Survey sheds light on impact of 2% APR rise
Swapalease.com conducted a vehicle shopper survey in December, asking consumers about how interest rates might impact their decisions as well as the influence automaker advertisements had on their potential model choices.
According to the survey results released on Wednesday, just 6.8 percent of people said they would not shop for a vehicle when interest rates increase 1 percent. However 21 percent said they would not shop for a car or truck when interest rates climb 2 percent.
“Food for thought as the Fed ponders additional rate increases,” a Swapalease analysis said after the company polled 2,500 drivers during December to find the threshold at which point an interest rate increase would deter them from purchasing or leasing a new car or truck.
Next, the site asked a question dealers might be wondering, too: Did holiday ads work?
Here are a few data points the company listed from the same survey of 2,500 drivers during December.
• Approximately 12.4 percent of shoppers believe automakers’ special holiday-themed television ads influence consideration for specific brands. Industry experts generally believe television advertising offers a 2 percent return.
• 4.5 percent of survey participants said they have purchased or leased a Mercedes-Benz as a result of the OEM’s naughty-or-nice-themed holiday television campaign.
• 48.3 percent of people said they were planning on spending the same on gifts as they did last year (in spite of significantly lower gas prices and an improving economy).
• 32.6 percent of consumers actually believe vehicle shopping for deals on the last day of the year is overrated.
“We’re particularly focused on how people view the interest rates given the fact that we just saw the first rate increase in nearly a decade,” said Scot Hall, executive vice president of Swapalease.com.
“Additionally, it’s good to see carmakers seeing success with their holiday television campaigns, which are clearly influencing shoppers toward a specific brand,” Hall went on to say.