The Pros and Cons of Buying a Vehicle in its First Model Year

Whenever a manufacturer unveils a new model it comes with a barrage of advertising and ballyhoo. According to the marketing department, the newest model is always the latest and greatest and superior to anything else on the road.

New car buyers are certainly drawn to the idea of purchasing a model in its first year on the market. In response to a survey conducted by BuyingAdvice.com, 60 percent of buyers said they had considered buying a vehicle in its debut year or had done so in the past. But does a new model represent a good value for the car buyer?

The first thing to understand is that much of the hype surrounding a model launch is designed for eyes and ears other than those of the consumer, according to experts in the field.

The arrival of a new model in the showroom comes only after a lengthy period of design, research and a huge investment in new manufacturing plant by a car company. As a result the manufacturer is deeply financially committed to the success of the model prior to the first vehicle being available for sale.

“Break even on that investment is likely years away but, as in many areas, the perception of success is as important as success itself. The audiences that much of that marketing effort is directed at include shareholders, investment analysts and dealers as well as the general public,” says former dealer Earnest Jordan.

According to Jordan that is one reason the marketing blitz frequently begins before the vehicles are readily available.

“There are two main reasons why manufacturers start marketing so early: firstly, to build a sense of anticipation of the arrival of the product, hopefully they can take a few customer orders for the vehicle sight unseen and also delay the sale of rival models; secondly, they want to show their dealers the kind of advertising effort they are putting behind the new vehicle. This shows they will increase their orders as the new production lines come on stream.”

The marketing buzz does have an impact on the consumer, even though they may not be the main target. “There is a portion of buyers who just have to drive the latest model,” says Jordan.

“They either love cars, or a particular brand or just get a thrill out of having the only one of its type on the block. Many will even go on a waiting list or pay a premium to get the very latest machine, which typically will be in short supply when they first hit the showrooms and may even command a premium over sticker price,” he says.

But beyond bragging rights what do these new buyers get for their money? The answer according to some experts can be more trouble than they bargained for.

Despite the extensive testing that goes on before a new model hits the road, both in real time and on computer simulations, nothing can reproduce the experience of several thousand drivers with differing styles and demands taking the vehicle on the road.

Former car executive Dan West says, that as a result of this ‘real world’ testing, “what you tend to see with many new models is a disproportionate number of problems and recalls in the first product year. Nearly every model will see refinements in the second year, which come directly from the experiences of the drivers who bought the early models and the reports from the dealership service departments about problems they are encountering on a regular basis.”

According to West, seemingly major faults can stem from something as simple as the impact of a non-manufacturer audio system being wired in the new vehicle or a switch that fails to respond correctly in an unanticipated combination of climate conditions. The problems that arise in a new model can take time to identify and resolve when service departments do not have a depth of experience to draw on.

Typically, the solution will often stem from a manufacturer seeing the same problem being reported from several service departments. Once a solution is found, it will be circulated with a fair amount of speed. But, that is no help if you are one of the first to encounter the issue.

The BuyingAdvice.com poll results indicate that consumers do have fears about reliability of new models. Forty-seven percent of respondents said they consider models in their first year to be less reliable than models that have been on the market for several years. Only 25 percent regarded new models as more reliable, with the remaining 28 percent seeing new models as equally as reliable as designs that have been out for a few years.

The poll was conduced among 3377 users of the web site’s online price quote service who all stated they were within 30 days of making a new car purchase. A majority of buyers, 53 percent, said that they already knew when the model they were considering debuted or was last substantially redesigned. A further 12 percent suggest they planned to find out.