Genesis Prices starting to come down

[gcarper]

Interesting perspective - when did the car industry start introducing cars in January, it's usually August thru Sept? Also the sales numbers are the sales #"s provided by HMA. Where is the flawed data? I would also recommend that you take a look at this:

http://online.wsj.com/mdc/public/page/2_3022-autosales.html

http://www.cars.com/go/crp/buyingGu...09uniSeason&subject=stories&referer=&year=New

Manufacturers don't wait until January to start selling the cars of the new year. That usually begins around August or September of the previous year, said J.D. Power and Associates analyst Tom Libby.


The 2009 model year starts in August (which is why the vehicle registration has the car listed as a 2009) - if you change the industry metrics to a Jan to Dec 2009 commitment - then it could be doable - with incentives.

Note: they have not released the unit sales #'s yet for December - it will be interesting to see if there was a continued upward trend for the Genesis.

Here is the December 2007 Sales release: - Monday they should release 2008's results

FOUNTAIN VALLEY, Calif. -- Hyundai Motor America today announced its best-ever December with sales of 46,487 units and best ever annual sales of 467,009 for 2007.

This marked the ninth year in a row of rising sales, which were up 3% over last year. December sales were up 24% over the same month last year.

"We feel good closing the year with increased sales and market share over year-ago figures," said Dave Zuchowski, Hyundai Motor America's vice president of national sales. "Still, we enter the year with cautious optimism as the overall industry likely will retract to the 15.7 million range. But we are confident that the strongest product lineup in our history will bring further sales records in 2008, led by the all-new rear-wheel drive Genesis sedan being introduced at the Detroit Auto Show on January 13."

Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through more than 780 dealerships nationwide.

Source: Hyundai Motor America

Jan 2 (Reuters) - Hyundai Motor Co's (005380.KS) total sales
during December (in vehicles): Dec 2008 Dec 2007
TOTAL SALES 219,261 224,628
OVERSEAS SALES 177,699 165,914
DOMESTIC SALES 41,562 58,714 Hyundai is South Korea's largest auto maker and controls
around 50 percent of the home market.
(Reporting by Cheon Jong-woo in Seoul; Editing by Jonathan
Hopfner)

 

[musher51]

I didn't say that HMA's sales data are flawed, but rather your analysis of their progress toward the goal of selling 20,000 sedans. In particular, this comment:

Total YTD Sales 5,127 units (74% off target of 20,000 Sedan sales for 2009)

So, you're contending that the sales year runs from August to July? Is that an established industry standard that all auto manufacturer's follow? Assuming you're correct, that still leaves eight months for HMA to sell 14,873 Genesis (1,859 per month on average). Given the upward sales trend through Nov '08, doesn't this seem achievable?

 

[JOwest]

Are we getting confused with calendar year and car model year? I believe HMA's target of 20,000 Genesis is for the model year 2009 which span from Aug 2008 to whenever HMA decided to release the 2010 Genesis.

 

[gcarper]

Either way in this market its going to be tough - they only thing selling in high volume are small vehicles like the Ford Focus, BMW MINI, and other frugal small cars like the Civic. Most consumers are looking at these:
http://www.forbes.com/2008/12/16/2009-affordable-cars-forbeslife-cx_he_1216cars.html?feed=rss_news

Luxury Sedans and Large Sedans and SUVS have been getting slaughtered with over 40% dropoff in purchases.

I hope they hit thier goal - but I personally believe incentives will reign supreme to pull it off.

 

[DanTheMan]

In the National Capital Region here in DC (which is usually recession proof) ...

I like the underdog - but I can't personally part with $40K in an unproven product when I can get a CPO for much less in a proven product. I also am trying to research cars that are built here verses overseas. This was never a concern until recently - the buying habits of this household are going to change to support US built products - the unemployment #'s are scary and I don't want to contribute to that downward spiral with my buying habits.

Hi G--

Can you explain how the DC is is "usually recession proof"? I'm not challenging you on the point, but I am curious...

Also, what do you mean by "CPO"? Others may already know and may be wringing their hands while reading this, but I'm in the dark.... (but I type good in the dark)!

Finally, I can agree to a point with your "Buy USA" motives. There was a wave of this that swept the USA back in the early 90s. So, I bought a Ford Probe ('93 model). All metric, all Japanese. I also bought a '90 Plymouth Grand Voyager...most of which was made in Canada--except for the transmission, which, if memory serves (this vehicle served me well for work but has been gone many years) was also Japanese. I finally gave up overall as I couldn't decide which was better--to buy a USA-branded product made up of foreign parts, or a foreign-branded product made of USA parts (like some Toyotas, or others). I made myself happy by the knowledge that in both cases I purchased from dealers/salespeople who's families live in the USA obviously, and benefitted from the sale and subsequent service/parts business. Incidently, the Probe went nearly 300,000 miles before it's end, and the Plymouth went over 200K miles!

My two-cents worth...

Dan :>)

 

[gcarper]

Dan,
I understand your confusion - I remember helping my brother buy a Ford Ranger - because it was "'merican made" some years ago - weeks later he got in an accident - and I remember how ticked he was when picked up the front license plate holder and it had a huge "Made in Korea" badge on it! I still remember the look on his face...the combination of the accident and the Korean badge on his "merican made" truck - almost brought tears to his eyes.

The car market is truely international - content comes from everywhere... just a fact of modern vehicles.

DC (Metropolitan Washington DC) has a large pool of government employees, diplomats, military etc... even in challenging times the unemployment has been relatively low compared to most other markets.


What is CPO: Certified Pre-Owned:

http://www.intellichoice.com/press/cpo_programs_2009

Volvo CPO Deal: http://www.volvocars.com/us/tools/CertifiedPreOwned/Pages/default.aspx

All CPO Deals:
http://www.intellichoice.com/preowned/CPOOverview

IntelliChoice.com Names Top Certified Pre-Owned Vehicle Programs for 2009
IntelliChoice.com Names Best Certified Pre-Owned (CPO) Programs for 2009
Volvo, Volkswagen and MINI Ranked Highest on Overall Value

Santa Diego, CA (October 23, 2008)--IntelliChoice.com, the leading provider of automotive cost and value analysis and part of Source Interlink Media (NASDAQ: SORC), today announced the winners of its 10th annual ranking of Certified Pre-Owned (CPO) manufacturer-sponsored programs. Overall, Volvo took the top ranking for the second straight year among Luxury manufacturers, while Volkswagen holds its title for five straight years for best Non-Luxury program. The biggest surprise was the addition of MINI to the top of the table in a virtual mathematical tie with VW. The rankings were announced at the 2009 National Remarketing Conference & Used Car Expo, in San Diego, California.

"2008 marks the 10th year that IntelliChoice.com has issued the industry's only report card for Certified Pre-Owned vehicles," said James Bell, editor of IntelliChoice.com. "During that time, we have seen every automaker launch a CPO program, and many of them have built their programs with our inspection and ranking criteria as a guidepost. Even in this difficult economy, people will still need a new car now and then, and certified used cars are even more attractive to buyers who are looking for value. With depreciation rates running higher on many new cars, CPO is a great way for buyers to get a great car without taking a big hit when they drive it off the lot."

 

[DanTheMan]

G--

Thanks for all the great info!

Dan :>)

 

[Sal Collaziano]

In some instances, lowering the price might be bad for the company - but at this point in time, Hyundai needs to get these cars on the streets.. Once people start seeing them on the road, their interests will be piqued. Let's start getting some more of these things out in the open...

 

[gcarper]

Hyundai Motor America Reports December and Full-Year 2008 Sales
FOUNTAIN VALLEY, Calif., Jan. 5 /PRNewswire/ -- Hyundai Motor America today announced sales of 401,742 for 2008, a decline of 14 percent over 2007.
"While 2008 was a tough year, we are encouraged that Hyundai was once again able to outperform the general market and increase our market share in the midst of unprecedented market conditions," said Dave Zuchowski, Hyundai Motor America's vice president of national sales.

"We are looking forward to 2009," added Zuchowski. "In fact, to help us build on the tenth anniversary of Hyundai's industry-leading 10-year/100,000-mile warranty, the 'Hyundai Assurance Program' has just been announced. The Hyundai Assurance Program provides new car buyers and lessees who lose their income protection against negative equity and credit rating concerns. With these two great tools in place and the strongest product lineup in our history, we are cautiously optimistic going into the New Year." For details about the Hyundai Assurance Program please visit www.hyundaiusa.com.


Sales for December were 24,037, up 25 percent over November.


All Hyundai vehicles sold in the U.S. are covered by The Hyundai Advantage, America's Best Warranty. Hyundai buyers are protected by a 10-year/100,000-mile powertrain warranty, a 5-year/60,000-mile bumper-to-bumper warranty, a 7-year/unlimited-mile anti-perforation warranty and 5-year/unlimited-mile roadside assistance protection.


Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced by more than 790 dealerships nationwide.




CARLINE DEC/2007 DEC/2008 CY/2007 CY/2008
------- -------- -------- ------- -------
ACCENT 1,945 1,833 36,055 50,431
SONATA 24,872 6,593 145,568 117,357
ELANTRA 3,757 2,635 85,724 94,720
TIBURON 601 412 14,073 9,111
SANTA FE 9,102 6,289 92,421 70,994
AZERA 1,597 347 21,948 14,461
TUCSON 2,962 874 41,476 19,027
ENTOURAGE 429 3,065 17,155 8,470
VERACRUZ 1,222 949 12,589 11,004
GENESIS 0 1,040 0 6,167
TOTAL 46,487 24,037 467,009 401,742


SOURCE Hyundai Motor America

 

[drew0020]

Nice way for Hyundai to spin the numbers (considering December month over month sales were down 48.3%), but personally I would not be looking forward to 2009 if you are a car dealer. Now if you are a car buyer then its going to be a good year!

I still have yet to see a Genesis on the road, but thats probably because my local NC dealers wont budge on the prices.

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[PriorityHyundaiVA]

All this economy stuff yall preaching is funny, as if yall are looking at 10-15k cars, bad economy or good. Your looking at plus 30,000$ cars period whether it be a genesis or any other model im reading y'all looking at.The economy at its point now is not affecting you all that much, lol. If it was that bad why are y'all looking at such expensive cars in the first place. Go buy a cobalt or accent. People who are really suffering from the economic state were in are 1. not looking at buying a car at all and 2. if they are are their definately not looking at expensive ones. This is hilarious to hear all this talk.

 

[NJBlackCat]

Got quoted V8 with tech package at invoice today (not incl. taxes). Is this a good deal ?

 

[VaiFan]

I think I have ya'll beat.
I paid $30,954 for a V6 Premium that listed at $36,000 with trunk mat and net.

 

[drew0020]

Got quoted V8 with tech package at invoice today (not incl. taxes). Is this a good deal ?

Good deal. I wouldnt pay more than invoice on any Genesis at this point in time. Some are even paying below invoice. Just wait it out till the cars start piling up on the dealers lots. I expect 2009 to start very slowly and this should benefit all of us looking for a new car.

 

[PriorityHyundaiVA]

Good deal. I wouldnt pay more than invoice on any Genesis at this point in time. Some are even paying below invoice. Just wait it out till the cars start piling up on the dealers lots. I expect 2009 to start very slowly and this should benefit all of us looking for a new car.

And why not?

 

[drew0020]

And why not?

Because in my opinion the best thing the car has going for it is the price. If I can negotiate $500 over invoice (as listed on Edmunds for what thats worth) on a BMW then I can surely get invoice on a $37K Hyundai. If you factor in the $600 doc fees (and dealer hold backs) there are still significant profits to be made on this car.

Obviously, many people in this forum have gotten invoice and below on the Genesis. I expect pricing only to improve as the cars sit on the lots. I contacted 5 dealers in NC and only 1 dealer has less than 10 on the lot and two have 11 and growing. That said, the v8's seems to be selling more quickly.

After the financial results from yesterday and the news from Toyota today car companies and dealerships need to get realistic in order to sell these vehicles. The economy hurts everyone even people who are in the market for a luxury type car. All of this is my opinion of course!

 

[BacktoHyundaibychoice]

And why not?

To make up for all the dealers that charged a "market adjustment" of thousands over MSRP? It works both ways, ya know.

Don't get me wrong though. I understand that a buyer at/below invoice messes with your ability to feed your family. But your compensation issues should be between you and your employer/dealer, and a great deal by a member here shouldn't be a source of guilt for us. You get a smaller piece of a smaller pie, we keep you employed. Does that sound fair?

Respectfully.

 

[drew0020]

To make up for all the dealers that charged a "market adjustment" of thousands over MSRP? It works both ways, ya know.

Don't get me wrong though. I understand that a buyer at/below invoice messes with your ability to feed your family. But your compensation issues should be between you and your employer/dealer, and a great deal by a member here shouldn't be a source of guilt for us. You get a smaller piece of a smaller pie, we keep you employed. Does that sound fair?

Respectfully.

I agree with you. I was just stating my opinion and what I would personally pay for the Genesis. In someone else's situation the car may be worth more to them than it is to me.

That said, I think its a great car, but it might not be the car for me.