CyberPolicy is monitoring news of the coronavirus (COVID-19) outbreak and has activated a business continuity plan in response to the situation. We have implemented precautionary and preparedness measures to reduce exposure to the coronavirus and are prepared to maintain normal business operations.

How Consumers Feel About Vehicle Recalls

This year has seen plenty of vehicle recalls from millions of car models from several automakers. Multiple rounds of recalls have been spread out throughout the year, but already the number of recalled vehicles is poised to surpass last year's mark.

In response to all these record-breaking recalls, NADA Used Car Guide conducted a survey to determine how consumers felt about the auto industry. The survey found that 88 percent of consumers said they were paying much closer attention to recalls this year compared to the past. This may be due to the perception that more recalls are happening this year, as 71 percent of respondents agreed that recalls have grown substantially. However, data from the National Highway Traffic Safety Administration has shown that the number of recalls since the mid-1990s have actually remained mostly steady.

Despite this information, the public sentiment seems to be that there have been more recalls. NADA reported that this rise in concern and attention to recalls is due to increased media attention across several platforms about the subject. Specifically, NADA cited Twitter and Facebook as sites that "feed" consumers this information, making them feel as if the recalls are a big problem.

However, car sales and prices don't seem to be too affected by the recalls, with GM in particular posting good sales figures through the first half of the year.

"So far there's been only mild evidence to suggest that used GM prices are being affected by the recalls,' said Jonathan Banks, executive analyst at NADA Used Car Guide. "Chevrolet's used car prices have been steadily gaining ground on the competition over the past few years, but we have noticed a relatively small 1 - 2 percentage point drop in this improving trend since April."

© 2010 - 2021 CoverHound, Inc. All rights reserved. CoverHound© is a trademark of CoverHound, Inc. DBA: CyberPolicy Insurance Solutions - CA License No. 0L13180. DBA: CoverHound Insurance Solutions - CA License No. 0H52375