You Think You Want a Toyota, but You’ll Buy a Ford
Thinking of buying a new car? Research data suggests you’re probably thinking about buying a Toyota, Honda, or a GM manufactured vehicle. The same set of data also shows that the car you want to buy probably won’t be the car you actually buy. If you’re thinking of buying a new car, you should read this before you hit the car dealership.
What the Numbers Say
A study published by Edmunds.com reveals the brands that most car buyers prefer. Leading the pack is Toyota, followed closely by Honda. This makes a lot of sense in that most car buyers perceive Toyota and Honda to be reliable and safe brands, but they are also affordable. In third place for consumer consideration is GM, with Ford taking a very close fourth place. These also make sense in that they are the core of the “buy American” sentiment and the consumers surveyed were within the U.S. only. Additionally, Ford and GM are affordable and generally considered reliable.
That’s the first set of numbers: The “consideration set”, shown below as “Purchase Intent”. The second set of numbers is the real story here.
Ford and Chevrolet Outperform Toyota and Honda
As we said before, most car buyers are expecting to buy either a Toyota or a Honda. But a lot can change once you’ve seen some sticker prices. Let’s look at two comparable models from two different car brands: The 2014 Honda Accord and the 2014 Ford Fusion. With no extras, the price difference between these two cars is pretty big. The 2014 Honda Accord has an average sale price of $21,324, which is about $300 below factory invoice and $2,200 below the sticker price.
The Ford Fusion really brings the price competition though. A four-door, similarly sized car, the Fusion’s average sale price is $19,416. That’s roughly $7,500 below sticker price and $1,904 less than the Honda Accord. It seems that consumers are comparing prices at the dealership and finding that Ford is offering better prices for similar vehicles.
For a more detailed comparison, read our comparison of the Ford Fusion and Honda Accord.
Sales Growth isn’t Growing Profits for Ford
Despite the fact that more Americans are buying Ford vehicles than are buying Toyota or Hondas, Toyota remains more profitable as a company than Ford. That probably has something to do with the fact that Ford is offering so many buying incentives that result in their vehicles being sold for less than the invoice price. That may sound like trouble, but right now at least the consumer is winning.
Comparing really is the Best Method for Saving Money
No matter what you’re buying, you’ll get a better price by comparing different styles, models, manufacturers, and sellers. This even applies to car insurance. You can find the best price and the best insurer for you by comparing. Find out how much you could be saving and get multiple quotes from multiple insurance companies right now to compare them side by side. It’s free, so start your quote now.