High gasoline prices, record second quarter transaction prices Increased interest in electrified cars and vehicles; BMW and Toyota remain top-selling brands in America, according to latest Kelley Blue Book reports
- Car purchases gained market share among luxury and non-luxury buyers in the second quarter amid high gasoline prices, rising average transaction prices and ongoing vehicle supply issues .
- Consideration for electrified vehicles rebounded, with Tesla and Toyota being the most-regarded electrified vehicle brands in the second quarter, while Rivian gained traction overtaking other EV startups.
- Cadillac edged out Lexus to become the second most purchased luxury brand behind leader BMW for the second straight quarter.
ATLANTE, August 25, 2022 /PRNewswire/ — Vehicle buyer interest in electrified cars and vehicles has increased amid high gas prices and record transaction prices, while BMW and Toyota have retained their place as most purchased U.S. vehicle brands in their respective segments, according to the Q2 2022 Kelley Reports Blue Book Brand Watch™.
Kelley Blue Book Brand Watch is a consumer perception survey of new car buyers intending to purchase within 12 months that also incorporates buying behavior to determine how vehicle makes and models compare to competitors in the segment. Kelley’s Blue Book produces separate brand monitoring reports for luxury and non-luxury brands each quarter. A special look at electrified vehicle purchases is also included. The latest Brand Watch report included a survey of mobile and desktop users to provide an even broader view of vehicle purchase (prior to Q1 2022, the survey only included results from desktop users).
“The record gasoline prices that Americans experienced in the second quarter of this year undoubtedly affected their vehicle buying considerations,” said Vanessa Ton, senior director of research and market intelligence at Cox Automotive. “When you couple that with the ongoing shortages of new vehicle supply and the resulting exorbitant transaction prices, it’s no wonder people are seeing their car buy more from an affordability perspective and are paying more great attention to the energy efficiency benefits of traditional cars and electrified vehicles.
High gasoline prices continue to influence buying behavior, including increased interest in electrified vehicles
With the highest average gasoline price on record in mid-June and deteriorating affordability of new vehicles, many buyers in the second quarter sought out more efficient and affordable sedans. Among non-luxury shoppers, 40% considered cars in Q2, up from 37% in Q1 2022 when gas prices started to take off, and up significantly from 33% a year ago in second quarter of 2021. Even on the luxury side, energy efficiency has gained prominence, climbing quarter over quarter to rank as the sixth most important factor for buyers. While non-luxury car buyers were likely disappointed by the weak supply in the second quarter, luxury buyers benefited from a larger supply of luxury cars than luxury SUVs.
High fuel prices have also likely helped drive increased interest in electrified vehicles. Consideration for electrified models rebounded from a decline in the first quarter, returning to near record highs, due to high gasoline prices and also a greater choice of vehicles. Of all buyers, 27% were considering an electrified vehicle; 19% considered a hybrid/plug-in and 12% considered an electric vehicle (EV). The top 10 electrified vehicles purchased included six hybrids and four electric vehicles. The breakdown by segment included four SUVs, four cars and two trucks. Toyota and Tesla each had three models on the list, while Honda and Ford each had two.
Luxury: BMW retains the title of most purchased luxury brand, followed by Cadillac and Lexus
BMW retained its spot as the most purchased luxury brand in the second quarter of 2022, a position it held for three years until the end of 2021, when Lexus briefly overtook the top spot. BMW’s strength in the second quarter came from increased purchases for its cars.
Cadillac edged out Lexus for the second most purchased luxury brand, and the Cadillac Escalade was the most purchased luxury vehicle for the second straight quarter. Cadillac benefited from healthy inventory in the second quarter while Lexus continued to suffer from a supply shortage. Additionally, Cadillac was likely helped by heightened interest in the brand during the second quarter, stemming from the launch of its first electric vehicle, the Cadillac Lyriq, and the release of intriguing hints about the upcoming Cadillac Celestiq EV flagship. .
Energy efficiency and affordability gained prominence among luxury goods shoppers in the second quarter. Tesla, Rivian and Lexus, respectively, were perceived as the best in fuel efficiency by luxury buyers. Buicks, Genesis and lincolnrespectively, were considered the best luxury brands in terms of affordability.
Notably, EV startup Rivian outperforms other EV startups like Lucid and Polestar, doubling its purchase consideration from Q1 to Q2 2022. While only 2% of luxury buyers considered the brand that only started selling vehicles than last year, Rivian had the same percentage of buyers as Alfa Romeo, a long-established luxury brand. Rivian also drew attention to the list of factors important to luxury buyers, ranking second to Tesla in fuel efficiency and second to Land Rover in ruggedness.
Mercedes-Benz saw a two percentage point drop in purchases in the second quarter, the biggest drop of any luxury brand. However, Mercedes benefited from having more inventory on hand and beat BMW in second-quarter sales. Despite ranking fifth in purchases for the second quarter, Tesla was again the top-selling luxury brand in the United States, and the Tesla Model 3 remained the top-selling luxury car.
Non-luxury: Toyota remains the most purchased non-luxury brand, followed by Ford and Chevrolet
Toyota retained the top spot as the most purchased non-luxury brand, with 35% of all non-luxury buyers considering a Toyota in Q2 2022. Toyota retained its top position for four years until Ford briefly occupied as No. 1 in the final. quarter of 2021. However, Toyota quickly clawed it back in Q1 2022 and widened the gap in Q2 with Ford coming in second place. Chevrolet is on the heels of Ford and takes third place.
Affordability is now among the top three factors for non-luxury car buyers, and fuel efficiency is not far behind at No. 6. Honda, Mazda, Kia and Hyundai, respectively, were considered the leading non-luxury brands for affordability. . Honda, Hyundai, and Toyota, respectively, were perceived as the best in fuel efficiency by non-luxury buyers.
Honda’s Accord and Civic, along with the Toyota Camry, remained on the list of most-bought vehicles for the second straight quarter – this after no traditional car made the top 10 most-bought vehicles last quarter of 2021.
See the latest Kelley Blue Book brand watch reports:
Kelley Blue Book Q2 2022 Brand Watch Report: Non-Luxury
Q2 2022 Kelley Blue Book Brand Watch Report: Luxury
Q2 2022 Kelley Blue Book Brand Watch Report: Electrified
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Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the source of vehicle ratings and information that consumers and the automotive industry trust. Every week, the company provides market-reflecting values on its premier website KBB.com, including its famous Blue Book® Trading Values and Kelley Blue Book® Price Advisor tool, which provides a range of what consumers can reasonably expect to pay for a vehicle in their area. Car owners looking to sell immediately can also get a trade-ready offer with Kelley Blue Book.SM Instant cash offer. The Company also provides vehicle prices and values through various products and services available to automobile dealerships, automobile manufacturers, finance and insurance companies, and government agencies. Kelley Blue Book is a brand of Cox Automotive.
About Cox Automotive
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