Ever wonder why certain automobile models appeal to consumers and certain models don’t? Well, J.D. Power & Associates wondered too; enough that they conducted a study to examine the reasons why new vehicle shoppers consider but reject certain models.

Aggressive manufacturer-sponsored rebates and low-interest finance rates have spurred strong auto sales these past several months, and have proven to be an effective tool in influencing the decision-making process of new-vehicle buyers, according to J.D.Power & Associates’ 2002 Escaped Shopper and Owner Loyalty Study. The 2002 Escaped Shopper and Owner Loyalty Study is based on responses from more than 30,000 new vehicle owners who registered their vehicle in January and February of 2002.

The study, which examined the reasons why new vehicle shoppers consider but reject certain automobile models finds that price and incentives play an important role in consumers decisions. Among new vehicle buyers who rejected at least one other model and who obtained zero-percent financing, nearly one-half rejected another model because it failed to offer sufficently low rates.

The top 10 reasons cited by vehicle owners for rejecting particular models are:

1. Total price too high
2. Total monthly payment too high
3. Didn’t like style/design of exterior
4. Limited availability on dealer lots
5. Salespeople didn’t act professionally
6. Was not available with rebates/incentives
7. Didn’t like look/design of interior
8. Concerned about reliability
9. Was not available with low-interest financing
10. Vehicle was too small.

According to Chris Denove, partner at J.D. Power & Associates,
when zero-percent financing first hit the scene, it drew people into the market who otherwise would have delayed their purchase. But now that the newness of it has worn off, we’re seeing that 2.9 percent interest rates will do just as good a job in convincing someone to buy one model over another that doesn’t offer a similarly low rate."

The primary reason consumers decide not to purchase a certain model continues to be price. The study found that when considering two or more models, consumers usually end up buying the less expensive model. Competitive price advantages help to explain why manufacturers Hyundai, Kia and Suzuki have the highest closing ratios among non-luxury nameplates. Infiniti and Acura have the highest closing rations among luxury brands. High-end brands such as Cadillac, Lincoln and Porsche are frequently purchased by people who are committed to buying that specific make. Therefore, they rarely go out to look at any other makes. These brands, however, have relatively low closing ratios among people who also look at alternative models that are lower priced.

"People frequently go out and look at one or two aspirational models that stretch their budget, but when it comes time to write a check, practicality wins out," says Denove. One of the more surprising findings, notes Denove, is that salespeople sometimes cause shoppers not to purchase the models they represent by turning them off the entire brand. Overall, the study found that 16 percent of vehicles are rejected due at least in part to the shopper’s perception that the dealership staff was unprofessional or treated them poorly.

According to Denove, "some people get an uneasy feeling about the way their salesperson handled their business, so they decided to buy an entirely different make rather than driving across town to…another dealership selling the same vehicle." It takes a long time, says Denove, for people to acknowledge product improvements, but just a moment of bad press to sour their opinion of a vehicle."

The study also found that some perceptions about vehicles do not always match reality. For example, Jaguar is one of the most frequently rejected brands because of reliability concerns. However, in the J.D. Power & Associates 2001 Vehicle Dependability Study, Jaguar was shown as having some of the most dependable vehicles on the road. Models from BMW and Mercedes-Benz are also rejected because people believe they are too expensive to maintain. What consumers may not know is that these two brands provide free scheduled maintenance for the first few years.