New-auto accessorizing a big-bucks business
Aftermarket add-ons to new vehicles are a booming business, with more than seven million cars and trucks getting accessorized within two years of purchase.
That represents half of all new vehicles bought during that time frame, according to Chris Stommel president of the automotive research firm Foresight Research.
A recent study showed these purchases can add up to big bucks, as well.
The study showed that consumers averaged spending $247 in the first 120 days after buying a new vehicle and almost $1,000 within the first two years, Stommel said.
Interestingly, much of this business, which generates almost $40 billionannually, still comes through the dealership.
“The showroom remains a critical point-of-purchase,” Stommel said. “The study confirms that when personnel do hold an accessory conversation during the dealership visit, both installation rates and total spending rise.”
The company culled data from more than 6,000 new-car buyers last summer through an internet survey, said Foresight CEO Steve Bruyn. The response includes a cross section of buyers across the country, including New Mexico, he said. About 400 of those buyers reported spending at least $5,000 in accessories.
The survey showed that pickup truck buyers in the state were among the leaders in adding post-sale accessories, Bruyn said.
“Utility accessories like running boards, for instance, are popular specifically for pickup trucks,” he said. “And for pickup trucks, cargo nets are a very large segment of the market.”
Although rearview cameras have become regular features for many vehicles, those also remain extremely popular with buyers, Bruyn said.
Consumers also spend time researching a product before purchase, Stommel said, with spur-of-the-moment accessory sales happening infrequently.
Most of this research is done on the web and through brochures with vehicle manufacturers’ own brand names carrying significant weight, he said.
And of the 23 brands studied, the leaders in installation and spending are luxury brands like Acura, BMW, Audi and Cadillac, while Ram and Ford lead in the pickup truck segment, Stommel said, adding that 1-in-5 accessory buyers indicated that potential add-ons played a major role in their initial buying decision.
“A successful accessory marketing strategy can pay off not only in accessory revenue but also in influencing the vehicle purchase,” he said.