Category: AutomotiveUnited States

Satisfaction with Dealer Service Remains High but Owners Face Long Appointment Wait Times and Communication Shortfalls, JD Power Finds

2025-03-10

jillian.breska

TROY, Mich.: 13 March 2025 — Customer satisfaction with the dealer service experience remains strong for a second consecutive year, yet long wait times for appointments, communication shortfalls and gaps in fixing vehicles correctly limit the industry’s progress. According to the JD Power 2025 U.S. Customer Service Index (CSI) Study,SM released today, dealers continue to battle with ongoing capacity challenges as the average number of days that customers must wait for an appointment is longer than was tracked from 2018 to 2022, and only nominally better than 2023 and 2024. Addressing this—and other opportunities—could improve service satisfaction and increase loyalty to dealerships.

“While it’s no surprise that customers gravitate to operations that serve them well, the study clearly shows that good service leads to loyal customers,” said John Tenerovich, director of automotive retail at JD Power. “This phenomenon proves true across all service types—oil changes, repair, tires and brakes. While complimentary maintenance programs drive strong retention, the level of intent to return for actual customer-paid service depends on the service experience delivered by the dealer.”

The study finds that customer satisfaction with the service of electrified vehicles—both battery-electric (BEV) and plug-in hybrid (PHEV) vehicles—continues to trail satisfaction among owners of internal combustion engine (ICE) vehicles by a wide margin. Satisfaction (on a 1,000-point scale) among mass market BEV owners is 51 points lower than among owners of mass market ICE vehicles, and satisfaction among premium BEV owners is 57 points below that of premium ICE vehicle owners. The ongoing lack of well-trained EV technicians and frontline personnel is a key factor in the shortfall.

Following are some other key findings of the 2025 study:

• Fixed right first time: Surprisingly, 12% of repairs are not completed correctly on the first visit. The most common issues indicated by customers are that the work performed did not correct the problem (30%) and necessary parts were not available (28%). Among customers whose repairs were not completed correctly on the first visit, only 50% say they returned or planned to return to the dealership, while 5% resolved the issue by visiting an aftermarket service facility.
• Satisfaction improves when maintenance items combined with recalls: In an era when many customers are pressed for time, the opportunity to combine recall work with maintenance work results in improved satisfaction. For example, satisfaction among owners of mass market vehicles averages 829 for a recall service, but when the recall service is combined with an oil change, satisfaction improves to 858.
• Communication helps deliver satisfying service experience: Among the 10 most influential key performance indicators measured in the study, four are communication-related: completely focusing on customer needs; keeping the customer informed of service status; service advisor immediately meeting with customer upon arrival; and contacting the customer after service to ensure satisfaction. Greeting customers immediately upon arrival occurs least often and is only completed half the time.
• Trust in service personnel and overall service varies by generation: Owners of both premium and mass market vehicles have high levels of trust in their dealer’s service expertise, but it varies significantly by generation. While Boomers¹ express a great deal of trust in dealer service, younger generations have progressively less trust in dealers, particularly among Gen Z. Among Boomers, the overall level of trust in their dealership is 6.24 (on a 7-point scale), followed by Gen X (5.95), Gen Y (5.89) and Gen Z (5.77).

Highest-Ranking Brands and Segments

Porsche ranks highest in satisfaction with dealer service among premium brands with a score of 912. Lexus (900) ranks second and Cadillac (888) ranks third.

Subaru ranks highest in satisfaction with dealer service among mass market brands with a score of 896. MINI (888) ranks second and Honda (881) ranks third.

Subaru (886) ranks highest in the mass market car segment, followed by Honda (879) and MINI (879).

Subaru ranks highest among mass market SUVs/minivans with a score of 897. Honda (884) ranks second and Buick (878) ranks third.

Porsche ranks highest in the premium car segment with a score of 906, followed by Lexus (891) and BMW (887).

Porsche ranks highest in the premium SUV segment with a score of 917. Lexus (902) ranks second and Cadillac (891) ranks third.

Chevrolet ranks highest in the truck segment with a score of 877. GMC (876) ranks second and Nissan (873) ranks third.

The U.S. Customer Service Index (CSI) Study is now in its 45^th year and has been redesigned for 2025. Along with traditional Voice of the Customer survey data, the study index now includes, for the first time, repair data drawn from individual in-dealership repairs. This repair information, secured from individual dealership service transactions, allows the study to offer an unprecedented level of granularity of both service quality and customer retention.

The study measures satisfaction with service at franchised dealer and aftermarket service facilities for maintenance or repair work among owners and lessees of one- to three-year-old vehicles. It also provides a numerical index ranking of the highest-performing automotive brands sold in the United States, which is based on the combined scores of five measures comprising vehicle owner service experience data and actual repair data. These measures are (in order of importance): service quality; service advisor; vehicle pick-up; service facility; and service initiation. In 2023, model segment rankings were added to the study to differentiate between the service needs for cars, trucks, SUVs and minivans.

The 2025 study is based on responses from 55,210 verified registered owners and lessees of one- to three-year-old vehicles. JD Power goes to great lengths to ensure that survey respondents are true owners of the brand for which they are surveyed. The study was fielded from July through December 2024.

For more information about the U.S. Customer Service Index (CSI) Study, visit https://www.jdpower.com/business/us-customer-service-index-csi-study.

See the online press release at http://www.jdpower.com/pr-id/2025020.

About JD Power
JD Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. JD Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

JD Power was founded in 1968 and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: https://www.jdpower.com/business/about-us/press-release-info

¹JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2007).

 

Original Equipment Tire Brands Losing Grip on Customer Loyalty, JD Power Finds

2025-03-19

jillian.breska

TROY, Mich.: 20 March 2025 — Tire traction and handling satisfaction declines seven points to 803 (on a 1,000-point scale) from 2024, the biggest year-over-year decline of any factor, according to the JD Power 2025 U.S. Original Equipment Tire Customer Satisfaction Study,^SM released today. Vehicle owners who say they had one problem with tire traction and handling have a loyalty rate that is 19 percentage points lower (39%) than the loyalty rate of those who didn’t have a traction or handling problem (58%). After the first two years of ownership, overall satisfaction for tires declines to 790 from 796. 

“The overall experience of tire traction and handling during poor weather conditions, such as snow-covered/icy roads and wet roads, is one of the top customer concerns,” said Jason Norton, director of benchmarking at JD Power. “If tire performance doesn’t meet customer expectations in these conditions, they will seek an alternative that does. In this competitive environment for tire manufacturers, a greater focus on quality will enhance overall customer loyalty.” 

Study Rankings

Goodyear ranks highest in the luxury segment with a score of 821. Michelin (814) ranks second, and Pirelli (801) ranks third.

Goodyear ranks highest in the passenger car segment with a score of 815. Yokohama (807) ranks second, followed by Michelin (805) ranks third. 

Michelin ranks highest in the performance sport segment, for a second consecutive year, with a score of 818. Goodyear (809) ranks second. The segment average is 793.

Hankook ranks highest in the truck/utility segment with a score of 812. Michelin (792) ranks second, and Bridgestone (786) ranks third.

The U.S. Original Equipment Tire Customer Satisfaction Study measures tire owner satisfaction in four areas (in order of importance): tire ride; tire wear; tire traction/handling; and tire appearance. The study includes four vehicle segments: luxury; passenger car; performance sport; and truck/utility. The study is based on responses from 26,976 owners of 2022 and 2024 model-year vehicles and was fielded from July through December 2024. 

For more information about the U.S. Original Equipment Tire Customer Satisfaction Study visit https://www.jdpower.com/business/resource/us-original-equipment-tire-customer-satisfaction-study.

About JD Power
JD Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. JD Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

JD Power was founded in 1968 and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

 

Advantages of Home Charging Diminish but Remains Key Driver of Electric Vehicle Owner Satisfaction, JD Power Finds 

2025-03-20

jillian.breska

TROY, Mich.: 25 March 2025 — Amid growing uncertainty surrounding the expansion of public charging infrastructure, home charging continues to be a boon for electric vehicle (EV)¹ owners, despite declines in satisfaction among owners of both Level 2² charging segments, according to the JD Power 2025 U.S. Electric Vehicle Experience (EVX) Home Charging Study,^SM released today. Overall satisfaction among owners of Level 2 portable charging stations is 714 (on a 1,000-point scale) and 733 for Level 2 permanently mounted home chargers, 21 and 11 points lower, respectively, than a year ago. Owner satisfaction with Level 1 portable chargers remains constant at 581.

“While home charging remains the pinnacle of convenience when it comes to EVs, there are some pain points felt by owners across all three charging segments,” said Brent Gruber, executive director of the EV practice at JD Power. “Chief among them are charging speeds, cord length and the cost of charging. Energy prices are still on the rise in much of the country, and this has negative effects on the industry. Furthermore, because charging speed has tremendous influence on customer satisfaction, home charging stakeholders should particularly focus on ensuring charging speeds are optimized to meet customer needs.”

Following are some key findings of the 2025 study: 

• App and internet connectivity problems plague Level 2 permanently mounted chargers: Despite having the highest satisfaction scores among owners, Level 2 permanently mounted chargers are the most problematic with 39.0 problems per 100 chargers (PP100). Nearly one-third (31%) of the total problems experienced in this charger segment are the result of internet/Wi-Fi connectivity issues and charger app problems. “These functions are not as widely available on other types of chargers and are an advantage for Level 2 permanently mounted providers, but ensuring they work consistently in a variety of home environments brings an added challenge that suppliers should keep in mind,” said Gruber.
• Customers may be showing signs of home electricity price fatigue: The average amount of money that owners say they spent on EV home charging in the past 30 days has increased to $58, up $2 from a year ago. As a result, satisfaction with the cost of charging is 698, down 8 points from the 2024 study. While the cost increase may not seem like much, it may represent post-pandemic consumer weariness with pricing, along with the uncertainty of potential changes to federal EV support and energy regulation. However, it is notable that home charging satisfaction varies by region across the country. Owners in the Northeast and West Coast are subject to the highest EV charging costs. Consequently, cost of charging satisfaction in the Northeast (580) and West Coast (651) is much lower than among owners who reside in other regions (728).
• Charging speed can make or break customer satisfaction: When customers indicate experiencing slower-than-normal charging speed problems, satisfaction declines 141 points compared with those customers who do not. Problems such as internet connectivity issues (74-point decline) have less of an effect on customer satisfaction, which explains why customer satisfaction is highest among customers who have Level 2 permanently mounted chargers even though they also experience the most problems.
• Signs of slowing adoption for Level 2 chargers: While overall usage continues to trend toward Level 2 permanently mounted home chargers, there are signs that Level 2 adoption among owners might be slowing. Level 2 usage overall is highest among owners of 2022 model-year vehicles, while Level 1 usage steadily increases among owners of 2023 and newer model-year vehicles. “The study finds that access to Level 2 charging at home is a key component in overall EV ownership satisfaction, so facilitating Level 2 capabilities for owners by reinforcing the benefits—whether through OEM or aftermarket solutions—should remain an area of focus for the industry,” Gruber said.

Study Ranking 

While the study examines the home charging experience of EV owners across all three charger segments, only the Level 2 permanently mounted charging station segment is award eligible this year.

Tesla ranks highest among Level 2 permanently mounted charging stations for a fifth consecutive year, with a score of 776. Emporia (763) ranks second and Wallbox (756) ranks third.

The U.S. Electric Vehicle Experience (EVX) Home Charging Study, now in its fifth year, is driven by a collaboration with PlugShare, the leading EV driver app maker and research firm. This study sets the standard for benchmarking satisfaction with the critical attributes that affect the total or overall EV home charging experience for both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).

Satisfaction is measured across eight factors: fairness of retail price; cord length; size of charger; ease of winding/storing cable; cost of charging; charging speed; ease of use; and reliability. These factors provide a comprehensive assessment of the owner experience and charger performance. Respondents include 10,472 owners of 2019-2025 model year BEVs and PHEVs. The study was fielded from November 2024 through January 2025. 

For more information about the U.S. Electric Vehicle Experience (EVX) Home Charging Study, visit https://www.jdpower.com/business/automotive/electric-vehicle-experience-evx-home-charging-study.

About PlugShare
Based in El Segundo, Calif., PlugShare maintains the most comprehensive census of EV infrastructure in the world. They make the PlugShare app for iOS, Android and the Web, the most popular EV driver app globally, in use by most drivers in North America and over seven million EV drivers worldwide. PlugShare also provides sophisticated data tools, reports, custom consulting and comprehensive research on EVs for automakers, utilities, charging networks, government and the rest of the EV industry. It operates the world’s largest EV driver survey research panel, PlugInsights, now with over 150,000 members.

About JD Power
JD Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. JD Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

JD Power was founded in 1968 and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: https://www.jdpower.com/business/about-us/press-release-info

¹Electric vehicles (EV) include battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV).

²JD Power defines charger segments as Level 1 portable; Level 2 portable; or Level 2 permanently mounted (permanent). Level 1 portable charging stations offer simple electric vehicle charging capabilities at home through a standard 120-volt electrical outlet. Level 2 portable charging stations offer faster charging capabilities at home through an upgraded 240-volt electrical outlet. Level 2 permanently mounted charging stations use an upgraded 240-volt electrical outlet via a permanently wall-mounted format.

 

Total New-Vehicle Sales Expected to Rise 9.6%, Retail up 13.0% as Consumer Spending Expected to Set Monthly Record for March

2025-03-25

jillian.breska

The Total Sales Forecast

Total new-vehicle sales for March 2025, including retail and non-retail transactions, are projected to reach 1,525,200, an 9.6% increase from March 2024 according to a joint forecast from JD Power and GlobalData. March 2025 has 26 selling days, one fewer than March 2024. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 5.5% from 2024.

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 16.8 million units, up 1.2 million units from March 2024. 

New-vehicle total sales for Q1 2025 are projected to reach 3,860,000 units, a 5.3% increase from Q1 2024 when adjusted for selling days.

The Retail Sales Forecast

New-vehicle retail sales for March 2025 are expected to increase from a year ago. Retail sales of new vehicles are expected to reach 1,268,200, a 13.0% increase from March 2024. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 8.9% from 2024.

New-vehicle retail sales for Q1 2025 are projected to reach 3,168,000 units, an 8.4% increase from Q1 2024 when adjusted for selling days. 

The Takeaways

Thomas King, president of the data and analytics division at JD Power:
“March results reflect a continuation of recent trends, with robust consumer demand for new vehicles delivering a sixth consecutive month of retail sales growth. The 13.0% year-over-year retail sales increase is particularly strong, enabled by consumers accelerating purchases to avoid potential tariff-related price increases.

“While the tariff situation remains both fluid and uncertain, the prospect of tariffs is already beginning to affect the industry. In addition to the boost in March sales, anticipated increases in manufacturer and dealer discounts have not materialized, even as inventory on dealer lots rises. Although the magnitude of these effects is currently modest, they do present a preview of potential disruption as manufacturers, dealers and consumers prepare for uncertainty in the coming weeks and months.

Discounts from manufacturers are up significantly from a year ago, but down from a month ago. The average incentive spend per vehicle is expected to grow $235—8.3%—from March 2024 and is on track to reach $3,059. Expressed as a percentage of MSRP, incentive spending is currently at 6.1%, an increase of 0.3 percentage points from a year ago. Compared with February, however, spending is expected to decrease an average of $102.

“The situation is similar for retailer profitability, which is down significantly from a year ago, but stable compared to February. Total retailer profit per unit—which includes vehicles gross plus finance and insurance income—is expected to be $2,212, down 8.0% from March 2024, but up $54 from a month ago.

“The fact that discounts are not increasing materially, even as inventories rise, is consistent with emerging expectations of future tariff-related price increases. Retail inventory levels are expected to finish around 2.2 million units, a 31.3% increase from March 2024 and a 3.7% increase from February.

“The strong March sales pace, combined with high average transaction prices mean consumers will spend more money buying new vehicles this month than any other March on record. The average retail transaction price for new vehicles is trending toward $44,849, up $637 from March 2024.  Multiplied by the sales pace, this means buyers are on track to spend nearly $53.5 billion on new vehicles this month—9.5% higher than a year ago.

“For retailers, the rise in sales is not quite enough to offset the decline in per unit profits. Total aggregate retailer profit from new-vehicle sales for this month is projected to be $2.6 billion, down 0.7% from March 2024.

“Consistent with recent months, while the retail sales pace has been growing, sales to fleet customers are falling. Fleet sales are projected to decline 4.7% from a year ago, as manufacturers continue to prioritize retail buyers over the historically less profitable fleet channel.  Nevertheless, there is a significant opportunity for manufacturers to increase fleet sales during the rest of the year, although larger discounts will be required for this to happen.

“The average used-vehicle price is trending towards $28,552, down just $22 from the same time last year. This reflects the combination of reduced supply of recent model-year used vehicles, due to lower new vehicle production during the pandemic, combined with fewer lease maturities, plus discipline from manufacturers to moderate the discounts available on new vehicles. The used market is also being influenced by emerging tariff-related price concerns. While the effect is not yet material, any increase in new-vehicle prices will inevitably lead to higher used-vehicle prices.

“Stable used-vehicle prices mean that average trade-in equity is expected to rise slightly, up $242 year over year to $7,641. However, a growing share of new-vehicle buyers are facing negative equity on their trade-ins. Currently, 24.6% of trade-ins carry negative equity—an increase of 0.7 percentage points from March 2024. This negative equity trend is intensifying the industry’s affordability challenges. More consumers are now contending with both elevated new-vehicle prices and negative equity, resulting in even higher monthly loan payments.

“Vehicle affordability remains a key challenge for the industry and is the main reason the sales pace—though improving—has yet to return to pre-pandemic levels. Average monthly finance payments in March are on track to reach $731, an increase of $12 from March 2024, and the highest on record for the month of March. Payments are getting no help from interest rates for new-vehicle loans, which are expected to remain flat year over year at 6.82%.  With monthly payments at record highs, and tariff-related price increases on the horizon, affordability is likely to become an even greater focus in the coming months.

“As the first quarter of 2025 comes to an end, the U.S. auto industry is generally performing as expected. There is a continuation of well-established trends that point to gradual increases in the sales pace at the expense of gradually larger discounts and reduced profitability. 

“Tariffs can significantly disrupt current market dynamics. The situation is fluid and uncertain, but should auto industry tariffs take effect, there will be near-term pressure to increase vehicle prices. Tariffs have the potential to affect manufacturers differently—based on their overall manufacturing footprint—and they can also affect models within a manufacturer’s portfolio based on production location. Absent clarity on auto industry tariffs, the specific consequences are impossible to define. The likelihood of significant near-term disruption is high for the entire automotive ecosystem from suppliers and manufacturers to retailers and consumers.”

Sales & SAAR Comparison

U.S. New Vehicle	March 20251, 2	February 2025	March 2024
Retail Sales	1,268,225 units  (13.0% higher than March 2024)2	988,937 units	1,165,443 units
Total Sales	1,525,216 units (9.6% higher than March 2024)2	1,229,233 units	1,445,365 units
Retail SAAR	14.1 million units	13.5 million units	12.6 million units
Total SAAR	16.8 million units	16.4 million units	15.6 million units

¹ Figures cited for March 2025 are forecasted based on the first 19 selling days of the month.
² March 2025 has 26 selling days, one fewer than March 2024. 

The Details

• The average new-vehicle retail transaction price in March is expected to reach $44,849, up $637 from March 2024. The highest for any month—$47,329—was set in December 2022.
• Average incentive spending per unit in March is expected to reach $3,059, up $235 from March 2024. Spending as a percentage of the average MSRP is expected to increase to 6.1%, up 0.3 percentage points from March 2024.
• Average incentive spending per unit on trucks/SUVs in March is expected to be $3,174, up $197 from a year ago, while the average spending on cars is expected to be $2,515, up $286 from a year ago. 
• Retail buyers are on pace to spend $53.5 billion on new vehicles, up $4.6 billion from March 2024.
• Trucks/SUVs are on pace to account for 81.3% of new-vehicle retail sales.
• Fleet sales are expected to total 256,991 units in March, down 4.7% from March 2024. Fleet volume is expected to account for 16.8% of total light-vehicle sales, down 2.5 percentage points from a year ago.
• Average interest rates for new-vehicle loans are expected to be 6.82%, flat from a year ago.

EV Outlook

Elizabeth Krear, vice president of the electric vehicle practice at JD Power:
“March was a month of stability for EVs as shopping sentiment stabilized at 23% among consumers who said they are ‘very likely’ to consider an EV for their next vehicle purchase. This matches purchase sentiment from March 2024.

“Notable, too, is that EV retail share is on the rise, crossing the 10% threshold so far this month. A year ago, Tesla held 56% of EV retail share, but that figure has dropped to 50% so far in 2025. The fastest-growing brand in the EV segment right now is Chevrolet. Overall, EVs have demonstrated a lower total cost of ownership than non-EVs for 13 consecutive months.”

Global Sales Outlook

David Oakley, manager, Americas vehicle sales forecasts at GlobalData:
“February global light-vehicle sales increased 8.3% year over year to 6.6 million units, as the global market continued to improve overall. The selling rate for February finished at 86.8 million units. While this rate represented a decline compared with the 88.9 million units in January, it was the highest February rate since 2018.

“There were significant regional sales variations in February. Global growth was driven by an extremely strong result in China, where sales increased 36% year over year on the advantageous timing of the Lunar New Year, which occurred earlier in 2025 than in 2024. While similar—though less dramatic—growth was observed elsewhere in Asia, sales performance was less positive in the United States (-1.8%) and Western Europe (-4.4%).

“March sales are expected to increase about 5% from March 2024. China, Japan and India should be significant contributors to the gains. The selling rate is forecast to be close to 88 million units, up from a rate of 84.2 million units in March 2024.

“Trade tensions are on the rise, bringing the potential for a slowdown in the global economy and a pullback in auto sales, in particular. However, the industry is showing resilience for now, and we continue to forecast global sales growth in 2025 to 91.5 million units, up more than 3% on 2024 volumes. Scrappage subsidies in China and growth in other Asian markets are expected to deliver an increase in sales overall, although downside risks are mounting.”

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

About GlobalData https://www.globaldata.com/

 

2025 U.S. ALG Residual Value Awards Underscore Importance of Disciplined Approach to Pricing and Incentives  

2024-11-19

jillian.breska

TROY, Mich.: 19 Nov. 2024 — With new- and used-vehicle prices still elevated, budget-conscious shoppers are seeking vehicles that will provide long-term value, highlighting the importance of the JD Power 2025 U.S. ALG Residual Value Awards,^SM released today. For a fourth consecutive year, Lexus and Honda receive the award for best premium brand and mass market brand, respectively. Lexus receives the most model-level awards with five, followed by Toyota with four. 

“Honda stayed disciplined with pricing in 2024, avoiding the aggressive manufacturer’s suggested retail price (MSRP) increases that diminished affordability at other brands, while Lexus’ restraint with incentives paid dividends, as incentives have a direct negative effect on the resale values of older models,” said Danny Battaglia, managing director of ALG customer success at JD Power. “Additionally, the top brands consistently employ a balanced strategy with regard to trim levels, powertrains and pricing, which helps bolster residual performance and long-term value for consumers who are shopping in a highly competitive market.” 

For model year 2025, 16 different brands receive awards in 33 segments, which is one more brand recipient than a year ago. The 2025 award process consisted of evaluating 311 models through analysis of used-vehicle performance, brand outlook and product competitiveness. Eligibility for a brand award requires a manufacturer to have model line entries in at least four different vehicle segments. To account for differences across trim levels, model averages are sales weighted based on percentage share relative to the entire model line. For a segment to qualify for an award, at least four different brands must be included. 

Model-Level Residual Value Awards

Lexus receives the most model-level awards with five, followed by Toyota with four. GMC, Honda and Subaru each receive three model-level awards. Model award recipients include: 

• Lexus: IS, LS, NX, RX and TX
• Toyota: GR Supra, Camry, Land Cruiser and Tundra
• GMC: Sierra 3500 HD, Hummer EV SUT and Hummer EV SUV
• Honda: Civic, Passport and Odyssey
• Subaru: WRX, Crosstrek and Forester
• BMW: 5 Series and X1
• Jeep: Wagoneer and Gladiator
• Acura: Integra
• Cadillac: Escalade
• Chevrolet: Corvette
• Dodge: Charger Daytona
• Hyundai: Kona EV
• Kia: Telluride
• Mercedes-Benz: Sprinter
• Nissan: Kicks
• Tesla: Model 3

The U.S. ALG Residual Value Awards are the automotive industry standard in recognizing vehicle models projected to hold the highest percentage of their manufacturer’s suggested retail price following a three-year period of ownership. This value retention is a key variable in the lease cost of a vehicle, underscoring an automaker’s success in the areas of long-term quality and design, as well as the overall desirability of automotive brands and their models. 

Numerous variables affect the actual residual value of a vehicle over a multi-year lease term. Examples include mileage, quality/reliability, options and feature sets, weather and macroeconomic environment. Since these factors need to be taken into account in order to accurately forecast residual values, the more granularity and greater the understanding of the effect of each variable, the better equipped manufacturers and lenders are to be able to maximize profitability. The combination of JD Power insights and data with the deep experience of ALG in residual values allows for even more accurate end-of-lease forecasting capabilities.

About JD Power
JD Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. JD Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

JD Power was founded in 1968 and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info 

 

November New-Vehicle Sales Expected to Surge to 16.5M SAAR; Consumer Spending to Reach Highest Level Ever for November 

2024-11-26

jillian.breska

The Total Sales Forecast

Total new-vehicle sales for November 2024, including retail and non-retail transactions, are projected to reach 1,361,200, a 6.7% increase from November 2023 on a selling day adjusted basis, according to a joint forecast from JD Power and GlobalData. November 2024 has 26 selling days, one more than November 2023. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 11.0% from 2023. 

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 16.5 million units, up 1.2 million units from November 2023. 

The Retail Sales Forecast

New-vehicle retail sales for November 2024 are expected to increase from a year ago. Retail sales of new vehicles are expected to reach 1,153,100, a 10.1% increase from November 2023 when adjusting for selling days. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 14.5% from 2023.

The Takeaways

Thomas King, president, data and analytics division at JD Power:
“November’s results highlight strong sales performance, driven by rising inventory levels for certain brands and deeper discounts from both manufacturers and retailers. JD Power anticipates that consumers will spend nearly $50 billion on new vehicles this month, representing a 13.7% increase from a year ago and setting a new record for the month of November.”

“Retail inventory is projected to be 2.1 million units, a 5.4% increase from October and a 29.7% increase from November 2023. Rising inventory levels are leading to deeper discounts from both manufacturers and retailers. However, inventory availability remains uneven across brands and models, with some high-volume vehicles still facing shortages.”

The average retail transaction price for new vehicles has decreased slightly from a year ago, driven by higher manufacturer incentives and larger retailer discounts, offset by changes in the mix of vehicles being sold. Transaction prices are trending towards $45,471—down $150 or 0.3%—from November 2023. The combination of considerably higher retail sales and slightly lower transaction prices means that buyers are on track to spend nearly $49.8 billion on new vehicles this month—13.7% higher than November 2023, and the highest November on record.

“Total retailer profit per unit—which includes vehicles gross plus finance and insurance income—is expected to be $2,276, down 21.2% from November 2023. The decline in profits is primarily driven by rising inventory levels, with fewer vehicles selling above the manufacturer’s suggested retail price (MSRP). Thus far in November, only 11.6% of new vehicles have been sold above MSRP, which is down from 22.0% in November 2023.”

Total aggregate retailer profit from new-vehicle sales for this month is projected to be $2.5 billion, down 10.1% from November 2023.

“With increased inventory, fewer vehicles are being pre-sold by retailers, allowing more shoppers to purchase directly from dealer lots. JD Power forecasts that 29.4% of vehicles will sell within 10 days of arriving at the dealership, down from a peak of 58% in March 2022. The average time a new vehicle remains in the dealer’s possession before sale is expected to be 52 days, up from 34 days a year ago.”

Manufacturer discounts are continuing to increase. The average incentive spend per vehicle is expected to grow 42.3% from November 2023 and is on track to reach $3,291. Expressed as a percentage of MSRP, incentive spending is currently at 6.5%, an increase of 1.8 percentage points from a year ago. Spending increased by $174 per unit from October 2024. 

“One of the drivers of higher incentive spending from a year ago is the increased availability of discounting of lease payments. This month, leasing is expected to account for 23% of retail sales, up from 22% in November 2023.

“While attractive lease offers are driving an increase in the lease mix, the industry continues to contend with the lingering impact of reduced leasing activity from three years ago. The number of leases set to expire this November is down 14% compared with October and 35.9% lower than in November 2023. With fewer leases maturing, there are less opportunities to drive sales.”

Average monthly finance payments this month are on pace to be $745, up $20 from November 2023. The average interest rate for new-vehicle loans is expected to be 6.45%, down 71 basis points from a year ago. Monthly payments increasing is a result of a drop in trade-in equity, even though transaction prices and interest rates are falling.”

So far in November, average used-vehicle retail prices are $28,621, down $294 (-1.0%) from a year ago. The decline in used-vehicle values is translating to lower trade-in equity for owners, now trending towards $8,043, which is down $540 from a year ago.

“As the year draws to a close, the positive trends observed in November are expected to persist. Gradual improvements in more affordable vehicle availability are likely to sustain the momentum of new-vehicle sales, while transaction prices and profitability are projected to moderate slightly. Despite challenges such as stubbornly high interest rates and declining used-vehicle values, the overall health of the new-vehicle market remains strong. Although profit per unit is decreasing, higher sales volumes and enhanced leasing activity reflect resilient consumer demand. These trends position the industry for a solid finish to the year while continuing to adapt to evolving market dynamics.”

Sales & SAAR Comparison

U.S. New Vehicle	November 20241, 2	October 2024	November 2023
Retail Sales	1,153,075 units  (10.1% higher than November 2023)2	1,125,608 units	1,007,394 units
Total Sales	1,361,182 units (6.7% higher than November 2023)2	1,343,033 units	1,226,268 units
Retail SAAR	13.4 million units	13.6 million units	12.1 million units
Total SAAR	16.5 million units	16.2 million units	15.3 million units

¹ Figures cited for November 2024 are forecasted based on the first 20 selling days of the month.
² November 2024 has 26 selling days, one more than November 2023. 

The Details

• The average new-vehicle retail transaction price in November is expected to reach $45,471, down $150 from November 2023. The high for any month—$47,329—was set in December 2022.
• Average incentive spending per unit in November is expected to reach $3,291, up $978 from November 2023. Spending as a percentage of the average MSRP is expected to increase to 6.5%, up 1.8 percentage points from November 2023.
• Average incentive spending per unit on trucks/SUVs in November is expected to be $3,431, up $988 from a year ago, while the average spending on cars is expected to be $2,645, up $881 from a year ago. 
• Retail buyers are on pace to spend $49.8 billion on new vehicles, up $6.0 billion from November 2023.
• Trucks/SUVs are on pace to account for 81.5% of new-vehicle retail sales in November.
• Fleet sales are expected to total 208,108 units in November, down 8.6% from November 2023. Fleet volume is expected to account for 15.3% of total light-vehicle sales, down 2.6 percentage points from a year ago.
• Average interest rates for new-vehicle loans are expected to be 6.45%, down 71 basis points from a year ago.

EV Outlook

Elizabeth Krear, vice president, electric vehicle practice at JD Power:
“Information plays a pivotal role in shaping EV shopper consideration, especially when it comes to incentives. There’s a direct correlation between the understanding of EV incentives and the likelihood of new-vehicle shoppers willing to consider an EV. A notable 41% of new-vehicle shoppers say they don’t have a good understanding of EV incentives. Only 5% of new-vehicle shoppers are ‘very likely’ to consider an EV when they have minimal understanding of EV incentives. This percentage rises significantly to 56% when they have a strong understanding of EV incentives.

“Additionally, tax credits/incentives is among the top three reasons people purchased an EV. Among buyers of premium EVs, 64% say such credits and incentives is a top reason for purchasing their EV, while among buyers of mass market EVs, it’s 49%. 

“Federal incentives were always supposed to be temporary. How long ‘temporary’ is, is the key point here. If the incentives go away, it will negatively affect sales in the short term. The growth this year is from new products hitting the market at lower prices and lower trim mixes. Bouncing back may depend on manufacturer incentives and new-model introductions that appeal to shoppers.”

Global Sales Outlook

Jeff Schuster, vice president of research, automotive at GlobalData:
“The global light-vehicle selling rate surged in October to 93 million units, the highest level since August 2023. Volume increased by 5.7%, snapping the four-month streak of declining year-over-year volume. Year-to-date volume is 0.5% higher than in 2023, as October slightly outperformed expectations.

“Global sales experienced a resurgence across most markets. Strong performers in October include Eastern Europe (+14%), North America (+12%) and South America (+15%). Sales in China were up 5%, but that was pulled down by light commercial vehicles, which were down by double digits. Western Europe was the drag for the month, flat from a year ago.

“The acceleration of volume is expected to continue in November, with the selling rate projected to be in the range of 90-95 million units. Global volume is expected to increase 5% on strength in China as the scrappage incentive takes hold. In addition, double-digit growth is projected in North America and Brazil, while Western Europe remains in negative growth for the month.

“There continues to be a level of risk with vehicle demand in the fourth quarter, but the increase in October has eased some of the concern. The 2024 forecast is holding at 88.0 million units, an increase of 1.5% from 2023, ending downward revisions to the outlook that occupied the past few months. Autos are poised for continued growth in 2025 as conditions improve in key markets. Light vehicles are projected to increase to 90.6 million units, an increase of 2.7% from 2024.”

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

About GlobalData https://www.globaldata.com/

 

Declining Satisfaction with Apps among Owners of Gas-Powered Vehicles Highlights Gaps in Key Features and Performance, JD Power Finds

2024-12-06

jillian.breska

TROY, Mich.: 10 Dec. 2024 — Connectivity-related issues remain a significant hurdle for manufacturers’ mobile apps for internal combustion engine (ICE) vehicles, according to the JD Power 2024 U.S. OEM ICE App Report,^SM released today. Nearly one-third (32%) of owners said they experienced app connectivity issues, a slight increase from 29% in 2023. Additionally, 61% of respondents stated that the app’s connection to the vehicle is slow, occurring occasionally, frequently or every time they use it.

App response times remain a critical aspect of the overall experience, with 73% of respondents saying that 10 seconds is the maximum acceptable time to execute a function and receive confirmation. Despite these challenges, 77% of surveyed respondents said they use their brand’s app at least occasionally, highlighting its continued importance in the ownership experience.

“That’s why it’s beneficial for manufacturers to continue addressing performance gaps and ensuring competitiveness in the market,” said Violet Allmandinger, mobile apps lead at JD Power. “Automakers have made improvements in app features, improved response times and fixed connectivity gaps but, to improve customer satisfaction, they need to deliver core features that perform reliably.”

Following are some key findings of the 2024 report:

• High demand for security features: A notable 83% of respondents expressed a desire for apps to include vehicle camera viewing and security warnings, highlighting a significant gap in current offerings.
• Low interest in in-app vehicle marketplaces: While 27% of apps include a marketplace feature, 72% of respondents said they do not want it. This highlights the need for manufacturers to focus on more practical and widely desired functionalities.
• Vehicle status updates still lag: Many apps fail to deliver timely updates for vehicle locks, windows and doors, but 92% of owners say they want to be able to check their vehicle status. This topic remains a point of frustration throughout the industry.
• Feature limitations and cost concerns drive disengagement: Among owners who discontinued using their brand’s app, 25% cited a lack of desired capabilities and 45% said they don’t need the app. When asked what would encourage them to return, 25% identified pricing as a key aspect for continued usage across the industry.
• Gap between importance and satisfaction in app performance: Among the key performance indicators (KPIs), owners rated the importance of navigating through the app as 7.5 (on a 10-point scale), but satisfaction with the KPI is just 6.5. Additionally, speed of the app—specifically the execution of remote controls and status functions—is 7.4 but satisfaction with the KPI is 6.2, revealing critical areas for improvement.

Report Rankings

MyHyundai with Bluelink ranks highest overall and highest among mass market brands’ ICE vehicle mobile apps with a score of 895 (on a 1,000-point scale). Kia Access (843) ranks second and MyNISSAN (770) ranks third.

Genesis Intelligent Assistant ranks highest among premium brands’ ICE vehicle mobile apps with a score of 874. Mercedes-Benz (821) ranks second and My BMW (815) ranks third.

The U.S. OEM ICE App Report gauges ICE vehicle owners’ experience with their brand’s mobile app. Insights are derived from surveying ICE vehicle owners and an assessment of the most relevant ICE vehicle mobile apps. Results are based on a standardized assessment approach relying on more than 280 best practices for vehicle apps that include more than 150 mobile app functionality specific attributes.

The report includes apps from the top 33 award-eligible branded apps that sell ICE vehicles in the United States. Additionally, more than 1,900 ICE vehicle owners in the United States were surveyed between October-November 2024 to gather insights on app connectivity issues; app usage; feature desirability; and app overall execution.

For more information about the U.S. OEM ICE App Report, visit https://www.jdpower.com/business/press-releases/2024-us-oem-ice-app-report.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: https://www.jdpower.com/business/about-us/press-release-info 

 

December New-Vehicle Retail Sales up 11.9% as Consumer Spending on New Vehicles Reaches All-Time High  

2024-12-19

jillian.breska

The Total Sales Forecast

Total new-vehicle sales for December 2024, including retail and non-retail transactions, are projected to reach 1,520,000, a 7.3% increase from December 2023 on a selling day adjusted basis, according to a joint forecast from JD Power and GlobalData. December 2024 has 25 selling days, one fewer than December 2023. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 3.1% from 2023. 

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 17.2 million units, up 1.1 million units from December 2023. New-vehicle total sales in Q4 2024 are projected to reach 4,241,000 units, a 5.9% increase from Q4 2023 when adjusted for selling days. New-vehicle total sales for 2024 are projected to reach 15,965,300 units, a 2.0% increase from 2023 when adjusted for selling days.

The Retail Sales Forecast

New-vehicle retail sales for December 2024 are expected to increase from a year ago. Retail sales of new vehicles are expected to reach 1,297,400, an 11.9% increase from December 2023 when adjusting for selling days. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 7.6% from 2023. New-vehicle retail sales in Q4 2024 are projected to reach 3,580,300 units, an 8.8% increase from Q4 2023 when adjusted for selling days. New-vehicle retail sales for 2024 are projected to reach 13,162,900 units, a 3.3% increase from 2023 when adjusted for selling days.

The Takeaways

Thomas King, president of the data and analytics division at JD Power:
“December results will cap off the year with a strong performance, highlighted not only by robust year-over-year sales growth, but also by the fact that consumer expenditures on new vehicles will reach the highest level for any month on record.

“Retail sales for December are on track to reach 1.3 million units, reflecting a solid 11.9% increase compared with December 2023. Consumer expenditures on new vehicles are projected to hit $56.4 billion, the highest monthly level ever recorded. This strong finish also means consumer expenditures on new vehicles will set an annual record of $586 billion. Notably, this marks the fourth consecutive year that consumers have spent more than half a trillion dollars on new-vehicle purchases.

“Retail inventory is projected to be 2.0 million units, a 1.3% decrease from November and a 24.7% increase from December 2023. Rising inventory levels are leading to deeper discounts from both manufacturers and retailers. However, inventory availability remains uneven across brands and models, with some high-volume vehicles still facing shortages.”

The average retail transaction price for new vehicles is up marginally from a year ago, trending toward $46,258—up $52 or 0.1%—from December 2023. The combination of considerably higher retail sales and slightly higher transaction prices means that buyers are on track to spend nearly $56.4 billion on new vehicles this month—8.1% higher than December 2023, and the highest of any month on record.

“Total retailer profit per unit—which includes vehicles gross plus finance and insurance income—is expected to be $2,107, down 19.7% from December 2023. The decline in profits is primarily driven by rising inventory levels, with fewer vehicles selling above the manufacturer’s suggested retail price (MSRP). Thus far in December, only 11.8% of new vehicles have been sold above MSRP, which is down from 19.7% in December 2023.”

Total aggregate retailer profit from new-vehicle sales for this month is projected to be $2.6 billion, down 13.3% from December 2023.

“With increased inventory, fewer vehicles are being pre-sold by retailers, allowing more shoppers to purchase directly from dealer lots. JD Power forecasts that 28.2% of vehicles will sell within 10 days of arriving at the dealership, down from a peak of 58% in March 2022. The average time a new vehicle remains in the dealer’s possession before sale is expected to be 55 days, up from 38 days a year ago.”

Manufacturer discounts are continuing to increase. The average incentive spend per vehicle is expected to grow 30.7% from December 2023 and is on track to reach $3,442. Expressed as a percentage of MSRP, incentive spending is currently at 6.6%, an increase of 1.4 percentage points from a year ago. Spending increased by $98 per unit from November 2024. 

“One of the drivers of higher incentive spending from a year ago is the increased availability of discounting of lease payments. This month, leasing is expected to account for 22.7% of retail sales, up from 22.3% in December 2023.

“While attractive lease offers are driving an increase in the lease mix, the industry continues to contend with the lingering effect of reduced leasing activity from three years ago. The number of leases set to expire this month is down 10.5% from November and 41.3% lower than a year ago. With fewer leases maturing, there are less opportunities to drive sales.”

Average monthly finance payments this month are on pace to be $753, up $21 from December 2023. The average interest rate for new-vehicle loans is expected to be 6.09%, down 62 basis points from a year ago. 

So far in December, average used-vehicle retail prices are $28,631, down $505 (-1.7%) from a year ago. The decline in used-vehicle values is translating to lower trade-in equity for owners, now trending toward $8,189—down $242 from a year ago.

“Despite challenges like high interest rates and declining trade-in values, the new-vehicle market remains strong. While per-unit profits are declining, resilient consumer demand—assisted by increased inventory and leasing activity—has supported a solid year-end performance.

As the positive trends of 2024 continue into 2025, improved overall inventory and greater availability of affordable vehicles are expected to sustain sales momentum. Transaction prices and profitability for OEMs and retailers are likely to moderate slightly. However, this tradeoff between higher sales volumes and lower margins will ensure total profitability remains strong compared to historical levels.”

Sales & SAAR Comparison

U.S. New Vehicle	December 20241, 2	November 2024	December 2023
Retail Sales	1,297,356 units  (11.9% higher than December 2023)2	1,157,359 units	1,205,338 units
Total Sales	1,519,972 units (7.3% higher than December 2023)2	1,378,000 units	1,473,830 units
Retail SAAR	14.9 million units	13.5 million units	13.3 million units
Total SAAR	17.2 million units	16.6 million units	16.1 million units

¹ Figures cited for December 2024 are forecasted based on the first 11 selling days of the month.
² December 2024 has 25 selling days, one fewer than December 2023. 

The Details

• The average new-vehicle retail transaction price in December is expected to reach $46,258, up $52 from December 2023. The highest for any month—$47,329—was set in December 2022.
• Average incentive spending per unit in December is expected to reach $3,442, up $809 from December 2023. Spending as a percentage of the average MSRP is expected to increase to 6.6%, up 1.4 percentage points from December 2023.
• Average incentive spending per unit on trucks/SUVs in December is expected to be $3,576, up $806 from a year ago, while the average spending on cars is expected to be $2,771, up $750 from a year ago. 
• Retail buyers are on pace to spend $56.4 billion on new vehicles, up $4.2 billion from December 2023.
• Trucks/SUVs are on pace to account for 82.4% of new-vehicle retail sales in December.
• Fleet sales are expected to total 222,616 units in December, down 13.8% from December 2023. Fleet volume is expected to account for 14.6% of total light-vehicle sales, down 3.6 percentage points from a year ago.
• Average interest rates for new-vehicle loans are expected to be 6.09%, down 62 basis points from a year ago.

EV Outlook

Elizabeth Krear, vice president of the electric vehicle practice at JD Power:
“The percentage of new-vehicle shoppers who say they’re interested in purchasing an EV for their next vehicle is 25%, which is down 2 percentage points from a year ago. However, adoption increased a percentage point this year as the retail share of EVs reaches 9%. New products and attractive pricing drove the growth. Specifically, offerings from GM, Honda, Hyundai and Kia in the popular compact and midsize SUV segments were influential, along with aggressive pricing strategies from Ford and Cadillac. Conversely, Tesla’s share of EV sales dipped this year, so all eyes will be on Tesla in 2025 to see how the company attempts to counter that decline.

“As the industry is poised to experience significant changes related to EV incentives and regulations, we anticipate the rate of EV adoption to decelerate. Even though shoppers will have more EV choices than ever to equivalent gas-powered models—now at 63% from 39% a year ago—a significant majority of EV buyers were influenced by incentives. A notable 87% of all EVs sold this year received an average federal incentive of $5,600. If the incentive is removed, this will put additional pressure on EV adoption, as purchase price and infrastructure remain the top two barriers to adoption.

“This year, EV sales growth increased at a pace twice that of infrastructure growth, while satisfaction in public charging reached a three-year low in Q3 2024. A slowing in EV adoption next year may give the ecosystem a chance to catch up with infrastructure. The transition from gas-powered vehicles to EVs has complex interdependent factors. As one factor changes, it has a ripple effect on other factors. In 2025, we expect to see ongoing contraction and expansion of the factors that make up the EV ecosystem. Monitoring the players who try to work in tandem to develop that ecosystem—and how consumers react to it—is an imperative element.”

Global Sales Outlook

Jeff Schuster, vice president of research, automotive at GlobalData:
“The global light-vehicle selling rate for November continued the strength from October and stood at 95 million units, marking the best result so far in 2024. Sales volume continued to grow in November on a year-over-year basis, with sales up 6% from November 2023. Year-to-date (YTD) sales stood at 80 million units, up nearly 2% from YTD 2023.

“Global sales were supported by sustained growth in key markets like China and North America. Chinese buyers are capitalizing on scrappage subsidies and a very competitive pricing environment, driving volume up 10%. North America was up 12% with increases in all three countries. Sales in Western Europe remain lackluster, down 3% as political and economic challenges persist, exacerbated by recent government turmoil in Germany and France.

“December is expected to remain in the range of 93-95 million units, closing the year out on a strong note. On a monthly basis, volume is projected to be up at least 5% with China leading the way, followed by growth in India. The surge in the United States is expected to drive North America to a flat position. Western Europe’s contraction is expected to be a drag on growth.

“The strength in the fourth quarter has led to an upward revision for 2024. The 2024 forecast is up nearly 700,000 to 88.7 million units from our November forecast, with volume now projected to increase 2% from 2023. While uncertainty remains high as attention shifts to 2025, the outlook has improved in an environment of easing inflationary pressure. Light-vehicle sales are projected to increase to 90.8 million units, a 2% increase from 2024.”

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

About GlobalData https://www.globaldata.com/

 

Auto Manufacturer Websites Need Updating to Increase Satisfaction, JD Power Finds

2025-01-07

jillian.breska

TROY, Mich.: 9 Jan. 2025 — Just 50% of mass market new-vehicle shoppers and 52% of premium new-vehicle shoppers indicate that the manufacturer’s website was more organized and modern than other sites they visited, according to the redesigned JD Power 2025 U.S. Manufacturer Website Evaluation Study^SM —Winter, released today. This highlights the need for manufacturers to update their sites to be more refreshed and intuitive for shoppers. 

“Visual appeal is one of the most important aspects for website visitors,” said Kristen Coffin, analyst of digital solutions at JD Power. “The auto industry is falling short on modernization and organization of their websites. Consumer expectations are high and having an updated, organized and aesthetically pleasing site is one of the most important things manufacturers can do to drive site satisfaction.”

The JD Power U.S. Manufacturer Website Evaluation Study was redesigned for 2025 to measure new aspects of the vehicle shopping experience that are being used at high volumes such as build and price tools. The semiannual study measures customer satisfaction with automotive manufacturer websites while shopping for a new vehicle by examining five key measures (in order of importance): visual appeal; navigation; speed; vehicle research; and research tools.

Study Rankings

Tesla ranks highest among premium manufacturer websites with a score of 752. Land Rover (739) ranks second and Mercedes-Benz (738) ranks third.

Ford ranks highest among mass market manufacturer websites with a score of 719. Nissan (714) ranks second and Chevrolet (710) ranks third.

The U.S. Manufacturer Website Evaluation Study, initially released in 1999, is based on responses from 11,406 new-vehicle shoppers who indicated they will be in the market for a new vehicle within the next 12 months. The study was fielded in October-November 2024. 

For more information about the U.S. Manufacturer Website Evaluation Study, visit https://www.jdpower.com/business/resource/us-manufacturer-website-evaluation-study

About JD Power
JD Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. JD Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

JD Power was founded in 1968 and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

About JD Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info 

 

New-Vehicle Retail Sales Expected to Rise 4.8% While Consumer Spending Expected to Set a Record for January

2025-01-22

jillian.breska

The Total Sales Forecast

Total new-vehicle sales for January 2025, including retail and non-retail transactions, are projected to reach 1,105,900, a 4.4% increase from January 2024 according to a joint forecast from JD Power and GlobalData. January 2025 has 25 selling days, the same as January 2024. 

The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 15.6 million units, up 0.6 million units from January 2024.  

The Retail Sales Forecast

New-vehicle retail sales for January 2025 are expected to increase from a year ago. Retail sales of new vehicles are expected to reach 904,200, a 4.8% increase from January 2024.

The Takeaways

Thomas King, president of the data and analytics division at JD Power:
“January’s SAAR forecast of 15.6 million is up 0.6 million from last January, however, it is considerably lower than December’s 17.1 million SAAR. While the decline from the December sales pace is notable, it is important to recognize that January is typically the lowest sales volume month of the year.  As such, the January sales pace is generally not indicative of the long-term outlook for the industry.

“December’s strong sales pace was fueled by manufacturer incentives aimed at clearing 2024 model-year inventory. Additionally, speculation on changes to the availability of government rebates for electric vehicles encouraged many EV purchases that would otherwise have occurred at some point in 2025. In combination, these factors explain the relative strength of December and relative softness of the sales pace in January.

“Nevertheless, consumers will spend more money buying new vehicles this January than any other January on record. This notable result shows that retail sales are rising while average transaction prices are declining only modestly.”

The average retail transaction price for new vehicles is trending toward $44,636, down $238 (0.5%) from January 2024. The combination means that buyers are on track to spend nearly $38.5 billion on new vehicles this month—5.3% higher than January 2024, and the highest January on record.

Inventory at dealerships continues to rise, reaching a new high for the post-pandemic period. Retail inventory is projected to be 2.2 million units, a 3.7% increase from December and a 31.1% increase from January 2024. Rising inventory levels are leading to deeper discounts from both manufacturers and retailers, although some high-volume vehicles remain in short supply.

Total retailer profit per unit—which includes vehicles gross plus finance and insurance income—is expected to be $2,272, down 13.5% from January 2024. The decline in profits is primarily driven by rising inventory levels, with fewer vehicles selling above the manufacturer’s suggested retail price (MSRP). Thus far in January, only 11.8% of new vehicles have been sold above MSRP, which is down from 20.4% in January 2024.

Total aggregate retailer profit from new-vehicle sales for this month is projected to be $2 billion, down 8.4% from January 2024.

Manufacturer discounts are continuing to increase. The average incentive spend per vehicle is expected to grow 29.3% from January 2024 and is on track to reach $3,226. Expressed as a percentage of MSRP, incentive spending is currently at 6.5%, an increase of 1.3 percentage points from a year ago. Spending decreased by $130 per unit from December 2024.  The decrease from December reflects normal seasonal patterns as year-end promotional events conclude. 

“One of the drivers of higher incentive spending from a year ago is the increased availability of the discounting of lease payments. This month, leasing is expected to account for 24.3% of retail sales, up from 22.6% in January 2024.

“While attractive lease offers are driving an increase in the lease mix, the industry continues to contend with the lingering effect of reduced leasing activity from three years ago. The number of leases set to expire this month is down 17.6% from December and 36.7% lower than a year ago.”

Average monthly finance payments this month are on pace to be $734, up $11 from January 2024. The average interest rate for new-vehicle loans is expected to be 6.7%, down 16 basis points from a year ago. 

So far in January, average used-vehicle retail prices are $27,794, down $345 (-1.2%) from a year ago. The decline in used-vehicle values is translating to lower trade-in equity for owners, now trending toward $7,636, which is down $538 from a year ago.

“The market dynamics in January are consistent with those observed throughout 2024: rising sales enabled by rising discounts from manufacturers and retailers. This dynamic is expected to persist throughout 2025. Several factors could disrupt this dynamic, including the potential for changes to federal electric vehicle tax credits, fuel economy standards and new import tariffs.  However, demand for vehicles remains strong for now and the overall health of the new-vehicle market is good, as evidenced by the simple fact that consumers will spend more money on new vehicles this January than ever before.”

Sales & SAAR Comparison

U.S. New Vehicle	January 20251, 2	December 2024	January 2024
Retail Sales	904,239 units  (4.8% higher than January 2024)2	1,261,197 units	862,690 units
Total Sales	1,105,894 units (4.4% higher than January 2024)2	1,511,112 units	1,059,374 units
Retail SAAR	13.3 million units	14.4 million units	12.7 million units
Total SAAR	15.6 million units	17.1 million units	15.0 million units

¹ Figures cited for January 2025 are forecasted based on the first 14 selling days of the month.
² January 2025 has 25 selling days, the same as January 2024. 

The Details

• The average new-vehicle retail transaction price in January is expected to reach $44,636, down $238 from January 2024. The highest for any month—$47,329—was set in December 2022.
• Average incentive spending per unit in January is expected to reach $3,226, up $730 from January 2024. Spending as a percentage of the average MSRP is expected to increase to 6.5%, up 1.3 percentage points from January 2024.
• Average incentive spending per unit on trucks/SUVs in January is expected to be $3,410, up $751 from a year ago, while the average spending on cars is expected to be $2,383, up $546 from a year ago. 
• Retail buyers are on pace to spend $38.5 billion on new vehicles, up $1.9 billion from January 2024.
• Trucks/SUVs are on pace to account for 81.5% of new-vehicle retail sales in January.
• Fleet sales are expected to total 201,655 units in January, up 2.5% from January 2024. Fleet volume is expected to account for 18.2% of total light-vehicle sales, down 0.3 percentage points from a year ago.
• Average interest rates for new-vehicle loans are expected to be 6.7%, down 16 basis points from a year ago.

EV Outlook

Elizabeth Krear, vice president of the electric vehicle practice at JD Power:
“EV sales were strong in December, reaching a monthly high retail share for the year at 10.5%. However, overall EV sales averaged 9.1% for the year, growing just 0.7 percentage points from 2023. The strength in December reflects the combined effect of shoppers accelerating their EV purchase to ensure they can take advantage of federal tax incentives, combined with enhanced EV incentives from manufacturers.

In 2024, shoppers looking for mass market vehicles had more EV options to choose from, as EV market coverage increased to 59% from 35%. Consequently, the growth in the overall EV market share was driven by mass market EVs, which were up 58%.

“While the percentage of new-vehicle shoppers who said they were ‘very interested’ in purchasing an EV declined in 2024, a solid December preceded a strong January in which the percentage reached a two-year high of 29%. It’s notable that December’s average transaction price for battery electric vehicles was $45,700, while hybrids and gas-powered vehicles combined for an average transaction price of $46,500. BEVs, inclusive of federal tax incentives, transacted $800 less than non-BEVs in December. These dynamics indicate that more shoppers are making EV decisions based on EV availability and pricing, knowing that the industry may be losing the federal incentive.” 

Global Sales Outlook

Jeff Schuster, vice president of research, automotive at GlobalData:
“The global light-vehicle selling rate for December reached 96.0 million units, marking the highest monthly level since August 2023, when China’s recovery surged. Sales in the month were up 6% year over year to 8.6 million units, driving the total for 2024 to 88.6 million units, a 2% increase from 2023.

“Global sales in December were boosted by a 9% growth in China and India. Additionally, Eastern Europe saw an 8% increase. However, Japan experienced a 9% decline in sales and Korea saw a decrease of 0.2%. The Chinese scrappage subsidy program that increased 2024 sales was extended until the end of 2025 and was expanded to provide additional support for demand. The Japanese market ended the year on a subdued note due to persistent inflation, a weak yen and falling real wages.

“Looking ahead to January, a material drop-off from the year-end strength of 2024 is not anticipated. The month is currently projected to have a selling rate range of 90-92 million units, with volume expected to reach 7.0 million units, a 6% increase from January 2024.

“The global market has started the year positively, with expectations for total sales to reach 91.7 million units, up nearly 4% from 2024. However, there is a risk to the U.S. forecast due to the continued threat of tariffs. If widespread tariffs are imposed, up to one million units of risk could affect the U.S. forecast. Retaliation could escalate global volume risk and increase pricing on other goods, potentially disrupting the current momentum in the auto industry.”

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

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