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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.

2017 Toyota 86 Drivers' Notes | Fun, even with an automatic

The Toyota 86 is a car that enthusiasts begged Toyota to build for decades. It's small, lightweight and rear-wheel drive. Thanks to a partnership with Subaru that resulted in the BRZ, this stylish coupe hit the streets in 2012. In the U.S., the car was originally known as the Scion FR-S but was rebadged as a Toyota after Scion was axed last year. Along with a new name, the 86 received updated styling both inside and out as well as a revised suspension and a slight bump in power, at least for the manual models. This Hot Lava-colored car doesn't feature Toyota's slick six-speed manual. Instead it rocks a six-speed automatic with paddle shifters. While some enthusiasts may look down at that, automatics make up more than half of 86 sales. Still, the bones are there, and some people don't think the automatic is all that bad. Either way, we can't encourage enough people to buy these cars, as we want Toyota and Subaru to keep building them. Senior Editor, Green, John Beltz Snyder: When I first slid behind the wheel of the 86, I was surprised to see the gear selector and paddles. It's one of those cars that you don't think of as having anything but a manual transmission. Also, in an interior where all the controls and displays are underwhelming, a set of paddle shifters stands out as one of the few tactile objects in the cabin. I ended up using the paddles quite a bit, and found that I actually enjoyed using them, so much so that I'd actually consider opting for the automatic transmission were I to buy an 86. Despite shifts that aren't as razor sharp as they could be, the car's high-revving engine means that it still feels great to use. Riding an engine like this up to its redline, filling the cabin with noise, is the sort of thing that'll give you goosebumps. Being able to keep both hands on the wheel while shifting is a good thing for engagement in this car, based on my time with it. Plus, when I got stuck in traffic, I didn't have to wear out my left leg. The other brilliant thing about the Toyota 86 is its sense of balance. I loved the way it communicated its load distribution when cornering, whether on or off the throttle or brake. The fact that the nose of this car snaps right to where you want it when you start dialing in steering angle is satisfying. And its low stance and good view out the windshield make it really easy to place on the road.

Subaru, Mazda profits dip; both blame exchange rates

While some larger automakers took a beating on Q4 earnings, some of Japan's smaller operations managed to keep their heads just above water despite currency issues and slumping sales industry-wide. Subaru, which capped off its 11th consecutive year of U.S. sales increases, reported a 42-percent drop in operating profit in the final quarter of 2019; Mazda, which operates on an even smaller scale, saw a 76-percent drop.  Per Automotive News, both companies faced challenges apart from navigating currency exchanges.  Subaru Subaru's 2019 was marred by warranty costs stemming from repairs on high-volume models, including the Impreza and Crosstrek. Despite the drop in profit, company revenues only slid 2.3 percent. The company also says that it has managed to curtail incentive spending, largely thanks to replacement models that needed less help moving out of showrooms.  America remained a bright spot, with 2019 sales volumes increasing by nearly 3 percent over 2018. Subaru is hoping that figure will increase to 4.0 percent in 2020. Subaru's wholesale deliveries also increased in western Europe, but dropped precipitously (28 percent) in the company's home market.  Mazda The smaller Mazda faced similar challenges, but its 2019 lacked some of Subaru's more dramatic bright spots. Worldwide shipments of new vehicles dropped by 8 percent, aiding a revenue decline of 5 percent. Mazda's vehicles remained profitable on a per-unit basis, but only just.  Mazda has been undergoing aggressive cost-cutting measures, but even those were no match for reduced volumes and unattractive currency exchange rates.  Despite these challenges, both companies are keeping their earnings outlooks unchanged. The fourth quarter of 2019 represented the third quarter in both companies' fiscal years, which will end in March.  Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2020 Subaru WRX STI S209 | POV Drive