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Buyers resent low inventories, prices over MSRP, study says

Vehicle inventory low, vehicle transaction prices high, customers fretting … welcome, J.D. Power, to the era of supply and demand. In a recently published survey from one of the auto industryÂ’s top analytical firms, findings show that customers' satisfaction with vehicle purchases in the United States this year has dipped for the first time in 10 years. The 2022 U.S. Sales Satisfaction Index (SSI) Study found that overall sales satisfaction has dropped to 786 (on a 1,000-point scale) from 789 in 2021. In that year, higher than expected trade-in values softened the effect of new vehicle price increases. But in 2022, on top of trade-in prices shrinking, many dealers elected to charge more than the ManufacturerÂ’s Suggested Retail Price, a factor that did not sit well with buyers. “When dealers charge more than MSRP, particularly with long-term loyal customers, they risk a potential long-term negative effect on customer advocacy and service business," said Chris Sutton, vice president of automotive retail at J.D. Power. Satisfaction among buyers who paid more than sticker price is 757, while satisfaction among those who paid the sticker price or less is 850, the Power report said. The lack of dealership inventory was also a customer irritant, J.D. Power found, a point that automakers and their dealers may want to consider. Many have maintained, or considered maintaining, a smaller inventory in the wake of the pandemic, keeping costs down and driving more customers toward factory orders. Regarding those consumers shopping for electric vehicles, the survey said that more than a third of them “failed to get instruction on EV charging before they left the dealership, which notably affects satisfaction.” Said Sutton, “Salespeople donÂ’t need to show gas-powered vehicle buyers how to fill their tank, but they do need to show EV buyers how to charge their vehicle.” There are positives to the Power conclusions, however, especially for Alfa Romeo dealers. The Italian brand ranked highest in customer satisfaction among premium brands with a score of 833, with Porsche a very close second (831) and Lexus (819) third. Alfa is on something of a roll these days, with its compact Tonale crossover due for release in the spring, and a new sports car in the works. Meanwhile, in PowerÂ’s “mainstream brand”” segment, Buick ranked first with a score of 825, followed by Dodge (816) and Subaru (804), all performing higher than the industry average.

Lexus says it's not worried about LS sales decline in face of S-Class, Model S

The Lexus LS is old. Sure, it received a refresh for model year 2013, but it hasn't had a clean-sheet redesign since George W. Bush was in office. It's the oldest vehicle in its segment, debuting in 2007, a full year before the current-gen BMW 7 Series, two years before the Hyundai Equus and Jaguar XJ and three years before the Audi A8.
This is particularly troubling as buyers flock to the heavily redesigned Mercedes-Benz S-Class, which debuted late last year, and the all-electric Tesla Model S. Despite this move, though, Lexus is (worryingly in our minds) not at all concerned.
"We don't feel it's a problem with the car," Brian Smith, VP of marketing for Lexus, told Wards Auto. "Many of the buyers in that segment want what's new and they're trying it."

This 'tattooed' Lexus UX is the first of its kind, and we love it

Lexus commissioned the first “tattooed” car ever, and itÂ’s chosen the UX as the tattoo artistÂ’s canvas. Art cars and special projects catch our eye sometimes, but this particular project is one of the most intriguing works of art on a car weÂ’ve seen in a long time. The process that tattoo artist Claudia de Sabe went through to translate her vision onto the UX is what weÂ’re really interested in here. Since the UX is obviously a metal car, de Sabe needed to use a Dremel tool to drill away the blank white surface paint, exposing the bare metal underneath. Those painstakingly drilled lines were used as the pattern for the art taking shape. She had to be unerringly precise in her work. After all, thereÂ’s no magic eraser for drilling into a carÂ’s metal body panels. Spending that much time free-drawing with a Dremel is intensive and demanding work, too. Comfortable positions are hard to come by, and a slip could be disastrous. After the pattern was drilled in, de Sabe switched to car paint and brushes. The koi fish and waves were painted on by hand, and then finally, de Sabe used gold leaf to create highlights in the paint and give it a stronger 3D effect. To protect the artwork, a layer of lacquer was applied, making it possible to drive this UX on the road. From the planning stages to the finished product, Lexus says it took six months. The in-studio work from de Sabe (and her tattoo artist husband who assisted her work) took place over five eight-hour days. “My main inspiration for the design of the car was just all the beautiful artwork that IÂ’ve seen in Japan, in the temples, ukiyo-e prints, all of that artistic background,” de Sabe says. Tattooing a car isnÂ’t cheap either, as Lexus estimates this bespoke work would cost “upwards of GBP120,000” (about $140,000). Lexus made a video featuring de Sabe explaining her work and showing the “tattooing” in progress. ItÂ’s worth a quick watch, so check it out below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.