July 7, 2014
ON THE WEB: Public Overestimates Dealer Profits
www.usedcarnews.com
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Technology Drives Quality Rankings
Consumers believe car dealers make about five times more profit on the sale of a new car than they actually do, a survey by TrueCar Inc. finds. The survey showed that 26 percent of car buyers feel they overpaid for their purchase and that 32 percent would not return to the same dealership due to low customer satisfaction.
Age of Cars on Road Highest Since 2009
The percentage of older vehicles on the road has reached its highest level since 2009, according to Experian Automotive. Vehicles predating the 2001 model year made up more than 28.3 percent of all vehicles on the road during the first quarter of 2014, up from 22.1 percent six years earlier.
America’s Car-Mart Adds Two Stores
America’s Car-Mart Inc. recently opened two new stores in Hixson, Tenn., and Dothan, Ala. They are the chain ‘s 135th and 136th stores.
Rush - Dated Material
TOP RIDE: Porsche drivers enjoy their vehicles, reporting the fewest problem per 100 vehicles of any brand, according to the J.D. Power 2014 Initial Quality Survey. Fiat finished at the bottom, with 206 problems per 100 vehicles. By Jenny King
DETROIT – Where once new-car buyers had complaints about air conditioning or a vehicle’s fit and finish, today’s top irritant is voice recognition devices. This was among the findings of the J.D. Power 2014 Initial Quality Survey
released June 18. And according to results of the annual study presented here to members of the Automotive Press Association, owners of 2014 Porsches reported the fewest number of problems per 100 vehicles (74) while Fiat was at the bottom of the chart with 206 per 100 cars.
The Initial Quality Survey, now in its 28th year, covers 32 brands and 207 2014 models. It comprises 233 problem symptoms and asks buyers to comment on them covering the first 90 days of ownership. For 2014, the average was 116 problems per 100 new
vehicles, up slightly from 113 per 100 vehicles in 2013. Porsche, on the strength of its Cayenne, 911 and Panamera models, had only 74 problems per 100 vehicles. Other makes with averages of less than one per vehicle included Jaguar, Lexus and Hyundai. Hyundai was Continued on page 12
Consumer Groups Attack CarMax over Recalls It has been a month of highs and lows for CarMax Inc. as advertising practices. the company reported record results, responded to charges The groups say the used-car superstore chain’s Certified from consumer groups about recalls and lost its founder. Quality Inspection misleads the public because technicians The company reported that net sales and operating reve- don’t repair recalls. nues increased to $3.75 billion in the quarter ended May 31. “CarMax is playing recalled used car roulette with its Used unit sales in comparable stores increased 3.4 percent customers’ lives,” said Rosemary Shahan, president of while total used unit sales rose 9.8 percent. Total wholesale Consumers for Auto Reliability and Safety, which unit sales increased 9.9 percent. spearheaded the petition. CarMax’s tremendous success might be drawing some CarMax responded in a statement that manufacturers do unwanted attention, however. Eleven consumer groups not give used car retailers, including CarMax, the authority petitioned the Federal Trade Commission to investi- to complete recall repairs. 260-BBU-Ad-7.175x1.8-UsedCarNewsCvrStp.pdf 1 5/20/14 2:38 PM gate and take enforcement action against CarMax for its Continued on page 10
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