Click to enlarge.
The lingering effects of the pandemic are gone, prompting improved customer satisfaction with the vehicle purchase process, according to the J.D. Power 2023 U.S. Sales Satisfaction Index (SSI) Study, SM released today.* Increasing new-vehicle inventory on dealers’ lots and accompanying moderating prices have combined to propel customer satisfaction in an upward trajectory in 2023. This year, overall customer satisfaction with the vehicle purchase experience increases to 793 (on a 1000-point scale) from 786 a year ago. Whether this is statistically significant is unlikely in AutoInformed’s view.
“The improved level of vehicle inventory and the easing of upward pressure on prices are the driving factors in sending sales satisfaction back in a positive direction,” said Chris Sutton, vice president of automotive retail at J.D. Power. “Vehicle buyers are more satisfied with the inventory choices they now see in dealerships across the country—more than in the past three years. Increased inventory also means fewer buyers are paying more than the manufacturer’s suggested retail price (MSRP) for their new vehicle.”
Click to enlarge.
The study also finds that satisfaction among owners of internal combustion engine (ICE) vehicles continues to be higher than among electric vehicle (EV) owners in premium and mass market segments. Overall satisfaction of owners of mass market EVs is 790; satisfaction among mass market ICE vehicle owners is 848.
Satisfaction of premium EV owners is 831 and at 866 higher among premium ICE owners.
Roughly a third (34%) of EV buyers say dealers aren’t doing enough to make them comfortable with maintenance needs; 11% are uncomfortable with the charging process and options.
Some Findings of the 2023 SSI Study
- Smaller percentage of buyers are paying above MSRP: As inventory improves, many dealers are finding it harder to charge more than the suggested price for vehicles. While this trend might negatively affect immediate dealer profitability, it certainly aids overall sales satisfaction. Buyers who paid more than MSRP are much less satisfied with the sales process than those who paid MSRP or less. The study finds that 15% of mass market buyers paid above MSRP, a decrease from 25% in 2022. Among buyers of premium vehicles, 10% paid more than MSRP this year vs. 19% a year ago. These customers also have lower service loyalty and dealer advocacy.
- Satisfaction with price improves but remains below pre-pandemic levels: Increasing inventory levels have led to moderating vehicle prices. However, customer satisfaction is still below pre-pandemic levels. This year, buyers of mass market vehicles provide a rating of 8.04 (on a 10-point scale) for fairness of price paid vs. 8.14 in 2020. Buyers of premium vehicles Premium buyers provide a rating of 8.18 for fairness of price paid, which is down from 8.42 in 2020.
- Notable gaps in salesperson expertise: Salesperson expertise is a key factor, resulting in lower satisfaction among EV buyers than experienced by their contemporaries purchasing ICE vehicles. Among mass market brands, EV buyer perception regarding the expertise of the retailer staff results in a rating of 7.81 vs. 8.75 for perception of ICE staff expertise. Premium brands offer a similar story. Premium EV buyers rate dealer staff expertise at 8.59 compared with 8.95 for ICE retailer staff expertise.
- Tell me more: More than 30% of EV buyers say they would like additional information on their vehicle’s maintenance schedule and 7% say they would like additional assistance on setting up their home charging. Notable is that 11% of EV buyers say they would like further explanation on how to charge their vehicle at home or elsewhere. “Buyers of ICE vehicles don’t need to be taught how to put fuel in the gas tank,” Sutton said. “But salespeople need to show EV buyers how to charge their vehicles at home and what’s involved in using a public charging station.”
Sales Satisfaction Study Ranks
Porsche is highest in sales satisfaction among premium brands, with a score of 840. Infiniti (832) ranks second and Alfa Romeo (824) ranks third.
Buick ranks highest in sales satisfaction among mass market brands for a second consecutive year, with a score of 824. GMC (821) ranks second, while Chevrolet (812) and Mitsubishi (812) each rank third in a tie.
Segment Awards
- Premium Car: Porsche
- Premium SUV: Porsche
- Mass Market Car: Chevrolet
- Mass Market SUV/Minivan: GMC
- Mass Market Truck: GMC
* The 2023 U.S. Sales Satisfaction Index (SSI) Study is based on responses from 37,234 buyers who purchased or leased their new vehicle from March through May 2023. The study is an analysis of the new-vehicle purchase experience and measures customer satisfaction with the selling dealer (satisfaction among buyers). The study also measures satisfaction with brands and dealerships that were shopped but ultimately rejected in favor of the selling dealership (satisfaction among rejecters). The study was fielded from July through September 2023.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com
AutoInformed on
US Vehicle Sales Satisfaction Up Slightly in 2023
Click to enlarge.
The lingering effects of the pandemic are gone, prompting improved customer satisfaction with the vehicle purchase process, according to the J.D. Power 2023 U.S. Sales Satisfaction Index (SSI) Study, SM released today.* Increasing new-vehicle inventory on dealers’ lots and accompanying moderating prices have combined to propel customer satisfaction in an upward trajectory in 2023. This year, overall customer satisfaction with the vehicle purchase experience increases to 793 (on a 1000-point scale) from 786 a year ago. Whether this is statistically significant is unlikely in AutoInformed’s view.
“The improved level of vehicle inventory and the easing of upward pressure on prices are the driving factors in sending sales satisfaction back in a positive direction,” said Chris Sutton, vice president of automotive retail at J.D. Power. “Vehicle buyers are more satisfied with the inventory choices they now see in dealerships across the country—more than in the past three years. Increased inventory also means fewer buyers are paying more than the manufacturer’s suggested retail price (MSRP) for their new vehicle.”
Click to enlarge.
The study also finds that satisfaction among owners of internal combustion engine (ICE) vehicles continues to be higher than among electric vehicle (EV) owners in premium and mass market segments. Overall satisfaction of owners of mass market EVs is 790; satisfaction among mass market ICE vehicle owners is 848.
Satisfaction of premium EV owners is 831 and at 866 higher among premium ICE owners.
Roughly a third (34%) of EV buyers say dealers aren’t doing enough to make them comfortable with maintenance needs; 11% are uncomfortable with the charging process and options.
Some Findings of the 2023 SSI Study
Sales Satisfaction Study Ranks
Porsche is highest in sales satisfaction among premium brands, with a score of 840. Infiniti (832) ranks second and Alfa Romeo (824) ranks third.
Buick ranks highest in sales satisfaction among mass market brands for a second consecutive year, with a score of 824. GMC (821) ranks second, while Chevrolet (812) and Mitsubishi (812) each rank third in a tie.
Segment Awards
* The 2023 U.S. Sales Satisfaction Index (SSI) Study is based on responses from 37,234 buyers who purchased or leased their new vehicle from March through May 2023. The study is an analysis of the new-vehicle purchase experience and measures customer satisfaction with the selling dealer (satisfaction among buyers). The study also measures satisfaction with brands and dealerships that were shopped but ultimately rejected in favor of the selling dealership (satisfaction among rejecters). The study was fielded from July through September 2023.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com
AutoInformed on