When it launched the Experience Buick leasing program — a two-year lease that combines entertainment (SiriusXM), safety (OnStar Directions & Connections), and maintenance (oil changes & tire rotations) elements into a single monthly payment — launched in the middle of March 2012, we would have never guessed that it would become as successful as it is now. How successful, exactly? Well, the approach has led Buick to double its leasing business as a share of total sales over the last 12 months — that’s how.
According to customer data collected late last year, 55 percent of customers opting for the Experience Buick program are new to the brand. That number rises to 63 percent for the Regal, and 66 percent for the Verano. And when leases and financing (sales) are combined, a higher percentage of customers in 2012 were new to Buick — at 43 percent — than any other year on Buick’s record.
Here’s some more encouraging data:
- Roughly 74 percent of customers polled said Experience Buick played a major role in their decision, and that each element – maintenance, two-year term, satellite radio and OnStar – were all among their top 10 decision factors.
- Two-thirds of the customers indicated they would definitely consider another Buick for their next vehicle.
Perhaps even more important is the fact that leasing as a share of sales in trend-setting markets is growing It was:
- Up 23 percent in Los Angeles
- Up 19 percent in San Francisco
- Up 15 percent in Miami
- Up 11 percent in Atlanta
And according to data collected by Buick, customers will be returning to the brand when their leases are up: “… with everything that’s included in these leases, the experience they’re getting, we’ve gotten feedback that they’ll stay with us”, said general manager of Williamson Buick in Miami Mark Naszaradi.
The GM Authority Take
It’s clear that Buick is well on its way to becoming a raging success, if not already one. And that trend should continue well into the future, so long as the Tri Shield brand keeps delivering quality luxury vehicles that are desirable.
Having seen the 2014 LaCrosse and 2014 Regal, we don’t see that being much of a hypothetical; rather, it’s more of a reality. So as Buick continues to gain steam, the brand’s haters will likely learn to be quiet… especially the ones who (incorrectly) believe that Buick survived at the expense of Pontiac.
Comments
I’d gladly plush the buick brand in front of a bus if it would bring back pontiac but since that isn’t an option, I’m glad to hear that they are doing well. On a different topic, I was at the dealership having my chevy serviced and they had a verano on display. I hadn’t noticed it before but what is the deal with the small window between the windshield and door? The cruze doesn’t have it so I’m wondering why the buick does since it look looks out of place.
@Vt Those “vanity” windows are one of the many elements that differentiates the Verano/Excelle/Astra from the Cruze. They serve a purpose:
Outside, they contribute to a longer appearance of the greenhouse, elongating it and giving the car a more substantial, and classy look.
Inside, they provide passengers with a feel of spaciousness while ever so slightly improving visibility.
In any event, the Verano and Cruze are perfect examples of platform sharing, done right… and the vanity windows serve to differentiate both models.
Part of it is for clear differentiation between the Cruze and the Verano. It also speaks to the kind of flexibility that will be demanded of platforms now (the Delta 2), and in the future.
But the front-quarter window appears on loads of cars today. Many of them are a result of efforts to bring the A-pillar closer to the strut towers (current Civic), and others are as a compromise for having the front door hinges take up space within the lower door thus limiting the amount of glass that can fit in the door when the window is lowered.
Personally, I hate front-quarter windows. They ruin the appearance of the car and make the DLO needlessly larger.
Actually, bringing back Pontiac is an option. GM still owns it, they just aren’t marketing any cars under that umbrella.
Also, the Buick lease is a good test, one which I expect Cadillac to adopt soon. People are a little chintzy about buying a Cady, when a BMV with services can be had with a lease. I expect to see more Cadillacs and Buicks on the road going into the summer.
” … Two-thirds of the customers indicated they would definitely consider another Buick for their next vehicle … ”
Is this really a good statistic? This implies that a third of the customers who actually used the vehicles beyond just a test drive would either not consider Buick or are lukewarm about it. I would consider that rather disappointing. Not sure why that is. Maybe such people either belong with Cadillac or Chevy. Personally, I really like where Buick has decided to position itself, if only they would make …
@VeranoHatch Some might disagree with me on this, but the 66 percent *consideration* is actually quite high. The average rate across the industry is roughly 50 percent (in the U.S.).
To understand the reason for the seemingly-low numbers, one needs to consider a myriad of factors, but the three primary factors that drive brand jumping include:
1. Changing of needs (family, lifestyle, relocation).
2. Satisfaction and dissatisfaction (some hate the cars they buy, others love them; most are in-between; others change their perception of what they think of the car having lived with it, been to dealership, etc.).
3. Brand/image awareness factors following the purchase (some may not wish to be associated with a brand after purchase, or want to be associated with another brand more than their current).
Having been on the marketing side of the automotive world, those are just some of the data being considered by brands/OEMs. Hope that offers some insight.
Having been back and forth between Chevy and Buick, I tend to fully agree with the three points you make. I tend to very much like both brands. It’s just a matter of vehicle vs. needs/personal tastes in what they offer. I find the news in this both informational and encouraging. Glad they are doing this good.
Excellent news…those new Buicks are very, very nice and I see lots more of them all the time…especially Verano…..good job, Alex 🙂
I recently leased a Buick Regal GS. Very good looking. Car. It has almost all options except a couple which I miss. One being the backup camera. It is no even offered on the GS. I would also like to have the lane changing light that is on the mirrors of the encoure SUV
Also the summer only tires are not good, as I was driving very carefully in the snow the other day, and when I turned the corner very slowly, the car went straight. These are good looking tires but kind of dangerous. I consider myself to be an above average driver, and if an under avg driver was driving, they prob would have had an accident. Tires should be all season. Much better!
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