How Much Are Lexus Dealers Willing to Deal?
11-16-11, 08:44 AM
#16
It's not an effective rule. Dealers can't charge over MSRP. However they can add a "paint protection package" before putting it on the lot for sale, and then charge $4000 for that option on top of the MSRP.
That said, I doubt there will be a massive shortage of this car on launch. Shortages only happen on limited volume productions - e.g. if they launched a GSF and many dealers don't even recieve an allocation, and many only get one car, then you would have a shortage and gouging.
That said, I doubt there will be a massive shortage of this car on launch. Shortages only happen on limited volume productions - e.g. if they launched a GSF and many dealers don't even recieve an allocation, and many only get one car, then you would have a shortage and gouging.
11-16-11, 08:13 PM
#17
Guest
Posts: n/a
I do expect a well equiped GS to be close to 60 with everything on it - and I think the F-Sport package will be stupid expensive (like the LS). And that is my concern. Infiniti did the same thing. Loaded M37 push $60 and M56's can easily get up around $67. In 2006 my loaded M45 was $56k. And now they are having to discount the M's pretty heavily to move them.
BTW, my '10 GS350 with Nav and Levinson and a few other typical options listed for about $51. If a comparable car becomes over $55 (without F-Sport) I'm out.
BTW, my '10 GS350 with Nav and Levinson and a few other typical options listed for about $51. If a comparable car becomes over $55 (without F-Sport) I'm out.
People do purchase Lexus even as the prices have risen, this has been proven over time. I think the GS does offer a convincing package between 45-60k. Past that I think they would have lost their minds with a V-6 only but I figure a loaded GS 450h will hit 65k.
I made a thread in car chat saying the Asian brands will really have a hard time, particularly Infniit/Acura if they continue to raise prices with average quality while the Germans improve quality and offer better pricing. Its happening, Audi is now killing it and selling way past Inifiniti. Lexus has established itself as one of the premier brands where people feel it is "worth" the price.
We all know the Germans have clearly done this particularly BMW/Mercedes here. Now Audi is rising.
11-16-11, 10:44 PM
#18
Pole Position
Join Date: Aug 2011
Location: CA
Posts: 342
Likes: 0
Received 0 Likes
on
0 Posts
You can't compared Lexus with Infiniti or Acura as those brands are Tier 2/3 struggling brands. Lexus has had success selling vehicles over 50k-375k. Infiniti can't give away the M3735h/56 and has historically stunk at anything over 40k. Acura has been even worse over 40k, only the MDX sells well and any SUV sells. Infiniti is basically a leasing company anyway, the last M sold well b/c of cheapo leases, the new M doesn't have them and is floundering.
People do purchase Lexus even as the prices have risen, this has been proven over time. I think the GS does offer a convincing package between 45-60k. Past that I think they would have lost their minds with a V-6 only but I figure a loaded GS 450h will hit 65k.
I made a thread in car chat saying the Asian brands will really have a hard time, particularly Infniit/Acura if they continue to raise prices with average quality while the Germans improve quality and offer better pricing. Its happening, Audi is now killing it and selling way past Inifiniti. Lexus has established itself as one of the premier brands where people feel it is "worth" the price.
We all know the Germans have clearly done this particularly BMW/Mercedes here. Now Audi is rising.
People do purchase Lexus even as the prices have risen, this has been proven over time. I think the GS does offer a convincing package between 45-60k. Past that I think they would have lost their minds with a V-6 only but I figure a loaded GS 450h will hit 65k.
I made a thread in car chat saying the Asian brands will really have a hard time, particularly Infniit/Acura if they continue to raise prices with average quality while the Germans improve quality and offer better pricing. Its happening, Audi is now killing it and selling way past Inifiniti. Lexus has established itself as one of the premier brands where people feel it is "worth" the price.
We all know the Germans have clearly done this particularly BMW/Mercedes here. Now Audi is rising.
11-16-11, 10:45 PM
#19
if anything the past few years lexus has done exactly the wrong things to make people think they are not "worth" it as much as they did in the past. but the good thing is i think lexus is trying to change all that again. to me the bottom line is for lexus to succeed, they have to offer more for the same price, or the same for less money (more car for less money is kind of gone already imho). if everything equal (or wash overall), lexus is going to have a much tougher fight. that's one thing which is going to be very hard to beat -- people's mentality.
my 2 cents anyway
my 2 cents anyway
11-17-11, 04:34 AM
#20
You can't compared Lexus with Infiniti or Acura as those brands are Tier 2/3 struggling brands. Lexus has had success selling vehicles over 50k-375k. Infiniti can't give away the M3735h/56 and has historically stunk at anything over 40k. Acura has been even worse over 40k, only the MDX sells well and any SUV sells. Infiniti is basically a leasing company anyway, the last M sold well b/c of cheapo leases, the new M doesn't have them and is floundering.
People do purchase Lexus even as the prices have risen, this has been proven over time. I think the GS does offer a convincing package between 45-60k. Past that I think they would have lost their minds with a V-6 only but I figure a loaded GS 450h will hit 65k.
I made a thread in car chat saying the Asian brands will really have a hard time, particularly Infniit/Acura if they continue to raise prices with average quality while the Germans improve quality and offer better pricing. Its happening, Audi is now killing it and selling way past Inifiniti. Lexus has established itself as one of the premier brands where people feel it is "worth" the price.
We all know the Germans have clearly done this particularly BMW/Mercedes here. Now Audi is rising.
People do purchase Lexus even as the prices have risen, this has been proven over time. I think the GS does offer a convincing package between 45-60k. Past that I think they would have lost their minds with a V-6 only but I figure a loaded GS 450h will hit 65k.
I made a thread in car chat saying the Asian brands will really have a hard time, particularly Infniit/Acura if they continue to raise prices with average quality while the Germans improve quality and offer better pricing. Its happening, Audi is now killing it and selling way past Inifiniti. Lexus has established itself as one of the premier brands where people feel it is "worth" the price.
We all know the Germans have clearly done this particularly BMW/Mercedes here. Now Audi is rising.
While you make disparaging remarks about Infiniti, it is worth noting that both the G and M sedans have outsold their Lexus counterparts since 2006. So if they are "struggling to give those cars away", Lexus has to both overdeliver and have a more aggressive price point. If I was them I would raise prices by no more than $1-2k.
11-17-11, 06:19 AM
#21
GS will have to compete on value.
While you make disparaging remarks about Infiniti, it is worth noting that both the G and M sedans have outsold their Lexus counterparts since 2006. So if they are "struggling to give those cars away", Lexus has to both overdeliver and have a more aggressive price point. If I was them I would raise prices by no more than $1-2k.
While you make disparaging remarks about Infiniti, it is worth noting that both the G and M sedans have outsold their Lexus counterparts since 2006. So if they are "struggling to give those cars away", Lexus has to both overdeliver and have a more aggressive price point. If I was them I would raise prices by no more than $1-2k.
Of the premium brands, BMW has by far the most aggressive leasing, and has for several years. Infiniti is up and down. I leased my 06 M45 at a great rate, but 18 months later the exact same car would have cost me $150 more a month to lease because they had gone way down on their residuals. They are all over the place from month to month where BMW stays aggressive constantly. Mercedes and Lexus are inconsistent as well. Lexus has historically had really ****ty leases. I was very surprised I was able to lease my GS at a favorable rate. But that just shows how poorly the car was selling.
11-17-11, 08:08 AM
#22
I agree. I'm surprised at 1SICKLEX response to my post give how poorly the GS has sold the past few years. I don't see much difference right now between what Lexus has gone through versus Infiniti and Acura. He could be partly right, but not by much.
Of the premium brands, BMW has by far the most aggressive leasing, and has for several years. Infiniti is up and down. I leased my 06 M45 at a great rate, but 18 months later the exact same car would have cost me $150 more a month to lease because they had gone way down on their residuals. They are all over the place from month to month where BMW stays aggressive constantly. Mercedes and Lexus are inconsistent as well. Lexus has historically had really ****ty leases. I was very surprised I was able to lease my GS at a favorable rate. But that just shows how poorly the car was selling.
Of the premium brands, BMW has by far the most aggressive leasing, and has for several years. Infiniti is up and down. I leased my 06 M45 at a great rate, but 18 months later the exact same car would have cost me $150 more a month to lease because they had gone way down on their residuals. They are all over the place from month to month where BMW stays aggressive constantly. Mercedes and Lexus are inconsistent as well. Lexus has historically had really ****ty leases. I was very surprised I was able to lease my GS at a favorable rate. But that just shows how poorly the car was selling.
If you look at Brandz's survey of automotive brand strength - this is the ranking they come up with:
1. Toyota $24.2
2. BMW $22.4
3. Mercedes $15.3
4. Honda $14.2
5. Porsche $12.4
6. Nissan $10.1
7. VW $7.4
8. Ford $7.4
9. Audi $3.8
10. Lexus $3.7
So you see Lexus is the top Japanese luxury car brand. I suspect that Infiniti and Acura really lag - because they don't sell anywhere near as many cars. Acura is also hurt by the fact that their cars are little more than warmed over Hondas.
Thread
Thread Starter
Forum
Replies
Last Post
