It’s that time again. By that, I mean that those of us here at LotPro.com as well as the vehicle manufacturers and dealers all look forward to the annual J.D. Power Vehicle Dependability Study. In fact, we look forward to all of the stiudies that emanate out of Westlake Village, California. That because, unlike some survey results (aka Consumer Reports), auto manufacturers and dealers can advertise the heck out of a top finish.

The Vehicle Dependability Study is important for another reason: unlike Power’s other famous survey that measures initial quality, this study is based on a three year ownership experience – after the excitement of a new car has worn off and owners have dealt with living with the same vehicle day in and day out for three long (for some) years. In human terms, it’s like comparing the honeymoon to the actual marriage – things can change.

Vehicle ownership time grows

In the current economy, the Dependability Study takes on added significance as car owners are putting off buying a new vehicle and either purchasing used or deciding to hold on to their current vehicle for a little bit longer.

Here is the press release:

Buick LaCrosse

WESTLAKE VILLAGE, Calif.: 19 March 2009 — Buick and Jaguar each rank highest in vehicle dependability in a tie, according to the J.D. Power and Associates 2009 Vehicle Dependability StudySM (VDS) released today.  Buick improves from a sixth-place ranking in 2008, while Jaguar improves from 10th place. Following in the top five rankings this year are Lexus, Toyota and Mercury.

Toyota garners five segment awards—more than any other nameplate in 2009—for the Highlander, Prius, Sequoia, Solara and Tundra. Lexus follows with four segment awards for the ES 330 (in a tie with the Acura RL), GX 470, LS 430 and SC 430. Lincoln captures two awards for the Mark LT and Zephyr. Models by Acura, Buick, Dodge, Ford, Honda, Mazda, Mercury, Nissan and Scion each rank highest in one segment.

“Buick has ranked among the top 10 nameplates each year since the study was last redesigned in 2003, while Jaguar has moved rapidly up the rankings,” said David Sargent, vice president of automotive research at J.D. Power and Associates. “Lexus remains a very strong competitor in long-term quality.  In particular, the Lexus LS 430 sets the industry standard for dependability, with fewer problems reported than any other model in the study.”

The study, which measures problems experienced by original owners of three-year-old (2006 model year) vehicles, has been redesigned to include 202 different problem symptoms across all areas of the vehicle.  Overall dependability is determined by the level of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality. The study is used extensively by vehicle manufacturers worldwide to help design and build better vehicles—which typically retain higher resale values—and by consumers to help them make more-informed choices for both new and used vehicles.

Acura RL

“In the current economic climate, consumers are delaying new-vehicle purchases and keeping their vehicles longer—the average age of a vehicle at trade-in has increased to 73 months in 2009 from 65 months in 2006,” said Sargent. “This makes vehicle dependability even more critical. Automakers have improved long-term dependability by an average of 10 percent each year since the inception of the study, which is a testament to the industry’s commitment to continuously improve and sustain quality, especially long-term quality. Making improvements in long-term quality not only satisfies customers who are holding onto their vehicles longer, but it will also influence their decisions when they return to the new-vehicle market or are seeking to purchase a pre-owned vehicle.”

Kia Amanti

 Economic Concerns and “Change” Produce New Car Buying Perceptions of Total Value

Here at LotPro.com, we can remember the time when car buying decisions were based on whether you were a Ford guy, a GM (specifically Chevy, Buick, Pontiac, etc.) guy or a Chrysler guy. But let’s face it; if you can remember that far back, you are officially an “old” guy.

In today’s auto sales climate, quality and the perception of that quality have become more important than ever. J.D. Power started it all in 1981 with the company released its first Customer Satisfaction survey (Power calls it an Index) and again in 1987 when it released the automotive Initial Quality Study. Since that time, a number of companies have thrown their hats into the ring and have come up with their own unique methods of measuring customer loyalty and their perceptions of vehicle quality.

For its part, San Diego-based Strategic Vision has come up with its own matrix in evaluation customer perceptions of vehicle quality and brand loyalty. What follows is the company’s latest press release:

New Mazda3

For immediate release – Monday, November 10, 2008

San Diego – Strategic Vision today announced its 2008 Total Value Index® (TVI). TVI Scores fell across all brands reflecting economic concerns. During times of economic difficulties, automotive customers will examine the Total Value of potential vehicle choices with greater discrimination.

This greater customer scrutiny of automotive products will lead to new opportunities across all brands for the future. Customers are looking to the products to find the cues of quality that denote long term value with the best pricing, even among luxury vehicles. “When economic conditions become more favorable, the manufacturers who have focused their efforts in enhancing product quality and communicating messages of trustworthy products and overall value will be in a position to regain and even take over new market share,” reports Alexander Edwards, Strategic Vision’s president of automotive.

The economy has affected more than just the consumer’s willingness to spend money. As customers are bombarded with gloomy financial news on almost all fronts: stock markets down and fluctuating wildly, homes in foreclosure, plants closing and corporations laying off personnel, every decision has to be weighed against the individual consumer’s personal standard for Security. A vehicle purchased today must withstand even more demanding scrutiny. As a result, TVI brand scores are down across the board with a one notable exception. Pontiac made a stunning 25 point advance in TVI scores by combining competitive pricing with perceived interior quality. The Pontiac G6 is a good example of how Pontiac has exceeded customer expectations with price, value and interior quality cues.

Toyota Motor Sales is still the company to beat in customer value, although the Toyota brand was part of the overall trend of falling TVI Scores. Toyota Motor Sales has had 30 leaders in TVI over the past four years. In 2008, they add an astounding ten more: seven for Toyota (Yaris hatchback, Prius, Solara Convertible, RAV4, 4Runner, Sequoia and Tundra) and three for the Lexus (IS250/350, LS and RX400 Hybrid). Toyota’s consistent foundational messages of quality and reliability delivered over many years have generated consumer trust in Toyota products. “This trust is a crucial first step to success in today’s market,” says Dr. Darrel Edwards, Founder and CEO of Strategic Vision.

Ironically, Toyota’s strong perceived reliability and durability expectations may slow Toyota’s sales during this economic slowdown. Customers may begin to evaluate if now is the right time to purchase a new vehicle and many Toyota and Lexus buyers may decide to “put off” the purchase of their next vehicle and wait for more favorable economic conditions.

 Chevrolet Corvette Convertible

General Motors did well in Total Value with four segment leaders. Chevrolet’s strong tradition of value in both the sports car fun of the Corvette and the hardworking practicality of the Tahoe and Sierra were recognized. American Honda (with the Accord, Coupe, Odyssey and Ridgeline – all 2007 leaders) and Volkswagen of America (with the A3, Q7 and Passat Wagon) each had three models leading in their segments. Mazda is also worthy of mention as customers felt that they have received the “zoom-zoom” for their money in the Mazda3 Sedan and CX-9.

Buyers rated the following vehicles top in Total Value (TVI) in their segments:

The calculation of TVI begins with explicit statements that owners make about value (e.g. expected reliability, expected fuel economy, price paid, expected resale value, etc.). TVI then incorporates the importance of the variables that make up the ownership experience, and it is here that Strategic Vision finds “True Value” — the worth of the attribute weighed against the costs.