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Comments
cracovian- A few notes. The Camry is selling well because it is a good car, but also because regional incentives (though varied) offer up to $1000 back or attractive financing. The Accord offers only Attractive financing, and doesnt see the degree of fleet sales that the Camry does (about 12%). Margins on Accords are enough to offset the marginal sales drop. Altima sales are up, but this is likely because of the revisions to the 2005 model, AND ALSO because of cannibalization effects on the Maxima. Check out those figures. Down by about 47% month to year earlier, and over 20% on the calendar year to date. Finally, the Impala is seeing an insane amount of fleet sales, as Dodge stopped producing its fleet favorite Intrepid months ago, has little desire to cast the 300 in the same light, and Ford has pulled back rental sales as well.
~alpha
But, with the company in serious financial trouble and its product line running from average to mediocre, why take the risk? If you want fun and dependability in a midsize Asian, there is the Altima and the MZ6. The Galant has reasonably edgy styling and a kick butt power plant, but after that it can't quite hang with the class leaders.
The resale is going to be abysmal because, as noted above, the big rebates will be coming soon. My advice to anyone interested in a Galant would be to lease and let Mitsu worry about the resale.
As, I stated in my previous post, I just purchased a former rental '03 Galant this past Friday. I purchased an ES with 16,000 miles on it for $10,400.00. These former "rental vehicles" is part of what is keeping Mitsu afloat. When I see a value, I jumped on it. I think one of the reasons (there are many) that Chrysler cannot afford to bail out Mitsu anymore is because the German ownership has created a MESS AT CHRYSLER and are pouring money in to it! This one will go down in business case study....How to ruin a perfectly good car company!
The only way a second hand sale would be keeping Mitsu afloat is IF the second hand sale was made through a Mitsu dealership. Did you buy your Galant (yes, quite a used value, I agree, but a stunningly unattractive new car proposition for that very reason) from a dealership?
That said, Im hard pressed to think that the ratio is 50%. Thats incredible, almost to the point of being unbelievable. Can anyone offer a citation on this?
~alpha
the car was purchased from a Mitsubishi dealership, located in Southern California. If you know how to negotiate (I am in Sales myself) Southern California is the place where prices are lowest. They did lowball me on my trade. The details are as follows:
Cash price of Vehicle $10,400.00
Doc fee 45.00
Smog Fee 50.00
Sales tax 813.36
License 137.00
Smog Certificate 8.25
11,453.61
LESS TRADE 3,000.00
8,453.61
According to Edmund's, the private party price is $10.098.00. As I stated, I paid $10,400.00 at a VOLUME Mitsubishi store! I was also in a position where I paid CASH. Nothing motivates better at a car dealership than a check-made out to the dealership-and you tell them, "All I have to do is fill in a agreed upon amount!".
2. Dealers DO NOT get motivated by a blank check. They'd rather have a trade-in involved (you said you got taken here too) and financing which they make a lot more money on than anything else.
But since it's all in the mind and you're happy then it's all that matters...
If they can reinvigorate the Eclipse the way the concept car promises, does something to the standard Lancer so it doesn't look like a wind-up toy with no style they'll be ok. The SUVs seem solid and I see them all the time on the road. The galant is nowhere to be seen. i'm driving one this weekend so will see what i think compared to the rest. I prefer the 6 right now to everything else mainly due to style and fun to drive factor.
Anon, thank you for the article. But one thing I dont understand is how come the article is dated May 07 2004, but contains items as follows: "Mitsubishi sold a record 345,111 vehicles in the United States last year. It had boldly predicted it would sell 500,000 vehicles in 2005 and 600,000 vehicles in 2007. However, it has twice reduced its volume forecast for 2003, first cutting its U.S. goal to 330,000 units in April, and then again to 300,000 units last month."
When exactly is this article from? Is it really current? 2003 sales have been recorded some time ago. I'm confused and skeptical as to the pertinence of the information presented.
~alpha
I paid $10,400.00
Thats $302.00 0ver the private party price.
PLUS FEES-you would have those if you purchased from private party or dealer. The only fee you wouldn't have (at least here in California) is the $45.00 "doc fee" if you purchased from the private party. But then you would have your time involved in registering the car.
BTW-I knew what my trade is worth-I didn't "get taken". But it was a little low. My professional career is in Industrial sales, I am a trained negotiator. I don't "get taken." Your only partially right in regards to the "blank check" statement I made. If you are in a position to pay cash, the dealer worrying about you qualifying for a loan is a non-issue. I have purchased cars in the past using a conventional auto-loan. However, I have ALWAYS HAD FINANCING IN PLACE BEFORE GOING ANYWHERE A DEALER. Having it any other way is like having the coyote watching the hen house! Special manufacturer financing rates of course is something different!
~alpha
Some pessimistic people love to jump on the bandwagon of failure and actually end up spreading fear and panic that leads to the failure that could have been avoided if everyone just stayed calm.
There are very big differences between the Mitsu case and that of Nissan and Mazda. Primarily, the inflow of cash and strong, decisive management from the intervention of another automotive company. At this point, the other automotive company (DCX) is heavily loosening ties from Mitsu in so far as clearly NOT providing any cash support. It doesnt necessarily take many years to ruin a company. Conversely, narrow losses in consecutive years doesnt necessarily meant the company is destined for failure. But the prospects for Mitsubishi at this point seem grim, due to heavy kieritsu issues as well as a distinct lack of competitive product in the emerging and current markets.
"Some pessimistic people love to jump on the bandwagon of failure and actually end up spreading fear and panic that leads to the failure that could have been avoided if everyone just stayed calm"
Sorry buddy, but companies seal their own fate, profits and losses are generated internally, and the market simply reacts to such issues. This is not a Firestone Tire/Ford Explorer type of unusual circumstance. This is an example of an automotive manufacturer that has rested on its laurels, been steeped in tradition, misjudged its core markets.. for too long.
I wish good luck to MM, its going to be needed.
~alpha
Some pessimistic people love to jump on the bandwagon of failure and actually end up spreading fear and panic that leads to the failure that could have been avoided if everyone just stayed calm.
As for the early 90s, I'd love to hear what sort of common problems you think Mitsu has based on other people's experiences rather then your own. The only common issue I know of is brake rotor warpage, which is common on many different cars. In the early 90s, Mitsu was financially healthy so saying their problems are long term would be incorrect. They did not have financial troubles until the year 2003. The whole reason Mitsu is having problems currently is due to a marketing mistake. They lost millions of dollars through bad loans given to people who were too much of a credit risk. It's not because they make a bad car and lost money through warranty repairs.
Some of you might want to look for an appropriate discussion on our News & Views board to continue this debate.
Thanks.
When you think about it doesn't make any sense to pay tax on private party transactions (people are not businesses) and it's illegal in GA, thank goodness...
Again, I must say your obnoxious tone is not needed in this forum. Maybe those 04's you saw at the dealer were waiting for an oil change or tire rotation. You can't infer they are their for major problems.
And let's also try to stick to the Galant since that is indeed the topic here...
My question is has Mitsubishi resolved the smoking problem and are there any nagging problems with this model?
Thanks,
Tom