Genesis G70 Pricing

[Boulderado]

To me 2.0T Elite seems like the best value. 3.3T Advanced is also very intriguing but I am worried the AWD model might be under-tired with 225s trying to put down all that torque...

 

[Brock Samson]

It's been noted here countless times that you can't simply look at the CAD-USD conversion and go "presto, that should be the U.S. price!" Currency conversion doesn't work that way. Ditto comparing a G70 to a Sonata - you can line up features all you want, but the G70's more sophisticated chassis, higher-quality interior, and additional ownership benefits all have tangible value.

I know that you can't simply convert the currency but $7k is more than I was expecting. I was thinking it would be in the $3-5k range.

The big question is what the negotiations are going to be like. I don't expect Stinger-level discounts but if they are firm and want MSRP or higher then I'd have to pass. You guys have any expectations for negotiated prices?

 

[devellis]

If they think sales will stay brisk, they'll discount less. If they want to close more deals with a bit less per transaction, they'll discount a bit. But the MSRP is aggressive enough that I wouldn't expect massive price reductions.

One factor that plays here are all the add-on costs, like administrative fees or any add-ons. I think much of that runs counter to the experience they're hoping to give to buyers. A safe stance for them might be to discount by dropping some of those fees. Delivery, of course, is a real cost for them.

But administrative fees are kind of like charging you separately for their rent and utilities, if you're transferring plates from a previous car and not having to deal with registration costs. If there are any additional external administrative costs charged to them, they sould itemize them and pass actual costs through without charging the common flat fee, which greatly exceeds their external costs. They shouldn't charge any extra for their internal staff or administrative costs, any more than I should charge them for my time spent at the dealership. They're in the business of selling cars. That's what those people are being payed for and what you're paying for as a buyer. Passing through true external, add-on costs they incur is one thing. Their profit margin should probably cover that, too but some external costs like state registration fees seem legitimately to be the buyer's responsibility. But the buyer should only pay the actual fee. Charging for their staff time in the normal execution of their jobs is just a way of upping profit and calling it something other than what it is.

I've had friends and family in the car business, as well as working at a dealership myself when I was a lot younger. None of this is anything they'd argue with, except maybe with a customer as part of the haggle.

 

[Mcc]

If they think sales will stay brisk, they'll discount less. If they want to close more deals with a bit less per transaction, they'lyl discount a bit. But the MSRP is aggressive enough that I wouldn't expect massive price reductions.

I would agree with this.

But, as for the admistrative fees, what kinds of fees are you paying? I personally am not seeing exorbitant costs. I think it is dealer dependent not something set by corporate.

 

[dengen]

, if you're transferring plates from a previous car and not having to deal with registration costs. If there are any additional external administrative costs charged to them, they sould itemize them and pass actual costs through without charging the common flat fee, which greatly exceeds their external costs.

Can you explain this? If I have just sold a car but still have the plates, how can i save money?

 

[devellis]

I would agree with this.

But, as for the admistrative fees, what kinds of fees are you paying? I personally am not seeing exorbitant costs. I think it is dealer dependent not something set by corporate.

Yeah, it's dealer-by-dealer. I've seen $899 charges tacked on to cover nonspecific administrative fees with outrageous claims that these are an absolute necessity. Asking for an itemization is often revealing, as they never seem to provide that, in my limited experience, but may soften on the matter of their inevitability.

 

[danygenesis]

Yeah, it's dealer-by-dealer. I've seen $899 charges tacked on to cover nonspecific administrative fees with outrageous claims that these are an absolute necessity. Asking for an itemization is often revealing, as they never seem to provide that, in my limited experience, but may soften on the matter of their inevitability.

In Florida dealer fees are between $699- $999 depending on the dealer. NON NEGOTIABLE. Thats the law. The highest in the country

 

[canucklehead604]

Can you explain this? If I have just sold a car but still have the plates, how can i save money?

^ interesting. in Canada all fees are included - freight/PDI/doc fees - so the 'MSRP' is all-inclusive except for tax. i suppose this is possible given Genesis' national model of buying direct from the distributor, and not individual dealers.

 

[Mcc]

In Florida dealer fees are between $699- $999 depending on the dealer. NON NEGOTIABLE. Thats the law. The highest in the country

^ interesting. in Canada all fees are included - freight/PDI/doc fees - so the 'MSRP' is all-inclusive except for tax. i suppose this is possible given Genesis' national model of buying direct from the distributor, and not individual dealers.

Not even individual dealers in the US. I would be that the high fees in Florida are attributable to the dealers lobby. They win, residents loose.

 

[devellis]

Can you explain this? If I have just sold a car but still have the plates, how can i save money?

It may vary by state, but in most of the ones I've lived in, it costs less in state DMV fees to transfer an existing plate from an old car to a new car than it does to initiate a new registration application. These are fees that can legitimately be passed on to the buyer as they're independent of the purchase price. I don't remember the exact prices, but they're not huge. Some dealers include that in their "administrative fees." When the registration is just a transfer, the fee is nominal and the dealer shouldn't be charging very much for providing that service. A good dealer will ask if you want to handle this yourself or have them do it for you, and specify the cost (which should be the same either way, if you pay directly to the state or give the dealer the money to sne to the state). Even with a new registration and thus a new license plate, the fees aren't huge but they are a bit higher and thus might result in a somewhat higher but legitimate administrative fee.

I guess my point was, while there are legitimate administrative services that involve payments to state agencies that dealerships can reasonably expect reimbursement for, they often throw the term around as a catch-all for essentially padding the sales price under a reasonable-sounding guise. Other retailers occasionally try to do this too, most notably banks and credit card companies that charge various "processing fees." But for administrative activities that are a routine part of a transaction and that don't involve their paying costs out on your behalf (as is the case with state registration fees), I don't feel that an extra charge is warranted, any more than I expect to get a discount representing efforts I have made to bring the transaction to fruition. Some processing costs, for both parties, are just the cost of doing business.

Sorry if my earlier comments were confusing or if I made it sound like savings would be huge if a license plate is transferred from the old car to the new..

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[EdP]

In Florida dealer fees are between $699- $999 depending on the dealer. NON NEGOTIABLE. Thats the law. The highest in the country

Everything is negotiable. I'll pay that $999 dealer fee, but I expect you to drop the sales price by $1200 to cover it. Then you go from there.

There is only one number that counts, that is the total price you pay in the end. Many dealers use software in the service area that automatically adds a fee for "environmental disposal" and people don't question it. I do and have had it taken off the bill in some cases.
There are two steps in the car buying deal. The first is the final price from the salesman, but you are not done fighting yet. The finance guy has plenty of tricks you have to sidestep.

 

[devellis]

Not even individual dealers in the US. I would be that the high fees in Florida are attributable to the dealers lobby. They win, residents loose.

Exactly.

Legal scholars have tried pushing back against the "cronyism" (their word) that allows dealerships to take advantage of consumers and the selective facts that NADA puts out "documenting" the benefits to consumers of a dealership model. Yes, there are some benefits but many argue persuasively that consumers are better served by the direct-purchase model such as Genesis has in Canada. Manufacturers also prefer it. But NADA is powerful and has caught the ear of lots of state legislators.

 

[danygenesis]

Everything is negotiable. I'll pay that $999 dealer fee, but I expect you to drop the sales price by $1200 to cover it. Then you go from there.

There is only one number that counts, that is the total price you pay in the end. Many dealers use software in the service area that automatically adds a fee for "environmental disposal" and people don't question it. I do and have had it taken off the bill in some cases.
There are two steps in the car buying deal. The first is the final price from the salesman, but you are not done fighting yet. The finance guy has plenty of tricks you have to sidestep.

Agree. Dealer fee is non negotiable but the car price yes . That's how I allways negociate the final deal. First thing is to get the lowest price for the car even though you are leasing, then apply all incentives and the lowest MF.

 

[devellis]

Everything is negotiable. I'll pay that $999 dealer fee, but I expect you to drop the sales price by $1200 to cover it. Then you go from there.

There is only one number that counts, that is the total price you pay in the end. Many dealers use software in the service area that automatically adds a fee for "environmental disposal" and people don't question it. I do and have had it taken off the bill in some cases.
There are two steps in the car buying deal. The first is the final price from the salesman, but you are not done fighting yet. The finance guy has plenty of tricks you have to sidestep.

Yes, I agree completely. That's why it's helpful to get all the numbers out in the open before any hand shaking. Dealers will sometimes wait until the final write-up before mentioning the administrative fees, in the hope that at that point, the buyer is worn out and has already decided to buy. I have this straight from people who have worked in car sales, and yes, selling premium imports.

Knowledge and a willingness to walk away are your friends. A good dealer who wants you to buy this car and come back in the future should recognize the value to both parties of not playing tricks like these.

 

[Mcc]

But NADA is powerful and has caught the ear of lots of state legislators.

They didn’t just catch their eye, but may have paid for those eyes.

 

[ctrcbob]

Dealer fees are NOT mandatory in Florida. It is nothing more than extra profit. Matter of fact, some dealers advertise "No Dealer Fees". Don't let a Florida dealer tell you it is manditory.

I only buy from dealers that drop the Dealer Fee.

 

[jlin101]

Same...in Siberian Ice with gray seat stitching.

If US spec is like Canada's, then Sport Grey is not available with either Siberian Ice or Santiago.

 

[Toddasaurus]

Im not buying until next summer, so I'm very curious to see if discounts will set in a year after release like what is happening with the Stinger.

I'm sorry for repeating myself, but just to illustrate - my Kia dealership salesman is offering me 10k off a Stinger GT2. Last year they were selling above MSRP, adding in their bogus 'market adjustment' fee. Needless to say, they're pretty desperate to sell right now.

When I test drive the G70 this year I'm going to bring this up to my salesman. If they can't give me any sizeable discounts on the spot, which I don't expect them to, I have no problem waiting until next year (as I was originally planning anyway), as my assumption is that they will start offering discounts at that time. I'm doubtful that the G70 will continue flying off the shelves after the excitement has worn off. Don't get me wrong, the G70 seems pretty dang good, but it's not earth shatteringly good to where America will gorge itself on it.

 

[Beefer]

If US spec is like Canada's, then Sport Grey is not available with either Siberian Ice or Santiago.

Wrong. Already proven by the brochure.

 

[danygenesis]

Dealer fees are NOT mandatory in Florida. It is nothing more than extra profit. Matter of fact, some dealers advertise "No Dealer Fees". Don't let a Florida dealer tell you it is manditory.

I only buy from dealers that drop the Dealer Fee.

I never trust what the dealer says. I trust the written laws. Dealers fee in Florida ARE MANDATORY AND NON NEGOTIABLE. They drop the price but NEVER the dealer fee. They even have it pre printed on their papers.
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