New car owner satisfaction makes surprise comeback after 2 years

Author

Colin Velez
July 26, 2024

2023 Nissan Altima infotainment display

For two years, new vehicle satisfaction has been on the decline as car buyers have faced a range of design and quality issues. According to new data from J.D. Power, things may finally be turning a corner.

Why it matters: The last two years were unprecedented as new car buyers have typically held their vehicles in high regard. That alone makes 2024 a standout year for model satisfaction. However, there’s an even more interesting takeaway hidden beneath this surprise reversal, one we’ll get into in just a moment.

How owner satisfaction is changing:

J.D. Power’s annual Automotive Performance, Execution and Layout (APEAL) study measures new vehicle owner satisfaction using a 1,000-point scale. In 2024, the APEAL study saw its first improvement in overall satisfaction since 2022, gaining two points to hit a total score of 847.

This year’s improvement, however small, was still achieved thanks to companies who took complaints seriously. Frank Hanley, senior director of auto benchmarking at J.D. Power attributed the gain to design upgrades that expanded “interior storage,” used “higher quality materials” and improved “ease of use.”

Weakness: However, one area continues to be a thorn in the side of automakers and consumers alike: infotainment. Satisfaction in this category did rise five points this year, which is better than the overall improvement, but still remains poor. Bad user interfaces and audio experiences seem to be leading complaints this year. This frustration echoes findings from an earlier J.D. Power study examining electric vehicles.

Big change in EV satisfaction:

While it’s encouraging to see automakers take consumer feedback into account, this year’s APEAL study has one more notable takeaway.

Although data is somewhat limited, Tesla has consistently led legacy brands in EV owner satisfaction for years. However, 2024 marks the first time that traditional automakers got higher scores among EV drivers, beating Tesla by seven points.

While this shift was driven by improvements in traditional car designs, it was also caused by declining happiness with Tesla. The EV maker suffered a nine-point drop in 2023 and another eight-point drop in 2024.

Additional context: It's possible that the company’s aging lineup is to blame here. J.D. Power notes that Tesla is struggling to win over new buyers in the face of fierce competition. That being said, its previous customers continue to show high levels of loyalty, shielding the brand from a worse decline.

Bottom line: Automakers should be applauded for enhancing vehicle quality, especially when it comes to EVs. That being said, this is no time for the industry to rest on its laurels. There’s still plenty of room for improvement. Brands that performed worse this year will find themselves left behind if they don’t seize the momentum.

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