IRVINE, Calif. — No-fault return and
assisted/deferred payment programs ranked highest as the reasons for motivating
No-fault return and assisted/deferred payment programs ranked highest as the reasons for motivating new-car shoppers to purchase vehicles, according to a Kelley Blue Book survey.
IRVINE, Calif. — No-fault return and
assisted/deferred payment programs ranked highest as the reasons for motivating
new-car shoppers to purchase vehicles, according to a Kelley Blue Book survey.
In light of the current economic crisis and auto industry
turmoil, consumers recently shared their opinions in the Kelley Blue Book
Market Research survey of which auto manufacturer financial assurance/guarantee
programs they found most motivating to buying a new car.
When new-car shoppers were asked how motivated they would be
to purchase a vehicle if a manufacturer offered one of the following guarantee
options in the event they were facing a job loss or other serious financial
challenges, new-car shoppers say they are most motivated by a no-fault return
option (76 percent).
The second most popular plans include payment assistance
(where a manufacturer covers payments on the car-buyers' behalf for a specified
period of time) at 75 percent, and deferred payments up to six months without
penalties (also at 75 percent).
Less popular options include a trade-down plan (ability to
trade-down to a cheaper/smaller vehicle to reduce payments) at 63 percent, and
a gradual payment ladder (lowered payments for the first few months, working up
to full payment amount over time) at 49 percent.
Hyundai
announced a program earlier this year (Hyundai
Assurance Program), which successfully increased consumer confidence and
spurred new-car sales. Additionally, Hyundai traffic on kbb.com spiked 35
percent the week the program was announced. Taking into consideration consumer
opinions, similar programs were announced this week by Ford (Ford
Advantage Plan) and General
Motors (GM
Total Confidence).
"Taking the risk out of car-buying right now is the key
to getting consumers back into dealerships," said Paul Johnson, president
and chief executive officer of Kelley Blue Book and kbb.com. "These new
assurances offered by the domestic auto manufacturers, new tax incentives and
government-backed warranties, as well as our President's promise that he will
'not let our auto industry simply vanish,' should allay fears, diminish the
risk and hopefully get shoppers to once again reconsider domestic
vehicles."

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