Overall Sales Satisfaction is Lower among Used-Vehicle Shoppers than New-Vehicle Shoppers, J.D. Power Finds

TOKYO: 31 Oct. 2024 — Overall used-vehicle sales satisfaction in Japan averages 678 (on a 1,000-point scale), 42 points lower than for new-vehicle sales satisfaction (720)¹,  according to the J.D. Power 2024 Japan Used-Vehicle Sales Satisfaction Index (UVSSI) Study.^SM  Specifically, by factor, sales satisfaction for used vehicles is 680 each for dealer facilities and support, contract procedure and delivery, and 676 for negotiations, compared with 730, 728, 709 and 715, respectively, for new vehicles, as highlighted in our J.D. Power 2024 Sales Satisfaction Index, which analyzes new car sales.

The study measures customer satisfaction with the purchase experience among used-vehicle buyers as well as among rejecters, defined as those who seriously consider a brand but ultimately buy another brand. The study, which provides a comprehensive analysis of the used-vehicle purchase experience, was conducted in Japan this year for the first time since 2009.

“Although many shoppers are doing their research online, 92% of used-vehicle shoppers are still visiting a dealer to make their purchase,” said Taku Kimoto, senior managing officer of research at J.D. Power. “Because no two used vehicles are the same, there is an opportunity for dealerships to increase their sales satisfaction by providing high-quality and detailed explanations of each specific vehicle to increase satisfaction. To grow the used-vehicle business, there is plenty of room for improvement in customer satisfaction, and dealers who are able to enhance their vehicle knowledge and personalize interactions may achieve this.”

Following are some of the key findings of the 2024 study:

• Salesperson explanations are key during sales negotiations: Among used-vehicle shoppers who say the salesperson explained with actual cases and examples during the negotiations, sales satisfaction averages 838, well above the negotiation average of 676. Also, sales satisfaction is at least 150 points higher than average when shoppers say the salesperson explained the latest technologies and features in detail (837); explained the characteristics and strengths of the dealer (830); or explained the characteristics of the model and grade (829). This indicates that a salesperson’s explanations during sales negotiations strongly influences overall sales satisfaction. However, only 20% of shoppers say the salesperson explained the characteristics of the model and grade, and just 16% of shoppers say the salesperson explained with actual cases and examples; explained the latest technologies and features in detail; and explained the characteristics and strengths of the dealer. Among dealer activities, explanations of the vehicle condition in detail is most frequently performed, at 28%. This suggests that salespersons often limit their explanations to basic information, such as model year, mileage and the presence of stains or scratches.

• Higher satisfaction leads to increased customer loyalty: This study shows that 23% of shoppers purchased their used vehicle as a replacement or an addition from the same dealer as their previous vehicle purchase. Among these shoppers, 11% chose an independent used-vehicle dealer while 28% opted for a manufacturer-authorized dealer. By comparison, in the 2024 Japan SSI Study, 47% of shoppers were repeat customers, indicating there are more repeat customers for new vehicles than for used vehicles. The UVSSI Study finds a strong correlation between overall sales satisfaction and purchase intent. Among shoppers with lower levels of satisfaction (scores below 500), only 41% say they “definitely would” or “probably would” purchase from the same dealer again. In contrast, this percentage rises to 96% among highly satisfied customers (overall satisfaction scores of 800 points or higher), showing a significant gap.
   

_{¹ J.D. Power 2024 Japan Sales Satisfaction Index (SSI) Study^SM
The J.D. Power Japan SSI Study examines only manufacturer-authorized dealers.
https://japan.jdpower.com/en/business/press-releases/2024_Japan_Sales_Satisfaction_Index_Study}

The 2024 Japan Used-Vehicle Sales Satisfaction Index Study is based on responses from 3,900 buyers who purchased their used vehicle at a manufacturer-authorized dealer or independent used-vehicle dealer. Satisfaction is measured in four factors (listed in order of importance): negotiations (27%); delivery (26%); dealer facilities and support (25%); and contract procedure (22%). The data was collected between April 2023 and March 2024, after two to 13 months of ownership. The online survey was fielded from July through August 2024.

About J.D. Power
J.D. Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. J.D. Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.
J.D. Power was founded in 1968 and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit https://japan.jdpower.com/.

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