The main reasons behind these moves are to address why many American car buyers have shunned the British car brand: high purchase prices, costs of maintenance, and lack of recycling opportunities.
Starting with the 2016 model year, Jaguar will include a free maintenance package called EliteCare. It provides scheduled maintenance for 5 years/60,000 miles. The prices of new cars will drop by $1,500 to $3,000. This price drop will be accomplished by reducing the base price or increasing the equipment that comes standard with each vehicle sold. Jaguar is hoping that the lower prices will result in consumers seeing the vehicles as more affordable and that many will be attracted by the offer of free maintenance.
Jaguar sales in the US have been going down steadily in the last couple of years, which prompted the automaker’s top management to take action in an effort to reverse this trend. Through August of this year, sales numbers went down by 4.4 percent and just 10,221 new vehicles were sold.
The company has given examples of how it will reduce costs and add value. The new XF midsize sedan will see its price drop down to $52,895. This represents a price reduction of 9 percent, meaning that a car buyer will save a total of $5,275. Even though the XF is the most expensive midsize sedan for the brand, it will now cost less than comparable models from other automakers, like the Mercedes-Benz E class.
Consumer surveys done in the United States showed that many individuals perceived Jaguar to be one of the car brands with the most expensive vehicles. They also indicated that if buyers believe an automaker charges too much for their vehicles, they will instead turn their attention to another brand, even if they were shopping for a luxury car.
Jaguar’s warranty program is one of the most competitive in the industry. By offering 5-year/60,000-mile maintenance, they have created a superior warranty than that offered by both BMW and Cadillac. Just like most other automakers, Jaguar doesn’t cover parts that are subject to standard wear, like wipers and brakes. But the remainder of the warranty can be transferred over to a second owner if one decides to sell their car, which will make it more attractive on the secondhand market.
In an effort to raise awareness about their lower prices and warranty, Jaguar will be offering a test drive program in seven of the largest cities in the US. This road tour is expected to begin this year. The company is hoping that over 10,000 individuals will take advantage of it.