Car sales have started to explode this year, but there are a lot of challenges – mainly lack of inventory due to a shortage of chips used in cars. Despite the challenges, satisfaction with the sales experience at the dealership is unchanged from last year, according to JD Power. However, not all resellers perform well, and the brand with the worst resellers in America is Genesis.
After many dealerships were closed by the COVID-19 pandemic, demand for new cars has been stymied. Another reason why the demand is high may be the wide variety of new cars with advanced features managed by software that provide drivers with a new level of safety. Finally, more and more Americans want electric cars at a time when the big automakers are just starting to release them.
Unfortunately for manufacturers, consumers and dealers, cars are scarce due to an extreme shortage of chips used in electronic systems that control many vehicle functions.
One measure of car demand is the dealer’s criterion of “field days,” which is the period from when a car reaches the dealership until the time it is sold. Typically, this is between 50 and 60 days. This has dropped to less than 30 in some places. Some cars are so rare that the number of days they are in the field can be measured as a single digit. These are the best-selling cars in America right now.
Dealerships have always played a vital role in car sales. Those with the best sales and service practices tend to retain their customers. Those who do it badly drive away potential loyal customers. Manufacturers rely on dealers to be their face to consumers, which in turn affects their reputation.
Renowned automotive research firm JD Power has just published its “2021 Sales Satisfaction Index (SSI) study.” The study measures the satisfaction with the sales experience of customers who have decided to buy a car at a dealership and those who have decided to buy elsewhere (rejecters).
One of the main reasons people were happy was that they got more money for their trades than expected. This is not surprising. The lack of new car supply has driven up the price of used cars.
Commenting on the trends, Chris Sutton, vice president of automotive retail at JD Power, said that as long as there is no end to the supply chain issues, dealerships should continue to sell the vehicles. that they can offer and help customers as much as possible. He added, “The bright side of customers is that trade-in values remain high and this has had a positive effect on customer sales satisfaction. “
The study, conducted from July to September, is based on a survey of 35,387 buyers who bought or leased a car between March and May 2021. Final scores were based on six weighted factors: delivery process (28%) ; dealer staff (21%); close the deal (19%); paperwork completion (19%); concession (10%); and dealership website (4%). The satisfaction of rejecters is based on five factors: salesperson (40%); price (23%); establishment (15%); variety of inventory (12%); and negotiation (10%).
Car brands have been divided into “premium” and “consumer” categories. The mean scores (out of 1000) for these categories were 807 and 785, respectively.
The brand with the lowest score was Genesis, which was on the premium car list. His score was only 738, by far the worst measured mark.
Genesis is Hyundai’s luxury car brand. It became its own brand in 2015. Today, Hyundai management must regret this decision. (These are cars that Americans don’t want to buy.)