How to Survive and Thrive During the Coming Retirement Income Crisis Demographic Trends are Troubling Demographic Trends are Troubling 22 10 93 2013 2036 Under 15 1564 ID: 788911
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Slide1
BRIDGEFORCE2014 RRSP Road Show
How to Survive - and Thrive - During the Coming Retirement Income Crisis
Slide2Demographic Trends are Troubling
Slide3Demographic Trends are Troubling
22%
10%
93%
2013
2036
Under 15
15-64
65+
5,674,123
24,104,559
5,379,622
6,897,9000
26,544,400
10,379,300
Statistics Canada, July 2013. Medium Growth Scenario.
Slide4Demographic Trends are TroublingLargest Single Expenditure of the Federal Government OAS - $40 Billion Largest Expenditure of the Provincial Governments Health Care
($148 Billion), 45% of this amount ($67 Billion) is attributable to Canadians 65+Between 2013 and 2036 the elder population will increase by 93%
Slide5Demographic Trends are TroublingLargest Single Expenditure of the Federal Government OAS - $40 Billion
Largest Expenditure of the Provincial Governments Health Care ($148 Billion), 45% of this amount ($67 Billion) is attributable to Canadians 65+
Between 2013 and 2036 the elder population will increase by 93%
Slide6Demographic Trends are TroublingLargest Single Expenditure of the Federal Government OAS - $40 Billion
Largest Expenditure of the Provincial Governments Health Care ($148 Billion), 45% of this amount
($67 Billion) is attributable to Canadians 65+Between 2013 and 2036 the elder population will increase by 93%
$107 Billion
Slide7Demographic Trends are Troubling$40 Billion (OAS) x 93% = $37.5 Billion$67 Billion (Health Care) x 93% = $62.5 Billion
37.5 Billion + 62.5 Billion =$100 BillionWorking age population
growth 014-2036): 10% An Additional
Slide8Demographic Trends are Troubling$40 Billion (OAS) x 93% = $37.5 Billion$67 Billion (Health Care) x 93% = $62.5 Billion
37.5 Billion + 62.5 Billion =$100 BillionWorking age population growth (2013-2036
): 10% An Additional
Slide9Demographic Trends are TroublingHow much is $100 Billion?Total Federal Income Tax: $126 Billion*
Total Federal Corporate Tax: $35 Billion*Total GST collected: $29 Billion*Total of all Federal Taxes: $209 Billion*
*Fiscal Year 2012/13
Slide10Governments are RetrenchingThe Canada Health Transfer (CHT) is being reducedTough new Long-Term Home admission criteria (Long-Term Care Homes Act, 2007)Changes to Canada Pension Plan funding and benefits
Changes to age of eligibility for OAS, GIS and the Allowances
Slide11Governments are RetrenchingThe Canada Health Transfer (CHT) is being reducedTough new LTC Home admission requirements
have been introduced (LTC Homes Act, 2007)Changes to Canada Pension Plan funding and benefitsChanges to age of eligibility for OAS, GIS and the Allowances
Slide12Governments are RetrenchingThe Canada Health Transfer (CHT) is being reducedTough new LTC Home admission requirements
have been introduced (LTC Homes Act, 2007)Canada Pension Plan funding and benefits have changed
Changes to age of eligibility for OAS, GIS and the Allowances
Slide13Governments are RetrenchingThe Canada Health Transfer (CHT) is being reducedTough new LTC Home admission requirements
have been introduced (LTC Homes Act, 2007)Canada Pension Plan funding and benefits have changed
The age of eligibility for OAS, GIS and the Allowances is increasing
Slide14Pension Plans are Under SiegePension plan participation 46% in 1977 38% in 2012Private sector participation
One in 3 workers 1977 One in
5 workers 2012 Defined Benefit Defined Contribution/Hybrid
Slide15Pension Plans are Under SiegePension Plan Participation 2013
62%
21%7%
Slide16RRSP Participation is PatheticOnly one third of eligible Canadians contribute to an RRSPCanadians have used a total of 9% of their available RRSP roomThe median RRSP amount, held by a households with a breadwinner between ages 55 and 64, is $55,000 - one third have nothing
- one third have less than $55,000 - one third have more than $55,000
Slide17RRSP Participation is PatheticAlmost half of working Canadians have neither an RPP or RRSPLess than one quarter of eligible Canadians make an RRSP contribution each yearCanadians have used 9% of their available RRSP room
The median RRSP amount, held by a households with a bread-winner between ages 55 and 64, is $55,000 - one third have nothing - one third have less than $55,000
- one third have more than $55,000 48%
24%
9%
Slide18RRSP Participation is PatheticThe median RRSP amount, held by a households with a bread-winner between ages 55 and 64, is $60,000 - one third have nothing - one third have less than $60,000
- one third have more than $60,000
Slide19Investment Returns Are WeakStock Exchange
January 1 2000January 1 2014
Annual Return*S&P TSX8,41413,622
+3.5%
Dow Jones Industrials
11,497
16,576
+2.6%
Hang
Seng
16,962
23,306
+2.3%
DAX
6,958
9,552
+2.3%S&P 500
1,4691,836
+1.6%Nasdaq Composite
4,0694,177
+0.2%FTSE 1006,930
6,749-0.2%Nikkei 225
18,93416,291-1.1%
CAC 405,9584,296
-2.3%
* January 1, 2000 – January 1, 2014
Slide20SummaryDemographic trends are going to put significant pressure on elder entitlementsGovernments are already cutting funding and changing programsFewer Canadians are covered by a pension plan and those who are covered are seeing benefit reductions
Most Canadians have little or no RRSP savingsThe few Canadians who have saved, have been sideswiped by weak investment returns
Slide21SummaryDemographic trends are going to put significant pressure on elder entitlementsGovernments are already cutting funding and changing programsFewer Canadians are covered by a pension plan and those who are covered are seeing benefit reductions
Most Canadians have little or no RRSP savingsThe few Canadians who have saved, have been sideswiped by weak investment returns
A global retirement crisis is bearing down on workers of all ages.- CBC News, December 30, 2013
Slide22The Good News!If forced to payCanadians are being asked to accept more responsibility when it comes to their own retirement planningLow interest rates and difficult financial markets should encourage them to seek expert financial advice
Slide23The Bad News!If forced to payCanadians have an unwarranted faith in government programsThey don’t appreciate the gravity of the current fiscal situationThey don’t understand the financial markets and recent volatility has unnerved themThey are actually
saving less, not moreThey are incredibly inept consumers
Slide24Helping Canadians become better consumers can help you:Add ValueBuild the Relationship
Free up Capital
Slide25Becoming a Better ConsumerAutomobiles
MeasureSource
WarrantyManufacturer SpecificationsIIHS RatingInsurance Institute for Highway Safety (IIHS), Crash Worthiness and Avoidance Testing, 2013
NHTSA Rating
National Highway Traffic Safety Administration (NHTSA), Crash Test Safety Ratings, 2013
U.S. Review
U.S. News Best Cars Report, December 2013
AJAC Review
Automobile Journalists Association of Canada (AJAC),
Testfest
Results
C.U. Road Test
Consumers Reports, June 2013
Lemon-aid Score
Phil
Edmonston’s
Lemon-aid, New Cars, 2013
Initial Quality
J.D. Power Quality Rating, 2013C.U. Reliability
Consumers Reports Predicted Reliability, June and December 2013
Residual Value Kelly Blue Book, December 2013
Slide26Becoming a Better Consumer AutomobilesMake/Model2013 Sales
Ford Fusion20,145Toyota Camry
18,245Honda Accord17,165Hyundai Sonata14,519BMW 3 Series
12,507
Chrysler 200
11,666
Nissan
Altima
10,488
M.B. C Class
9,356
Kia Optima
9,269
VW
Passat
7,909Dodge Avenger
7,631
Make/Model2013 Sales
Audi A45,956Ford Taurus
4,238Mazda 6
4,224M.B. E Class3,359Cadillac ATS
3,256
Lexus ES3,096BMW 5 Series2,717
Acura TL2,374
Subaru Legacy2,022Infiniti G
1,776Lincoln MKZ
1,625
Make/Model
2013 Sales
Nissan Maxima
1,500
Volvo S60
1,374
Toyota Avalon
1,264
Buick
LaCrosse
1,156
Audi A6
1,033
Cadillac CTS
997
Cadillac XTS
787
Lexus GS
642
Jaguar XF
604
Volvo S80
59
Full-size Sedans – Wheelbase of 2,750 – 3,000mm – Under 1,850 kg
Slide27Becoming a Better ConsumerAutomobiles
MeasureCar A
Car BCar C
Car D
Warranty
4/80,4/80,12U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,5U
IIHS Rating
Fail
Fail
TSP+
Fail
NHTSA Rating
5 Star(1)
5 Star(0)
5 Star(0)
5 Star(2)
U.S. Review
8.2
8.5
7.9
8.3
AJAC Review656
673
671
659
C.U. Road Test
86
76
88
85
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
4 Star
4 Star
3 Star
C.U. Reliability
A
BA
MBA
A
Residual Value
38%
37%
43%
46%
Slide28Becoming a Better ConsumerAutomobiles
MeasureCar A
Car BCar C
Car D
Warranty
4/80,4/80.12U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,5U
IIHS Rating
Fail
Fail
TSP+
Fail
NHTSA Rating
5 Star(1)
5 Star(0)
5 Star(0)
5 Star(2)
U.S. Review
8.2
8.5
7.9
8.3
AJAC Review656
673
671
659
C.U. Road Test
86
76
88
85
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
4 Star
4 Star
3 Star
C.U. Reliability
A
BA
MBA
A
Residual Value
38%
37%
43%
46%
Slide29Becoming a Better Consumer Automobiles
MeasureCar A
Car BCar C
Car D
Warranty
4/80,4/80.12U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,5U
IIHS Rating
Fail
Fail
TSP+
Fail
NHTSA Rating
5 Star(1)
5 Star(0)
5 Star(0)
5 Star(2)
U.S. Review
8.2
8.5
7.9
8.3
AJAC Review
656
673
671
659
C.U. Road Test
86
76
88
85
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
4 Star
4 Star
3 Star
C.U. Reliability
A
BA
MBA
A
Residual Value
38%
37%
43%
46%
Slide30Becoming a Better Consumer Automobiles
MeasureCar A
Car BCar C
Car D
Warranty
4/80,4/80.12U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,5U
IIHS Rating
Fail
Fail
TSP+
Fail
NHTSA Rating
5 Star(1)
5 Star(0)
5 Star(0)
5 Star(2)
U.S. Review
8.2
8.5
7.9
8.3
AJAC Review
656
673
671
659
C.U. Road Test
86
76
88
85
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
4 Star
4 Star
3 Star
C.U. Reliability
A
BA
MBA
A
Residual Value
38%
37%
43%
46%
First Quartile Performance
Slide31Becoming a Better Consumer Automobiles
Measure
Warranty4/80,4/80.12U4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,5U
IIHS Rating
Fail
Fail
TSP+
Fail
NHTSA Rating
5 Star(1)
5 Star(0)
5 Star(0)
5 Star(2)
U.S. Review
8.2
8.5
7.9
8.3
AJAC Review
656
673
671
659
C.U. Road Test
86
76
88
85
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
4 Star
4 Star
3 Star
C.U. Reliability
A
BA
MBA
A
Residual Value
38%
37%
43%
46%
1
Slide32Becoming a Better Consumer Automobiles
MeasureBMW 3 Series
Warranty
4/80,4/80.12U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,5U
IIHS Rating
Fail
Fail
TSP+
Fail
NHTSA Rating
5 Star(1)
5 Star(0)
5 Star(0)
5 Star(2)
U.S. Review
8.2
8.5
7.9
8.3
AJAC Review
656
673
671
659
C.U. Road Test
86
76
88
85
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
4 Star
4 Star
3 Star
C.U. Reliability
A
BA
MBA
A
Residual Value
38%
37%
43%
46%
1
Slide33Becoming a Better Consumer Automobiles
MeasureBMW 3 Series
M.B. C Class
Warranty
4/80,4/80.12U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,5U
IIHS Rating
Fail
Fail
TSP+
Fail
NHTSA Rating
5 Star(1)
5 Star(0)
5 Star(0)
5 Star(2)
U.S. Review
8.2
8.5
7.9
8.3
AJAC Review
656
673671
659
C.U. Road Test
86
76
88
85
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
4 Star
4 Star
3 Star
C.U. Reliability
A
BA
MBA
A
Residual Value
38%
37%
43%
46%
1
Slide34Becoming a Better Consumer Automobiles
MeasureBMW 3 Series
Audi A4M.B. C Class
Warranty
4/80,4/80.12U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,5U
IIHS Rating
Fail
Fail
TSP+
Fail
NHTSA Rating
5 Star(1)
5 Star(0)
5 Star(0)
5 Star(2)
U.S. Review
8.2
8.5
7.9
8.3
AJAC Review
656
673
671
659
C.U. Road Test
86
76
88
85
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
4 Star
4 Star
3 Star
C.U. Reliability
A
BA
MBA
A
Residual Value
38%
37%
43%
46%
1
Slide35Becoming a Better Consumer Automobiles
MeasureBMW 3 Series
Audi A4Subaru Legacy
M.B. C Class
Warranty
4/80,4/80.12U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,5U
IIHS Rating
Fail
Fail
TSP+
Fail
NHTSA Rating
5 Star(1)
5 Star(0)
5 Star(0)
5 Star(2)
U.S. Review
8.2
8.5
7.9
8.3
AJAC Review
656
673
671
659
C.U. Road Test
86
76
88
85
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
4 Star
4 Star
3 Star
C.U. Reliability
A
BA
MBA
A
Residual Value
38%
37%
43%
46%
1
Slide36Becoming a Better Consumer Automobiles
Measure
Subaru LegacyWarranty
3/60,5/100,5U
IIHS Rating
TSP+
NHTSA Rating
5 Star(0)
U.S. Review
7.9
AJAC Review
671
C.U. Road Test
88
Lemon-aid Score
4 Star
Initial Quality
4 Star
C.U. Reliability
MBA
Residual Value
43%
Slide37Becoming a Better Consumer Automobiles
MeasureCar E
Car FSubaru Legacy
Car G
Warranty
4/80,4/80,5U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,12U
IIHS Rating
-
-
TSP+
-
NHTSA Rating
-
-
5 Star(0)
5 Star(1)
U.S. Review
9.0
9.0
7.9
8.1AJAC Review
657
657671
672
C.U. Road Test
89
93
88
81
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
3 Star
4 Star
3 Star
C.U. Reliability
BA
MBA
MBA
A
Residual Value
38%
35%
43%
36%
Slide38Becoming a Better Consumer Automobiles
MeasureCar E
Car FSubaru Legacy
Car G
Warranty
4/80,4/80,5U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,12U
IIHS Rating
-
-
TSP+
-
NHTSA Rating
-
-
5 Star(0)
5 Star(1)
U.S. Review
9.0
9.0
7.9
8.1
AJAC Review657
657671
672
C.U. Road Test
89
93
88
81
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
3 Star
4 Star
3 Star
C.U. Reliability
BA
MBA
MBA
A
Residual Value
38%
35%
43%
36%
Slide39Becoming a Better Consumer Automobiles
MeasureCar E
Car FSubaru Legacy
Car G
Warranty
4/80,4/80,5U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,12U
IIHS Rating
-
-
TSP+
-
NHTSA Rating
-
-
5 Star(0)
5 Star(1)
U.S. Review
9.0
9.0
7.9
8.1
AJAC Review
657
657
671
672
C.U. Road Test
89
93
88
81
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
3 Star
4 Star
3 Star
C.U. Reliability
BA
MBA
MBA
A
Residual Value
38%
35%
43%
36%
Slide40Becoming a Better Consumer Automobiles
MeasureCar E
Car FSubaru Legacy
Car G
Warranty
4/80,4/80,5U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,12U
IIHS Rating
-
-
TSP+
-
NHTSA Rating
-
-
5 Star(0)
5 Star(1)
U.S. Review
9.0
9.0
7.9
8.1
AJAC Review
657
657
671
672
C.U. Road Test
89
93
88
81
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
3 Star
4 Star
3 Star
C.U. Reliability
BA
MBA
MBA
A
Residual Value
38%
35%
43%
36%
First Quartile Performance
Slide41Becoming a Better Consumer Automobiles
Measure
Subaru Legacy
Warranty
4/80,4/80,5U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,12U
IIHS Rating
-
-
TSP+
-
NHTSA Rating
-
-
5 Star(0)
5 Star(1)
U.S. Review
9.0
9.0
7.9
8.1
AJAC Review
657
657
671
672
C.U. Road Test
89
93
88
81
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
3 Star
4 Star
3 Star
C.U. Reliability
BA
MBA
MBA
A
Residual Value
38%
35%
43%
36%
1
Slide42Becoming a Better Consumer Automobiles
MeasureM.B. E Class
Subaru Legacy
Warranty
4/80,4/80,5U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,12U
IIHS Rating
-
-
TSP+
-
NHTSA Rating
-
-
5 Star(0)
5 Star(1)
U.S. Review
9.0
9.0
7.9
8.1
AJAC Review
657
657671
672
C.U. Road Test
89
93
88
81
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
3 Star
4 Star
3 Star
C.U. Reliability
BA
MBA
MBA
A
Residual Value
38%
35%
43%
36%
1
Slide43Becoming a Better Consumer Automobiles
MeasureM.B. E Class
Subaru LegacyBMW
5 Series
Warranty
4/80,4/80,5U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,12U
IIHS Rating
-
-
TSP+
-
NHTSA Rating
-
-
5 Star(0)
5 Star(1)
U.S. Review
9.0
9.0
7.9
8.1
AJAC Review
657657
671
672
C.U. Road Test
89
93
88
81
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
3 Star
4 Star
3 Star
C.U. Reliability
BA
MBA
MBA
A
Residual Value
38%
35%
43%
36%
1
Slide44Becoming a Better Consumer Automobiles
MeasureM.B. E Class
Audi A6Subaru Legacy
BMW
5 Series
Warranty
4/80,4/80,5U
4/80,4/80,12U
3/60,5/100,5U
4/80,4/80,12U
IIHS Rating
-
-
TSP+
-
NHTSA Rating
-
-
5 Star(0)
5 Star(1)
U.S. Review
9.0
9.0
7.9
8.1
AJAC Review657
657
671
672
C.U. Road Test
89
93
88
81
Lemon-aid Score
3 Star
3 Star
4 Star
3 Star
Initial Quality
4 Star
3 Star
4 Star
3 Star
C.U. Reliability
BA
MBA
MBA
A
Residual Value
38%
35%
43%
36%
1
Slide45Becoming a Better Consumer AutomobilesMid-Priced Sedans
Score1st
Q1. Subaru Legacy8082. Honda Accord
81
7
5. Mazda 6
91
6
6. Toyota Camry
92
4
7. Hyundai Sonata
92
7
8. Kia Optima
97
5
German Sedans
Score1
st Q10. Mercedes E
103411. Audi A6
106315. Audi A4
121417. BMW 3
129219. BMW 5
140 3
22. Mercedes C1471
Well Equipped for
$30,000
Well Equipped for
$40,000-60,000
Slide46Becoming a Better ConsumerWhy do people believe German Sedans are superior to mid-market Asian sedans? German sedans cost moreTheir belief is widely shared
Their belief is reinforced through marketing
Slide47Becoming a Better ConsumerThe luxury automobile paradoxRich people don’t buy luxury automobilesMost of the purchasers of luxury automobiles finance or lease
Luxury automobiles are no more satisfying to drive or own than other automobiles
Slide48Becoming a Better ConsumerWhat has this discussion have to do with retirement planning?
Slide49Becoming a Better ConsumerBuy value - not blingPurchase experiences, not stuff
Sweat the “big expenses”Trust no one - do your own homework
Slide50Becoming a Better ConsumerSweat the “big expenses”After automobiles, one of your biggest single expenses will likely be real estate commissionsDepending on market conditions and the nature of the property being sold you may not require an agent
If you do need to list a property, it is important to understand that the sale will be driven through MLS (which attracts buyers and their agents)The listing agent does NOT drive the sale. He prepares the initial paperwork, provides staging advice, and may provide some limited – but generally ineffective – marketing support.
Why does he get paid 2 ½ - 3% Commission?
Slide51Becoming a Better ConsumerBuy value - not blingPurchase experiences, not stuff
Sweat the “big expenses”Trust no one - do your own homework
Slide52Smart Consumer BehaviourTrust No One – Do Your Homework 1970s - Blue Cross introduces “The Blue Plate Special” Removal of Adolescent Wisdom Teeth becomes “Routine”
2000 – The National Institute for Health report is released 2006 – The results of the first two clinical trials (The Collaboration Study and the Clinical Evidence Study) are releasedAll three conclude that: there is no evidence that wisdom teeth cause other teeth to shift; there is no justification for remove of non-symptomatic impacted teeth; and the risks of such removal actually out weight any future benefits
The only group to continue to recommend routine remove is the American Association of Oral and Maxillofacial SurgeonsTwo thirds of the typical oral surgeon’s income is related to the removal of adolescent wisdom teeth
Slide53How to Survive and Thrive Get out of debt Become a smart consumer Ignore the head monkey Purchase experiences ... not stuff
Invest any remaining capital in appreciating assetsHave simple, exciting, internalized goals Make sure your loved ones are on side
Slide54Summary Canadians need to accept more responsibility for their own financial well being in retirement The financial and life style protection products you offer will be of great assistance to them in this process They are also in desperate need of financial advice and expertise – advice and expertise that goes well beyond simple product recommendations and market knowledge
You are in the perfect place to capitalize on this opportunity In the end, the two things they will need to survive and thrive are money and wisdom
Slide55Summary Canadians need to accept more responsibility for their own financial well being in retirement The financial and life style protection products you offer will be of great assistance to them in this process
They are also in desperate need of financial advice and expertise – advice and expertise that goes well beyond simple product recommendations and market knowledge
You are in the perfect place to capitalize on this opportunity In the end, the two things they will need to survive and thrive are money and wisdom
Slide56For wisdom is a defence, and money is a defence: but the excellency of money is that wisdom giveth life to them that have it.- ECCLESIASTES 7:12
Slide57Slide58Appendix
Slide59Warranty
Acura TL
4/80,5/100,5U Cad. XTS 4/80,6/110,6U
Jaguar XF
4/80,4/80,6U
Nis.
Alti
.
3/60,5/100,5U
Audi A4
4/80,
4/80,12U
Chr. 200 3/60,5/100,3U
Kia Opt. 5/100,5/100,5U
Nis. Max. 3/60,5/100,5U
Audi A6 4/80,4/80,12UDodge Av.
3/60,5/100,3U
Lexus ES 4/80,6/110,6U
Su. Legacy 3/60,5/100,5UBMW 3 4/80,4/80,12U
Ford Fus.
3/60,5/100,5ULexus GS 4/80,6/110,6U
Toy. Ava. 3/60,5/100,5UBMW 5
4/80,4/80,12UFord
Taur. 3/60,5/100,5U
Lin. MKZ
4/80,6/110,5U
Toy. Cam.
3/60,5/100,5U
Buick Lac.
4/80,6/110,6U
Hon. Acc.
3/60,5/100,5U
Mazda 6
3/60,5/100,8U
VW Pas.
4/80,5/100,12U
Cad. ATS
4/80,6/110,6U
Hy.Sonat
.
5/100,5/100,5U
Merce“C
“
4/80,4/80,5U
Volvo S60
4/80,4/80,12U
Cad. CTS
4/80,6/110,6U
Infiniti G
4/100,6/110,7U
Merce“E
”
4/80,4/80,5U
Volvo S80
4/80,4/80,12U
First number is basic warranty (yrs/km); second
powertrain
warranty; third corrosion warranty
Slide60Warranty
Acura TL
4/80,5/100,5U Cad. XTS
4/80,6/110,6U
Jaguar XF
4/80,4/80,6U
Nis.
Alti
.
3/60,5/100,5U
Audi A4
4/80,
4/80,12U
Chr. 200
3/60,5/100,3U
Kia Opt.
5/100,5/100,5UNis. Max.
3/60,5/100,5U
Audi A6 4/80,4/80,12UDodge Av.
3/60,5/100,3U
Lexus ES 4/80,6/110,6U
Su. Legacy 3/60,5/100,5U
BMW 3 4/80,4/80,12U
Ford Fus.
3/60,5/100,5U
Lexus GS
4/80,6/110,6U
Toy. Ava.
3/60,5/100,5U
BMW 5
4/80,4/80,12U
Ford
Taur
.
3/60,5/100,5U
Lin. MKZ
4/80,6/110,5U
Toy. Cam.
3/60,5/100,5U
Buick Lac.
4/80,6/110,6U
Hon. Acc.
3/60,5/100,5U
Mazda 6
3/60,5/100,8U
VW Pas.
4/80,5/100,12U
Cad. ATS
4/80,6/110,6U
Hy.Sonat
.
5/100,5/100,5U
Merce“C
“
4/80,4/80,5U
Volvo S60
4/80,4/80,12U
Cad. CTS
4/80,6/110,6U
Infiniti G
4/100,6/110,7U
Merce“E
”
4/80,4/80,5U
Volvo S80
4/80,4/80,12U
First number is basic warranty (yrs/km); second
powertrain
warranty; third corrosion warranty
The Winners
Hyundai Sonata
Kia Optima
Infiniti G
Buick Lacrosse
Cadillac
ATS,CTS,XTS
Lexus
ES,GS
The Losers
31. Chrysler 200
Dodge Avenger
23. Ford
Fusion,Taurus
Honda Accord
Nissan
Altima
, Maxima
Subaru Legacy
Toyota Avalon, Camry
Slide61IIHS Rating
TL
TSP5G/- XTS – 4G/0/B
Jaguar XF
Fail
Altima
TSP
4G/1A/-
A4
Fail
C 200
TSP
4G/1A/-
Optima
TSP4G/1A/-
Maxima Fail
A6 – 4G/0/B Avenger TSP
4G/1A/-Lexus ES – 4G/0/A
Legacy TSP+4G/1A/S
BMW 3 Fail
Fusion TSP+4G/1A/B
Lexus GS – 4G/0/BAvalon – 4G/0/B
BMW 5 – 4G/0/BTaurus – 4G/0/B
MKZ TSP+4G/1A/B
Camry TSP4G/1A/-
Lacrosse – 4G/0/-
Accord
TSP+
5G/B
Maz6
TSP+
4G/1A/A
Passat
TSP
4G/1A/-
Cadillac ATS -
Sonata
Fail
MB “C “
Fail
S60
TSP+
5G/S
CTS – 4G/0/-
Infiniti G
Fail
MB“E” – 4G/0/B
S80
TSP+
5G/S
Insurance Institute for Highway Safety (IIHS), December 2013. TSP+ - 5G or 4G/1A plus front crash prevention; TSP - 5G or 4G/1A no front crash protection; Blank (-) no small overlap test. Fail – failed one or more tests.
Slide62IIHS Rating
TL
TSP5G/- XTS – 4G/0/B
Jaguar XF
Fail
Altima
TSP
4G/1A/-
A4
Fail
C 200
TSP
4G/1A/-
Optima
TSP
4G/1A/-
Maxima
Fail
A6 – 4G/0/B
Avenger TSP4G/1A/-
Lexus ES – 4G/0/ALegacy TSP
+4G/1A/S
BMW 3 Fail
Fusion TSP+
4G/1A/BLexus GS – 4G/0/B
Avalon – 4G/0/B
BMW 5 – 4G/0/B
Taurus – 4G/0/B
MKZ
TSP+
4G/1A/B
Camry
TSP
4G/1A/-
Lacrosse – 4G/0/-
Accord
TSP+
5G/B
Maz6
TSP+
4G/1A/A
Passat
TSP
4G/1A/-
Cadillac ATS -
Sonata
Fail
MB “C “
Fail
S60
TSP+
5G/S
CTS – 4G/0/-
Infiniti G
Fail
MB“E” – 4G/0/B
S80
TSP+
5G/S
Insurance Institute for Highway Safety (IIHS), December 2013. TSP+ - 5G or 4G/1A plus front crash prevention; TSP - 5G or 4G/1A no front crash protection; Blank (-) no small overlap test. Fail – failed one or more tests.
The Winners
Volvo S60
Volvo S80
3. Honda Accord
4. Subaru Legacy
5. Mazda 6
The Losers
31. Jaguar XF
29. Infiniti G
Nissan Maxima
28. Audi 4
27. Hyundai Sonata
Slide63NHTSA Rating
Acura TL 4 star(2)
Cad. XTS 5 star(1)Jaguar XF -Nis.
Alti
. 5 star(1)
Audi A4 5 star(0)
Chr. 200 4 star(4)
Kia Optima 5 star(0)
Nis. Max 4 star(2)
Audi A6 -
Dodge Av. 4 star(3)
Lexus ES 5 star(1)
Su. Legacy 5 star(0)
BMW 3 5 star(1)
Ford
Fus
. 5 star(2)
Lexus GS -
Toy. Ava. 5 star(2)
BMW 5 5 star(1)Ford
Taur. 5 star(1)Lin. MKZ 5 star(2)
Toy. Cam. 5 star(2)Buick Lac. 5 star(1)
Hon. Acc. 5 star(1)Mazda 6 -
VW Passat 5star(1)
Cad. ATS 5 star(0) Hy.
Sonat. 5 star(1)Merce
.”C “ 5 star(2)
Volvo S60 5 star(0)
Cad. CTS 5 star(1)
Infiniti G -
Mercedes “E” -
Volvo S80 -
National Highway Traffic Safety Administration, 2013. Star Rating (plus number of fails).
NHTSA Rating
Acura TL 4 star(2)
Cad. XTS 5 star(1)Jaguar XF -
Nis.
Alti
. 5 star(1)
Audi A4 5 star(0)
Chr. 200 4 star(4)
Kia Optima 5 star(0)
Nis. Max 4 star(2)
Audi A6 -
Dodge Av. 4 star(3)
Lexus ES 5 star(1)
Su. Legacy 5 star(0)
BMW 3 5 star(1)
Ford
Fus
. 5 star(2)
Lexus GS -
Toy. Ava. 5 star(2)
BMW 5 5 star(1)
Ford
Taur
. 5 star(1)Lin. MKZ 5 star(2)
Toy. Cam. 5 star(2)
Buick Lac. 5 star(1)
Hon. Acc. 5 star(1)
Mazda 6 -
VW
Passat
5star(1)
Cad. ATS 5 star(0)
Hy
.
Sonat
. 5 star(1)
Merce
.”C “ 5 star(2)
Volvo S60 5 star(0)
Cad. CTS 5 star(1)
Infiniti G -
Mercedes “E” -
Volvo S80 -
National Highway Traffic Safety Administration, 2013. Star Rating (plus number of fails).
The Winners
Kia Optima
Subaru Legacy
Audi A4
Cadillac ATS
Volvo S60
The Losers
25. Chrysler 200
24. Dodge Avenger
22. Acura TL
Nissan Maxima
17. Mercedes “C” Class, Lincoln MKZ, Toyota Avalon, Toyota Camry, Ford Fusion
Slide65U.S. News - Car Rankings
Acura TL 8.5
Cadillac XTS 7.7Jaguar XF 8.5Nissan
Altima
8.5
Audi A4 8.5
Chrysler 200 6.9
Kia Optima 7.9
Nissan Maxima 7.6
Audi A6 9.0
Dodge Avenger 6.6
Lexus ES 7.8
Subaru Legacy 7.9
BMW 3 Series 8.2
Ford Fusion 8.7
Lexus GS 8.3
Toyota Avalon 8.2
BMW 5 Series 8.1
Ford Taurus 7.9
Lincoln MKZ 6.6
Toyota Camry 8.5Buick Lacrosse 8.4
Honda Accord 8.7Mazda 6 8.8
VW Passat 8.0
Cadillac ATS 8.3 Hyundai Sonata 8.8
Mercedes “C “ 8.3Volvo S60 8.3
Cadillac CTS 9.3
Infiniti G 8.6
Mercedes “E” 9.0
Volvo S80 7.8
U.S. News Overall Rating, December 2013
.
Slide66U.S. News - Car Rankings
Acura TL 8.5
Cadillac XTS 7.7Jaguar XF 8.5
Nissan
Altima
8.5
Audi A4 8.5
Chrysler 200 6.9
Kia Optima 7.9
Nissan Maxima 7.6
Audi A6 9.0
Dodge Avenger 6.6
Lexus ES 7.8
Subaru Legacy 7.9
BMW 3 Series 8.2
Ford Fusion 8.7
Lexus GS 8.3
Toyota Avalon 8.2
BMW 5 Series 8.1
Ford Taurus 7.9
Lincoln MKZ 6.6
Toyota Camry 8.5
Buick Lacrosse 8.4
Honda Accord 8.7
Mazda 6 8.8
VW
Passat
8.0
Cadillac ATS 8.3
Hyundai Sonata 8.8
Mercedes “C “ 8.3
Volvo S60 8.3
Cadillac CTS 9.3
Infiniti G 8.6
Mercedes “E” 9.0
Volvo S80 7.8
U.S. News Overall Rating, December 2013
.
The Winners
Cadillac CTS
Audi A6
Mercedes “E”
Hyundai Sonata
Mazda 6
The Losers
31. Lincoln MKZ
Dodge Avenger
30. Chrysler 200
29. Nissan Maxima
28. Cadillac XTS
Slide67AJAC Test Results
Acura TL 650
Cadillac XTS 632Jaguar XF 637
Nissan
Altima
667
Audi A4 673
Chrysler 200 640
Kia Optima 677
Nissan Maxima 658
Audi A6 657
Dodge Avenger 624
Lexus ES 644
Subaru Legacy 671
BMW 3 Series 656
Ford Fusion 682
Lexus GS 651
Toyota Avalon 648
BMW 5 Series 672
Ford Taurus 660
Lincoln MKZ 626Toyota Camry 660
Buick Lacrosse 643Honda Accord 683
Mazda 6 684VW Passat 670
Cadillac ATS 660
Hyundai Sonata 687Mercedes “C “ 659
Volvo S60 657Cadillac CTS 663
Infiniti G 658
Mercedes “E” 657
Volvo S80 628
AJAC results up to and including year end 2013 test results.
AJAC Test Results
Acura TL 650
Cadillac XTS 632Jaguar XF 637
Nissan
Altima
667
Audi A4 673
Chrysler 200 640
Kia Optima 677
Nissan Maxima 658
Audi A6 657
Dodge Avenger 624
Lexus ES 644
Subaru Legacy 671
BMW 3 Series 666
Ford Fusion 682
Lexus GS 651
Toyota Avalon 648
BMW 5 Series 672
Ford Taurus 660
Lincoln MKZ 626
Toyota Camry 660
Buick Lacrosse 643
Honda Accord 683
Mazda 6 684
VW
Passat
670
Cadillac ATS 660
Hyundai Sonata 687
Mercedes “C “ 659
Volvo S60 657
Cadillac CTS 663
Infiniti G 658
Mercedes “E” 657
Volvo S80 628
AJAC results up to and including year end 2013 test results.
The Winners
Hyundai Sonata
Mazda 6
Honda Accord
Ford Fusion
Kia Optima
The Losers
32. Dodge Avenger
31. Lincoln MKZ
30. Volvo S80
29. Cadillac XTS
28. Jaguar XF
Slide69Consumer’s Reports Road Test
Acura TL 82
Cadillac XTS 79Jaguar XF 83
Nissan
Altima
84
Audi A4 76
Chrysler 200 52
Kia Optima 84
Nissan Maxima 83
Audi A6 93
Dodge Avenger 43
Lexus ES 82
Subaru Legacy 88
BMW 3 Series 86
Ford Fusion 87
Lexus GS 84
Toyota Avalon 85
BMW 5 Series 81
Ford Taurus 64
Lincoln MKZ -Toyota Camry 93
Buick Lacrosse 78Honda Accord 90
Mazda 6 81VW Passat
82Cadillac ATS 76
Hyundai Sonata 89Mercedes “C “ 85
Volvo S60 77Cadillac CTS 84
Infiniti G 95
Mercedes “E” 89
Volvo S80 70
Road Test results, June 2013
.
Slide70Consumer’s Reports Road Test
Acura TL 82
Cadillac XTS 79Jaguar XF 83
Nissan
Altima
84
Audi A4 76
Chrysler 200 52
Kia Optima 84
Nissan Maxima 83
Audi A6 93
Dodge Avenger 43
Lexus ES 82
Subaru Legacy 88
BMW 3 Series 86
Ford Fusion 87
Lexus GS 84
Toyota Avalon 85
BMW 5 Series 81
Ford Taurus 64
Lincoln MKZ -
Toyota Camry 93
Buick Lacrosse 78
Honda Accord 90
Mazda 6 81
VW
Passat
82
Cadillac ATS 76
Hyundai Sonata 89
Mercedes “C “ 85
Volvo S60 77
Cadillac CTS 84
Infiniti G 95
Mercedes “E” 89
Volvo S80 70
Road Test results, June 2013
.
The Winners
Infiniti G
Toyota Camry
Audi A6
Honda Accord
Hyundai Sonata
Mercedes “E”
The Losers
31. Dodge Avenger
30. Chrysler 200
29. Ford Taurus
28. Volvo S80
26. Audi A4
Cadillac ATS
Slide71Lemon-aid Rating
Acura TL 3 Star
Cadillac XTS -Jaguar XF -Altima
4 Star
Audi A4 3 Star
Chrysler 200 1 Star
Kia Optima 1 Star
Maxima 4 Star
Audi A6 3 Star
Avenger 1 Star
Lexus ES 3 Star
Legacy 4 Star
BMW 3 3 Star
Ford Fusion 2 Star
Lexus GS 3 Star
Avalon 4 Star
BMW 5 Series -
Ford Taurus 3 Star
MKZ 3 Star
Camry 3 Star
Lacrosse 3 Star
Accord 4 StarMazda 6 4 Star
Passat 2 StarCadillac ATS -
Sonata 2 StarMerce
. “C “ 3 StarVolvo S60 -
Cadillac CTS 3 StarInfiniti G 4 Star
Merce
.“E” 3 Star
Volvo S80 -
Lemon-aid 2013. 4 Star – Above average; 3 Star – Average; 2 Star – Below average; 1 Star – Not recommended.
Lemon-aid Rating
Acura TL 3 Star
Cadillac XTS -Jaguar XF -
Altima
4 Star
Audi A4 3 Star
Chrysler 200 1 Star
Kia Optima 1 Star
Maxima 4 Star
Audi A6 3 Star
Avenger 1 Star
Lexus ES 3 Star
Legacy 4 Star
BMW 3 3 Star
Ford Fusion 2 Star
Lexus GS 3 Star
Avalon 4 Star
BMW 5 Series -
Ford Taurus 3 Star
MKZ 3 Star
Camry 3 Star
Lacrosse 3 Star
Accord 4 Star
Mazda 6 4 Star
Passat
2 Star
Cadillac ATS -
Sonata 2 Star
Merce
. “C “ 3 Star
Volvo S60 -
Cadillac CTS 3 Star
Infiniti G 4 Star
Merce
.“E” 3 Star
Volvo S80 -
Lemon-aid 2013. 4 Star – Above average; 3 Star - Average; 2 Star - Below average; 1 Star - Not recommended.
The Winners
Honda Accord
Mazda 6
Subaru Legacy
Nissan
Altima
Nissan Maxima
Toyota Avalon
Infiniti G
The Losers
24. Dodge Avenger
Chrysler 200
Kia Optima
21. VW
Passat
Ford Fusion
Hyundai Sonata
Slide73J.D. Power Initial Quality
Acura TL 5
Cadillac XTS 2 Jaguar XF 4Nissan
Altima
2
Audi A4 4
Chrysler 200 3
Kia Optima 4
Nissan Maxima 4
Audi A6 3
Dodge Avenger 3
Lexus ES 4
Subaru Legacy 4
BMW 3 Series 4
Ford Fusion 3
Lexus GS 4
Toyota Avalon 4
BMW 5 Series 3
Ford Taurus 2
Lincoln MKZ 2
Toyota Camry 5
Buick Lacrosse 3Honda Accord 3Mazda 6 4
VW Passat 3
Cadillac ATS 2 Hyundai Sonata 4
Mercedes “C “ 3Volvo S60 3
Cadillac CTS 5
Infiniti G 5
Mercedes “E” 4
Volvo S80 2
J.D. Power Initial Quality rating (1-5).
J.D. Power Initial Quality
Acura TL 5
Cadillac XTS 2 Jaguar XF 4
Nissan
Altima
2
Audi A4 4
Chrysler 200 3
Kia Optima 4
Nissan Maxima 4
Audi A6 3
Dodge Avenger 3
Lexus ES 4
Subaru Legacy 4
BMW 3 Series 4
Ford Fusion 3
Lexus GS 4
Toyota Avalon 4
BMW 5 Series 3
Ford Taurus 2
Lincoln MKZ 2
Toyota Camry 5
Buick Lacrosse 3
Honda Accord 3
Mazda 6 4
VW
Passat
3
Cadillac ATS 2
Hyundai Sonata 4
Mercedes “C “ 3
Volvo S60 3
Cadillac CTS 5
Infiniti G 5
Mercedes “E” 4
Volvo S80 2
J.D. Power Initial Quality rating (1-5).
The Winners
Toyota Camry
Acura TL
Infiniti G
Cadillac CTS
5
. Hyundai Sonata, Kia Optima, Mazda 6, Subaru Legacy, BMW 3 Series, Audi A4, Lexus ES, Lexus GS, Mercedes “E” Class, Nissan Maxima, Toyota Avalon, Jaguar XF
The Losers
27. Volvo S80
Cadillac XTS
Cadillac ATS
Lincoln MKZ
Ford Taurus
Nissan
Altima
Slide75Consumer’s Reports Reliability
Acura TL MBA
Cadillac XTS MWAJaguar XF MWANissan
Altima
MWA
Audi A4 BA
Chrysler 200 A
Kia Optima A
Nissan Maxima BA
Audi A6 MBA
Dodge Avenger -
Lexus ES MBA
Subaru Legacy MBA
BMW 3 Series A
Ford Fusion A
Lexus GS BA
Toyota Avalon MBA
BMW 5 Series BA
Ford Taurus MWA
Lincoln MKZ -
Toyota Camry BABuick Lacrosse WA
Honda Accord AMazda 6 BA
VW Passat A
Cadillac ATS A Hyundai Sonata A
Mercedes “C “ AVolvo S60 A
Cadillac CTS BA
Infiniti G MBA
Mercedes “E” BA
Volvo S80 BA
Consumers Reports, June 2013/December 2013. MBA – Much Better than Average; BA – Better than Average; A – Average; WA – Worse than Average; MWA – Much worse than Average.
Consumer’s Reports Reliability
Acura TL MBA
Cadillac XTS MWAJaguar XF MWA
Nissan
Altima
MWA
Audi A4 BA
Chrysler 200 A
Kia Optima A
Nissan Maxima BA
Audi A6 MBA
Dodge Avenger -
Lexus ES MBA
Subaru Legacy MBA
BMW 3 Series A
Ford Fusion A
Lexus GS BA
Toyota Avalon MBA
BMW 5 Series BA
Ford Taurus MWA
Lincoln MKZ -
Toyota Camry BA
Buick Lacrosse WA
Honda Accord A
Mazda 6 BA
VW
Passat
A
Cadillac ATS A
Hyundai Sonata A
Mercedes “C “ A
Volvo S60 A
Cadillac CTS BA
Infiniti G MBA
Mercedes “E” BA
Volvo S80 BA
Consumers Reports, June 2013/December 2013. MBA – Much Better than Average; BA – Better than Average; A – Average; WA – Worse than Average; MWA – Much worse than Average.
The Winners
Subaru Legacy
Toyota Avalon
Acura TL
Lexus ES
Infiniti G
Audi A6
The Losers
27. Jaguar XF
Cadillac XTS
Ford Taurus
Nissan
Altima
26. Buick Lacrosse
Slide77Kelly Blue Book Residual Value
Acura TL 42%
Cadillac XTS 32%Jaguar XF 30%Nissan
Altima
43%
Audi A4 37%
Chrysler 200 31%
Kia Optima 49%
Nissan Maxima 36%
Audi A6 35%
Dodge Avenger 36%
Lexus ES 46%
Subaru Legacy 43%
BMW 3 Series 38%
Ford Fusion 42%
Lexus GS 43%
Toyota Avalon 43%
BMW 5 Series 36%
Ford Taurus 35%
Lincoln MKZ 37%
Toyota Camry 46%Buick Lacrosse 29%
Honda Accord 47%Mazda 6 39%
VW Passat 33%
Cadillac ATS 41% Hyundai Sonata 44%
Mercedes “C “ 46%Volvo S60 34%
Cadillac CTS 34%
Infiniti G 41%
Mercedes “E” 38%
Volvo S80 29%
Percentage of MSRP retained after five years. Source: Kelly Blue Book, December 2013
.
Slide78Kelly Blue Book Residual Value
Acura TL 42%
Cadillac XTS 32%Jaguar XF 30%
Nissan
Altima
43%
Audi A4 37%
Chrysler 200 31%
Kia Optima 49%
Nissan Maxima 36%
Audi A6 35%
Dodge Avenger 36%
Lexus ES 46%
Subaru Legacy 43%
BMW 3 Series 38%
Ford Fusion 42%
Lexus GS 43%
Toyota Avalon 43%
BMW 5 Series 36%
Ford Taurus 35%
Lincoln MKZ 37%
Toyota Camry 46%
Buick Lacrosse 29%
Honda Accord 47%
Mazda 6 39%
VW
Passat
33%
Cadillac ATS 41%
Hyundai Sonata 44%
Mercedes “C “ 46%
Volvo S60 34%
Cadillac CTS 34%
Infiniti G 41%
Mercedes “E” 38%
Volvo S80 29%
Percentage of MSRP retained after five years. Source: Kelly Blue Book, December 2013
.
The Winners
1. Kia Optima
2. Honda Accord
3. Toyota Camry
Mercedes “C”
Lexus ES
The Losers
31. Volvo S80
Buick Lacrosse
30. Jaguar XF
29. Chrysler 200
28. Cadillac XTS