Hyundai Passes Toyota, Honda In Brand Loyalty

2011 Hyundai Sonata attracts strong interest

Hyundai has certainly come a long way since introducing its subcompact Excel to the US market in 1986. At that time Hyundai was a one horse player and not a car line known for building quality vehicles. Gradually, the Korean automaker expanded its product line and began a relentless pursuit to win customer loyalty.

Part of its customer loyalty initiative was to roll out a then unheard of 100,000 mile vehicle warranty plan. That plan was hatched in a bid to instill confidence in its customers that Hyundai would stand behind every vehicle built for years to come.

Hyundai Warranty

Subsequently, the company rolled out its “Hyundai Assurance” program, an arrangement allowing customers to return their cars without penalty should thy lose their jobs. That plan was launched in early 2009 during the worst of the recession and is one of the reasons why Hyundai sold more cars in 2009 than they did in 2008, one of only three manufacturers to buck the industry trend.

The good news continues to flow forth for Hyundai as Kelley Blue Book (KBB), the consumer car information company, says that brand loyalty for Hyundai has surpassed industry leaders Honda and Toyota. Moreover, Hyundai car values have been outperforming the industry average while its all new midsize Hyundai Sonata sedan is one of the most researched vehicles on the KBB website.

“Hyundai is clearly benefiting from ‘a perfect storm’ – a result of introducing passionate new products like the 2011 Sonata and 2010 Tucson, while Honda’s mainstream vehicles like the CR-V and Accord are a bit stale in the marketplace and Toyota is experiencing a huge consumer perception crisis,” said James Bell, executive market analyst for Kelley Blue Book’s kbb.com. “To sustain this momentum, Hyundai should continue to promote its attractive new-vehicle lineup, solid warranty offer and strong price-points to new-car shoppers. Hyundai’s main challenge in the near future will likely come from domestic automakers like Ford and GM as they gear up for battle over buyers starting to look for a change from ‘Camry-land.’”

Midsize Market

Indeed, the midsize sedan category has been owned by the Camry-Accord juggernaut since the early 1990s. Up until that time the Ford Taurus was the industry leader but it quickly grew outdated and was surpassed by more modern and better quality Japanese vehicles. Just as the Camry and Accord overtook the Taurus, the Hyundai Sonata should make inroads on these models going forward.

Source: KBB.com

Most Researched Cars? KBB Knows!

The Honda Fit placed #15 on the Kelley Blue Book list of most cars researched in 2008. Honda managed to take six of the twenty top spots in the most recent year according to Kelley.

When you own and manage one of the top research sites online for cars, the information you gather can certainly be helpful to the buying public. In the case of Kelley Blue Book, the company who has been providing vehicle buyers and sellers with new and used vehicle information since 1926, you also have a trust factor that few other companies can deliver.

To that end, Kelley Blue Book (or KBB) has released its list of the 20 most popular car searches for 2008. Noticeably, Honda and Toyota were dominant occupying a combined 13 slots on the list. A handful of domestic models, including the Ford Escape, made the list but if KBB’s results hold true to consumer demand, the Japanese makes with 15 spots taken will continue to dominate in 2009 as well.

Kbb.com’s Most-Researched New Vehicles of 2008:

1. Honda Civic
2. Honda Accord
3. Toyota Camry
4. Toyota Corolla
5. Nissan Altima
6. Honda CR-V
7. Toyota Prius
8. Toyota Highlander
9. Toyota RAV4
10. Mazda3
11. Toyota Yaris
12. Ford Escape
13. Honda Odyssey
14. Honda Pilot
15. Honda Fit
16. Ford Mustang
17. Chevrolet Malibu
18. Toyota Sienna
19. MINI Cooper
20. Volkswagen Jetta

“The site traffic on Kelley Blue Book’s kbb.com demonstrates what is on the minds of today’s new-car shoppers, especially when examining the most-researched new-vehicles of 2008,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. “Continued interest in Honda and Toyota, Chevrolet’s home-run Malibu redesign and an increase in visits to more fuel-efficient, economical vehicles is an accurate reflection of the marketplace in 2008.”

Now that gas prices have retreated from historical high levels, will consumers begin to increase their research on big pickup trucks such as the Dodge Ram and Ford F-150 as well as on big sport/utility vehicles such as the Toyota Sequoia and GMC Yukon? That is kind of hard to tell as the current economic climate plus consumer concern that gas prices may once again spike will likely temper interest in less fuel efficient models.

American manufacturers need to improve their lot and, with the introduction of the Chevrolet Camaro next month and several new models coming from Ford, the KBB list for 2009 just may offer some interesting trends.

Source: Kelley Blue Book

Finding A Used Car That Won’t Let You Down

High gas prices are putting a strain on American family budgets, forcing some people to make hard choices when it comes to their transportation. Unless you live in an area where mass transportation is usable, you’re probably doing just like everyone else — depending on your car to take you where you need to go.

Some people are fighting back by getting rid of their SUVs and pick up trucks, deciding to shop for transportation which will cost them less, at least less per mile. Sales of new compact cars rose sharply in May 2008, bolstered by people who were making that switch.

Not everyone is in the market for a new car, but they might certainly consider a reliable used car if they could find one. As you explore the market and research particular models, there are some things you’ll want to keep in mind to ensure that your used car won’t let you down:

Visit KBB — Kelley Blue Book is the authority on used car prices. Go to their website to see what the retail value is of the car that you want. You’ll pay less if you shop the classified ads with Craigslist and your local newspapers a good place to start. Note: prices of economical used cars has been rising dramatically as demand surges accordingly.

Compare Models — Late model used cars can set you back by $10-25,000, and deliver you good gas mileage. If you are mechanically inclined, consider a Toyota, Honda, or Nissan model that is at least ten years old. Some of the older cars get better gas mileage because their emissions aren’t as strict and they don’t have all of the airbags and other safety devices which add to the weight of the car.

Get It Inspected — Before I purchased my 2001 Dodge Neon in 2003, I ordered a Carfax report to verify that it hadn’t been damaged, salvaged, or had some other glaring problem. Though I didn’t have a mechanic inspect the car, it can be worth the $50-$100 you would pay to have your guys at the garage look the vehicle over.

Shop Around — Besides checking the classified ads, consider a certified used car especially one with an extended warranty. You’ll pay a premium for those types of cars, but you’ll also get a car that has low miles and is backed by the manufacturer. Also consider buying a rental fleet car — our Toyota RAV4 was purchased from Hertz Rental Sales, a fully loaded 2003 model we bought toward the end of 2004.

Finally, when researching the market, pull up objective road tests from websites including The Truth About Cars and get a copy of Consumer Reports April car buying guide for detailed information about your ride.

A used car can save you money on gas, insurance, and registration, but if it isn’t reliable, you could pay more for maintenance and repairs, effectively canceling out your savings in the process.