Weekend Economists Volvemos a Puerto Rico May 22-25, 2015

[Demeter]

19. 7 cars that people can’t wait to trade in By Paul Ausick

On average, a new car buyer in the U.S. keeps the car for more than 11 years. It is rare for a buyer to turn around and sell that new car after just one year. Only about 2.7% of new cars sold in model year 2014 were sold after just one year of ownership. Even with that low turnover percentage, there were seven 2014 models that got dumped at even higher rates after just one year. Automotive research website iSeeCars.com analyzed 5 million new 2014 model year cars sold between September 2013 and March 2014, and then checked back one year later to see what percentage of those cars were sold as used with 10,000 to 15,000 miles on the odometer.

From 24/7 Wall St., here are the seven cars that owners could not wait to get out of:

1. Nissan Frontier:A total of 6.9% of the midsize pickup trucks were resold by their original buyers after just one year of ownership. That is 2.6 times the average rate of 2.7%. At the Kelley Blue Book (KBB) website, the 2014 king cab version of the Nissan Frontier has 156 consumer reviews and an overall rating of 8.6 out of a possible 10. The Frontier’s MSRP is $23,435.
   
   
2. Chevrolet Cruze: Some 7.2% of Chevy Cruze buyers dump the car after just a year of ownership. That is 2.7 times the average rate. The compact sedan was named to KBB’s 2014 list of 10 best sedans costing less than $25,000, and it has received 472 ratings at KBB and an overall rating of 8.4. The Cruze carries an MSRP of $18,345.
   
   
3. Mercedes-Benz C-Class: This may be a bit of a shocker: 7.4% of the 2014 C-Class cars were resold after just one year. That is 2.8 times average rate of 2.7%. A car with an MSRP of more than $36,000 that has 287 consumer ratings and an overall score of 9.2 is one that buyers cannot wait to sell? KBB’s experts rate the C-Class at an overall 7.3, so there might be a disconnect here.
   
   
4. Dodge Charger: KBB’s experts rated the Dodge Charger at an overall 7 out of 10, and 7.7% of owners sold the car after just one year of ownership. That is 2.8 times the average rate. The car has 117 ratings at KBB’s website and an overall rating of 9.2. The MSRP on the car is $27,900.
   
   
5. BMW X1: This BMW X1 crossover SUV carries an MSRP of $31,850 and an overall rating of 7.6 from KBB’s experts. A full 7.8% of owners sold the car after just a year of ownership, which is 2.9 times the average rate of 2.7%. Consumers have posted 47 ratings for the vehicle on the KBB website, and the overall rating is 8.7.
   
   
6. Chevrolet Sonic: The second GM-built car to make this list had 8.9% of owners sell after just one year, a rate three times the average. The KBB experts rate the car at 7.7, and consumers give it an 8.5 rating, based on 135 total reviews. The MSRP on the car is $14,995.
   
   
7. Buick Regal: The third GM-made car that owners cannot wait to sell gets resold within one year at a rate of 10.7%, four times the average of 2.7%. The midsize Regal gets a rating of 7.1 from the KBB experts, and 86 consumer ratings yield an overall score of 8.9. The MSRP on the car is $30,615.

iSeeCars notes that all seven cars were ranked as average (three stars) or worse in the J.D. Power 2014 U.S. Initial Quality Study, which surveys consumers after 90 days of ownership. The company’s CEO, Phong Ly, suggests that the presence of the BMW X1 and Mercedes-Benz C-Class vehicles on this list could indicate that the technology does not work as promised or is difficult to use (more likely the latter). The Buick Regal competes with both Lexus and BMW models and may be found wanting in the luxury details that buyers expected. The good news is that consumers looking for one of these cars can often find a bargain. For example, a 2014 Buick Regal with 10,000 to 15,000 miles is currently valued at 32.2% less than its new car price (based on iSeeCars.com’s database of cars for sale). 2014 models of the Dodge Charger and the Mercedes-Benz C-Class with average miles averaged 31% and 28.4% less than their new prices, respectively. Minimum savings for buyers on six of these seven cars is nearly 18%, according to Ly.

I WONDER IF FINANCING MIGHT HAVE SOMETHING TO DO WITH THE TURNOVER, TOO...

http://247wallst.com/autos/2015/05/15/7-cars-buyers-cannot-wait-to-trade-in/