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Buyers resent low inventories, prices over MSRP, study says

Vehicle inventory low, vehicle transaction prices high, customers fretting … welcome, J.D. Power, to the era of supply and demand. In a recently published survey from one of the auto industryÂ’s top analytical firms, findings show that customers' satisfaction with vehicle purchases in the United States this year has dipped for the first time in 10 years. The 2022 U.S. Sales Satisfaction Index (SSI) Study found that overall sales satisfaction has dropped to 786 (on a 1,000-point scale) from 789 in 2021. In that year, higher than expected trade-in values softened the effect of new vehicle price increases. But in 2022, on top of trade-in prices shrinking, many dealers elected to charge more than the ManufacturerÂ’s Suggested Retail Price, a factor that did not sit well with buyers. “When dealers charge more than MSRP, particularly with long-term loyal customers, they risk a potential long-term negative effect on customer advocacy and service business," said Chris Sutton, vice president of automotive retail at J.D. Power. Satisfaction among buyers who paid more than sticker price is 757, while satisfaction among those who paid the sticker price or less is 850, the Power report said. The lack of dealership inventory was also a customer irritant, J.D. Power found, a point that automakers and their dealers may want to consider. Many have maintained, or considered maintaining, a smaller inventory in the wake of the pandemic, keeping costs down and driving more customers toward factory orders. Regarding those consumers shopping for electric vehicles, the survey said that more than a third of them “failed to get instruction on EV charging before they left the dealership, which notably affects satisfaction.” Said Sutton, “Salespeople donÂ’t need to show gas-powered vehicle buyers how to fill their tank, but they do need to show EV buyers how to charge their vehicle.” There are positives to the Power conclusions, however, especially for Alfa Romeo dealers. The Italian brand ranked highest in customer satisfaction among premium brands with a score of 833, with Porsche a very close second (831) and Lexus (819) third. Alfa is on something of a roll these days, with its compact Tonale crossover due for release in the spring, and a new sports car in the works. Meanwhile, in PowerÂ’s “mainstream brand”” segment, Buick ranked first with a score of 825, followed by Dodge (816) and Subaru (804), all performing higher than the industry average.

GM is quietly slashing prices on base models

While General Motors' fourth quarter financial figures haven't yet been released, the automaker seems to be weathering a potentially rocky time well, even beating third-quarter projections last year. To keep the climb going, the company is launching new base trims for several popular models that make them cheaper than ever but with tight dealer margins. The new entry-level trims are the Chevrolet Cruze L, Equinox L, GMC Terrain SL and Buick LaCrosse 1SV. Buyers lose some content by picking them, but the prices are slashed. According to Cars Direct, the biggest savings are on the LaCrosse, where customers pay $31,065, plus $925 destination, $2,570 less than the previous base 1SB trim but must accept things like 17-inch wheels and no cargo net in the back. If you're wondering how Buick can remove only a little equipment but cut the price so much, it's because the company also slashed dealer margins. According to Cars Direct, the difference between the invoice and MSRP for the LaCrosse 1SV is only around $150, compared to around $1,350 before. The disparity is even greater for the Cruze with an $81 difference in the prices, compared to about $600 for the LS version. Showrooms are expected to keep very low stocks of these trims, though. "Dealers use such vehicles to get people in the door, but they do not generally want to do high volumes of these strippers. The margins are next to nothing; they don't make much money off these cars," said Ed Kim, Vice President of Industry Analysis for AutoPacific to Autoblog. Dealers are also expected to advertise that these new base trims undercut major competitors. For example, the Cruze L rings up for about $2,320 less than a Honda Civic LX, according to Cars Direct. One potential drawback for buyers is that these models might not be eligible for incentives. While the attractive prices might get customers into dealers, folks may not actually end up driving home with these entry-level models. Kim indicated base trims also make up a small portion of the sales mix. "Consumers aren't asking for stripped out vehicles, even at the low end of the marketplace," he said. Featured Gallery 2015 Chevrolet Cruze View 9 Photos News Source: Cars DirectImage Credit: Chevrolet Buick Chevrolet GM GMC Car Buying Car Dealers Crossover Sedan gmc terrain cheap cars

2020 Buick Encore GX is a really attractive middle child

The 2020 Buick Encore GX is officially a thing in North America. The compact crossover slips into the space between the slightly smaller Encore and the larger Envision, adding extra room behind the rear seats to pack in a lot more than the Encore, and only a little less than in Envision. Beyond the additional room, every trim of the Encore GX comes with safety tech that — for the moment, at least — can only be had as an optional extra on the standard Encore, if it's available at all on the smaller model. The six included features are automatic emergency braking, following distance indicator, forward collision alert, front pedestrian braking, IntelliBeam headlamps with automatically-adjusting high/low beams, and lane-keeping assist with lane departure warning. IntelliBeam, for instance, isn't available on the Encore, and doesn't come standard on the Envision until maxing out at the AWD Premium II trim. What's more, the new bigger Encore brother puts a list of substantial safety features on the options sheet, such as Automatic Parking Assist with Braking, a heads-up display, camera-based adaptive cruise control, high-definition Surround Vision camera system, rear park assist, rear cross traffic alert, and a hands-free power liftgate with logo projection. Convenience touches in the cabin are found in wireless charging, Bluetooth pairing for two phones simultaneously, and Android Auto, Apple CarPlay, and Sirius XM with 360L compatibility. The 360L version of Sirius XM combines satellite services with streaming to provide more channels and access to live and on-demand shows. Buyers can luxe it up inside with optional perks like leather-appointed seats, a heated steering wheel, and an ionizing air filter. Buick says the Encore GX swallows 25.3 cubic feet of goods behind the second row. According to the dimension stats on the Buick site, that's 6.5 cubic feet more than the load space in an Encore and a measly 1.6 cubic feet less than the available volume in an Envision. The carmaker wants buyers to get the most flexibility out of the Encore GX area as well, serving up an adjustable load floor in every trim that can be raised to lie level with the folded rear seats and provide extra under-floor storage.