For the first time in twelve years, another brand has tied Lexus in used vehicle dependability scores, says J.D. Power, whose Vehicle Dependability Study (VDS) measures problems experienced by original owners of 3-year-old (2004) vehicles.
In Lexus, and now Buick vehicles, owners reported a score of 145 problems per 100 vehicles--a score good for first place. Following up for the top five are Cadillac, Mercury and Honda, respectively.
Lexus takes home five segment awards--the most of any brand in 2007. These include the GS, GX 470, LS 430 and SC 430. Parent Toyota followed with segment awards for the RAV4, Sequoia, Tacoma and Tundra.
"With three non-premium nameplates--Buick, Honda and Mercury--ranking within the top five, and particularly with Buick tying with Lexus for the top rank, consumers seeking a vehicle with strong dependability have good choices at various price levels," said Neal Oddes, director of product research and analysis for J.D. Power and Associates. "Consumers don't necessarily need to pay premium prices to obtain high quality and dependability."
A vehicle which ranks higher in this study will also be more likely to retain a higher residual value as well. For instance, the study indicates that models with strong dependability will hold up to 15% more of their value after 3 years, which can increase the purchase price when sold as a used car. These more dependable machines also become an asset to dealers, which may be able to sell a machine several times in its life cycle.
J.D. power has also determined that satisfaction is affected most negatively when a vehicle needs a repair involving component replacement. Such instances are experienced by about 65% of vehicle owners. The worst-case scenario involves replacement of major components, like transmissions. In this situation, owners keep their vehicles about a year less than average. Small and repetitive problems have a similar effect to larger ones. For instance, rapidly-wearing brake pads are a serious annoyance for most owners.
"Automakers may reap numerous benefits from producing dependable vehicles--not only in higher residual values, decreased warranty costs and opportunities for remarketing their vehicles, but also in higher customer satisfaction and increased likelihood of customers recommending or purchasing newer dependable models," said Oddes. "This is why it is especially important for automakers to successfully launch new vehicle models with high initial quality and appeal--models that perform well in these regards tend to exhibit particularly strong dependability later in their life cycle."
In Lexus, and now Buick vehicles, owners reported a score of 145 problems per 100 vehicles--a score good for first place. Following up for the top five are Cadillac, Mercury and Honda, respectively.
Lexus takes home five segment awards--the most of any brand in 2007. These include the GS, GX 470, LS 430 and SC 430. Parent Toyota followed with segment awards for the RAV4, Sequoia, Tacoma and Tundra.
"With three non-premium nameplates--Buick, Honda and Mercury--ranking within the top five, and particularly with Buick tying with Lexus for the top rank, consumers seeking a vehicle with strong dependability have good choices at various price levels," said Neal Oddes, director of product research and analysis for J.D. Power and Associates. "Consumers don't necessarily need to pay premium prices to obtain high quality and dependability."
A vehicle which ranks higher in this study will also be more likely to retain a higher residual value as well. For instance, the study indicates that models with strong dependability will hold up to 15% more of their value after 3 years, which can increase the purchase price when sold as a used car. These more dependable machines also become an asset to dealers, which may be able to sell a machine several times in its life cycle.
J.D. power has also determined that satisfaction is affected most negatively when a vehicle needs a repair involving component replacement. Such instances are experienced by about 65% of vehicle owners. The worst-case scenario involves replacement of major components, like transmissions. In this situation, owners keep their vehicles about a year less than average. Small and repetitive problems have a similar effect to larger ones. For instance, rapidly-wearing brake pads are a serious annoyance for most owners.
"Automakers may reap numerous benefits from producing dependable vehicles--not only in higher residual values, decreased warranty costs and opportunities for remarketing their vehicles, but also in higher customer satisfaction and increased likelihood of customers recommending or purchasing newer dependable models," said Oddes. "This is why it is especially important for automakers to successfully launch new vehicle models with high initial quality and appeal--models that perform well in these regards tend to exhibit particularly strong dependability later in their life cycle."