#studies
Kelley Blue Book's 'Best Resale Value' Awards Goes Carless for 2019
Until subscription services irreparably modify what constitutes “owning” a car, resale value will continue being an important consideration when shopping for a new vehicle. Every dollar you can squeeze out of your vehicle down the road is one you don’t have to hand over at the dealership.
Every year, Kelly Blue Book compiles a list of models occupying the top spots of the resale value charts, and, every year, we’ve watched as passenger cars are gradually replaced by pickups, crossovers, and SUVs. Last year, the Subaru WRX was the only sedan to break into the top 10. However, this year’s KBB list is entirely devoid of cars.
How Would Dealers Rate Their Brand? Scorecard Ranks Winners and Losers
Cox Automotive, in conjunction with Automotive News, just released its Retail Brand Scorecards Study for 2018. The survey is interesting in that it ranks the perceived value of automakers by assessing how desirable they are to dealerships via an A-through-F grading system. Though, as engaging as it might be to look at these traits from a highly specific viewpoint (how dealerships see you in relation to specific manufacturers), we’re not sure how useful the average consumer will find them. Dealers and industry geeks, however, may want to take notice.
“This study represents a comprehensive review of brands from a unique perspective — how well they support the success of dealers,” said Cox Automotive Chief Economist Jonathan Smoke. “As we assembled the data and began to see how the brands performed differently, we started looking at the results as grades in high school, where the most well-rounded and high-achieving students are those who perform well across a wide range of disciplines. With that scorecard framework, we found a clear set of brands that are honor-roll worthy, as they are in essence the hardest-working, most successful students.”
Michigan Testing Shows Fairly Innocuous Weather Baffles Self-driving Car Systems
Successfully operating self-driving cars on crowded, complex roadways in sunny, dry locales like Phoenix, Arizona is already enough of a challenge, but researchers in the cold, tempestuous climes of Michigan have revealed what the latest and greatest autonomous technology is really up against.
Rain, sometimes hard rain. But also light rain. Also: cold temperatures, and trees with leaves that fall off in the winter. Given that so few places in the world boast such extreme weather and vegetation anomalies as Michigan, this won’t pose a problem for the widespread proliferation of driverless cars, will it?
Dealer Advisor: Prepare for the Worst or Be Destroyed Over the Next Two Decades
Dealership advisory firm Presidio Group has painted a very bleak picture for its clients. With analysts predicting a downturn in auto sales, the company recommends dealers establish a robust 20-year plan that will enable them to perform in the new climate or get out of the business entirely.
Brodie Cobb, founder of Presidio Group, cites a glut of studies claiming dealerships will struggle as manufacturers shift into mobility companies and alternative modes of transportation are more broadly encouraged.
“We’re not particularly pleased that the world is changing the way it is. We would rather have it stay the same, because owning dealerships is a very nice return and profitable business that we enjoy very much,” Cobb told Automotive News in an interview. “So when we talk about this, it hurts us, too. We, too, need to understand the future, form a plan and not just put our head in the sand and hope it goes away.”
Why Are Fatal Hit-and-run Accidents At an All-time High?
Roadway fatalities have been on the decline relative to population since the 1970s. However, the safest year on record since car ownership became commonplace was actually 2014. Deaths spiked in the following two years, with a very modest decline in 2017. While some of the increase can be attributed to more people driving more miles than ever before, accounting for both elements still results in a higher overall rate of fatal incidents.
Hit-and-run statistics mimic this trend, with 2,046 pedestrian deaths reported in 2016. It’s not the total number that’s alarming — it’s the rate of increase, too. The AAA Foundation for Traffic Safety now claims hit-and-run fatalities are becoming a serious issue; reported incidents within the United States have seen a 60-percent increase since 2009. In fact, they’re the highest they’ve been since the NHTSA started keeping track in 1975.
AAA: New Safety Tech Effectively Doubles Cost of Minor Repairs
Advanced safety tech may save your skin, but it certainly won’t spare your wallet in the event of a minor accident. According to research from the American Automobile Association, replacing and/or recalibrating the sensors needed to allow modern driving aids to function properly are severely inflating the cost of even minor repairs.
Unfortunate, considering features like blind spot monitoring and automatic emergency braking are cropping up as standard equipment on even the most affordable rides. Car ownership continues to get more expensive and there doesn’t seem to be much we can do about it — with one exception.
Higher Risk: Study Claims States That Legalized Marijuana Have More Traffic Accidents
The Insurance Institute for Highway Safety and the Highway Loss Data Institute announced Thursday that auto crashes in states with legalized recreational marijuana have increased 6 percent. Both groups will be on hand at the Combating Alcohol-and Drug-Impaired Driving summit at IIHS’ Vehicle Research Center in Ruckersville, Virginia to present two studies on the issue. Perfect timing, considering Canada just became the second country to legalize the substance and support for decriminalization continues to grow in the United States.
Of course, things are rarely so simple. While the IIHS and HLDI remain confident in their research, the National Highway Traffic Safety Administration claimed marijuana use was unlikely to contribute to traffic mishaps in any meaningful way back in 2015. And that’s just for starters. There is so much conflicting information on this issue, it’ll make your head spin harder than the most savage bong rip of your life, bro.
The Message Isn't Getting Across - Drivers Still Think Too Highly of Gee-whiz Driver Assist Features
American safety advocates have long cautioned motorists and manufacturers that poor communication leads to unrealistic expectations of driver assist systems, thus putting lives in danger. The Europeans are waking up to this reality, too.
Despite an ever-growing list of standard tech in new cars, customer bewilderment hasn’t waned, a new study shows. You’d be alarmed (but perhaps not surprised) by the number of people who think self-driving cars are already on the market.
Like Manual Transmissions, Handbrakes Are Also Hurtling Towards Extinction
We’ve long bemoaned the death of the manual transmission. But with few practical advantages other than being more enjoyable to a limited subset of the population, it’s quickly (and understandably) slipping into obscurity. It’s not alone. Based on research conducted by online automotive marketplace CarGurus, the good ol’ handbrake is also rapidly losing relevance as automakers shift their focus to electronic parking brakes.
Isolating its research to the United Kingdom, CarGurus claims just 37 percent of new cars leave the factory with a traditional, mechanical brake lever. And those that still have them are typically bargain-focused nameplates like Suzuki and Dacia. Considering neither of those brands sell any models here, the number is likely even lower in the United States.
These Are the Cars With the Best Infotainment Systems, According to J.D. Power
J.D. Power and Associates is supremely interested in multimedia systems these days. In fact, in now incorporates audio, communication, entertainment, and navigation (ACEN) into its initial quality study. If an automaker wants one of J.D. Power’s tombstone-shaped awards, it now has to ensure its multimedia equipment isn’t vexing to consumers. Unfortunately, ACEN has proven the most problematic category for new vehicle owners since its addition to the annual survey three years ago.
The research and marketing firm recently decided to break out its ACEN scores to see which vehicles had the best infotainment systems. However, in this instance, what constitutes superior hardware is simply a lack of customer complaints. For J.D. Power, multimedia system quality is determined by the number of problems experienced per 100 vehicles over the first 90 days of ownership.
Since potential problems include everything from technical failures and overall features to how well the system was explained by the dealer and plain general satisfaction, decoding what makes a particular system truly bad is difficult. But a lower frequency of complains always means a better product. Which models shined the brightest?
Tesla's 'Affordable' Model 3 Costs a Bundle to Insure, Study Claims
The Model 3 was intended to be Tesla’s affordable alternative for the mass market and, for the most part, that’s what it has been. Granted, the automaker did opt to prioritize the production of higher trim levels as a way to maximize profitability. But, given its financial situation, it was an understandable strategy. The Model 3 is still the cheapest way to get into a Tesla. However, it’s not the cheapest vehicle to own — especially when it comes to insurance rates.
Last year, AAA said premiums on Tesla vehicles would likely go up 30 percent after reviewing data from the Highway Loss Data Institute. At the time, Tesla said the analysis was “severely flawed and is not reflective of reality.” But the auto club stated the HLDI’s findings matched its own research, as well as numerous other sources.
“Looking at a much broader set of countrywide data, we saw the same patterns observed in our own data, and that gave us the confidence to change rates,” said Anthony Ptasznik, chief actuary of AAA.
Old Man's Game: Car Dealerships Can't Hold Onto Younger Employees
There’s a popular notion that young people are ruining the automotive industry. It probably has something to do with the steady climb of average transaction prices and a median income for millennials that’s comparatively worse than that of their parents at a similar age. Plenty of evidence exists that younger individuals aren’t particularly fond of the car-buying experience.
They don’t seem particularly fond of the car selling experience, either. Millennials account for nearly 60 percent of dealer hires but shops lose over half of them every year, according to a study by the management firm Hireology. That’s an impressively high turnover rate that probably isn’t helping turn around stagnating car sales, as it takes a while to master any profession.
Feeling Average? Study Shows Owning a Car Is Still the Cheapest Way to Get to Your Destination In a Car
Say you’re an urbanite who made the decision to leave the perils and unexpected expenses of car ownership begin and rely only on your phone. A money-saving choice? Not necessarily, according to a study the American Automobile Association.
Drawing information from numerous studies, AAA’s report looks at the cost of owning a vehicle versus the cost of replacing those same trips with a ride-hailing app and infrequent car rental. It’s not even close, but, as the saying goes, your mileage may vary.
Same Old Song: Study Claims Uber and Lyft Increasing Congestion Problem in Seattle
A new study from Schaller Consulting is claiming that ride-hailing services, like Uber and Lyft, contributed to 94 million additional miles being driven on Seattle-area roads in 2017. We’ve heard similar claims in the past. Data-backed allegations typically revolve around the notion that app-based services don’t encourage motorists to carpool so much as they pull pedestrians away from public transportation.
Considering how difficult most subway systems and bus lines are to enjoy, that’s not hard to believe.
Public Becoming More Apprehensive About Robotic Cars, Here's Our Best Guess as to Why
A little knowledge is a dangerous thing. Despite the public having become more aware of autonomous vehicles over the last several years, acceptance of the technology appears to be at an all-time low.
According to a recently published survey from Cox Automotive, general knowledge of self-driving cars has grown over the last two years by around 20 percent to 78 percent of a sample audience. However 68 percent of those respondents also felt the technology was potentially unsafe, which represents a nearly 20 percent increase within the same timeframe.
Likewise, general apprehension grew alongside the level of driving autonomy with complete computerized control being the scariest and 84 percent of the sample saying human drivers should always have the ability to take over when they wanted. The public appears to be turning against self-driving vehicles and automakers are going to need to figure out why because these findings are not an isolated incident.
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