Edmunds dealer partner, Bayway Leasing, is now offering transparent lease deals via these forums. Click here to see the latest vehicles!
Options
The Value Proposition of Luxury Brands
This discussion has been closed.
Popular New Cars
Popular Used Sedans
Popular Used SUVs
Popular Used Pickup Trucks
Popular Used Hatchbacks
Popular Used Minivans
Popular Used Coupes
Popular Used Wagons
Comments
WAP (weighted average price): say brand BR sells 100 car A at $20K, 100 car B at $30K, then the WAP for brand BR is (20K * 100 + 30K * 100)/(100+100) = 25K
With that, we can easily rate the brand prestige in the NA market:
Tier 1: Rolls-Royce, Bentley, Maybach, Ferrari, Lamborghini...
Tier 2: Porsche, Mercedes-Benz, BMW, Audi, Lexus...
Tier 3: Toyota, Honda, Nissan, Hyundai...
The more high priced cars a brand sell, it increases its brand prestige, and vise versa.
Equus and Genesis certainly increases the brand prestige for Hyundai, quantitatively. But selling lots of Accent/Elentra would means the Hyundai brand can never have a high WAP.
And what's a good value? maybe low car price for a high WAP brand?
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
This also imitate how our brain perception works. I think in most cases, when a brand is mentioned, the WAP score will be the first to surface. Also, for most people it takes a while and drastic changes for our brain to change the WAP perception...
I assume you would put Acura and Infiniti into tier 2? And probably Volvo and caddilac also?