TriShield

Top Ten Most Purchased Vehicles By Below-Prime Customers Reveal Distinct Preference for Practicality and Value



Irvine, CA, April 24, 2013– CarFinance.com today released data on the top ten new and used vehicle choices for its below-prime car buyers over the last six months1. With below-prime car buyers now accounting for over 43% of all car loans, CarFinance.com’s report provides a new window into the purchasing behavior of a vast, returning-to-car-buying population.

The report, based on CarFinance.com’s financing data, indicates that below-prime, new-car-purchasing behavior differs from the car buying population as a whole: only one model, Dodge Ram, consistently topped both CarFinance.com’s below-prime and overall industry top ten sales lists. And today’s below-prime car buyer would seem to be making distinctly practical vehicle decisions. They’re choosing economical new vehicle models that offer good fuel economy. On the used side they’re opting for pickup trucks and sensible, roomy family sedans.

“With loans to the nation’s large population of below-prime car buyers rebounding, and helping to fuel our economic recovery, the industry would be wise to keep a close eye on their vehicle preferences,” said CarFinance President and CEO Jim Landy. “The CarFinance.com Top Ten Lists offer a snapshot of consumers focused on vehicle choices that are realistic and economically viable, and reflect the responsibility we are consistently seeing in their loan behavior, which is characterized by low rates of defaults and low rates of late payments.”



Top Ten Below Prime New: Most Purchased – CarFinance.com Analysis
Practical sedans that offer good fuel economy and value in their class heavily dominate the list.

• While domestic and import models are evenly divided on the list, it’s Chrysler, Kia and Nissan that are most popular with below-prime buyers, not Honda and Toyota. This suggests that the inroads made by the domestics and Korean brands in the small and mid-sized sedan segment could be fueled by below prime buyers.
• Except for the Ram and the Altima, Chrysler, Nissan and Kia don’t show up at all on industry top ten light vehicle lists for the same period.
• Many models on the list have experienced recent design updates (Avenger, Journey, Ram, Sentra and Versa), so while these consumers are looking for practical transportation, they also care about style.
• Longer manufacturer warranties (Optima, Sorento and Forte offer 10 year/100K), fuel economy and pricing (all vehicles on the list) are critical.

“While compact sedans rule the CarFinance.com new vehicle list, when it comes to used, pickups and midsize/large sedans dominate (with no compacts making the top ten),” added Landy. “This is a consumer looking for multi-use trucks and larger, fit-the-whole-family vehicles, but seeking those relatively high-cost vehicles at the significantly lower used price-point.”

Top Ten Below Prime Used: Most Purchased – CarFinance.com Analysis

• The Big Three dramatically overwhelmed imports, with only two import models, Altima and Camry (top-selling sedan in the US), cracking the top ten.
• Chrysler 300, Chevrolet Impala, and Dodge Charger represent strong choices for consumers looking for larger cars at more affordable prices
• Manufacturer warranties also seem to move the used car shopper: Chevy, Dodge and Kia all offer 100,000 mile warranties, meaning the majority of these vehicles sold would still come with the warranty benefit (given that 2-3 years old is average).
• While the Mustang stands out as an iconic brand, the availability of a V6 -engine option, provides the below-prime customer that insists on practical fuel economy the opportunity to drive a sporty coupe.

Felix C

Criteria for being considered below prime is based on credit rating I presume? If so do they state the number value in terms of FICO?

Z Fury

iTrader: (1)

This list shows nothing surprising. People with poor credit are buying the cheaper vehicles.

will82

Unrelated question, I see F-150 and Silverado are still #1 and #2.

In the past, Silverado + Sierra actually where ahead of F-150 in sales. Does anyone know if that's still the case?

Z Fury

iTrader: (1)

Ford is currently ahead of Silverado + Sierra combined. It is close though.

King's Z

The amount of trucks in the list is surprising.

It'llrun

Trucks have topped the list for about 3 decades, Ford F-series leading the way with Americas #1 selling vehicle(over all cars and trucks) for THIRTY-ONE YEARS now... Nothing surprising to me about trucks being on the list. Somehow, Ford has apparently been ahead of Chevy and GMC combined for years now, but there was a time when, if the two were combined, they really outsold the Ford.