GV80 Dealer Pricing

[YEH]

^ Shop around for a dealer that sells at around MSRP and have them transport it (usually costs about $600-1,200 depending on the distance).

 

[watty]

The question is, are there any? I’d certainly think Genesis of America (or whatever it’s called) would want to somehow govern gouging.

 

[EdP]

The question is, are there any? I’d certainly think Genesis of America (or whatever it’s called) would want to somehow govern gouging.

Yes, I'm sure they would. Legally they have no say. According to the franchise laws dealers are independent businesses.

 

[watty]

Yes, I'm sure they would. Legally they have no say. According to the franchise laws dealers are independent businesses.

Yeah, but how many products are we aware of in which gouging takes place, especially brand names seeking to establish themselves? How many U.S. jewelers of repute tack on thousands of dollars to the stated price of a Rolex or an Omega watch? How many kitchen appliance dealers blithely add thousands to a Sub-zero refrigerator? Same re Leica cameras, etc. Their dealers are independent,too, are they not?

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[YEH]

^ The S in MSRP stands for suggested.

Adding a mark-up for (low-supply) in demand vehickes isn't solely reserved for something like the Challenger Demon or the Z06 Vette.

More mundane models like the RAV4 Prime and Bronco Sport (note - not the real Bronco) have had/do have mark-ups in the thousands (there are.'some Ford dealerships adding $10k to the price of the Bronco Sport).

It's been 2 years and many Kia dealerships are still charging a premium for the top trim of the Telluride.

There have been AD of lux watch brands.which have sold in demand models at above MSRP, but manufacturers like Rolex have really clamped down on that practice.

Still, ADs play games like selling hot models at above retail and less popular models at below retail.

Anyway, the auto biz is pretty different from the lux watch or appliance biz and is governed by special franchise laws/regs.

 

[EdP]

Yeah, but how many products are we aware of in which gouging takes place, especially brand names seeking to establish themselves? How many U.S. jewelers of repute tack on thousands of dollars to the stated price of a Rolex or an Omega watch? How many kitchen appliance dealers blithely add thousands to a Sub-zero refrigerator? Same re Leica cameras, etc. Their dealers are independent,too, are they not?

Yes, they are. What does that have to do with what car dealers have been doing for the past 60+ years that I'm aware of? It took the government to force them to put stickers on the window because of the pricing that dealers did for years. Turns out, it was not a restriction but a bonanza for dealers at the time.

You mention jewelers. Good friend of mine owns a couple of stores. Want to learn pricing tricks?

 

[Mcc]

Yeah, but how many products are we aware of in which gouging takes place, especially brand names seeking to establish themselves? How many U.S. jewelers of repute tack on thousands of dollars to the stated price of a Rolex or an Omega watch? How many kitchen appliance dealers blithely add thousands to a Sub-zero refrigerator? Same re Leica cameras, etc. Their dealers are independent,too, are they not?

Are any of those products in such short supply as the GV80 is? Is the GV80 an essential product that people can’t live without? No? Then it is not gouging. No one is forcing you to buy it because it’s necessary to sustain your life like food or water.

it may be profiteering and it may or may not be good for the image of the brand though.

 

[Gurgeh]

As others have noted, this is not unique to the GV80. When a vehicle is new, has high demand, and there's constraint in the supply, retailers often charge extra. Economists have a name for it: the law of supply and demand. There's that pesky "S" in MSRP. It may not be a good way to engender good will with customers, but it is a good way to make higher short-term profits.

Don't worry, those extra costs will soon enough go away once supply catches up, the GV80 is no longer the new kid on the block, and dealers have to compete more with each other to make the sale.

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[nixit]

You mention jewelers. Good friend of mine owns a couple of stores. Want to learn pricing tricks?

I'm all ears

 

[YEH]

Don't worry, those extra costs will soon enough go away once supply catches up, the GV80 is no longer the new kid on the block, and dealers have to compete more with each other to make the sale.

May take a while, esp. for the in demand trims like the 3.5TT Prestige.

2 years running and a boost to over 100k/yr production, Telluride supply is still at a scant 26 days.

 

[BillZ]

My 3.5TT Prestige (Savile Silver with Ultramarine Blue/Suede interior) is being delivered to me tomorrow. Ordered end of December. I paid the list price which I understand is the norm in Canada (more civilized as usual) less a $2000 discount as a loyalty reward on the trade-in of my 2015 Genesis. Looking forward to it, although I regret it won't stay clean long with snow in the forecast. If it is as reliable and enjoyable as the 2015 (which cost me absolutely nothing other than oil and filter changes since delivery in August 2014), I'll be delighted. Still original brakes, battery etc. with 106,000 km on the odo.

 

[nwhit]

Yeah, but how many products are we aware of in which gouging takes place, especially brand names seeking to establish themselves? How many U.S. jewelers of repute tack on thousands of dollars to the stated price of a Rolex or an Omega watch? How many kitchen appliance dealers blithely add thousands to a Sub-zero refrigerator? Same re Leica cameras, etc. Their dealers are independent,too, are they not?

There are large legal differences that are too complex to explain here. Summarized, some industry sectors can legally regulate the retail price of a product’s retail outlets/dealers. But the automobile industry is exempt from that thanks to many years of the National Automobile Dealers Association‘s (NADA) work on state and federal laws to protect dealers who were being seriously abused by manufacturers for a lot of years. Today, auto dealers have some quite unique laws protecting them as compared to most other retail businesses. Not saying it’s right or wrong, good or bad, but those are the facts that govern what a car manufacturer and a dealer can and can’t do. Doesn’t operate based on “logic” or “how it should be”. It’s based on laws.

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[tyresmoker]

It is simple remedial economics at play here...Supply and demand. We are fortunate to live and shop in this free, capitalistic society still have the freedom of choice...If you don't like the price/value..determined by the present market conditions...DON'T BUY IT!! On one hand, you cannot blame the dealers, they have been starving for profitable product since they hung the wings on their buildings years ago....
On the other hand, the initial buyers that cannot wait for supply to catch up will be the ultimate losers. That day is coming, it always does with a production vehicle. When the next offering comes along, and the GV becomes yesterdays newspaper, it will suffer the same dismal residual that every other Korean build suffers. I am not stating it is right or wrong, it is just real.
Someone above mentioned Telluride...Give it another year or two. It will cool, and all those that are paying $2-$3k over sticker will be left holding the bag wondering why they are so upside down on their 72-84 month financing...Possibly never to return to the brand as a result of the experience..A situation they single-handedly put themselves in......

 

[jimmak]

I have been waiting for the GV80 since it was first previewed. It is perfect for me, I don't care about the badge snobbery offered by traditional luxury brands. I wanted a very comfortable luxury SUV with the latest tech and safety features. Road trip vacations is why we wanted a very comfortable larger SUV. It is over-kill for running errands.

I paid list + $1295 for a BS dealer installed alarm/tracking thing. It hurt a little to do it, but other dealers in our area were asking for more for the very few Prestige 3.5 models available.

We are enjoying our GV80 immensely. We have already done a road trip through Utah's National Parks. The GV80 exceeded my high expectations. We'll be taking our next trip at the end of the month,

I could have waited until supply catches up with demand, but I would not have had it for whatever period of time that is. I don't really care about resale value, we paid cash and will for the next one as well. My last new car was a Chevy Malibu over 20 years ago, that's one of the reasons we don't need financing or leasing.

We're in our mid-60's, these are our "Go Go" years of retirement - no time to waste. (the next ones are Slow-Go then No-Go")

20 years ago, I might have waited a few years to find a "cream-puff" just off lease. That will likely be an excellent value

 

[tyresmoker]

I have been waiting for the GV80 since it was first previewed. It is perfect for me, I don't care about the badge snobbery offered by traditional luxury brands. I wanted a very comfortable luxury SUV with the latest tech and safety features. Road trip vacations is why we wanted a very comfortable larger SUV. It is over-kill for running errands.

I paid list + $1295 for a BS dealer installed alarm/tracking thing. It hurt a little to do it, but other dealers in our area were asking for more for the very few Prestige 3.5 models available.

We are enjoying our GV80 immensely. We have already done a road trip through Utah's National Parks. The GV80 exceeded my high expectations. We'll be taking our next trip at the end of the month,

I could have waited until supply catches up with demand, but I would not have had it for whatever period of time that is. I don't really care about resale value, we paid cash and will for the next one as well. My last new car was a Chevy Malibu over 20 years ago, that's one of the reasons we don't need financing or leasing.

We're in our mid-60's, these are our "Go Go" years of retirement - no time to waste. (the next ones are Slow-Go then No-Go")

20 years ago, I might have waited a few years to find a "cream-puff" just off lease. That will likely be an excellent value

With the returns in the market today and the foreseeable future...Ya might have been better off leaving all of that cash invested and let it make the payments for you!!!

 

[Gurgeh]

With the returns in the market today and the foreseeable future...Ya might have been better off leaving all of that cash invested and let it make the payments for you!!!

I'll give you the "market today," but I doubt anyone can predict where the market will be going for the "forseeable future." Obviously, it's currently in a classic bubble, but those things can go on a lot longer than anyone thinks and many short sellers have shed tears over their efforts to time market turnings. In the meantime enjoy the ride. Wheee!

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[tyresmoker]

I'll give you the "market today," but I doubt anyone can predict where the market will be going for the "forseeable future." Obviously, it's currently in a classic bubble, but those things can go on a lot longer than anyone thinks and many short sellers have shed tears over their efforts to time market turnings. In the meantime enjoy the ride. Wheee! View attachment 34500

Hey, as long as that feeble idiot in Washington and his gang of fools want to dump another $1.9T of "stimulus" into the economy...Bet on it and bet big!!!

 

[sleepysurf]

Has anybody tried the Costco Auto buying program (different from TrueCar) to see if they can get better pricing from a local participating dealer?

 

[dadgonebroke]

I've tried the Costco program in Florida but best I can tell- there aren't any participating Genesis dealers.

 

[nixit]

Has anybody tried the Costco Auto buying program (different from TrueCar) to see if they can get better pricing from a local participating dealer?

I tried in Chicagoland a few weeks ago but it came up empty.