Quality, resale value and ownership costs are key reasons consumers switch vehicle brands, says a new study by J.D. Power and Associates.
According to the report, one in three people who switched brands when buying a new car said their previous brand didn't make the type of vehicle they wanted.
Other reasons for dissatisfaction with a previous vehicle included high prices to own or maintain the vehicle, too many problems with it and insufficient resale value.
"Many automotive brands are expanding their array of models in an attempt to capture more buyers, but this isn't enough in and of itself," said Raffi Festekjian, director of automotive product research. "Manufacturers need to integrate specific attributes and features that delight vehicle owners to maximize their opportunity to both retain customers and conquest from other brands. Manufacturers also must ensure owners are satisfied with the quality, residual values and ownership costs of their vehicles."
Hyundai ranked highest in retaining new vehicle customers and raised its retention rate by four percentage points from 2010 to 64 per cent in 2012. The retention rate is primarily driven by the Elantra and Sonata.
In a tie for second place were Ford and Honda, with a retention rate of 60 per cent. Jeep posted the greatest improvement rate, improving by 17 percentage points to 51 per cent.
Source: calgaryherald.com
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