Seems a simple enough concept: the more highly sought-after a car is, the less its maker will need to provide incentives for customers to buy one. But who has the most highly-desired vehicles out there? JD Power and Associates has the answer.
Their APEAL (Automotive Performance, Execution, and Layout) study was released earlier this week. In its 12th year, the study aims to measure owner satisfaction with the design, content, layout and performance of new vehicles -- the result being a rating of how gratifying a vehicle is to own and drive. APEAL compliments JD Power's Initial Quality Study (IQS) which focuses on problems encountered within the first 90 days of owning a new vehicle.
The APEAL study finds that for models with higher scores, vehicle manufacturers and dealers can offer lower incentives to buyers. Owners of vehicles with APEAL scores lower than 800 (based on a 1,000-point scale), report receiving dealer incentives of approximately $2,000. For purchasers of models with average APEAL scores higher than 800, the incentive amount can decline by up to 10 percent.
"Vehicle models with strong customer appeal tend to be in higher demand, which diminishes the need for dealers to incentivize to boost sales," said Neal Oddes, director of product research and analysis at J.D. Power. "Offering larger incentives decreases the profitability of vehicles, so it's important for manufacturers to incorporate those 'must-have' features and design elements that will entice buyers, which also reduces the need for large customer cash rebates."
This year, Honda has four segment-leading models on the APEAL list -- the Fit (tie), CR-V, Ridgeline and Odyssey. BMW's 6-Series, X5 and 3-Series each make their way to the list to tie rival Mercedes-Benz with three segment awards for their E-Class, S-Class and GL-Class.
Ford, VW and Nissan each wind up with two segment awards this year -- for the Mustang, Edge, Jetta, GTI, Altima sedan and Armada.
Porsche is the highest-ranking nameplate, while Toyota's Scion is the most improved.
"Whether due to fresh designs or innovative features, APEAL scores tend to be highest for models when they are first introduced," said Oddes. "It's essential for manufacturers to get new-vehicle launches right, since vehicles with high appeal scores generally command a higher gross profit and sell more quickly. Two of the redesigned models -- the Mercedes-Benz S-Class (in a tie) and Honda CR-V -- also earned awards in the 2007 Initial Quality Study, and are examples of how manufacturers can learn from preceding models to improve in both initial quality and appeal."
Their APEAL (Automotive Performance, Execution, and Layout) study was released earlier this week. In its 12th year, the study aims to measure owner satisfaction with the design, content, layout and performance of new vehicles -- the result being a rating of how gratifying a vehicle is to own and drive. APEAL compliments JD Power's Initial Quality Study (IQS) which focuses on problems encountered within the first 90 days of owning a new vehicle.
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The APEAL study finds that for models with higher scores, vehicle manufacturers and dealers can offer lower incentives to buyers. Owners of vehicles with APEAL scores lower than 800 (based on a 1,000-point scale), report receiving dealer incentives of approximately $2,000. For purchasers of models with average APEAL scores higher than 800, the incentive amount can decline by up to 10 percent.
"Vehicle models with strong customer appeal tend to be in higher demand, which diminishes the need for dealers to incentivize to boost sales," said Neal Oddes, director of product research and analysis at J.D. Power. "Offering larger incentives decreases the profitability of vehicles, so it's important for manufacturers to incorporate those 'must-have' features and design elements that will entice buyers, which also reduces the need for large customer cash rebates."
This year, Honda has four segment-leading models on the APEAL list -- the Fit (tie), CR-V, Ridgeline and Odyssey. BMW's 6-Series, X5 and 3-Series each make their way to the list to tie rival Mercedes-Benz with three segment awards for their E-Class, S-Class and GL-Class.
Ford, VW and Nissan each wind up with two segment awards this year -- for the Mustang, Edge, Jetta, GTI, Altima sedan and Armada.
Porsche is the highest-ranking nameplate, while Toyota's Scion is the most improved.
"Whether due to fresh designs or innovative features, APEAL scores tend to be highest for models when they are first introduced," said Oddes. "It's essential for manufacturers to get new-vehicle launches right, since vehicles with high appeal scores generally command a higher gross profit and sell more quickly. Two of the redesigned models -- the Mercedes-Benz S-Class (in a tie) and Honda CR-V -- also earned awards in the 2007 Initial Quality Study, and are examples of how manufacturers can learn from preceding models to improve in both initial quality and appeal."