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Car Shoppers Rank Most Motivating Automotive Financial Guarantees

Posted on: Wednesday, 1 April 2009, 04:00 CDT

No-Fault Return, Assisted/Deferred Payments Rank as Tops for Motivating New-Car Shoppers to Purchase

IRVINE, Calif., April 1 /PRNewswire/ -- Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information, today announces the results of the latest Kelley Blue Book Market Research survey of in-market new-car shoppers on kbb.com, detailing which types of auto manufacturer financial assurance/guarantee programs they find most motivating. 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). In light of the current economic crisis and auto industry turmoil, consumers recently shared their opinions in a survey on kbb.com regarding which programs would make them most likely to buy 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.

"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."

About Kelley Blue Book (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, 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. According to the C.A. Walker Research Solutions, Inc. - 2008 Spring Automotive Web Site Usefulness Study, kbb.com is the most useful automotive information Web site among new and used vehicle shoppers, and half of online vehicle shoppers visit kbb.com. Kbb.com is a leading provider of new car prices, car reviews and news, used car blue book values, auto classifieds and car dealer locations. No other medium reaches more in-market vehicle shoppers than kbb.com.

SOURCE Kelley Blue Book

Source: PR Newswire

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