Blue Book Briefing
July 2009 - Blue Book Briefing
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· NEW-VEHICLE MARKET ANALYSIS – Timely commentary from Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book’s kbb.com: CARS 2009 – AKA “CASH-FOR-CLUNKERS” – CAPTURES CONSUMER ATTENTION
· LATEST NEWS & BLOGS ON KBB® GREEN – The latest news and blogs posted to KBB Green from the editorial staff of Kelley Blue Book’s kbb.com
· LATEST NEWS STORIES ON KBB.COM – The latest video and written news stories by the editorial staff of Kelley Blue Book’s kbb.com
· NEW-VEHICLE REVIEWS ON KBB.COM – All-new and updated video and written reviews from the editorial staff of Kelley Blue Book’s kbb.com
· Ford, Chevy Lead kbb.com Share of Market Interest as Toyota, Honda Decline
· Kbb.com Names 2009 Top 10 Coolest New Cars Under $18,000
· New-Car Shoppers Up Purchase Timeframe Spurred by Awareness of ‘Cash-for-Clunkers’ House Approval
· New-Car Shoppers Say Now More Likely to Buy from Bankrupt Auto Brand
· Kelley Blue Book’s kbb.com to Launch All-New Online Vehicle Classifieds: The Trusted Marketplace SM
CARS 2009 – aka “Cash-for-Clunkers” – Captures Consumer Attention
- Jack R. Nerad, executive editorial director & executive market analyst, Kelley Blue Book’s kbb.com
One could argue that the recently passed federal legislation, officially titled, “Consumer Assistance to Recycle and Save Program of 2009 (CARS 2009),” which goes by the nickname “Cash-for-Clunkers,” may not do much to aid the environment. One could argue that it may not do much to limit our profligate use of foreign oil. One could even argue that it may not do all that much to significantly boost sagging new-car sales. All those arguments were made by environmental groups and business organizations during the spirited debate on the legislation. But one thing you can’t argue – the so-called “Cash-for-Clunkers” plan has certainly captured the attention of the new-car buyer.
Our Kelley Blue Book Market Intelligence (which includes survey data from in-market new-car shoppers on kbb.com) makes this fact very clear. In less than a month’s time, “Cash-for-Clunkers” rocketed from 36 percent consumer awareness to 72 percent after the Senate approved the final version of the bill last week. This is very good news for car dealers and manufacturers, since the current market seems woefully in need of some sort of stimulus, inspiring consumers to buy. The serious buzz surrounding “Cash-for-Clunkers” could well be that stimulus, though our research also indicates that there is the potential consumers could be disappointed when they fully understand all the terms of the limited-time program.
A large majority of new-car shoppers (81 percent) have a good understanding of one of the key facets of the program – that the government will give vouchers worth up to $4,500 to owners of older vehicles to put toward the purchase of new, more fuel-efficient vehicles. (In actuality, the participating new-car dealer will get the voucher, and the value of the voucher is expected to be reflected in the transaction price of the vehicle, but that has the same net effect). However, car buyers seem to be much less aware of the other key element of the program – that the vehicles they turn in for the government bounty of $3,500 to $4,500 will be scrapped after they are delivered to the dealer selling them the new cars. To illustrate this knowledge gap, only 14 percent of vehicle shoppers agreed with the statement “The government will buy back old, drivable cars at above-market value and scrap them.” Other aspects of the program were similarly not understood by more than 90 percent of potential buyers. This implies that dealers participating in CARS 2009 will have to do some explaining to customers walking in the door seeking to participate in the program.
The good news is that our Kelley Blue Book Market Intelligence indicates there should be a lot of new-car shoppers interested in participating in this program. A full 25 percent of vehicle shoppers agreed with the statement “I am highly motivated to purchase a new vehicle sooner due to this program.” For new-car dealers across the country who have lost traffic in the midst of this deep recession, that should come as music to their ears. Not all of those who are interested in the program will find that the vehicle they own qualifies. However, car dealers know well that increased traffic usually results in increased sales, because once the car-buying bug bites, consumers usually want to scratch the itch. We at Kelley Blue Book and kbb.com intend to be the go-to source for information on this important program.
LATEST NEWS & BLOGS ON KBB GREEN:
Check out the very latest news and blog entries by visiting www.kbb.com/green and clicking on News & Blogs.
The following latest news & blogs by kbb.com’s editorial staff went live on the site or were updated during June 2009.
· A123Systems Details its New High-Capacity Prismatic Cell Battery
· Alfa-Romeo MiTo Will be First to Feature Fiat's MultiAir Technology
· Chevy Drops Malibu Hybrid for 2010
· DOT/NHTSA Call for New Eco-Oriented Tire Rating Labels
· Electric Motorcycles Send Sparks Flying at Isle of Man TTxGP
· First Prius Plug-ins Will Arrive in U.S. by Year's End
· First MINI E Hits the Streets
· GM Unveils New Advanced Battery Lab in Warren, Michigan
· Jesse James Sets New Speed Mark for Hydrogen-Powered Vehicles
· Lamborghini Green Lights a Greener -- and Possibly Hybrid -- Future
· LG Chem Investing $800 Million in New Advanced Battery Plant
· Mitsubishi Reveals Production Version of the i-MiEV
· New Mazda Paint System Sets Benchmarks for Eco-Friendliness
· Quick Drive: 2010 Honda Insight
· Quick Drive: 2010 Lexus RX 450h
· Study Says One in Five Vehicles Sold Here in 2020 Will be Hybrids
· Volvo and Vattenfall Plan Plug-in Hybrid Diesel for 2012
· V-Vehicle Company Will Build New American Green Car in Louisiana
LATEST NEWS STORIES ON KBB.COM:
Check out the very latest news stories by visiting www.kbb.com and scrolling down to the Latest News & Articles link on the home page.
The following latest news stories by kbb.com’s editorial staff went live on the site or were updated during June 2009.
· 2010 Buick Lacrosse Adds Four-cylinder Engine Choice
· 2010 Cadillac SRX Pricing to Start at $34,155
· Brembo and SGL Group Developing Low-Cost Carbon Fiber Brakes
· Bugatti Veyron Grand Sport Starts Production
· Chinese Firm Buys Hummer, But Will Still Build it in U.S.
· Chrysler Resumes Vehicle Production
· Dealers Suffering as Cash for Clunkers Legislation Languishes
· Ferrari Files Patents for a Hybrid AWD System
· First Drive: 2010 Jaguar XF and XK
· First Drive: 2010 Mercedes-Benz E-Class
· First Look: 2010 BMW 5 Series Gran Turismo
· GM Files for Chapter 11 Bankruptcy
· Iacocca Fathers 45th Anniversary Edition Mustang
· It's Time for That Summer Tire Check
· Long-Term Infiniti EX35: Cruising to Santa Cruz
· Magna and Sberbank Win Bidding War for Opel
· More Details: 2010 Jaguar XFR and Jaguar XKR
· New Fiesta Will Challenge Pike's Peak
· New IIHS Testing Finds Big Repair Bills with Small Car Bumpers
· Penske Automotive Group Buys Saturn from GM
· Protective Custody Plus: Mercedes-Benz ESF 2009
· Sweden's Koenigsegg Buys Saab from GM
· Tata Plans to Bring Nano Here by 2012
· Volvo Offers Buyers An Extended Security Blanket
NEW-VEHICLE REVIEWS ON KBB.COM - VIDEO:
The following new-vehicle video reviews by kbb.com’s editorial staff went live on the site or were updated during June 2009. To see any new-vehicle review from kbb.com’s editorial staff, please visit www.kbb.com and click on the News and Reviews tab, then select the make and model.
NEW-VEHICLE REVIEWS ON KBB.COM - WRITTEN:
The following new-vehicle reviews written by kbb.com’s editorial staff went live on the site or were updated during June 2009. To see any new-vehicle review from kbb.com’s editorial staff, please visit www.kbb.com and click on the News and Reviews tab, then select the make and model.
2009 Dodge Sprinter 2500 Cargo
Dodge took a big risk shelving its traditional full-size van in favor of a European-inspired platform, but it appears American business has embraced the result. The 2009 Dodge Sprinter's innovative cargo area, fuel-efficient diesel engine and numerous configurations make it the new darling of the delivery and transportation sector. The boxy Sprinter silhouette has even begun showing up in the lucrative RV arena. Truth be told, the Dodge Sprinter may be the most successful offspring to come from the now-terminated marriage between Mercedes-Benz and Chrysler…
Instead of offering just another cargo-hauling, people-moving crossover, Infiniti has blurred the lines between form and function with the EX35, creating a vehicle that for all intents and purposes has the basic utility of an SUV but takes its styling cues and driving dynamics from sportier vehicles. The 2009 EX35 is not just a plush "coupe-like" SUV, it is also a showcase of all the advanced technology Infiniti has to offer. Both the self-healing exterior paint and available Around View Monitor are exclusives for the automaker and help set the EX35 apart from competitors like the BMW X3, Acura RDX and Land Rover LR2…
The second-generation Chevy Equinox is a strong new contender in one of our favorite vehicle categories. Compact crossovers like the Equinox offer the raised seating position and much of the flexibility of a larger crossover or SUV, but with lower sticker prices and better fuel economy. The segment has been dominated by the Ford Escape, Toyota RAV4 and Honda CR-V, but the 2010 Chevy Equinox promises to shake up the category in much the same way the new-in-'08 Chevy Malibu impacted the mid-size sedan segment…
Recently acquired by India's Tata Motors, Jaguar is currently embarking upon an unprecedented new chapter in its illustrious history. While the pivotal vehicle in determining Jaguar's ultimate fortunes will likely be the new XF luxury sedan, this legendary automaker's stunning 2010 XK Coupe and Convertible remain its most powerfully emotional driving statements. Sensational styling, sophisticated V8 engines (supercharged in the XKR variants, reviewed separately), and finely tuned suspensions allow these luxuriously appointed 2+2 grand tourers to vie for the attentions of potential upscale owners against prime competitors that include the BMW 650i and Porsche 911. As always, the Jaguars do it with a distinctly – and distinctive – British accent that gives them an abundance of sheer, unmitigated charisma…
Recently acquired by India's Tata Motors, Jaguar is embarking on a new era in its illustrious history. But in this time of change, one constant remains: The automaker's commitment to create cars that match expressive styling with impressive performance. Advancing that noble cause well beyond the formidable XK models, the exhilarating XKR Coupe and Convertible boast stronger 510-horsepower supercharged V8s, upgraded brakes and enhanced levels of standard equipment. These 2+2 Hypercats are bred to take on the likes of the BMW M6, Maserati GranTurismo and Porsche 911 Turbo, with some two-seaters, such as the Aston Martin V8 Vantage and Chevy Corvette Z06 and ZR1, in their sights…
Since its introduction in 2001, the Lexus IS has emerged as a legitimate contender in the entry-level luxury market. However, with only a sedan body style, the Lexus IS yielded much of that market to, among others, the BMW 3 Series and Mercedes-Benz C-Class. In an effort to address the issue, Lexus has introduced the 2010 Lexus IS C, a sporty two-door convertible with a retractable metal hard top that is hoped will appeal to both coupe and convertible buyers. With a focus on style, luxury, technology and value, the IS C is the latest element in what Lexus hopes will be a compelling and well-rounded lineup for the IS range…
Largely due to its solid reputation for quality and reliability, Toyota's midsize Camry has been the best-selling car in America for eleven of the past twelve years. Although the Honda Accord continues as the Camry's main rival, a host of new sedans, including the Mazda MAZDA6, Ford Fusion and Chevrolet Malibu, threaten to chip away at the champion's throne. To keep ahead of the pack, the 2010 Toyota Camry gets a mild makeover, a new four-cylinder engine and some new interior enhancements. The sportier SE receives 10 additional horsepower over the base Camry four-cylinder and its suspension tuning is biased more toward delivering crisper handling response. Engine choices include a 169-horsepower, 2.5-liter four-cylinder (179 horsepower on SE) or a 268-horsepower 3.5-liter V6. There's also a hybrid model which is reviewed separately…
The 2010 Toyota Camry Hybrid uses the Hybrid Synergy Drive system which, like the Prius, employs a frugal four-cylinder engine teamed with a powerful electric motor. Unlike the Prius, the Camry Hybrid does not stand out in a crowd, an important difference for the eco-friendly driver who prefers to remain anonymous. In fact, about the only noticeable differences between the Camry Hybrid and its gasoline-powered equivalent are a smaller trunk (due to the placement of the battery pack), a slightly smaller fuel tank and the obvious Hybrid Synergy Drive badges…
The original Toyota Corolla, a small rear-drive subcompact, arrived in the United States in the late 1960s; by the 1970s the second-generation version was the best-selling import in the country and new Corollas have followed every four or five years since. Now in its tenth-generation, the 2010 Corolla is slightly longer, lower and wider than the last generation, and comes with class-leading engineering improvements. The Corolla has grown over time, both in size and in features, with each generation being better than the one that went before, and the 2010 model certainly maintains that standard. But it's in a market segment with some very tough, excellent competition, from Japan, Korea and the United States, and smart buyers have lots of choices for their automotive dollars. As with many Toyota products, expected strengths of the Corolla should be long-term reliability, great fuel economy, a pleasant ownership experience and excellent resale value…
The 2010 Toyota Matrix offers a sporty, practical and reasonably priced alternative to either mundane sub-compact cars or bulky crossover SUVs. Released last year as an all-new model, the 2010 Matrix offers more appealing styling, an optional 158-horsepower 2.4-liter engine, crisp steering feel and precise handling. The performance-oriented XRS trim level has returned, as has optional all-wheel drive. As with the previous generation Matrix, there's plenty of room for four adults and the rear seats fold down to create a flat, voluminous cargo area. Main competitors for the Matrix include the new MAZDA3, Chrysler PT Cruiser, Honda Civic and the Matrix' fraternal twins, the Toyota Corolla and the soon-to-be-disappearing Pontiac Vibe, which are all built in the same Canadian factory…
FORD, CHEVY LEAD KBB.COM SHARE OF MARKET INTEREST AS TOYOTA, HONDA DECLINE
Recent kbb.com Site Traffic Data Reveals Upward-Climbing, Downward-Declining Brands
IRVINE, Calif., June 23, 2009 – Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information, today announces the results of the latest analysis by Kelley Blue Book Market Intelligence of recent kbb.com Web traffic patterns, including the top five upward-climbing and downward-declining brands in share of market interest for May 2009 when compared to May 2008.
Top Five Upward Climbers Top Five Downward Decliners
1. Ford 1. Toyota
2. Chevrolet 2. Honda
3. Volkswagen 3. Saturn
4. Dodge 4. MINI
5. Kia 5. smart
In May 2009, as other domestic manufacturers dealt with issues of bankruptcy and dealer closings, Ford traffic saw the largest year-over-year share of market interest increase of any brand compared with May 2008. A leading contributor to Ford’s climb was the Fusion, which saw a 120 percent increase in year-over-year interest from May 2008 to May 2009, likely due to the introduction and heavy promotion of Ford’s 2010 Fusion and Fusion Hybrid models.
Brands affected by the negative economic news actually saw increases in share of market interest in May 2009 compared with the prior year. The second-highest upward climber of year-over-year share of market interest on kbb.com was Chevrolet. Despite the GM bankruptcy and dealer closings, Chevrolet’s share of market interest surged ahead in May 2009, based largely on strong consumer interest in the new 2010 Camaro as well as the Traverse and Equinox crossovers. Other May 2009 share-of-market-interest climbers include Dodge, likely spurred by buyers looking for the deal of a lifetime after Chrysler declared bankruptcy.
One exception to the domestic surge is Saturn, whose decline is largely attributable to General Motors’ decision to sell the brand as part of its massive government-assisted reorganization process. This sent a signal to consumers that the Saturn brand might cease to exist, which eroded its market share. GM subsequently has announced that Saturn Corporation will be acquired by the Penske Automotive Group, an announcement that may help to reestablish its interest levels in the future.
Other brands that fared well were spurred by new-vehicle introductions with heavy support. Kia saw a jump due to the increased popularity of its all-new Soul, while Volkswagen also saw increased kbb.com traffic share in May 2009 compared to the previous year, due to the CC and Routan, both of which have been heavily advertised.
Likely reasoning behind May share declines in Toyota, Honda, MINI and smart was their uncommonly high interest in May 2008. At that time with a rapid run-up in fuel prices, consumers took a decided turn toward more fuel-efficient vehicles, boosting the share of audience for all four small-car and primarily sedan-oriented brands. Now, with fuel prices down from their peaks of nearly $5-a-gallon last year, the shares of all four brands are at more ‘typical’ levels.
“Despite the majority of domestic manufacturers recently declaring bankruptcy, three of the top five ‘upward climbers’ in terms of share of market interest on kbb.com over the past year are domestics, and Ford undoubtedly took the top spot because it managed to avoid bankruptcy altogether,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. “Because gas prices have returned to more normalized levels when compared to last year, the domestics have benefitted even further with their increases in share of market interest as people research fuel-efficient brands like Toyota and Honda less.”
The information contained in this press release is from Kelley Blue Book Market Watch Web site traffic data from kbb.com from May 2008 – May 2009.
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MAXIMIZE ONLINE PRESENCE, SELL MORE CARS WITH
LOWER PER-VEHICLE ADVERTISING COSTS THAN TRADITIONAL CLASSIFIED LISTINGS
Kelley Blue Book to Boost Dealer Showcase Offering with All-New Online Vehicle Classifieds Launch
IRVINE, Calif., June 22, 2009 – Kelley Blue Book will enhance its Dealer Showcase package to include Inventory Listings with the launch of The Trusted MarketplaceSM, an all-new online car shopping experience, which goes beyond traditional classified listings. On its top-rated Web site www.kbb.com, this enhanced offering reaches local in-market shoppers, provides prominent placement on kbb.com and special recognition. Showcase Dealers will receive a feature-rich Dealer Storefront page within The Trusted Marketplace, providing consumers with detailed information about the dealership, as well as new lead opportunities, special messaging and merchandising opportunities. With more than 12 million visits to kbb.com each month, Kelley Blue Book is in a unique position to engage a large majority of these highly qualified, in-market vehicle buyers in The Trusted Marketplace.
Other exclusive advantages of the Dealer Showcase and Inventory Listings package include: highlighted inventory listings, more inventory ad units, unlimited listings for Showcase makes, inventory integrated within kbb.com’s research section, and high quality leads, ultimately resulting in more sales.
Current and new customers can take advantage of these features and savings through an early-bird program, by signing up for the Showcase Dealer package before September 30 for a low, nominal fee. During the fourth quarter of 2009, the program will switch to an innovative, pay-for-performance model, allowing dealers to better manage vehicle costs. Rather than paying a premium price for inventory placement, dealers on kbb.com only pay for actual leads received from the Web site’s online shoppers. This new pay-for-performance model helps the industry sell more vehicles and lowers per-vehicle advertising costs.
“With the Dealer Showcase and Inventory Listings package, dealers can effectively maximize their dealership and inventory exposure to local in-market shoppers on kbb.com,” said Mike Romano, senior vice president of dealer strategy for Kelley Blue Book. “They gain access to a larger audience of serious buyers, which could drive additional new- and used-car leads, resulting in increased sales.”
The Trusted Marketplace will integrate its best-in-class online vehicle research with dealers’ inventory listings, making kbb.com a one-stop-resource for new- and used-car research and purchases. This will allow consumers to confidently find specific vehicles of interest and help dealers to efficiently sell those selected vehicles to serious, in-market shoppers. As The Trusted Resource® for vehicle values and information, the company will also incorporate Kelley Blue Book® Suggested Retail Values into used-car classified listings to assist dealers in selling their vehicles.
Dealers wishing to obtain additional information on The Trusted Marketplace or become a Showcase Dealer can call 1-866-561-3559.
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KBB.COM NAMES 2009 TOP 10 COOLEST NEW CARS UNDER $18,000
Editors Choose Top Cool, Affordable Rides; Growing Emphasis on Personality, Versatility, Technology
IRVINE, Calif., June 19, 2009 – The 2009 Top 10 Coolest New Cars Under $18,000, www.kbb.com/coolcars2009, were named today by the expert editors from Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information.
The vehicles that made Kelley Blue Book’s 2009 list of Top 10 Coolest New Cars Under $18,000 -- typically a gas-sipping and obviously affordable bunch -- are cooler than they have ever been. More fun, more practical and more amenity-laden than ever before, today's entry-level vehicles deliver more than simply affordable and efficient transportation.
This year’s list features a growing emphasis on personality, with many of the models featuring designs that may have once seemed outlandish and now are more easily accepted. In addition, versatility and technology are continuing elements in the under-$18,000 segment. Nine of the 10 cars on this year's list are flexible five-door hatchbacks, or available as such, and two of the models are all-wheel-drive, or available as such. The collective options list includes navigation, hard-drive music storage, voice-controlled iPod integration, Bluetooth phone connectivity, push-button start and leather seating – some of which were introduced on high-end luxury cars just a few years ago.
For 2009, three vehicles – Kia Soul, Nissan cube and smart fortwo - are all-new to the ‘Coolest Cars’ list, and two of this year’s repeat winners – Honda Fit and MAZDA3 - have undergone redesigns. The MAZDA3 is the only model that can boast about being named a Coolest New Car Under $18,000 by Kelley Blue Book’s kbb.com for six years in a row, which also is every year since the car’s inception. A worldly bunch, the 2009 Top 10 Coolest New Cars Under $18,000 list includes vehicles from companies based in the United States, Japan, Korea and Germany.
“Although inflation might suggest otherwise, each year, it seems we have a larger and cooler crop of new vehicles to choose from for our Coolest Under $18,000 list, and this year is no exception; the auto manufacturers have made the low-priced segments the most personality-filled in the industry,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book’s kbb.com. “In addition to cool, affordable rides that are loaded with technology and amenities, shoppers have more opportunities than ever to choose a car that reflects their individual lifestyle for 2009.”
In choosing the latest list of Top 10 Coolest New Cars Under $18,000, the kbb.com editors used the same set of criteria that many consumers use in examining this category: safety, fuel economy, interior size, comfort, technology, the vehicle’s fun-to-drive-factor, as well as the decidedly subjective “cool” factor. The editors compiled the list of qualifying vehicles using Kelley Blue Book’s New Car Blue Book Values, which reflect real-world transaction prices and provide a more useful comparison point than Manufacturer's Suggested Retail Price (MSRP). Every vehicle on the list can be purchased for less than $18,000.
Sample Choices from kbb.com’s 2009 Top 10 Coolest New Cars Under $18,000 List
2009 Honda Fit
2010 Kia Soul
2010 MAZDA3
2009 Nissan cube
2009 smart fortwo
For the remaining Top 10 Coolest New Cars Under $18,000 choices, including full editorial commentary and reasoning behind each of the editors’ picks, visit the Top 10 Coolest New Cars Under $18,000 story in kbb.com’s Latest News section at www.kbb.com/coolcars2009.
New-Vehicle Research Tools Available on Kelley Blue Book’s kbb.com
§ Full expert reviews of new 2009 (and some 2010) model year vehicles, including print and video
§ Pricing, specifications and information on optional features
§ Resale value information
§ Safety data
§ Rebates and incentives information
§ Side-by-side comparison tool
§ Consumer reviews and ratings
§ Photos and 360-degree views
§ Latest information about alternative-fuel technologies and gas-sipping vehicles at KBB® Green
§ Dealer price quote
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NEW-CAR SHOPPERS UP PURCHASE TIMEFRAME SPURRED BY AWARENESS OF ‘CASH-FOR-CLUNKERS’ HOUSE APPROVAL
Kbb.com Editors Detail List of Eligible Models, Give Advice on Best Ways to Take Advantage of Program
IRVINE, Calif., June 17, 2009 – Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information, today announces the results of the latest Kelley Blue Book Market Intelligence survey of in-market new-car shoppers on kbb.com, detailing consumers’ latest opinions on the ‘cash-for-clunkers’ proposal since it passed in the House last week. The cash-for-clunkers program would allow consumers to trade-in their older, gas-guzzling models for a $3,500 - $4,500 voucher to buy a new, more fuel-efficient vehicle. The purpose behind the legislation is to stimulate the automotive business, encouraging the purchase of new cars as well as more environmentally friendly vehicles.
According to the Kelley Blue Book study, 21 percent of new-car shoppers say they would be highly motivated to purchase a new vehicle sooner if ‘cash-for-clunkers’ were to become law, a five percent increase since the proposal passed in the House. Overall awareness of the program has skyrocketed since House approval, moving from just 36 percent being aware of the cash-voucher program pre-House approval to now 60 percent awareness of the program following House approval on June 9.
In addition, the Kelley Blue Book survey found that the vast majority (90 percent) of those aware of the program know the primary components of the ‘cash-for-clunkers’ proposal, namely that the government will provide between $2,000 and $4,500 in the form of a voucher to people who will swap out their older model vehicles with poor gas mileage for new, more fuel-efficient models.
To aid car shoppers with everything they need to know about ‘cash-for-clunkers,’ the editors of Kelley Blue Book’s kbb.com have compiled a preliminary list of eligible ‘clunkers’ models and detailed advice for the best ways consumers can take advantage of this program. This story is now available in the Latest News section of kbb.com at www.kbb.com/cashforclunkerslist. In addition to the list of ‘clunkers,’ kbb.com editors provide detailed advice and answers to questions such as what the biggest ‘winners’ on the list are, what new car provides the most affordable way to take advantage of the program and what specific cars and trucks qualify for the current ‘cash-for-clunkers’ program.
“As new-car shoppers become more aware and understanding of the ‘cash-for-clunkers’ program, more consumers who were looking to purchase a new car in the next three-to-six months may move that timeframe up to take advantage of the government funds,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. “This legislation still has some hoops to jump through, including passing the Senate attached to an unrelated bill and some opposition from environmental groups who think it doesn’t go far enough, but it could be successful in stimulating the economy and giving the auto industry the sales-boost it so desperately needs if even a relatively small number of new-car sales result from it.”
The latest Kelley Blue Book Market Intelligence study regarding ‘cash-for-clunkers’ was fielded to 206 in-market new-car shoppers on Kelley Blue Book’s kbb.com from June 10-11, 2009. Kelley Blue Book Market Intelligence will continue to track this data in the coming weeks.
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MORE NEW-CAR SHOPPERS EXPECT GAS PRICES TO SKYROCKET,
$3-A-GALLON GAS MAY BE NEW THRESHOLD IN CURRENT ECONOMY
Kbb.com Market Intelligence Survey Shows Shoppers Likely to Change Vehicle Choices, Spending Habits as Gas Prices Rise
IRVINE, Calif., June 12, 2009 – Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information, today announces the results of the latest Kelley Blue Book Market Intelligence survey of in-market new-car shoppers on kbb.com, detailing consumers’ opinions on gas prices and how they affect their purchase decisions.
When asked in May 2009 what they think will happen with gas prices in the next 30 days, 87 percent of new-car shoppers said they thought gas prices would go much higher, a significant jump from the 66 percent who thought gas prices would increase just a month earlier.
In both April and May, more than 60 percent of in-market new-car shoppers said that rising gas prices have either caused them to change their minds or made them think about vehicles they normally wouldn’t have considered. When asked what they would be most likely to compromise in their next new-vehicle purchase in order to save money they might need to spend on fuel, shoppers cited engine size (for example, a four-cylinder versus a V6 or V8) as the top item likely to be sacrificed, followed closely by vehicle size (for example, a mid-size sedan versus a large sedan).
In addition, 73 percent of those who saw gas prices increasing in May said they plan to change their spending habits if gas prices were to go much higher.
“As summer approaches with household budgets still pinched by the weak economy, car buyers are once again becoming very conscious of rising gas prices,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. “While we may not see the $5-per-gallon gas experienced in some areas last year, current economic conditions compounded by the pain at the pump may make $3-per-gallon gas a new threshold for car buyers – the point at which they change their mind about what vehicle to buy and how they spend their money.”
The April wave of this Kelley Blue Book Market Intelligence study was fielded to 691 in-market new-car shoppers on Kelley Blue Book’s kbb.com from April 16-27, 2009. The May wave of the study was fielded to 753 in-market new-car shoppers on Kelley Blue Book’s kbb.com from May 15-26, 2009.
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NEW-CAR SHOPPERS SAY NOW MORE LIKELY TO BUY FROM BANKRUPT AUTO BRAND
Kbb.com Market Intelligence Survey Details Consumers’ Likeliness to Buy from Bankrupt Auto Manufacturer
IRVINE, Calif., June 3, 2009 – Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information, today announces the results of the latest Kelley Blue Book Market Intelligence survey of in-market new-car shoppers on kbb.com, detailing consumers’ likeliness to buy a car from a bankrupt U.S. auto manufacturer.
When asked how likely they would be to buy a car from a U.S. manufacturer if the company were to go bankrupt, in-market new-car shoppers’ likelihood improved in May 2009 versus April 2009. In May, 52 percent said they were likely to buy from General Motors if GM were going through bankruptcy versus 47 percent in April. In addition, 31 percent said they were likely to buy from Chrysler if it were going through bankruptcy in May versus 29 percent in April.
“The latest Kelley Blue Book Market Intelligence data suggests that as consumers have learned more about the special circumstances of the Chrysler and GM bankruptcies, what they have found has reassured them about making such a purchase,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. “While in April new-car shoppers didn’t have much information about the bankruptcies of the two companies, by May it was much clearer that the U.S. government would continue to offer aid to the two ailing carmakers, keeping them in operation. This reassured enough buyers to bring a modest improvement in overall likelihood to purchase from Chrysler and GM.”
The April wave of this Kelley Blue Book Market Intelligence study was fielded to 298 in-market new-car shoppers on Kelley Blue Book’s kbb.com from April 3-6, 2009, and the May wave was fielded to 715 in-market new-car shoppers on Kelley Blue Book’s kbb.com from May 11-18, 2009.
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KELLEY BLUE BOOK’S KBB.COM TO LAUNCH ALL-NEW ONLINE VEHICLE CLASSIFIEDS: THE TRUSTED MARKETPLACESM
Kbb.com New- and Used-Car Inventory Listings Program Provides Confidence to Consumers, Efficiencies to Dealers
IRVINE, Calif., MAY 29, 2009 – On July 17, 2009, Kelley Blue Book will launch The Trusted MarketplaceSM, a new online car shopping experience on its top-rated Web site www.kbb.com. Through a unique technology platform, The Trusted Marketplace’s search engine will present vehicles that match consumers’ desired characteristics. With The Trusted Marketplace’s revolutionary pay-for-performance business model, dealers will realize efficient sales at a fraction of the cost incurred with traditional, subscription-based classified listing models.
The Trusted Marketplace will provide consumers an unparalleled experience in finding their next new or used car. The Trusted Marketplace’s search function will reveal the ‘Best Match’ – a list of cars that most closely reflect a shopper’s search criteria and applied intelligence gained from millions of customer queries and transactions. Additionally, Kelley Blue Book will integrate its best-in-class online vehicle research with dealers’ inventory listings, making kbb.com a one-stop-resource for new- and used-car research and purchases. This integration will allow consumers to confidently find specific vehicles of interest and help dealers to efficiently sell those selected vehicles to serious, in-market shoppers. The execution of the new program rewards local dealers’ high-quality, competitively-priced listings rather than dealers who pay premium prices for placement. As The Trusted Resource® for vehicle values and information, the company will also integrate Kelley Blue Book® Suggested Retail Values into used-car classified listings to assist dealers in selling their vehicles.
Current and new Kelley Blue Book Dealer Showcase customers can take advantage of an early-bird program offering special advantages and savings at the launch of the new classifieds program, including a feature-rich Dealer Storefront page within The Trusted Marketplace on kbb.com, providing consumers with detailed information about the dealership, as well as new lead opportunities, special messaging and merchandising opportunities.
With more than 12 million visits to kbb.com each month, Kelley Blue Book is in a unique position to engage a large majority of these highly qualified, in-market vehicle buyers in The Trusted Marketplace.
“The Trusted Marketplace will allow dealers to directly engage with serious buyers, and drive both new- and used- car shoppers to submit leads, to a dealer’s storefront page and their inventory,” said Paul Johnson, president and CEO, Kelley Blue Book and kbb.com. “Kbb.com is the first place millions of Americans visit each month to begin their vehicle research process, making it the ideal place to continue their shopping process all on one Web site.”
During the fourth quarter of 2009, The Trusted Marketplace program will make a revolutionary move to a pay-for-performance model, allowing dealers to better manage their vehicle marketing costs. Paying only for leads dealers receive from kbb.com ensures that dealer costs are limited to the value of each high-quality, consumer-interest lead. Dealers can still sign up before September 30 to become a Kelley Blue Book Showcase Dealer and participate in The Trusted Marketplace program for a nominal fee.
“The scale of kbb.com’s pay-for-performance model is a game-changer in the online classifieds business,” said Johnson. “We expect that this program will be successful in not only matching consumers with cars that they want to buy, but also in helping the industry sell more vehicles at lower per-vehicle advertising costs. That’s a win-win situation we strive for every day – helping consumers and the industry to achieve their respective goals with confidence.”
Kelley Blue Book is working closely with technology provider Vast.com Inc., a search technology company providing an unrivaled experience in vehicle research and shopping to shoppers within The Trusted Marketplace on kbb.com.
Dealers wishing to obtain additional information on The Trusted Marketplace or become a Showcase Dealer can call 1-866-561-3559.
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KELLEY BLUE BOOK PUBLIC RELATIONS CONTACTS:
Robyn Eckard
Director of Public Relations
949-268-3049
Joanna McNally
Senior Public Relations Manager
949-268-3079
Brenna Robinson
Public Relations Manager
949-267-4781
About Kelley Blue Book (www.kbb.com)
Since 1926, Kelley Blue Book, The Trusted Resource®, has provided vehicle buyers and sellers with the new and used vehicle information they need to accomplish their goals with confidence. The company’s top-rated Web site, www.kbb.com, provides the most up-to-date pricing and values, including the New Car Blue Book® Value, which reveals what people actually are paying for new cars. The company also reports vehicle pricing and values via products and services, including software products and the famous Blue Book® Official Guide. According to the C.A. Walker Research Solutions, Inc. – 2008 Spring Automotive Web Site Usefulness Study, kbb.com is the most useful automotive information Web site among new and used vehicle shoppers, and half of online vehicle shoppers visit kbb.com. Kbb.com is a leading provider of new car prices, car reviews and news, used car blue book values, auto classifieds and car dealer locations. No other medium reaches more in-market vehicle shoppers than kbb.com.
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