Lexus Tops J.D. Power Sales Satisfaction Rankings; Industry Achieves Record High
November 14, 2007

WESTLAKE VILLAGE, Calif. –- With the total auto industry showing record improvement, Lexus took the No. 1 spot in J.D. Power’s annual scorecard on the satisfaction of customers buying a new vehicle.

J.D. Power and Associates said the industry achieved a record high for the second consecutive year in the 2007 Sales Satisfaction Index (SSI) Study released Wednesday morning. For a second consecutive year, the industry achieved a record high overall SSI score, improving by 5 points to 852 from the previous record of 847 set in 2006.

Lexus climbed four spots to rank the highest in satisfying buyers with the new-vehicle sales process, achieving an SSI score of 897 on a 1,000-point scale, and improving by 10 points from 2006.

Following closely behind Lexus in the rankings were, respectively: Hummer; Jaguar, which earned the top spot in the three previous surveys; Lincoln; and Mercedes-Benz.

The study, now in its 21st year, is a comprehensive analysis of the new-vehicle purchase experience. Overall customer satisfaction is measured based on five factors: dealership facility, salesperson, paperwork/finance process, delivery process and vehicle price.

Top Score in Tight Race

“Lexus improves by four rank positions from 2006, which is a gain driven primarily by increased customer delight with the dealership facility, salesperson performance and vehicle price,” said Tom Gauer, senior director of automotive retail research at J.D. Power and Associates. “For example, Lexus salespeople show particular concern for helping customers stay within their budgets, choosing the right vehicle for their needs, as well as for making the negotiation process clear and understandable.”

Despite Lexus' capture of the top spot, the rankings are close, nearly a statistical dead heat. From Lexus to Cadillac at No. 7, the difference in points was 12 points. Hummer was only two points behind Lexus; Jaguar only two points behind Hummer; and Lincoln a single point behind Jaguar.

Interestingly, the gap between 1st and 7th place was much wider in the 2006 SSI, largely because No. 1 Jaguar scored a 912, 11 points ahead of No. 2 Cadillac and No. 7 Buick at 884 points.

Gauer pointed out that, amongst the top 2007 scorers, Hummer received a score of 895, up by 21 points from 2006, and improved "notably in the vehicle price and paperwork/finance process.”

Above Industry Average

The industry average rose again this year to 852 points on a 1,000-point scale, compared with 847 in last year’s survey.

Scoring above average were, in order; Lexus, Hummer, Jaguar, Lincoln, Mercedes-Benz, Buick, Cadillac, Saturn, Porsche, Mercury, Land Rover, BMW, Pontiac, GMC, Saab, Volvo, Acura, Audi, Chevrolet, Ford, Infiniti and Mini.

Below Industry Average

Despite both improving their point scores, Mitsubishi ranked dead last again in 2007 and, like last year, Suzuki was second to last. Nissan was third from the bottom, with Mazda moving up a notch into the fourth from the bottom spot that Nissan held a year ago. 

Scoring below average were, from the best of the below average to the worst, were: Volkswagen, Chrysler, Honda, Kia, Toyota, Subaru, Scion, Hyundai, Dodge, Jeep, Mazda, Nissan, Suzuki and Mitsubishi.

Where Industry Is Strong; Where It Can Improve

The study finds 44 percent of new-vehicle buyers report spending more than they planned for their new vehicle. These customers provide satisfaction scores that average 67 points less than customers who say they spent within the amount they had budgeted. However, a salesperson who carefully explains the vehicle’s features and demonstrates its value can more than compensate for this decrease in satisfaction.

“While all-new vehicle buyers hope to get a good deal, customers are receptive to spending more than they originally budgeted provided that the salesperson does a good job of educating the customer about the features and benefits that they are receiving,” said Gauer. “Customers are looking to the salesperson to help them buy a vehicle that fits their budget, but they are certainly open to spending more if the salesperson can successfully convey the value of the vehicle.”

The study also finds that customers whose expectations are exceeded during the sales process are much more likely to return to the dealership for customer-paid service work. Approximately 61 percent of customers who described their sales experience as “above expectations” say that they will definitely return to the dealership for service.

Included in the study but not ranked due to small sample size is: Isuzu.
Source: J.D. Power and Associates 2007 Sales Satisfaction Index (SSI) Study^SM
Publisher: J.D. Power and Associates

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