAB.com is best viewed with latest version of IE, Safari, Chrome or Firefox. Home Ask RAB Press RAB Account Manager Login Sitemap Prospect Appointments Research CNA Creative Presentations Training Managers Sign In Research R e s e arr c h Research Alternative Revenue RAB Instant Background - Auto Dealers Print This Instant Background Broadcast Calendars Business Information Co-op Advertising Digital and Marketing F.C.T. Report Summaries Total dollar sales of the nation's new-car dealerships reached $730 billion in 2013, an 8.8% increase from the previous year. Industry & Consumer Research African American Marketplace Articles on Demand Automotive Custom Charts Hispanic Marketplace Instant Backgrounds The Pitch Radio Sales Today Research Reports Other Media Political Advertising Radio Resources Based on National Automobile Dealers Association statistics, the average new-car dealership had a pre-tax net profit of $923,248 in 2013, on $ million in revenues, compared to $835,649 and $ million the previous year. Total revenues were up 8.8% in 2013 for the average dealer, while pre-tax net profits rose 10.5%. (Source: NADA, 2014 ) Share of sales for new car dealers (cars and trucks) by month (3-year average, ): January, 7.4%; February, 7.5%; March, 8.5%; April, 8.2%; May, 8.6%; June, 8.3%; July, 8.3%; August, 8.7%; September, 8.0%; October, 8.3%; November, 8.5%; December, 9.7%.> (Source: U.S. Department of Commerce, 2014 ) The National Automobile Dealers Association predicts that 16.4 million new cars and light trucks (foreign and domestic) will be purchased or leased in 2014, an increase of 5% over 2013's sales of 15.6 million light vehicles. (Source: NADA, 2014 ) Total car sales (not including light trucks) in the U.S. for 2013 (both domestic and foreign), amounted to 7,788,973 units, a 4.2% increase over the 2012 total of 7,472,518. Overall share of advertising spending for new-car dealerships, by medium, in 2013: Internet, 33.0%; Television, 20.8%; Newspaper, 15.3%; Radio, 14.5%; Direct Mail, 11.0%; other, 5.3%.
2 For all of 2013, share of overall light vehicle sales (cars and trucks) by segment: Small Car, 19.0%; Mid-Size Car, 20.0%; Large Car, 2.0%; Luxury Car, 7.8%; CUV, 25.5%; SUV, 6.7%; Van, 5.3%; Pickup, 13.6%. Franchised new-car dealers (domestic and foreign) spent approximately $7.6 billion on advertising in 2013 (all media), up from $7.2 billion in The advertising budget for the average new-car dealer increased 5.9% in 2013 to $429,744, up from $405,907. However, advertising cost per vehicle sold decreased 0.8% in 2013, to $616. (Source: NADA, 2014 ) New vehicle dollar sales at the average new car dealership were up 10.5% in 2013, while used vehicle sales at new car dealerships climbed 7.3%. Service and parts sales increased 4.8% in The average retail selling price for a new vehicle (domestic or foreign) in 2013 was $31,762, compared to $30,910 in (Source: NADA, 2014 ) The new vehicle department accounted for 57.1% of total sales at the average new car dealership in 2013 (up from 56.2% in 2012), while the used vehicle department accounted for 31.3% (down from 31.8% the previous year). Service and parts were responsible for the remaining 11.6% (down from 12.0% in 2012). For all of 2013, share of overall light vehicle sales (cars and trucks) by segment: Small Car, 19.0%; Mid-Size Car, 20.0%; Large Car, 2.0%; Luxury Car, 7.8%; CUV, 25.5%; SUV, 6.7%; Van, 5.3%; Pickup, 13.6%. In 2013, new vehicle lease originations reached their highest level since At nearly 3.2 million contracts, lease originations in 2013 were 26% higher than 2012, and almost three times higher than their cyclical trough in (Source: Manheim Consulting, 2014 ) Auto sales (not including light trucks) of the Big 3 Detroit manufacturers totaled 2,411,238 units in 2013, up 7.4% from Overall sales of General Motors car brands were 3.5% higher in 2013 to 1,066,937, while Ford Motor Co. products were up 10.0% to 836,433. Unit sales of Chrysler auto brands increased 9.2% in 2013 to 543,702. Share of the overall market for cars and light trucks (including both domestic and foreign manufacturers) for the different domestic brands in 2013, with 2012 share in parentheses: Ford, 15.4% (14.9%); Chevrolet, 12.5% (12.8%); Dodge, 3.8% (3.6%); Jeep, 3.1% (3.3%); GMC, 2.9% (2.9%); Ram, 2.4% (2.1%); Chrysler, 1.9% (2.1%); Buick, 1.3% (1.2%); Cadillac, 1.2% (1.0%); Lincoln, 0.5% (0.6%).
3 Numbers of cars (not including light trucks) sold in 2013 by the top imported brands, with change from 2012 in parentheses: Toyota, 1,073,070 (+3.6%); Honda, 730,018 (+7.2%); Nissan, 644,375 (+7.9%); Hyundai, 574,881 (+2.6%); Kia, 389,486 (+1.4%); Volkswagen, 367,360 (-4.7%); Subaru, 245,752 (-1.9%); BMW, 206,778 (+11.1%); Mercedes-Benz, 206,213 (+16.0%); Mazda, 165,889 (-9.3%); Lexus, 153,166 (+15.4%); Audi, 96,342 (+1.1%); Scion, 68,321 (-7.1%); Acura, 67,285 (-10.4%); Infiniti, 63,161 (-8.4%); MINI, 45,177 (+0.1%); Fiat, 35,834 (-18.1%); Volvo, 34,622 (-12.3%); Mitsubishi, 24,965 (-20.6%); Porsche, 23,816 (+22.1%); Jaguar, 16,952 (+41.1%); Smart, 9,264 (-7.4%); Maserati, 4,768 (+74.7%); Suzuki, 4,461 (-75.8%); Bentley, 2,872 (+24.1%). Overall share of the U.S. market for passenger cars claimed by the following imported brands in 2013, with share of unit sales in 2012 in parentheses: Toyota, 13.8% (13.9%); Honda, 10.0% (9.8%); Nissan, 8.9% (8.6%); Hyundai, 7.6% (7.7%); Kia, 5.0% (5.1%); Volkswagen, 4.7% (5.2%); Subaru, 3.2% (3.4%); BMW, 2.7% (2.5%); Mercedes-Benz, 2.6% (2.4%:); Mazda, 2.1% (2.4%); Lexus, 2.0% (1.8%); Audi, 1.2% (1.3%); Acura, 0.9% (1.0%); Scion, 0.9% (1.0%); Infiniti, 0.8% (0.9%); MINI, 0.6% (0.6%); Fiat, 0.5% (0.6%); Volvo, 0.4% (0.5%); Mitsubishi, 0.3% (0.4%); Porsche, 0.3% (0.3%); Jaguar, 0.2% (0.2%); Suzuki, 0.1% (0.2%); Smart, 0.1%; (0.1%); Maserati, 0.1% (0.0%). Numbers of cars (not including light trucks) sold in 2013 by the leading domestic brands, with change from 2012 in parentheses: Chevrolet, 850,665 (+1.6%); Ford, 793,279 (+10.3%); Dodge, 327,664 (+27.0%); Chrysler, 180,204 (-8.2%); Buick, 113,019 (-8.6%); Cadillac, 103,253 (+48.2%); Lincoln, 43,154 (+3.8%). Japanese brands' share of the U.S. car market (not including trucks) stood at 42.9% in 2013, compared to 43.4% in 2012 and 41.8% in European manufacturers saw their share of the American car market drop from 13.7% in 2012 to 13.5% in 2013, while Korean brands' share of U.S. car sales declined from 12.8% in 2012 to 12.6% in According to CNW Marketing Research, sales of used vehicles through franchised dealers, independent dealers, and transactions attributed to casual sales totaled just under 42 million units in 2013, compared to approximately 40.5 million in (Source: CNW Marketing Research, 2014 ) The average selling price of a used vehicle at a franchised new-car dealership in 2013 was $18,111, up from $17,547 in 2012 and $17,267 in Sources of used vehicles retailed by franchised new-car dealers in 2013: Trade-in on new vehicle, 41%; auction purchase, 25%; trade-in on used vehicle, 25%; street purchase, 5%; other, 3%. Share of used vehicle sales in 2013, by channel: Franchised dealers, 37.0%; Independent dealers, 34.6%; casual sales, 28.4%.
4 (Source: CNW Marketing Research, 2014 ) The number of new-car and light-truck dealerships in the U.S. (both domestic and foreign) increased to 17,665 at the start of 2014, up from 17,635 in 2013 and 17,540 in 2012 (but down from 17,700 at the beginning of 2011). (Source: NADA, 2014 ) In 2013, lease penetration rates for both Mercedes-Benz and BMW were both over 50%, while rates for Honda, Toyota, Hyundai/Kia, Ford and GM were all between 20% and 30%. (Source: Manheim Consulting, 2014 ) Sales totals for the 10 best-selling new domestic brand cars in 2013, with change from 2012 in parentheses: 1. Ford Fusion, 295,280(+22.4%); 2. Chevrolet Cruze, 248,224 (+4.4%); 3. Ford Focus, 234,570 (-4.6%); 4. Chevrolet Malibu, 200,594 (-4.9%); 5. Chevrolet Impala, 156,797 (-7.4%); 6. Chrysler 200, 122,480 (-2.4%); 7. Dodge Charger, 98,336 (+19.1%:); 8. Dodge Avenger, 93,842 (-3.1%); 9. Chevrolet Sonic, 85,646 (+5.4%); 10. Dodge Dart, 83,388 (+230.0%). Sales totals for the top-selling domestic brand cars in 2013, with change from 2012 in parentheses: 11. Chevrolet Camaro, 80,567 (-4.5%); 12. Ford Taurus, 79,960 (+7.5%); 13. Ford Mustang, 77,186 (-7.0%); 14. Ford Fiesta, 71,073 (+25.2%:); 15. Chrysler 300, 57,724 (-18.4%); 16. Dodge Challenger, 51,462 (+19.3%); 17. Buick LaCrosse, 48,798 (-14.5%); 18. Buick Verano, 45,527 (+10.9%); 19. Cadillac ATS, 38,319 (+446.8%); 20. Ford C-Max, 35,2190 (+446.8%). Sales totals for the 10 best-selling import-branded new cars in 2013, with change from 2012 in parentheses: 1. Toyota Camry, 408,484 (+0.1%); 2. Honda Accord, 366,678 (+10.5%); 3. Honda Civic, 336,180 (+5.7%); 4. Nissan Altima, 320,723 (+5.9%); 5. Toyota Corolla/Matrix, 302,180 (+3.9%); 6. Hyundai Elantra, 247,912 (+22.7%); 7. Toyota Prius, 234,228 (-0.1%); 8. Hyundai Sonata, 203,648 (-11.7%); 9. Volkswagen Jetta, 163,793 (-3.9%); 10. Kia Optima, 155,893 (+2.3%). Sales figures for the best-selling new import-branded cars in 2013, with change from 2012 in parentheses: 11. Nissan Sentra, 129,143 (+21.4%); 12. BMW 3/4-Series, 119,521 (+20.0%); 13. Kia Soul, 118,079 (+2.0%); 14. Subaru Outback, 118,049 (+0.1%); 15. Nissan Versa, 117,352 (+3.6%); 16. Volkswagen Passat, 109,652 (-6.3%); 17. Mazda3, 104,713 (-15.1%); 18. Mercedes-Benz C Class, 88,251 (+8.0%); 19. Subaru Impreza, 76,825 (-6.1%); 20. Lexus ES, 72,581 (+29.2%). States with the greatest number of new-car dealerships at the start of 2014: 1. California, 1,377; 2. Texas, 1,210; 3. Pennsylvania, 936; 4. New York, 888; 5. Florida, 852; 6. Ohio, 760; 7. Illinois, 752; 8. Michigan, 637; 9. North Carolina, 589; 10. Wisconsin, 513; 11. Georgia, 512; 12. Virginia, 500. States with the highest new-car dealership sales in 2013 (totals in billions): 1. California, $86.985; 2. Texas, $70.832; 3. Florida, $51.537; 4. New York, $41.943; 5. Pennsylvania,
5 $28.437; 6. Illinois, $28.356; 7. Ohio, $26.893; 8. New Jersey, $24.180; 9. Georgia, $22.147; 10. North Carolina, $ States with the highest average sales per new-car dealership in 2013 (totals in millions): 1. Arizona, $71.932; 2. Oklahoma, $67.905; 3. California, $63.170; 4. Florida, $60.490; 5. Texas, $58.539; 6. Colorado, $52.621; 7. New Jersey, $51.337; 8. Nevada, $50.990; 9. Delaware, $47.491; 10. New York, $ Overall sales of light truck vehicles increased 11.0% in 2013 to a total of 7,793,163 units, up from 7,020,574 in Truck sales of the Big 3 Detrot automakers totaled 4,624,610 in 2013, 10.1% higher than the previous year, while sales of Japanese nameplates sold in the U.S. amounted to 2,442,786 in 2013 (up 16.3% from 2012), European light-truck brand sales totaled 456,551 (up 9.2%) in 2013, and Korean models totaled 276,618 (8.3% lower than 2012). Light trucks accounted for 50.0% of the overall number of new vehicles sold in 2013, compared to 48.4% in 2012 and 50.4% of the total in Overall sales totals for the leading light-truck manufacturers in 2013, with change from 2012 in parentheses: Ford, 1,610,263 (+11.7%); Chevrolet, 1,096,460 (+8.1%); Toyota, 820,804 (+12.6%); Honda, 577,294 (+7.6%); Jeep, 490,454 (+3.4%); GMC, 450,901(+8.9%); Nissan 436,826 (+15.7%); Ram, 367,843 (+22.2%); Dodge, 268,679 (+0.7%); Subaru, 178,931 (+108.5%); Kia, 145,693 (-16.0%); Hyundai, 130,925 (+2.2%); Mercedes-Benz, 128,131 (+9.3%); Chrysler, 122,288 (+9.4%); Lexus, 120,681(+8.3%); Mazda, 118,058 (+25.3%); BMW, 102,502 (+7.5%); Acura, 98,151 (+21.0%); Buick, 92,490 (+63.1%); Cadillac, 79,290 (-1.0%); Audi, 61,719 (+40.1%); Infiniti, 53,294 (+4.7%); Land Rover, 50,010 (+14,5%); Volkswagen, 40,344 (-23.5%); Lincoln, 38,540 (-5.0%); Mitsubishi, 37,262 (+41,5%); Volvo, 26,611 (-7.1%); MINI, 21,325 (+1.5%); Porsche, 18,507 (+19.1%). Sales figures for the 10 best-selling light truck vehicles in 2013 (with percentage change from 2012 in parentheses): 1. Ford F-Series, 763,402 (+18.3%); 2. Chevrolet Silverado, 480,414 (+14.8%); 3. Ram Pickup, 355,673 (+21.2%); 4. Honda CR-V, 303,904 (+7.9%); 5. Ford Escape, 295,993 (+13.4%); 6. Chevrolet Equinox, 238,192 (+9.0%); 7. Toyota RAV4, 218,249 (+27.0%); 8. Ford Explorer, 192,397 (+17.2%); 9. GMC Sierra, 184,389 (+17.3%); 10. Jeep Grand Cherokee, 174,275 (+12.6%). Sales totals for the top-selling light truck vehicles in 2013 (with percentage change from 2012 in parentheses): 11. Nissan Rogue, 162,751 (+14.3%); 12. Toyota Tacoma, 159,485 (+12.8%); 13. Jeep Wrangler, 155,502 (+9.8%); 14. Ford Edge, 129,109 (+0.9%); 15. Honda Odyssey, 128,987 (+2.4%); 16. Toyota Highlander, 127,572 (+5.4%); 17. Honda Pilot, 126,678 (10.3%); 18. Dodge Grand Caravan, 124,019 (-12.3%); 19. Subaru Forester, 123,592 (+61.9%); 20. Chrysler Town & Country, 122,288 (+9.4%).
6 Sales figures for the best-selling light truck vehicles in 2013 (with percentage change from 2012 in parentheses): 21. Toyota Sienna, 121,117 (+5.6%); 22. Toyota Tundra, 112,732 (+10.9%); 23. Kia Sorento, 105,649 (-11.7%); 24. Lexus RX, 103,920 (+9.0%); 25. Ford E-Series Van, 102,705 (+4.1%); 26. GMC Terrain, 99,525 (+1.8%); 27. Chevrolet Traverse, 96,467 (+12.7%); 28. GMC Acadia, 89,793 (+14.7%); 29. Hyundai Santa Fe, 88,844 (+25.1%):; 30. Nissan Pathfinder, 88,632 (+108.0%). The overall light truck market share of the Big 3 Detroit auto manufacturers stood at 59.3% in 2013, down from 59.8% in The light truck market share of Japanese brands grew to 31.3% in 2013 (up from 29.9% in 2012), while European automakers' share of light truck sales slipped from 6.0% in 2012 to 5.9% in Korean brands saw their market share fall from 4.3% in 2012 to 3.5% in Sales of medium- and heavy-duty trucks (Classes 4-8) rose 1.7% in 2013 to 351,737 units. Brands with the highest market share for 2013 in the medium- and heavy-duty truck business: Freightliner, 31.6%; Ford, 16.5%; International, 14.3%; Kenworth, 8.7%; Peterbilt, 8.4%; Volvo Truck 5.9%; Mack, 4.6%; Dodge/Ram, 3.1%; Hino, 2.1%. Based on research by R.L. Polk, the average age of passenger cars in the U.S. in 2013 was 11.4 years, up from 9.9 years in 2003, while the average age of light trucks (including pickups and SUVs) was 11.3 years, up from 9.5 years in (Source: R.L. Polk & Co., 2014 ) Advertising: Overall ad spending in all media by the automotive dealers & services category totaled $4.126 billion in 2013, 1.1% higher than the 2012 figure of $4.083 billion. (Source: Kantar Media, 2014 ) Advertising: Businesses in the "Auto Dealers/Gas Stations" category, on average, spend 0.5% of their total sales revenue on advertising (which equates to 4.7% of their profit margin). (Source: Schonfeld and Associates, Advertising Ratios and Budgets, 2014 ) Consumer Insights For the first half of 2014, Millennials surpassed Gen X consumers in new-vehicle sales for the first time ever (26% to 24%) (Baby Boomers still accounted for the largest share of new-vehicle sales, at 38%.) Based on research by J.D. Power and Associates, women accounted for 39% of car
7 purchases in 2013, up from 37% four years earlier. Among Millennials, 53% of car buyers are female. Profiling adults 18+ who are "very likely" to buy any new vehicle within the next year, along with those who are "very likely" to lease a vehicle in the coming year: Likely to Likely to Likely to Likely to Buy Lease Buy Lease Sex: Age: Male 53.6% 47.7% % 21.8% Female 46.4% 52.3% % 22.2% HH Income: % 17.6% $100, % 23.5% % 13.4% $75-99, % 10.5% % 14.4% $60-74, % 10.7% % 10.6% $50-59, % 7.9% Region: $40-49, % 7.9% Northeast 15.2% 22.2% $30-39, % 11.2% Midwest 18.9% 20.1% $20-29, % 10.8% South 44.7% 40.1% Under $20K 13.8% 17.5% West 21.2% 17.6% Race: Marital: White 55.8% 54.7% Single 35.3% 37.1% Black 23.8% 31.2% Married 49.9% 46.4% Other 20.4% 14.1% Sep/Wid/Div 14.8% 16.5% Hispanic origin 19.3% 13.4% (Source: GfK MRI, 2014 ) Profiling adults 18+ who purchased/leased any new domestic vehicle in the past year, along with those consumers who bought/leased a new imported vehicle in the previous year: New New New New Domestic Imported Domestic Imported Sex: Age: Male 51.9% 47.3% % 10.8% Female 48.1% 52.7% % 17.0% HH Income: % 18.9% $100, % 48.8% % 18.7% $75-99, % 19.1% % 18.9% $60-74, % 9.5% % 15.7% $50-59, % 5.9% Region:
8 $40-49, % 5.8% Northeast 18.0% 23.9% $30-39, % 3.9% Midwest 27.2% 15.9% $20-29, % 4.2% South 40.1% 37.8% Under $20K 3.4% 2.8% West 14.7% 22.4% Race: Marital: White 88.1% 82.5% Single 17.6% 21.2% Black 4.9% 5.6% Married 70.6% 66.6% Other 7.0% 11.9% Sep/Wid/Div 11.8% 12.2% Hispanic origin 7.9% 10.2% (Source: GfK MRI, 2014 ) Profiling adults 18+ who are "very likely" to purchase either a 2-door or 4-door car, a pickup truck, or a sport utility vehicle within the next year: Car Truck SUV Sex: Male 50.1% 57.2% 49.0% Female 49.9% 42.8% 51.0% Age: % 20.0% 15.4% % 21.9% 21.5% % 17.1% 20.7% % 18.7% 17.9% % 14.5% 13.6% % 7.8% 10.9% HH Income: $100, % 20.6% 30.2% $75-99, % 11.9% 13.3% $60-74, % 11.1% 12.2% $50-59, % 9.1% 7.4% $40-49, % 7.6% 7.2% $30-39, % 10.3% 9.9% $20-29, % 12.4% 7.3% Under $20K 15.5% 16.9% 12.5% Race: White 61.5% 59.9% 66.8% Black 19.9% 20.4% 18.9% Other 18.6% 19.7% 14.3% Hispanic origin 18.7% 19.6% 13.4% Region: Northeast 16.8% 10.9% 15.7% Midwest 19.3% 19.2% 23.6% South 41.4% 47.7% 39.7% West 22.5% 22.2% 21.0% Marital: Single 35.6% 36.3% 27.2%
9 Married 48.1% 43.5% 58.1% Sep/Wid/Div 16.3% 20.2% 14.7% (Source: GfK MRI, 2014 ) Profiling adults 18+ who are "very likely" to buy a used/pre-owned vehicle within the coming year: Sex: Age: Male 50.5% % Female 49.5% % HH Income: % $100, % % $75-99, % % $60-74, % % $50-59, % Region: $40-49, % Northeast 13.8% $30-39, % Midwest 21.9% $20-29, % South 43.5% Under $20K 17.6% West 20.8% Race: Marital: White 63.4% Single 34.8% Black 19.1% Married 47.2% Other 17.5% Sep/Wid/Div 18.0% Hispanic origin 18.4% (Source: GfK MRI, 2014 ) States with the greatest number of new-vehicle registrations in 2013, with increase from 2012 in parentheses: 1. California, 1,711,762 (+11.9%); 2. Texas, 1,423,625 (+11.6%); 3. Florida, 1,100,893 (+9.3%); 4. New York, 928,475 (+6.9%); 5. Oklahoma, 699,406 (-2.7%); 6. Pennsylvania, 622,088 (+4.0%); 7. Illinois, 611,432 (+3.6%); 8. Ohio, 571,047 (+8.2%); 9. New Jersey, 545,613 (+6.2%); 10. Michigan, 540,295 (+11.6%). (Source: IHS Automotive, 2014 ) According to a 2014 J.D. Power and Associates survey, 33% of young drivers (25 and under) say they "completely agree" that they like their vehicle to stand out from the crowd, compared to just 20% of new-vehicle drivers across all age groups. Based on a 2014 survey by J.D. Power and Associates, among buyers who avoid a particular new-car model, the most commonly-cited reason (33%) is because they don't like its exterior styling. According to a 2014 J.D. Power and Associates survey, 33% of young drivers (25 and under) say they "completely agree" that they like their vehicle to stand out from the
10 crowd, compared to just 20% of new-vehicle drivers across all age groups. Winners of the 2013 Polk Automotive Loyalty Awards for the various truck/suv/van categories: Non-Luxury CUV -- Honda CR-V; Non-Luxury Full-Size Half-Ton Pickup -- Ford F-150; Non-Luxury Mid-Size CUV -- Kia Sorento; Non-Luxury Mid-Size SUV -- Jeep Grand Cherokee; Non-Luxury Mid-Size Van -- Chrysler Town & Country; Luxury Mid-Size CUV -- Lexus RX; Non-Luxury Mid-Size Pickup -- Toyota Tacoma; Non-Luxury Full-Size SUV -- Toyota Land Cruiser; Luxury Compact CUV -- Acrua RDX; Non-Luxury Compact SUV -- Jeep Wrangler; Luxury Full-Size SUV -- Land Rover Range Rover; Luxury Mid-Size SUV, Mercedes-Benz G-Class. Loyalty is determined when a household that owns a new vehicle returns to the market and purchases or leases another new vehicle of the same model or make. (Source: R.L. Polk & Co., 2014 ) Based on a 2014 survey by J.D. Power and Associates, among buyers who avoid a particular new-car model, the most commonly-cited reason (33%) is because they don't like its exterior styling. New technology offerings in vehicles are important to new-vehicle buyers, as 38% of those buying domestic vehicles cite the latest technology features as a reason for their purchase, compared with 33% of import vehicle buyers, according to a 2014 study by J.D. Power and Associates. Based on a 2013 study by J.D. Power and Associates, the primary drivers of customer satisfaction in the retail leasing process are: Finance provider offering; application/approval process; sales representative relationship; and vehicle return process. (Source: J.D. Power and Associates, 2013 ) According to research by Swapalease.com, an estimated 10% of lease-holders would like to get out of their lease each year, because of changes in finances, lifestyle, etc. (Source: The Detroit Bureau, 2013 ) According to a 2013 survey by J.D. Power and Associates, the five most influential purchase reasons among Luxury new-vehicle buyers: 1. Performance (power, handling, etc.); 2. Quality of workmanship (materials, fit and finish); 3. Exterior styling (design); 4. Like the image the vehicle portrays; 5. Reliability (freedom from breakdowns). (Source: J.D. Power and Associates, 2013 ) Research by J.D. Power and Associates determined that among customers who leased their previous new vehicle, 76.4% leased their next new vehicle, while 19.4% financed the purchase of their next new vehicle with a loan, and 4.3% paid cash for their next new vehicle. Conversely, only 7.4% of customers who purchased their last new vehicle decided to lease their next one. (Source: Automotive News, 2013 ) Why Radio
11 Radio has established itself as an excellent vehicle for advertisers to deliver their messages to an increasing number of potential buyers. Each week, radio reaches 91.5% of persons ages 12+, and 67.1% of these consumers on a daily basis. In all, 244,000,000 Americans ages 12-and-older listen to radio every week. (Source: Nielsen Audio, 2014 ) On a weekly basis, radio reaches 85.2% of adults 18+ who are "very likely" to buy any new vehicle in the coming year, along with 84.1% who expect to lease. Radio's weekly reach also includes 85.7% of consumers who are "very likely" to purchase or lease a 2-door or 4-door car in the next 12 months, and 86.8% who plan to purchase/lease a truck, SUV or van. In addition, radio reaches 85.3% of adults who are "very likely" to obtain a hybrid/alternative fuel vehicle, and 85.8% who expect to acquire a used/pre-owned vehicle. (Source: GfK MRI, 2014 ) Every week, radio reaches 93% of adult households 18+ that plan to buy/lease either a new compact, midsize or full-size car in the next 12 months, along with 93% who expect to purchase a new pickup or van, and 94% who plan to buy a new SUV. Radio also reaches 93% of households that intend to purchase any used vehicle in the next year. (Source: Scarborough USA, 2013 ) Miscellaneous Industry Facts or Category Trivia August is traditionally a strong month for U.S. auto sales because consumers expect factory discounts at the end of the model year. According to a 2014 study by paint supplier Axalta Coating Systems, over the previous four years, the top five colors picked by car buyers have been white, black, silver, grey and red. (Source: CNN, 2014 ) The average new-car dealership (domestic and foreign) had 57 employees and an annual payroll of $3.04 million in Relevant Links National Automobile Dealers Association: Automotive News: J.D. Power and Associates:
12 IHS Automotive: The Detroit Bureau: The Detroit News: Kelley Blue Book: Edmunds.com: (Source: RAB, 2014 ) RAB is the sales and marketing arm of the Radio industry. Today our constituents number nearly 7,000 members including some 6,000 stations in the U.S., and over 1,000 associate members in networks, representative firms, sales and international organizations. Request information about a new Membership in RAB Company/Station Phone Connect with us Twitter Facebook F orr g ott P a s s w orr d? For RAB Sales & Sponsorship Info C l l i i c k H e rr e R e q u e stt M e m b err s hi i p Radio Advertising Bureau All rights reserved. About RAB RAB Board of Directors Staff List Terms of Use Privacy Policy Scrrollll tto Top
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