Hyundai Azera 2006

own3hyundais

Drove up in my Avalon to see the Azera. My salesperson who is awesome called me as soon as it hit the lot.

It's okay depending upon expectation.

It is not worth 5-6K more than a Sonata LX 4dr Sedan (3.3L 6cyl 5A). It is about same size inside if you don't have the sunroof option. Power is similar, look and feel from the driver seat is the same. Stereo is slightly better in the Azera. Azera does have sexier looking headlights, auto activated wipers, and a marginally better looking rear end.

Check it out. I doubt you could tell the difference from the drivers seat. The Sonata looks just as sweet and it's real close on the interior space.

Also, the HMFC $1,000.00 incentive is garbage. They want 8.9% no matter how good your credit is even if you have done business with them before.

Unless I missed it completely I fail to see more than a 5-10 % difference between the cars. I think Hyundai is going to have another XG350 issue if they don't do some quick pricing adjustments on the Azera. It's not overpriced compared to other manufacturers it's problems will be loyal customers who will not see the value over the Sonata.

averigejoe

I test drove Sonatas, both 4 and 6 cylinder models. I did not think either had a luxurious feel or ride like the XG350 I drove. I would hope that the Azera has a much more luxurious ride than the Sonata.

keithl

Just got a call from local dealer in Kennesaw, GA they got an Azera in today. I bet they sell it before I can swing by later this week.

starriver

Finaly. I was wondering whether Dec. is fall in Korea

backy

Yes. And most of December is fall in the U.S. too.

bluesman3

At least until 12/21 anyway...

mike_belknap

XM will show up first on the new Santa Fe this Spring, so you can definitely expect it on the Azera next year. The Entourage, Sonata, and "EN" SUV will also get it as standard equipment for '07. I'm not sure about the new Elantra or Tucson yet.


Mike

backy

Hyundai has stated publically, in joint announcements with the XM radio folks, that XM will be standard on ALL of its vehicles in the U.S. by the end of 2006.

jeffreid

Your salesman was mistaken about the HMFC rebate. It is an owner loyalty rebate. You DO NOT have to finance through HMFC to get that $1000. Also, with excellent credit, HMFC does offer lower rates in some states, if there is a HMFC financing rebate in the future like there is on the Sonata.

As for the size issue. The Azera is wider than the Sonata, which makes for some extra passenger space, but the front legroom is EXACTLY the same. Very good observation. Where the Azera really shows itself to be different is in the complete removal of windnoise and the way that is soaks up bumps. I have driven quite a few of the Sonatas and then a new Azera Ultimate on a TERRIBLE road and could tell an immediate difference. The other two things are the power and the level of luxury touches inside the car.

Now, I really like the new Sonata, especially compared to the last two generations (which I owned one of each), but wow, the Azera is probably nicer looking inside than my wife's Aviator, and is leaps and bounds nicer than the Sonata. Just sit in the leather on both the cars, it's pretty apparent immediately. Edmunds.com first drive also compared the interior to an ES330, kind of gives a good feeling for the level of refinement. As for power. The Sonata is perfectly fine, but the Azera will flat out scoot!! With the ESP and traction control on, I spun tires to 40 and was at 70 before I had any inkling how fast I was going. This thing will move.

One last thing. You are on to something about the current Hyundai owners. It IS going to be hard to move one from the Sonata to the Azera with the difference in price (at least $6000). However, I think that the idea with this car is to bring in the loyal Toyota/Honda buyers that see $35k on an Avalon and $28k on a Camry or Accord and think of that sort of price as normal. The Azera will seem like a REAL bargain to them. Just my opinion.

backy

I think the price difference is amplified only because there is up to $3000 in rebates available on the Sonata and it has been out for awhile, so steep discounts are also available. The Azera is brand-new, so rebates and discounts will be sparse for awhile. Once that picture levels off, the value of the Azera over the Sonata will be more apparent IMO.

own3hyundais

Your observations are outstanding.

I was pointing out the HMFC $1,000.00 rebate as a waste for a Sonata purchase at 8.9% and not using it to grow the 6K gap between a Sonata vrs Azera purchase.

I own 2 Elantra's and a Sonata and have been very satisfied with Hyundai value. I just don't see as much value in the Azera. Warranty is even a little less if I remember correctly.

My gut says it will be a smart buy in March when the lots are full. Right now there are few compeling reasons to buy an Azera versus there current models and pricing incentives.

I have had great success with my Avalon but don't want to buy another at current prices. I'm looking for a solid car under 25K and right now the best option is the Sonata.

If I had a brain I'd buy the Prius for 27K and in three years sell it for 20K. That I guess would be smart buying.

zyvox201

I just purchased an Azera. It was only 3 or 4 that were available in the North and South Carolina. I got the Limited. I really wanted to the Limited with Ultimate package initially, but when the dealer offered to negotiate an upgraded sound system that would not require tampering with the dash. I was sold. The other stuff--sunroof, mechanized side view mirrors, power tilt steering, and rain sensing wipers are cool but honestly I don't think anyone would buy or not buy a car solely based on any of those features--except a sunroof--which really I could do without. The sound system was mostly what I was after with the ultimate package. I bought the car @ sticker 27495 plus the upgraded sound system. Really don't expect to get much under MSRP because the margins are tighter, its a good car for the money, and lastly there are really not many of them out there. It will probably be March until the availability improves. A dealership in Atlanta got one and choose to use it as a demo while they would take $1000.00 deposits on forthcoming Azera the only problem with that scenario is that It may be 4 to 6 to even 9 weeks before you get your vehicle. Not worth it. And the gentlemen who posted #487 is correct. The dealerships aren't helpful with financing. The best I could get is 5.25% (prime + 2%)through my credit union. Once again this is evident by the fact that the margins for Hyundai's are so narrow. GM can give employe price and damn near 0.0% interest because the make such a healthy profit out the box--remember the "Man" never loses money. Do not expect to get your cake and eat it too--a near luxury car with decent performance on par with its peers at 15-20% less the cost and then get financing at some negligible rate that is less than prime. One final note, all in all the car is worth every penny and then some--at least now it seems that way. Hyundai is truly moving up.

mike_belknap

OK, I found the article -- the Elantra will get it in 2006 as well:

"By year-end 2006, 75% of Hyundai's sales volume will be XM-equipped, with the remaining models following quickly thereafter, totaling well over 500,000 units by 2007." [Source.]

Mike

bamacar

It looks like from the Sonata groups that everyone gets the Hyundai financing, saves the $1k, and then refinances or just pays off the loan immediately so the 8.9% is not really an issue.

backy

Warranty on the Azera is the same as for other Hyundais sold in the U.S.

bwia

Congratualtions on your purchase. As soon as you had time to drive it both during the day and evening would you give us your first driving impressions. For example, is it as quiet as the Avalon; are there any rattles; how is the heater; and what about visibility?

I am surprised you paid MRSP considering the inconvenience of the long wait.

zyvox201

Driving Impressions--The Azera is a solid driving car. I had no problems with merging, maneuvering, or stopping. I had been prejudiced by expert reviewers to expect a "floaty," "disconnected" ride, I was pleasantly surprised that that was not the case. The car was stiff and grounded in its handling and the engine responsiveness was brisk. In fact I got to drive it home through some nasty rainy roads. It performed like it was ideal driving conditions. The Electronic Stability Control works--no doubt. It is not a sports sedan, so anybody that wants to put the Azera in that category would be sadly mistaken. The Azera would better be considered a touring car. The car is comfortable and the ergonomics of the cabin are an astonishing leap forward for Hyundai. Nothing is hard to get to and the buttons are easily manipulated. The dual climate control and heated seats are wonderful. The Azera is now accessible on Yahoo Autos! I suggest using their comparison tool. I put the Azera against the Audi A6, Buick Lucerne, Maxima, Avalon, BMW 530 series, Lexus ES 330, Infiniti M35. I compared apples to to apples, ie., I did not include trims with V8 engines. The Azera of course does not win in every instance but when you look @ standard features, power plant, safety and warranty indexed with price. You just cannot beat it. When I bought the car I was taken to meet with the service department manager. Customer satisfaction surveys are sent out. Part of the service staff's salary is incentivised. If the service department does not break a certain threshold (> 95 th percentile) on the survey that lose out on a portion of there pay. This is a big trend in business now days. It means Hyundai is seriously committed to making money thus providing good service. Anybody who would scoff @ Hyundai because of the name--just needs to let go of the past; Hyundai sure has.

jeffreid

IMO the value issue is not Sonata vs. Azera, it is Azera vs. Avalon, 500, etc. I'm sure that you would agree. Having driven a number of Sonatas and one Azera for a reasonable amount of time, I can say that there is a very real difference between the drive of the two cars. As I mentioned, the interior differences are also a big step.

Any of the cars that get in the $30000 to $40000 range get a little confusing on the value scale for me anyhow. Seems like a easy one with the Sonata type cars and then a more thought involved process with your $50000 and up range. But even with the $50000 and up crowd, you can find reasons to pay the money. I certainly see your point about the $30000 Azera not showing the daily driving value as the Sonata or an Accord, or something along those lines. It does seem to fit nicely in the area that it competes though.

Lastly, my point on the $1000 with HMFC. The reason that I suspect you are being told 8.9% has everything to do with dealers being squeezed to death on new car profit margins. Unlike any other industry I am aware of, new car dealers are hammered in public for wanting even 2-3% profit. When one has to sell the product for 0.5%-1% profit to get the deal, they then use the loan rate markup to make up for the fact that they are not making anywhere near normal retail markups on their product. That is my suspicion anyhow.

Good point on the Prius. It's just so small.......

me_and_g35

It still boggles my mind that many people are taking whatever interest rate the dealers throw at them. Just like purchase price and warranty, interest rate is negotiable. It's safe to assume that the first interest rate offered by dealers contains 2 to 3% markup. Obviously, the dealers (along with their F&I people) want to make most money possible. On the other hand, they don't mind making a small fee instead of not making any money at all by customers financing through credit unions.

gy563

http://www.ajac.ca/english/ccoty/2006/vote_results/family_o.asp?lang=1

http://www.ajac.ca/english/ccoty/2006/vote_results/?lang=1
so as 2006 Hyundai Sonata

own3hyundais

The rate is 8.9% if you want the $1,000.00 HMFC rebate.

I'm sure you can get a better rate anywhere with good credit but its adios to the rebate.

$10,000.00 minimum to finance to qualify for rebate.

The Azera is sweet but overpriced against an entry Avalon.

By March when model availability is broad and inventory on the lot is high the Azera will be the "Deal of the Year"

My bet is 1K to owner plus 2K on top of that and 1K for financing with cars selling at or very near invoice.

own3hyundais

My guess is that Hyundai North America's executive compensation plans are 98% focused on marketshare when measuring the Azera. Hyundai Korea has to make a major impact to get a seat in the mid to low priced luxury car market. If they fail to win in the USA they will fire everyone at Hyundai North America.

My guess is they want to keep their jobs and will load the streets with super aggressively priced Azera's.

Purchase it now if you have to have it buy it in the Spring if you want to tell you buds about the incredible deal you were able to get on your Azera.

pwgilbert

zyvox201

I think you are on to something. I don't know if you saw my comment about the service department, and how customer satisfaction driven they are. I think to a certain extent the corporate culture of Hyundai is ruthless in that they are near obsessively committed to improving and will not tolerate anything less. Can you name an extremely successful organization or individual who is any different?

wcw1

Visited the local Hyundai dealership today. They had an Azera on showroom floor marked sold. They are taking orders $1000 down. They are charging $3000 over MSRP (cough cough). The sales manager that I bought an XG350 from said they had quite a few orders but would not say how many. He said they are expecting a total of 10 Azeras for December.

backy

There were some dealers who were (or trying to anyway) sell '06 Sonatas for over MSRP shortly after introduction, too. Now the rebates range up to $3000 and buyers are getting good discounts. This too shall pass.

jeffreid

Are you comparing the Limited or the SE against the entry Avalon? With there being $5k-$6k in options on the Azera, it would depend on which one you are talking about.

With edmunds and cars.com comparing the interior and build quality to the ES330, above and beyond the Avalon, where is it not competing well?

If it was overpriced, it would have less safety features ( 8 airbags and ESP STANDARD, not extra cost options), be slower (edmunds says 6.5 secs to 60 on Azera, 7.0 on Avalon), and be smaller (the Azera offers more interior space than the Avalon and S-class). By the way, how much does it cost to replace the timing belt on the Avalon? No maintainence with the chain on the Azera. It's stuff like this that seems to make the Azera VERY competitive with the Avalon, especially if you compare vehicles that are equipped with mostly the same features.

alpha01

Toyota's 3.5L does not use a timing belt, as far as I know. The old Avalon engine did, but Im pretty sure the new one DOES NOT. Also, the Edmunds.com test of 6.9 seconds to 60 for the Avalon is far and away the SLOWEST time I've ever seen. Most magazines get between 6.0 and 6.3 seconds (heck, even CR got 6.6!). You also arent factoring fuel economy, where the Toyota 3.5L is several MPG ahead of Hyundai's 3.8L.

Certainly, the Azera has a distinct price advantage against the Avalon. But the Avalon has many features that you cant get at any price on the Azera, which is something worth noting.

Just a few thoughts.

Also,

jeffreid

That is a good point. One of the recent things that I am seeing around my area is when a dealer discounts a certain model for a sale ad, there is a new catch. they are REQUIRING you to finance the car with them to get the price. Not a bad move as far as advertising effectiveness is concerned, but really kind of stupid when it comes to actually buying. In some states, the law is that a dealer is SUPPOSED to inform you of the rate that you actually qualify for. If they then charge you more, that is up to you.

Just my opinion, if all would go to a one price set up, most of this would be irrelevant and EVERYONE would be happier as long as the manufacturers would set a reasonable profit margin for the dealer. Make MSRP the actual price and stick to it. It sure would make buying a car a lot easier and enjoyable process.

Anyhow, without one price for all dealers, find the car that you want, go to edmunds, find the MSRP and invoice and come to a conclusion about a price that is fair for yourself and the dealer and try to get that deal done. Everyone is happy. If you want to shop rates, do it before hand so that you are prepared to make the deal the way that suits you best.

jeffreid

I appoligize on the timing belt issue. My Avalon does have one, and I was unaware that they had changed, but you are correct, my buddy at the local Toyota store confirmed your statement.

You are also correct on the fuel economy issue. However, even at $2.50 a gallon, you are looking at years of driving to notice any kind of savings that get anywhere near the cost difference.

As for the speed issue, if we call the Avalon anywhere between 6.0 and 7.0, then the Azera is dead smack in the middle. That simply means that the car is very competitive in that area. Even if it is just even, or slightly behind, for $4000 less we still are okay.

On the extra features, I guess you are talking about the nav or the knee airbags. If there are others, please let me know what they are. Also, the rear side airbags are not available on the Avalon at any price, nor is the "geological time scale" warranty.

This is a good discussion. I like the good points on each side!!!

own3hyundais

I don't mean to be a pig on why I am disappointed in the Azera's pricing model but let me share some insights that justifies my concerns on why I need safety in the cost of ownership equation which for the Azera means cover your [non-permissible content removed] on the front end so you are not sitting on a book hit when you sell or trade at the Azera's end of life.

Here is a dose of valuable "cost of ownership" information based on Edmund's published numbers:

2002 Make/Model: DealerTrade,PrivateSale,Dealer Retail

XG350 Loaded: $7,632.00,$8,830.00,$10,850.00

Sonata GLS: $5,865.00,$7,004.00,$8,998.00

Corolla LE Manual: $8,872.00,$9,860.00,$11,695.00

I am using the Corolla against the top two 2002 Hyundai's, it's a more dismal cost of ownership calculation if I use the Camry or Avalon.

The Azera may ride like a freaking dream today but the cars don't maintain value. The Avalon is a far better deal at even 10K more.

I do like the rear end lights on the Azera I just don't want them blinking on my rear end when I try to sell/trade it in 2010. ">

snakeweasel

The information you provided are pretty meaningless unless you provide the original sales prices. Sure the trade in value of the Sonata is 2/3rds that of the Corolla, but how much would you have paid for both brand new?

averigejoe

You said, "I am using the Corolla against the top two 2002 Hyundai's, it's a more dismal cost of ownership calculation if I use the Camry or Avalon."
How about posting the numbers for Camry and Avalon. That is more like apples to apples.
Percentagewise, the basic cheapest car usually has the best resale value, like a Honda Civic base model does.

own3hyundais

I use the calculation that a dollar is a dollar and that my money is my money. If you want to be protected against Azera's potentially poor residual value you better make sure you get your exposure covered with a discounted purchase price. Seems very logical to me.

Industry Brand Residual Value Rankings

Honda
Toyota
Nissan
Volkswagen
Jeep
Subaru
Mazda
GMC
Chrysler
Ford

Only brands above the industry average were ranked. Below industry average were the following brands (listed in alphabetical order): Buick, Chevrolet, Dodge, Hyundai, Isuzu, Kia, Mercury, Mitsubishi, Pontiac, Saturn, and Suzuki.

www.alg.com american leasing group

6daysonroad

the azeras have hit the streets in NC; my wife drove one yesterday. We're looking at leasing a Azera LTD without the Ultimate Package (no sunroof, rain senser wiper, no adjustable foot pedal, no high end radio) but still it seems to be a lot of car for the $$. We need the size, safety, features and comfort etc. We have test driven a lot of cars (mostly foreign) over the past year or so in order to find out what segment of vehicle we really needed (value) and wanted (like): Toy Avalon, 4runner, Highlander; Lexus RX330, ES330; Infinity M35; Hyundia Sonata; Honda Pilot, Accord, CRV; Acura MDX; Chevy Impala etc.
So here we are, we think we want an Azera.
My question is about leasing. I wanted to know ins and outs of leasing an Azera.
We're looking for 39 months or 3 year or less lease with 15k miles a year.
The Azera list approx $27k
Help me out if you can here! :confuse:

own3hyundais

My opinion is that Hyundai blew it with the Azera.

Very disappointing. Very me too. Very poor rollout.

Very limited selections. Very easy to look around the dealer lot at all the new 350's and pity current 350 owners.

I mean lets get serious people are pointing out that it has new fangled water activated wipers and nice lights.

Somehow I think the Japanese car company designers would at least have done the honorable thing and killed themselves if they invested the time and energy, capital budgets, and then staked their reputations on what turned out to be the 2006 Azera.

It's dead in the water.

snakeweasel

Again I say your numbers are meaningless without what the original purchase prices were. Saying car "A" is better than car "B" because its trade in value after 3 years is $3,000 more is a false statement if car "A" original cost is $4,000 more. So your figures are nothing without a starting point.

jeffreid

If we take a look at resale values of Toyota/Honda 10-15 years ago, I have a deep feeling that they are not close to what they are today. In a very similar light, I would propose that your point on the Corolla and Avalon resale issues vs. the 2002 models Hyundai vehicles is a good point. However, when you roll out new (and might I add, VERY good products in the Azera, Sonata, and Tucson) products that the public sees are made well and hold up over time, those vehicles begin to bring more later on due to the fact that they are easier for a dealer to resell on their used car lots.

Now lets look and see something here. Would I rather drive a XG350 or an Azera? Would I rather drive a Sonata of any year (although my 2002 was pretty decent) vs. a 2006 Sonata that can run right with a Camry in every category, and be better in many? Point is, now that Hyundai has products that actually are as GOOD as their competition, not just "for the price", but straight-up, head-to-head, as good, you will see them over the next couple of years gain in trust and popularity. When you see that, you will, without a doubt, see resale values rise.

On one other thing. What do you mean on the very limited selections comment? I am confused on that. Do you mean current dealer inventories, or do you mean something about the car itself? The Camry is the best selling car in this country, and if it isn't "me too", I'm not sure what is. Mainstream buyers DO NOT flock to wild designs. That is just the way that it works. Especially, the Azera and Avalon's target audience.

If a car with more interior volume, more legroom (front), more torque (very close in HP), said Lexus quality interior in craftsmanship and quiet, a stellar warranty, and a great cost savings is blowing it, what do you want? If the car was better in EVERY respect to the Avalon, would it be dead in the water? I ask this b/c it DOES win a large number of the head-to-head battles, and it does it a lesser cost!! Oh, and in 5 years (when you want to trade)when the resale values are catching up, we'll have that too I guess.

own3hyundais

Historical data 2002 models

Sonata 6cyc, cloth
MSRP 15,499
Invoice 14,104
Dealer Trade 5,865
Invoice - DT = 8,239

Corolla LE 4DR
MSRP 12,723
Invoice 11,511
Dealer Trade 8,872
Invoice - DT = 2,639

Avalon, XL 6cyc
MSRP 25,845
Invoice 23,000
Dealer Trade 13,718
Invoice - Dealer Trade = 9,282

If I'm spending money then for a thousand dollars difference I'm buying the Avalon. If I'm thinking that $5,600.00 is a lot of money then the Corolla is a slam dunk over the Sonata.

jeffreid

There is a 27 month $299 lease that is running currently on Limited Azera's. With $2925 down. 12k miles a year.

own3hyundais

Have you sat in one? Driven one?

The Azera is winning "heads up" competition as defined by their Marketing Dept.

I like my three Hyundai's performance, reliability, and styling. You just have to keep them in the family because they have limited value to the general market. That my friend is a cost of ownership issue.

jeffreid

Yes, I have sat in and driven both. Have you? If you have driven both and can then tell me that the Azera is a total bust, when three very respected automotive sources (edmunds, cars.com and automobile.com) seem to say the exact opposite, I will have to listen to your argument ver carefully.

To be fair, I must say that I am looking around the cost ownership issue for the time being. Your point is VERY valid and is a very good thought to have in your mind. I am just talking about one car vs. another car. Head-to-head, regardless of the badges on them. Because btw, that is where all of your resale arguments are valid at. One car vs. another, I think you HAVE to say that it is VERY close, and with $4000 up front, it gets REALLY interesting.

jeffreid

I'm curious as to where these numbers come from. My quick math says that a new Corolla is selling for around 12k. Your stats say that trade-in is 8872. That means that a dealer is going to try and retail that three year old vehicle for $11k after any detail work, or whatever? If they are not going to ask for some profit, why are they in business? You mean to tell me that people are comfortable paying 12k for a new car and then walking on that same lot and paying 11k for a 3 year old car? Seems a little crazy.

Also, the Sonata seems a little low. My other question is, how are you determining milage and color? I assure you that a white or silver will bring more than some horrible color that nobody wants, regardless of the brand.

snakeweasel

I didn't check your MSRP nor the invoice price but I did on the trade in value. Using each car as a 2002 with standard options and 42,000 miles I come up with this:

Sonata base $6,950 GLS $7,695 (not sure which trim you used but I also didn't check the LX) So your trade in value is way low.

Corolla LE 4 door $6,200 Your figure is way high

Avalon XL 6 cyc $11,540 again your figure is way high.

Source kelly Blue Book.

Now correct your figures more and we will talk.

tenpin288

The Azera is winning "heads up" competition as defined by their Marketing Dept.

Somehow, I don't think Edmunds and Motorweek are parts of Hyundai's marketing dept.

Azera First Drive

Motorweek Review

averigejoe

What is the residual value based on?
Is it Kelley trade-in value compared to original MSRP including options?
Or something else?
The order of car makes on the list would likely be very different if different comparisons are made than whatever comparisons were used to make that list.
How about Kelley private party sale prices compared to actual new car sold prices including rebates and incentives, etc?

own3hyundais

Bingo!

Exactly right. $4,000.00 - $4,500.00 off up front is where I see that buying the Azera is a great deal.

own3hyundais

My figures are were taken directly from Edmunds.

averigejoe

Yeah, there are a lot of crazy used car buyers out there. The have the idea that a 3 year old car from a dealership is a better deal than a brand new car.
They have that prejudice when they go shopping. They see the used car and then they look at a brand new one. The dealer has them both shined up and the buyer can't see any difference. Then he sees the new car sticker price including all the dealer pacs (haha. $3000 over MSRP) and thinks the new car is a rip-off compared to the used one which looks just like it for only 70% of the new car price.
So he ends up buying the used car for the exact same price as what a little more enlightened shopper could have bought the brand new one for.
A little bit crazy? Yeah!
I know people like this. And I applaud them. Because of fat profits made on used cars being sold to them, the dealer is able to sell a brand new one to me once in while for 57% to 70% of MSRP (with no pacs!).

snakeweasel

Well as you can see I am not the only one who is questioning the validity of the figures you posted.