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Actually the largest markup at Coscto is 14%. They make most of their money on membership fees. Proof that it is not some urban legend.
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2018 QX60 RWD
I don't know if it's illegal, but doesn't it seem strange that the national corporation openly advertises this deal, but it turns out to be unavailable to consumers because no dealers will honor it? There's something wrong with that picture.
I agree with this. If we want to buy a new product that is in very short supply and that has lots of public enthusiasm, we should expect that the prices will be higher. The timing of this is unfortunate for me too, because I need to do my deal very soon.
They all say "dealer contribution will affect final price". This means that each independent dealer has the right to choose if they are interested in taking the discount that the mfr is SUGGESTING. The mfr also SUGGESTS a price on the window of every car they build. Each retailer is free to set their own pricing above or below that amount, as is most any other retailer of most any other type of product.
Also, as to the add-on stickers. Now, I do not have them on more cars, but I do understand the thought behind them. The auto mfrs have done nothing but shrink the front end profits on cars for the last 20-30 years. This means more money in their pockets and less in the dealers and the sales people's. The add-ons are just an attempt to get some of that margin back. Free market economy boys!!
I would like to retract my Costco comment. That was made with limited info. What I meant, and should have said, was a comment about elctronics and jewelry and furniture retailers in general. Sorry.
As to the "they told me one thing on the phone and another in person" comment. There are two ways to look at this. One is the the obvious fact that the dealer has no shot to sell you if you never show up. Telling you a set price or that there is no discount would prob keep you at home or on the phone shopping for price. The second way to look at it is the the Genesis is still a LOT of car, even at MSRP, and that from that angle, they are giving you a "good deal".
Just some thoughts. I do not mean for any of these posts to try and change anyone's mind, I just think that having the point of view from the inside of the auto industry makes for good banter, and a more insightful conversation.
I received an email invitation from Hyundai and registered online for 11:00 today. I had the expectation that I would be able to drive the Genesis somewhere close to 11:00, since the appointments were in 30-minute increments. When I arrived at the site, which is a parking lot next to the Mall of America, there were about 50 people in line waiting to drive. I was told I had to sign a waiver and get in line. Didn't matter if you had a reserved time or not--walk-ins and reservations all treated the same. This was a problem for me because I had limited time. But I waited in line, about 45 minutes, and finally got to drive.
There were 5 Genesii lined up to drive, a combination of loaded V6s and V8s. There was also an E550 and a CTS for comparison drives. I chose a black V6--loaded, as I said. Very very very nice inside. All appointments seemed of the highest quality, with brushed finishes on metal parts (except for chrome door pulls) and good-looking wood trim. The leather was soft and inviting. After a short discussion with the Hyundai rep and adjusting the seat, wheel, and mirror, we took off.
The short, compact course was laid out in a parking lot. First, there was a wet plastic tarp, to test the traction control. Very important in places like MN. With just a bit of tail wag, the Genesis took off. (I used more throttle than I normally would in such situations.) Then there were a series of very tight turns, which the Genesis negotiated at high speed with only a little tire noise and little body lean. Then we stopped, and I floored the accelerator. There was engine noise, but muted.
For comparison I took the CTS (list about $48k) on the same course. The immediate impression upon climbing into the CTS was that it was a huge notch below the Genesis in luxury ambiance. It was like being in a 1970s Buick--chrome everywhere. It also felt cramped compared to the Genesis. (This was especially true in back--the Genesis had cavernous rear leg room, while the CTS was pretty close to the room of my Elantra in back.) The CTS also couldn't hold a candle dynamically to the Genesis. The front suspension gave up on the first sharp turn. The engine growled loudly and coarsely when I floored it. It was clear why Hyundai chose to have a CTS there to compare with the Genesis. It felt like the CTS should be the car priced $10k less than the Genesis, rather than the reverse.
So I was very impressed with the Genesis. But not how Hyundai handled the event. If you will be attending this event, be prepared to wait in line awhile.
I think that this reputation goes beyond Hyundai and other low-cost dealers. I have MB and Lexus cars, yet I find their salesmen just as incompetent and lazy.
Last month I bought an IS F ($61,000). The salesperson could not answer any questions. All he could say was small talk like how fast it felt and quiped about how I knew more about the car than he did. This week I bought a LX570 ($84,000) and another salesperson was only able to answer one softball question about safety. The only reason I asked him such an easy question was because he could not answer any question about the vehicle such as what the various buttons did or how to adjust the seating. I worked with 6 different salespeople in buying those two cars and not a single one of them knew anything about the cars they were trying to sell.
I'm amazed that these guys could be stuck at the dealership all weeklong and not bother to learn anything about the cars they are selling. How incredibly lazy and incompetent do you have to be to not know anything about the expensive cars you are selling? Seriously, I see them sitting on their butts all day waiting for customers to fall into their lap. I've found the salespeople at MB, Infiniti, and Audi to be no different in this regard.
For instance, by the time Mitsubishi came out with their 2008 Lancer lineup, I was drooling all over my keyboard in anticipation of driving one and buying one. Heck, when I got there to the dealership, the '08 Lancer GTS was there, in the showroom. Rally Red metallic paint job, with the Rockford Fosgate 650-watt stereo-subwoofer in the trunk, leather covered steering wheel, Bluetooth capable, sunroof, foglights, etc. Loaded, just not with a 5-speed manual tranny, instead, this one came with a CVT automatic with the magnesium 6 forward "speeds" and 6 reverse "speeds."
Humm...what a dilemna. Price was not gonna be a factor here, mode of propulsion became top story in the initial purchase process. After discussing it with my wife and test-driving the CVT, we went in to negotiations to buy that particular Lancer.
No need to discuss those numbers in this 2009 Hyundai Genesis automotive thread, but, my point is that my dealer supplied the car I wanted with everything I wanted and I was already in love with it's bodystyle big-time. After deciding that playing with the paddleshifters would be cool, or just having the option to put that pup in 'D' for "Drive," would be acceptable, I looked at pricing negotiation time as just being a necessary evil.
We prepaid on a maintenance coupon booklet(a good deal)and had rolled in to the loan for the anti-theft alarm to be activated, and also bought their 'Auto Butler' program. The Auto Butler program prepays in to the loan for them to put a protective coating on the paint every 6 months for 5 years. For the price paid it has turned out to be a good investment, as our Lancer's Rally Red paint is holding up very well and shines wonderfully.
My main point is that MSRP was fine with me as I had bought the product I wanted, which, in person, actually exceeded my expectations. I was thrilled to pay MSRP, and, Lancer pricing, since it's a compact, is not sky-high to begin with. It is true that it may be more of an important factor when shopping for a larger car, the Genesis, true. When I bought Mitsubishi dealers were not budging much below MSRP, but as the months rolled by they did budge. Just a few thoughts to consider, pricing at MSRP was more than just OK with this padre.
2021 Kia Soul LX 6-speed stick
What we are dealing with is the egos of both the Hyundai and Kia motor companys CEOs.
I read a business article about how the chairman of KIA wanted to compete in the "near luxury " market. All the Americans Managers told him that the price point was just too high for KIA. Consequently, KIA sold 5,000 Amantis last year. Hardly a blip on the car buying public radar screens.
Unless they slap a $10,000.00 rebate on the Genesis the results will be the same. Low cost leases are one thing - somebody plucking down $35,000.00 to $38,000.00 for these things is something else!
Look at the rebates they have to slap on the Sonatas and Azeras to move those models.
Well, I just spent the last hour calling dealers that I know have the Nav 4 car (easy to find as they have them listed on ebay). I found one dealer who was terrific. He outlined the $499 lease program on the Nav 4 car. It is as follows:
$2179 due at signing. Includes first month and down payment. Does not include Tax, Tag, etc.
There is a $500 HMFC program that helps reduce the cap cost down to $37,155.73. So the dealer is selling for $37,655.73. MF = .0008 for Tier 1.
He was very familiar with the program and while he said dealers do not have to follow the programs - they do because it makes for happy customers and or course - repeat customers. Their guideline was that if the program is national by Hyundai - then they follow it. He would sell me the car today at those quoted prices.
So, I cannot guarantee the accuracy of the numbers but have not reason to disagree with them either. This was from the finance manager of the dealership.
So while I am unable to blame a dealer for sacrificing profit to stick with a national program; I can say that the dealer who does is one that is earning my business for now and in the future and one that I would recommend to everyone. After all, money is made over a lifetime - not on one deal.
The Amanti and the Genesis share almost nothing other than being 4 door and having a front engine layout.
Anyone that would drive both of these cars would have a really hard time making a comparison.
By the way, I think Hyundai has a 600hp, mid engine, 200+mph supercar that will be here in two years. Priced at $49,995-$54495. They say it will blow a Ferrari Enzo off the road, but have the same interior appointments as a Bentley Arnage. But hey, who would buy that? It's still a Hyundai, so it will need a $199mo lease or a $15000 rebate. :P
I love reading the posts of the people that have actually driven the Genesis. I'm glad to hear that those with butt's in seats have generally positive opinions.
On an interesting note, I had a dealer offer me a Genesis with prem plus for an Elantra today.
Hope everyone has a great weekend.
The Kia brand will not support a $30,000.00 sedan as proven with the sales of that model. The Genesis will be the same thing.
I am not saying the Genesis is not a great car. I am saying the Hyundai brand will not support a car will above $30,000.00 (even closer to 40K).
As far as the Dodge is concerned... you have high gas prices coupled with a brand ready to go under any day. I have even seen ads where the Ram is discounted 10K.
I think what you are saying is, YOU would not pay over $30k for a Hyundai. And that's fine, it's your money. But if you haven't yet taken a look at and driven what Hyundai offers in this $30+K sedan, and you are in the market for such a car, I encourage you to do so.
Could it be that the aforementioned issues are really hypothetical exaggerations? I certaintly believe so.
Personally, I think the appropriate reaction to a sticker like that would be a hearty laugh, wipe the tears from your eyes, and tell the sales manager, "Thanks, thanks very much. That's the best laugh I've had in a long time!"
Check the numbers on the Ford Edge and 821 pales in comparison. The Veracruz is considered a "cross over" isn't it? When you talk a "big SUV" I think one would refer to the Ford Expedition, Chevy Suburban, etc. Hyundai doesn't have a "big SUV".
Ford Edge is not a "big" SUV. It's in the same class as the Santa Fe, not the Veracruz. Ford sold 9993 Edges in June, compared to 5863 Santa Fes. Ford has nothing like the 3-row Veracruz crossover right now. The closest thing is the Taurus X crossover, which sold only 2217 units in June.
I still contend that 6348 people (Veracruz buyers in the first half of 2008) is a bigger number than zero. (I was a math major in school, so I am pretty sure about that.) Which is the number of people you assert will buy a $30k+ Hyundai sedan--zero. The Veracruz sales demonstrate there are people who will pay over $30k for a Hyundai. Based on the long wait I had today at the Discover Genesis event, it appears there's considerable interest in the Genesis--Hyundai brand and all. Looks like they at least have forgotten about the Excel.
hyundai will sell 25-30k genesis and that's not that bad at all.
It is 8k-9K under msrp.
Hyndai worry about reverse trading of genesis to korea
The price of 3.8 V6 in korea is about 40K-50K(including tax; 10% of the total amount), so if hyndai sell 25-30K genesis, then hyndai give up the their business.
anyway, judging from the cars you bought, you may be a real car enthusiast. and i don't think that many car salespersons do their job because they love cars. most of them may just work for daily bread. so it's no wonder that you know much more about the cars than the salesperson you were faced with in the showroom.. and, of course, this could not be an excuse for them.
So did they get a loaner car while there brand new Genesis was out of commission? What kind of car was the loaner?? Thanks.
Anyway, i suspect hyundai is not losing money selling genesis in US at low cost, but MB, BMW, Lexus are making fortune.
Maybe you should head on over the NHTSA site for a while.
As far as test runs in Korea-Korean roads are not American roads. I don't know where your from-but driving to Las Vegas in 112 degree heat can be the norm in the summer. And hours and hours through the desert at 75 to 80mph for hours on end at 100 plus degree heat.
This is not to mention conditions other experience in the wintertime in other parts of the country.
NOPE...Korean roads are not American roads.......
This is a common, natural occurance in the car-buying world. No cause for alarm or panic. No cause for dire predictions that the Genesis will fail because dealers are charging over MSRP for them. Those of you who don't want to pay a premium to grab one of the first Genesis sedans in the U.S., simply wait a bit. Prices will soon settle to their natural levels, levels that are sustainable over time. Whether that means discounts below MSRP or even rebates, and how much, remains to be seen. As many have noted, it's not a great time to be selling powerful luxury sedans. But already the Genesis is priced well under its competition. How will they react? How many people will be willing to buy a Genesis without thinking, "It's a Hyundai, so it has to be at least $5k off list or I won't buy it"? We'll see pretty soon.
The Genesis, with its statue especially, did you really think Hyundai had only tested in Korea only?
May I remind everyone this is a simple concept - supply and demand.
I am not one bit surprised by the markups on the Genesis at current time - it was expected initially. Come on, the local Honda dealer is marking up the Fit by 3K.
This is nothing.
Setting an asking price above MSRP when you only have 1-2 of something and you really aren't that interested in selling them right at this moment because you wouldn't mind having them around for customers to look at and drive and build up demand, plus you know that some folks have been eagerly awaiting this new car for a long time (how many posts are in this discussion, for example?), so there's some chance someone will actually pay over MSRP for the cars... that seems like a sensible enough thing to do, to me. What would not be sensible is a dealer letting several Genesis sedans sit on the lot for many months because they won't sell them at or below MSRP. But then, I don't own these dealerships.
Those Gen 1 Santa Fes... are they pretty rare in your area? As in, maybe only 1-2 around? And every competititve model of SUV costs a LOT more than those 1-2 Santa Fes? Or are they readily available for sale, as well as many competitive used SUVs at around the same price? I'd guess the latter.
On a separate note, I test drove a 3.8L w/Tech Package in Bloomington, MN today at the Genesis tour event. It completely exceeded my expectations - which were already very high. Quiet, luxurious, loaded... This sealed the deal for me and I am pulling the trigger as soon as the tech packages arrive in MN. The first two dealers I spoke to here are honoring the lease package so that is positive news.
Oh, and the best part of the event today was the $500 coupon that goes towards either a purchase or lease on the Genesis (and is above and beyond the national lease package or military special deal).
2) Dealer anticipates the demand > supply
Looking at this from the a dealer's POV - let's say the dealer sold both units at or below MSRP, they would then be sitting duck with nothing to advertise, market, and sell on the Genesis.
Side note, there is an added benefit with the arrival of the Genesis family (sedan and forthcoming coupe), Hyundai is anticipating increased foot traffic into showroom - which obviously would help the Genesis but also other proudcts within the Hyundai fleet.
Until your dealer has a new batch arriving or anticipate to in the near future, why not mark up within reasons to see if anyone would bite. They are in no hurry to sell until more untis arrive, because those Genesis will be sold, mark my words
Like Backy said, this certainly isn't anything new. This has been expected, actually. Some Challenger has been marked up as much as 15K, with no test drives - have we been discussing that at the Dodge threads yet? :P
If Hyundai had to cut corners to get the price starting at $33k, then I can live with an unlined trunk lid. But it's curious why it's not covered, since that wouldn't cost a lot to do. Heck, the Aveo sedan has a lined trunk lid. (Not that I'd want to own an Aveo, though, but the trunk lid has a plastic lining.)
I'm not a fan of big dashes. I almost gagged at the bigger dash on the CTS, for example.