Reliability/Durability and Purchase Price Are the Top Priorities among New-Vehicle Shoppers in Mexico, While Total Cost of Vehicle Ownership Remains a Challenge
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MEXICO CITY: 10 October 2013 — For new-vehicle shoppers in Mexico, reliability/durability and purchase price are the top priorities, while high auto insurance costs and ongoing increases in fuel prices in relation to their overall income remain major concerns, according to the J.D. Power 2013 Mexico Vehicle Ownership Satisfaction StudySM (VOSS).
- New-vehicle owners in Mexico most frequently cite reliability/durability and purchase price as the reasons they chose their vehicle, followed by fuel efficiency. Peace of mind is also critical for new-vehicle owners--60 percent of owners say their vehicle is covered under the original manufacturer's warranty, while 16 percent say their vehicle is covered under an extended warranty and 9 percent say their vehicle is covered under a pre-paid service agreement.
- Vehicle price is important as, on average, the purchase price of a new vehicle may be the equivalent of one to two years of disposable household income. Additionally, the average annual price of insurance is MXN $12,854 (US $977) per year, which may be equal to a month's salary for many consumers. Rising fuel prices has placed an additional strain on the cost of vehicle ownership.
- Some 62 percent of owners took their vehicle to an authorized dealership for service at least once during the past 12 months for oil changes, routine maintenance or repairs. The vehicle's existing warranty coverage is the most important reason for selecting a dealership service facility, followed by the dealer's reputation; lower price on the service; convenient location; and good customer service. Nearly 34 percent of owners took their vehicle to a non-dealer service facility at least once during the past year for oil changes, routine maintenance or repairs. The most important reason for selecting a non-dealer facility is lower price, followed by customers wanting to use their usual mechanic; good customer service; type of service needed; and reputation.
"Although the vehicle market in Mexico is growing, each year less than 1 percent of Mexico's nearly 120 million population buy a new vehicle," said Gerardo Gomez, director and country manager at J.D. Power de México. "As a result, automakers and dealers in Mexico need to be aware of what consumers are looking for in their vehicle and of the constraints they are facing in financing, insuring and maintaining their vehicle."