G70 US Availability?

[CollinR4]

At the 2019 North American International Auto Show in Detroit, we spoke with Hyundai's head product planner, Mike O'Brien, who dropped a strong hint that a high-performance G70 is in the works.
"A big effort with the G70 was thermal management, to make sure that this car will hold up," O'Brien told us. "We're building for the future. I'll just say that."

A Hotter Genesis G70 Could Be On Its Way

Could be a sign of good things to come but I think Genesis needs to crawl before they can walk (Focus on getting stock in all states).

 

[Slowerthanslow]

Ok, but as I said, that means they've got a car that won a lot of awards *last* year finally becoming available several months after it was hot. Ho hum.

My point is this is a pretty classic B school challenge. How do you make the most money in this situation? Discount heavily to get the cars out there and figure that cars on the road create more sales (and more dollars) in the long run? Or squeeze current customers for a few thousand more per sale because your inventory is low, at the cost of making the car a rarity on the road, and thus an oddball in comparison to zillions of BMWs and Audis out there?

I'm guessing in this internet-charged age where number of users counts for more than actual profit that there's going to be deals to had on this car. I can say for myself since I have an eye on a model with MSRP of $41k that I'll be offering no more than $35k and seeing what happens. Maybe I won't get the car I want, or maybe I'll get a great deal.

I'm not privy to what their sales forecasts or production numbers were. It could be they anticipated the dealer rollout taking so long or at least reacted to it and halted production due to not having the dealer base to sell them, so the year end inventory will not be great.

I would imagine that two or three months out the sales numbers would be over a thousand. Even though the dealer network was quite limited they sold 409 of them in 2018. Besides other smaller states coming online, we now have Florida selling and Texas soon.

 

[SeekingGen]

Ok, but as I said, that means they've got a car that won a lot of awards *last* year finally becoming available several months after it was hot. Ho hum.

My point is this is a pretty classic B school challenge. How do you make the most money in this situation? Discount heavily to get the cars out there and figure that cars on the road create more sales (and more dollars) in the long run? Or squeeze current customers for a few thousand more per sale because your inventory is low, at the cost of making the car a rarity on the road, and thus an oddball in comparison to zillions of BMWs and Audis out there?

I'm guessing in this internet-charged age where number of users counts for more than actual profit that there's going to be deals to had on this car. I can say for myself since I have an eye on a model with MSRP of $41k that I'll be offering no more than $35k and seeing what happens. Maybe I won't get the car I want, or maybe I'll get a great deal.

You can definitely try. We are not currently hearing about that type of discount--particularly given that most are waiting for cars and therefore demand is greater than supply. But in a few months, once the initial groups willing to pay have purchased, maybe then. Also, maybe when 2020s come put. Of course Genrsis may decide to restrict supply. We know, for example, that they stopped bringing in 2018s to increase demand for the 19s.

 

[Beefer]

You can definitely try. We are not currently hearing about that type of discount--particularly given that most are waiting for cars and therefore demand is greater than supply. But in a few months, once the initial groups willing to pay have purchased, maybe then. Also, maybe when 2020s come put. Of course Genrsis may decide to restrict supply. We know, for example, that they stopped bringing in 2018s to increase demand for the 19s.

They also stopped bringing in '18 cars to adapt to their new model. 2018 and older dealers are different that 2019 and onward.

 

[TurtleBoy]

Ok, but as I said, that means they've got a car that won a lot of awards *last* year finally becoming available several months after it was hot. Ho hum.

My point is this is a pretty classic B school challenge. How do you make the most money in this situation? Discount heavily to get the cars out there and figure that cars on the road create more sales (and more dollars) in the long run? Or squeeze current customers for a few thousand more per sale because your inventory is low, at the cost of making the car a rarity on the road, and thus an oddball in comparison to zillions of BMWs and Audis out there?

I'm guessing in this internet-charged age where number of users counts for more than actual profit that there's going to be deals to had on this car. I can say for myself since I have an eye on a model with MSRP of $41k that I'll be offering no more than $35k and seeing what happens. Maybe I won't get the car I want, or maybe I'll get a great deal.

I wish you the best but review your classic B school challenge. Quite a few incorrect assumptions and conclusion given this situation. But then again, anything can happen.

 

[Slowerthanslow]

Your view is that Genesis doesn’t think they need to take advantage of all this publicity and get the car out on the road in large numbers as soon as possible?

Would love to hear your thoughts.

I wish you the best but review your classic B school challenge. Quite a few incorrect assumptions and conclusion given this situation. But then again, anything can happen.

 

[Rmsanger]

I would suggest the rollout of the G70 is a major misstep for the brand. They should have had at least 1-2 available at every Hyundai dealership in a major market where no Genesis dealer were listed. At least get people seeing them and test driving them as the dealership infractructure is established.

In 3-6 months when the supply is filled out the demand might be waning a bit.

 

[TurtleBoy]

Your view is that Genesis doesn’t think they need to take advantage of all this publicity and get the car out on the road in large numbers as soon as possible?

Never said anything like that especially since those two ideas are not tied to each other. Given all of the publicity from awards/press there would be even less pressure to offer discounts especially given the current situation with supply. From anecdotal evidence, it appears demand is at a decent level.

I don't know if having large numbers out on the road would actually help future sales or not. Profit-wise you would think it would be better except with your model of greatly reducing the profit per unit it may not.

You also have to consider where Genesis wants to be and where they are coming from. If they offer the substantial discounts so soon into their lifecycle they run the risk of not being seen as a player in the luxury brand market but rather just a slightly more expensive Hyundai. While not easily quantifiable, brand cachet plays a part in vehicle sales in the market they are attempting to become a player in.

I can go on but my breakfast is getting cold. Good luck in your quest for the G70.

 

[Beefer]

Ok, but as I said, that means they've got a car that won a lot of awards *last* year finally becoming available several months after it was hot. Ho hum.

My point is this is a pretty classic B school challenge. How do you make the most money in this situation? Discount heavily to get the cars out there and figure that cars on the road create more sales (and more dollars) in the long run? Or squeeze current customers for a few thousand more per sale because your inventory is low, at the cost of making the car a rarity on the road, and thus an oddball in comparison to zillions of BMWs and Audis out there?

I'm guessing in this internet-charged age where number of users counts for more than actual profit that there's going to be deals to had on this car. I can say for myself since I have an eye on a model with MSRP of $41k that I'll be offering no more than $35k and seeing what happens. Maybe I won't get the car I want, or maybe I'll get a great deal.

Simply...if inventory was low...there wouldn't be ~500 cars in dealerships right now. If there were zero cars...demand would be booming. So...cars are there to buy...nobody is in a hurry...customer or dealer.

 

[danygenesis]

Your view is that Genesis doesn’t think they need to take advantage of all this publicity and get the car out on the road in large numbers as soon as possible?

Would love to hear your thoughts.

Of course they need to put more cars on the road and for sure they need to take advantage of all G70s awards but that's one thing and lowering the price is another. They need to get more cars in stock on the authorized dealers, they need to get more dealers approved faster principally in Texas and California which added to Florida are the biggest Genesis markets. They need to broadcast more G70 commercials in TV and Social Media emphasizing in all the awards the car got but don't expect huge discounts, the more awards it'll get the better value will have and the less discount we'll get.

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[SeekingGen]

Your view is that Genesis doesn’t think they need to take advantage of all this publicity and get the car out on the road in large numbers as soon as possible?

Would love to hear your thoughts.

I didn't read that in what he or Beefer have said. I also think Genesis has a long view about this.
Yes--this rollout definitely could have gone better; seems the changes in how dealerships were going to be handled and licensing (coupled with some lawsuits) delayed the initial plan. But that doesn't mean they want a car (which I think in their mind is already "discounted" below the competition) to be sold at even greater discounted prices. That scenario could, long term, hurt the brand and resale--and they are, it seems, striving to be a luxury brand.
Am guessing that as large a company as they are, they have multiple projections and forecasts; including cost analysis and best case scenarios.
Some who have purchased cars have mentioned going in at a lower price--but deals are not being made at the price you mentioned at this time--well, absent having an employee discount. None of that means you cannot try. And, none of that means it might not change in 3, 4 or 6 months. People here are just trying to give you the information they have learned. If you get an amazing deal--kudos.

 

[NLJ]

Genesis needs to be smart with incentives as well. If they flood the market with many of these with discounts, the eventual resale value would be low as well!
You don't want to be scraping the bottom of the barrel with the likes of Cadillac and Lincoln. They've benchmarked the Germans and want to compete with Lexus for reliability. So they have to be calculated to be perceived as a genuine success in the long run!

 

[mdb801]

Here's one data point to support what others are saying. I recently purchased a 3.3T G70 (Arizona). I spoke with at least 20 dealers across the country before buying. (As an aside, the customer service was generally horrible.) As soon as I mentioned wanting a discount off MSRP, most dealers stopped returning my phone calls and answering my emails. I ultimately ended up getting back in touch with a couple and they flat out told me that their owners/managers wouldn't entertain any discount so contacting me was a waste of their time. The salespeople were pushing their GMs to discount, but they wouldn't budge. I finally got a couple dealers out east to offer a discount in the $1500 range, but those were AWD (I wanted RWD) and/or the cost of shipping basically nullified the discount. The AZ dealers wouldn't discount at all.

I'm a business school professor. One of the things I teach is negotiations. At then end of the day, negotiating power generally comes down to who has a better alternative to a negotiated agreement. The dealer's alternative is to wait and sell to someone else. Your alternative is to go somewhere else, buy a different car, or not to buy a car at all. Given how new the car is out here in AZ, the dealers were happy to wait for the next customer. I am not a pushover when it comes to negotiations. I generally get smoking-good deals on cars. With the G70, I walked away from 3 dealers and they couldn't have cared less. They are utterly convinced that they have the golden ticket. If you can wait a few months, you are likely to see more discounts. As supply increases, customers have more options. Your alternatives get better and the dealer's alternatives get worse. My lease was up so I couldn't wait without it being a massive hassle. I also wanted a very specific trim/color combo and there was only one of those G70s in the entire country. (Before you ask, no, I didn't tell them that I only wanted that combo.) I had to negotiate pretty hard just to get it at MSRP with no dealer add ons. If you're out east in places that have more dealers in the area (e.g., NJ, GA, VA), dealers know that customers have options. They should be more willing to deal. Just don't expect a massive discount like you might see on an Audi or BMW. I will add that several dealers offered to discount the 2.0, but wouldn't move on the 3.3 price.

 

[Beefer]

Here's one data point to support what others are saying. I recently purchased a 3.3T G70 (Arizona). I spoke with at least 20 dealers across the country before buying. (As an aside, the customer service was generally horrible.) As soon as I mentioned wanting a discount off MSRP, most dealers stopped returning my phone calls and answering my emails. I ultimately ended up getting back in touch with a couple and they flat out told me that their owners/managers wouldn't entertain any discount so contacting me was a waste of their time. The salespeople were pushing their GMs to discount, but they wouldn't budge. I finally got a couple dealers out east to offer a discount in the $1500 range, but those were AWD (I wanted RWD) and/or the cost of shipping basically nullified the discount. The AZ dealers wouldn't discount at all.

I'm a business school professor. One of the things I teach is negotiations. At then end of the day, negotiating power generally comes down to who has a better alternative to a negotiated agreement. The dealer's alternative is to wait and sell to someone else. Your alternative is to go somewhere else, buy a different car, or not to buy a car at all. Given how new the car is out here in AZ, the dealers were happy to wait for the next customer. I am not a pushover when it comes to negotiations. I generally get smoking-good deals on cars. With the G70, I walked away from 3 dealers and they couldn't have cared less. They are utterly convinced that they have the golden ticket. If you can wait a few months, you are likely to see more discounts. As supply increases, customers have more options. Your alternatives get better and the dealer's alternatives get worse. My lease was up so I couldn't wait without it being a massive hassle. I also wanted a very specific trim/color combo and there was only one of those G70s in the entire country. (Before you ask, no, I didn't tell them that I only wanted that combo.) I had to negotiate pretty hard just to get it at MSRP with no dealer add ons. If you're out east in places that have more dealers in the area (e.g., NJ, GA, VA), dealers know that customers have options. They should be more willing to deal. Just don't expect a massive discount like you might see on an Audi or BMW. I will add that several dealers offered to discount the 2.0, but wouldn't move on the 3.3 price.

Good stuff. I was happy with $1k off MSRP. I wanted the car. Few grand was not going to kill it for me. Am I happy? f$%k yeah

 

[mdb801]

Good stuff. I was happy with $1k off MSRP. I wanted the car. Few grand was not going to kill it for me. Am I happy? f$%k yeah

Totally agree. Honestly, it made me sick to think about paying MSRP. It's the opposite of what I stand for. I was getting ready to walk away from the G70 based on the principle of the thing. Finally, my wife stepped in and reminded me that this is the car I've been talking about for the past 18 months. I drove everything else in its class and I thought it destroyed them all. Is getting your 2nd choice worth $3k or so? Not to me. On top of that, my 2nd choice was the S4. It would have cost me at least $58k to get the options I wanted, and that includes $5k off MSRP. I was going to walk away from a $50k car to pay $58k for the car I didn't want as much, just to get a discount. Insane. I bit the bullet and haven't regretted it once. I love this car. Every time I get into my car or walk into the house after my commute I say, "I love my car."

 

[joschneider]

There are other ways to negotiate that dont involve msrp. Try to get them to pay your registraion, taxes, give you a better deal on your trade etc. Stuff I wish I had thought of when I went into negotiations and was just wholly focused on the msrp vs invoice

 

[SeekingGen]

There are other ways to negotiate that dont involve msrp. Try to get them to pay your registraion, taxes, give you a better deal on your trade etc. Stuff I wish I had thought of when I went into negotiations and was just wholly focused on the msrp vs invoice

Your trade-in may be your best bet. I will not have a trade-in; I either sell mine on my own or pass down to a family member.

 

[danygenesis]

Your trade-in may be your best bet. I will not have a trade-in; I either sell mine on my own or pass down to a family member.

No way you can get a Conquest offer?

 

[Beefer]

Totally agree. Honestly, it made me sick to think about paying MSRP. It's the opposite of what I stand for. I was getting ready to walk away from the G70 based on the principle of the thing. Finally, my wife stepped in and reminded me that this is the car I've been talking about for the past 18 months. I drove everything else in its class and I thought it destroyed them all. Is getting your 2nd choice worth $3k or so? Not to me. On top of that, my 2nd choice was the S4. It would have cost me at least $58k to get the options I wanted, and that includes $5k off MSRP. I was going to walk away from a $50k car to pay $58k for the car I didn't want as much, just to get a discount. Insane. I bit the bullet and haven't regretted it once. I love this car. Every time I get into my car or walk into the house after my commute I say, "I love my car."

Too funny...that’s exactly me!! Literally almost bought an S4. Waited...and 2 days later they located my exact spec car.

 

[mdb801]

Too funny...that’s exactly me!! Literally almost bought an S4. Waited...and 2 days later they located my exact spec car.

Haha! I was about to give up on the G70 because no one in the country had my spec (and the MSRP thing). Then my local dealer in AZ got in a shipment two-weeks earlier than expected
...and it included the only car with my spec in the entire country. It was fate. Had to buy it.