Buick Boosting Image as Luxury Brand

Since Buick rolled out its Experience Buick program in March 2012, the car company’s leasing rate has increased from 14 percent (as of March 2012) to 36 percent in February 2013. Experience Buick is a 24 month lease program that offers Sirius XM Radio and OnStar Directions and Connections together in one billing installment. All of these features have transformed Buick’s image from a mid-level, mainstream company focused on producing sedans for the elderly, to a luxurious carmaker. The company is also one of the only automakers to offer free maintenance and service checks on leased vehicles, a perk that is receiving high marks from customers.

Along with Experience Buick, the company redesigned two of their iconic models, the Buick Regal and Buick LaCrosse, which were rolled out during the spring of this year. With these redesigns and renovated leasing agreements, the car company’s average buyer went from 64 years old to 57. Also responsible for the company’s appeal to younger customers are its two television advertisement campaigns, one featuring the Buick Verano with Denver Broncos quarterback, Peyton Manning, and the other features current analyst and former NBA All-Star, Shaquille O;Neal, with the Buick LaCrosse.

Car dealers report that Experience Buick is giving their customers a reason to inquire about the brand. Younger customers appreciate the flexibility a twenty-four month lease provides, and are trading in their cars and purchasing Experience Buick cars. In the automobile industry, this is referred to as a conquest purchase. Buick?s conquest rate after initiating the Experience Buick program is at an all-time high of 43%. General Motors reports that 55% of Experience Buick purchases made by consumers are conquest buys. 63% of those conquest purchases involved the Buick Regal, while 66% of them featured the Buick Verano.

Buick?s sales climbed 1.6% in 2012, when the brand moved 180,408 automobiles. In total, the company has reported three years of increased profits. But, most strikingly, sales were up 22% in the first two months of 2013 from where they were in the first two months of 2012.

To lease a car from one of America’s luxury brands, the leasing rate is 50%. To lease a car from Buick, the leasing rate is 36%. This favorable residual rate is another reason Buick’s image has gradually started to transform from a mainstream car maker to a luxury brand. This is reflected in America’s coastal cities, where trendy buyers are purchasing Buicks at higher rates than ever before. More specifically, Buick purchases in San Francisco are up 19%, and are 23% higher in Los Angeles. In Miami, sales have climbed 15%. Buick is hopeful that its reinvigorated brand image and convenient two year lease program will help the brand build a stronger, more sustained relationship with its customers.