10 cars people won't buy

[Ernie3647]

Never thought I'd see the Genesis on this list.

http://247wallst.com/autos/2014/03/15/ten-cars-people-wont-buy/

 

[SR22pilot]

The Genesis is a 2009 platform getting a total redesign for 2015. Above it the Equus has a much nicer interior and a lot of features such as HUD, braking assist, etc. Below it the Azera has ventilated seats for the front passenger and a lot of the Genesis features. Obviously I like the Genesis since that is where I spent my dollars but the purchase was a value buy with many other nice cars in the running. In the end those subsidies resulted in a deep discount that was too good to pass up.

 

[GenesisCaptain]

I was curious to see these cars in context of their model cycle. Here is the list and the year that the next generation model is expected. So, it looks like a mix of early generation stinkers and models about to be replaced.

1) Fiat 500 - 2016 (2 years)
2) Buick Verano - 2nd year (replacement TBD)
3) Chevy Sonic - 3nd year (replacement TBD)
4) Cadillac ATS - 2nd year (replacement TBD)
5) Volkswagen GTI/Rabbit/Golf - 2015
6) Dodge Dart - 2nd year (replacement TBD)
7) Hyundai Genesis - 2015
8) Chrysler 300 Series - 2016
9) Chevy Tahoe - 2015
10) Ford Flex - 2016?

 

[Ernie3647]

There were a number of things that I considered when purchasing mine. Value, warranty, reliability and of course the fundamental emotional things like looks, quietness, ride, comfort and features. On December 24th 2010 (Christmas eve) the dealer was very eager to sell this car so a good was deal had. I can say today that I am very satisfied with my choice. It has severed me well with a very minimum of trouble for 3 years and 28,000 miles. I will be sorry to see it go when the 2015 comes out. I’m going to go with a new Genesis for the same reasons as the first. Very anxiously waiting its arrival.

 

[Jutdean]

One of the reasons I bought the genesis is that they aren't popular. I didn't want to drive just another bmw or Mb...

This report just came out, too and not a Hyundai listed on it.

http://www.foxnews.com/leisure/2014/03/13/consumer-reports-names-23-worst-used-cars-to-buy/

 

[landtuna]

The 2015 Genny Ultimate (and perhaps other trim levels) have a HUD.

The title is somewhat misleading. It isn't that people are not buying Genny's but rather that the inventory is high - that is, compared to other cars they are not selling unit by unit as quickly. This seems pretty natural to me given the average selling price of the Genesis and the fact that other close brands have much more popular brand recognition. The Genny may never be a sales leader but that doesn't mean it is worth less or not as good as the next brand.

And wasn't it just last year that Hyundai was selling more than it could build? When I bought my Santa Fe in 2011 that was the case. No more manufacturing capability. Has Hyundai caught up to or outstripped the demand and now has excess capacity?

 

[Mark_888]

And wasn't it just last year that Hyundai was selling more than it could build? When I bought my Santa Fe in 2011 that was the case. No more manufacturing capability. Has Hyundai caught up to or outstripped the demand and now has excess capacity?

Probably depends on which plant. Many Hyundai's are now built in North America, but Genesis is built in Korea.

 

[DRS]

One of the reasons I bought the genesis is that they aren't popular. I didn't want to drive just another bmw or Mb...

This report just came out, too and not a Hyundai listed on it.

http://www.foxnews.com/leisure/2014/03/13/consumer-reports-names-23-worst-used-cars-to-buy/

^^ +1

 

[Mark_888]

The list does not consider which cars are the most popular. The list contains models with average inventories (also known as “days to turn&#8221 which stretch more than 100 days. Car companies usually have 60-day inventories across all models. Inventories of hot-selling cars can have average as little as 20 days.

However, it really depends on how many cars the manufacturer builds/imports versus the demand. So even a hot-selling car could be on the list if the manufacturer estimated higher sales than have actually occurred. But usually demand for those cars on the list were simply over-estimated the manufacturer/distributor, so they have excess inventory at the moment. In general, inventories for all cars are at 5-year highs, partially due to the harsh winter, but some cars have higher inventories than others (not in absolute numbers, but relative to "days to turn" as discussed above).

For example, a Volkswagen GTI/Rabbit/Golf has 137 days of inventory on hand. The Genesis has 119 days of inventory. It might seem that the inventory (in number of vehicles) for the Genesis is almost as high as the Volkswagen GTI/Rabbit/Golf, but that is completely false because the sales per day of the Volkswagen GTI/Rabbit/Golf are much higher than the Genesis.

Obviously, in the case of the 2014 Genesis, some buyers are reluctant to purchase it since a 2015 model is right around the corner, and Hyundai started advertising the 2015 model in the Super Bowl, probably killing 2014 sales. There are going to be some stupendous bargains on 2014 Genesis models coming up soon, especially when on considers the 2015 price increases.

 

[YEH]

I was curious to see these cars in context of their model cycle. Here is the list and the year that the next generation model is expected. So, it looks like a mix of early generation stinkers and models about to be replaced.

1) Fiat 500 - 2016 (2 years)
2) Buick Verano - 2nd year (replacement TBD)
3) Chevy Sonic - 3nd year (replacement TBD)
4) Cadillac ATS - 2nd year (replacement TBD)
5) Volkswagen GTI/Rabbit/Golf - 2015
6) Dodge Dart - 2nd year (replacement TBD)
7) Hyundai Genesis - 2015
8) Chrysler 300 Series - 2016
9) Chevy Tahoe - 2015
10) Ford Flex - 2016?

Silly list.

The 500 sells pretty well for its segment (as does the Sonic) and the Verano outsells the ILX.

And the Genesis, despite being an older model, outsells the M (by a far margin) and GS.

Keep in mind this list is from the same entity that proclaimed that Kia was a brand that was going to disappear a few years ago - 24/7 should stay away from analyzing the auto sector.

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[Mark_888]

Silly list.

The list is not silly. But the headline is wrong, probably written by an intern since most media venues are too cheap these days to pay real wages to people who are actually literate.

The title should have read, "Top 10 Cars People Are Not Buying".

As I mentioned previously, the list is based on current inventory of number of days (not units) of inventory on hand. The number of days is based on historical sales volume for a particular vehicle since manufacturers usually do not like to keep more than 60 days of inventory on-hand. The list is not based on the absolute sales volume of number of units selling (as I explained in previous post).

Obviously, since Hyundai started advertising the 2015 Genesis at Detroit Auto Show in January, and they showed a Super Bowl Ad for the 2015 Genesis in early February, that will depress sales of existing 2013/2014 units on hand and inventories are currently higher than normal. I predict there will be some stupendous deals on 2013/2014 Genesis in coming months (at least $10K off MSRP).

 

[sluggo]

The entire article could be re-titled "The Top 10 Badly-Forecasted Car Models: Marketing Departments Take Note".

Manufacturers stuff the channels all the time. Dealers make purchasing mistakes based on factory guidance all the time. Saying that dealerships have a large supply of a particular model says little to nothing about the merits of the particular car. All it says is there was a mismatch between the forecasted and the actual demand.

Luck to the buyer who recognizes real value - these numbers simply confirm my suspicion that there's not a lot of us out there.

 

[Mark_888]

Saying that dealerships have a large supply of a particular model says little to nothing about the merits of the particular car. All it says is there was a mismatch between the forecasted and the actual demand.

That is correct, but it is good to note that this mismatch probably occurred because there was a sudden reduction in demand, compared to previous periods. For the Genesis, we have a pretty good idea why that is.

BTW, I am not sure whether the inventory levels used in the list are at the wholesale level (manufacturer/distributor inventory) or at retail level (dealer inventory). A lot of people don't realize that once a dealer purchases a car from a manufacturer/distributor, it belongs to the dealer, even if the manufacturer/distributor may sometimes finance the dealer purchase.

 

[ksoze]

Maybe "The Osborne effect car List" title is more appropriate - especially for the Genesis.

 

[YEH]

The list is not silly. But the headline is wrong, probably written by an intern since most media venues are too cheap these days to pay real wages to people who are actually literate.

The title should have read, "Top 10 Cars People Are Not Buying".

As I mentioned previously, the list is based on current inventory of number of days (not units) of inventory on hand. The number of days is based on historical sales volume for a particular vehicle since manufacturers usually do not like to keep more than 60 days of inventory on-hand. The list is not based on the absolute sales volume of number of units selling (as I explained in previous post).

Obviously, since Hyundai started advertising the 2015 Genesis at Detroit Auto Show in January, and they showed a Super Bowl Ad for the 2015 Genesis in early February, that will depress sales of existing 2013/2014 units on hand and inventories are currently higher than normal. I predict there will be some stupendous deals on 2013/2014 Genesis in coming months (at least $10K off MSRP).

It is a silly list since it's purely based on DTT - which can be misleading based on supply and volume of sales, not to mention not taking into account life-cycle (this list did not list each make by MY).

For instance, the RL had a low supply on Acura lots, but that's b/c Honda pretty much gave up on producing it in any volume; and the fact that the RLX (as well as the Infiniti M) is missing from this list shows how silly it is.

Also, the Sonic sold 85,646 last year while the Yaris only sold 21,342 (and typically over 50% of Yaris sales is to rental fleet) - so the Sonic probably did 5-6X the Yaris in retail sales and the Sonic is the subcompact that people aren't buying?

 

[crepen]

Another thought - did Hyundai "pre-build" excess inventory pending retooling for the new model, and those models are already here for expected sale Feb, Mar, April?

TOTALLY anecdotal and subjective, but I think I have seen MANY more Genesis here (Toronto Ontario) in the last couple of months than in the prior 5+ years I've had mine.

 

[Mark_888]

It is a silly list since it's purely based on DTT - which can be misleading based on supply and volume of sales, not to mention not taking into account life-cycle (this list did not list each make by MY).

For instance, the RL had a low supply on Acura lots, but that's b/c Honda pretty much gave up on producing it in any volume; and the fact that the RLX (as well as the Infiniti M) is missing from this list shows how silly it is.

I already explained everything you said in my previous posts.

However, it is likely that demand for 2014's is down pending the release of the 2015. I was at my dealer in January, and they still had at least 14 of the 2013 Genesis sedans on their lot. Not sure how many 2014's they had, but just in last two weeks I am getting bombarded by the dealer by email and phone about what a great deal I can get on a 2014 Genesis.

 

[Mark_888]

Another thought - did Hyundai "pre-build" excess inventory pending retooling for the new model, and those models are already here for expected sale Feb, Mar, April?

TOTALLY anecdotal and subjective, but I think I have seen MANY more Genesis here (Toronto Ontario) in the last couple of months than in the prior 5+ years I've had mine.

They may sell all the 2014's, but they are going to have to offer some stupendous discounts (which I am sure they will). At this point, I think buyers will wait for the 2015 release date, even if they are willing to get a 2014. There is still 2013 inventory on many dealer lots.

 

[ksoze]

At this point, I think buyers will wait for the 2015 release date, even if they are willing to get a 2014. There is still 2013 inventory on many dealer lots.

There are unfortunately probably many who do not follow car releases like us and will likely not even know of the new model coming until it is in the showroom. Aside from the Superbowl ad, there is not currently that much broad info for the normal car buyer to realize that a completely new model is pending.

 

[Mark_888]

There are unfortunately probably many who do not follow car releases like us and will likely not even know of the new model coming until it is in the showroom. Aside from the Superbowl ad, there is not currently that much broad info for the normal car buyer to realize that a completely new model is pending.

Not so sure this time. On the Hyundai webpage where it lists all the vehicles they show both the 2014 Genesis (from $35,200) and 2015 Genesis (Spring 2014).

Go to the home page https://www.hyundaiusa.com/ and put your cursor over the word "Vehicles" on the top of the page.