June (Canada) Sales

[YEH]

G70 - 113 (barely up from the 111 for the prior month)

Stinger - 186 (note - only available w/ the 3.3V6)
ATS - 211
Q50 - 225
TLX - 231
IS - 321
XE - 37

While the direct-from-manufacturer sales model was probably the way to go (w/o having the expense of building out new dealerships) and likely will be adopted by other auto-makers (at least in smaller markets like Canada), it has had an impact on Genesis sales.

Still, Genesis/Kia have carved out a decent sized share of the market - which should grow as more prospective buyers get used to the direct-from-manufacturer sales model and the Stinger becomes available w/ the 2.0T.

 

[AnyVare]

Interesting numbers...seems like every other car other than the XE is twice that of the g70, even the Stinger is almost at 200. Do all those other brands sell from dealers in CA? Personally, the direct from manufacture is interesting...but I'd prefer to test drive a car before buying one.

 

[devellis]

Interesting numbers...seems like every other car other than the XE is twice that of the g70, even the Stinger is almost at 200. Do all those other brands sell from dealers in CA? Personally, the direct from manufacture is interesting...but I'd prefer to test drive a car before buying one.

I think you can test drive before buying. You go to a boutique shop or online and set it up, right? They bring you a car to drive, you try it out, then either decline or place an offer. The thing that is lost is the ability to rty multiple cars with different configurations and options at a single occasion. I suspect lots of folks visiting a conventional dealership go initially to try one version of a car but then end up being seduced by something they hadn't initially considered after impusively taking it for a quick spin. Probably happens less with the new sales model.

But still, I really admire the Canadian direct-from-manufacturer model and wish the US had it.

Regarding the numbers, it's a competitive market and a segment (sports sedan) that isn't garnering the interest in once did in the pre-crossover era. Its main appeal is to people who are looking for sportiness (performance and handling) and the sports coupes also appeal to those buyers. If it's room and functionality you're after, the crossovers have plenty of both and some are also reasonably good performers. If it's sheer performance and a sportier look, sports coupes generally seem to have the edge. Obviously, there are lots of folks who want the best of each of those worlds and the G70 offers a very appealing compromise. It will certainly be the sweet spot for a lot of buyers. But the other options (especially the sportier crossovers) also will certainly appeal to a lot of potential customers.

The notion of what cars are in competition with each other has really evolved, I believe. It's not the case that people only shop within a single segment, only looking at four-door sedans with a trunk, for example. For any given car, the features that are most attractive to any given customer will also exist in some cars in a different category. Someone considering a sedan for the four-passenger seating may well also look at crossovers. Someone who is looking for a car with exceptional performance may consider both sedans and coupes. I think we've moved past the era when customers stuck squarely to a certain type of car and bought a different version of the same configuration time after time. There's still some of that, to be sure. But the crosssovers, especially, (and now the performance-oriented crossovers) have really disrupted things. Tough market these days.

 

[EdP]

Interesting numbers...seems like every other car other than the XE is twice that of the g70, even the Stinger is almost at 200. Do all those other brands sell from dealers in CA?

Stinger has done very well. The other brands though, are well established and have loyal followers. It will take some time to snag buyers away from the others, but Kia is well on the way and Genesis is off to a decent start.

Heck, I've been eating the same brand of peanut butter for 70 years and now you want me to change car brands too?

 

[Edmguy]

G70 and the Genesis brand is still really unknown (which is obvious by the number of people that constantly ask me about the car). I think that is going to be the biggest struggle for Genesis. I have definitely been doing my part by telling people that I have no regrets buying this car and highly recommend it.

The firm pricing is also something difficult to get used to. It really bothered me paying full price because typically, the person that walks into the dealer and pays full price is an idiot. But ultimately it is the better system. I just hope it works out for Genesis and others follow. Tesla does it and it seems to work. Although they have a whole other level of brand recognition.

 

[EdP]

The firm pricing is also something difficult to get used to. It really bothered me paying full price because typically, the person that walks into the dealer and pays full price is an idiot. But ultimately it is the better system.

As long as the price is "fair" I don't have a problem with it. Even the best deal under our system leaves you thinking you got screwed somehow. Sure, everyone has to make a profit but don't make this month's share just on me. If the sticker price is reduced enough, it could work. Everyone knows the present sticker is way too high to allow some negotiation.

Some dealers here do post a No haggle price and seem to be making it work.

 

[dougjp]

I think its fine for an outright purchase/lease. The problem as I see it with a separate Corporate entity selling direct comes when a trade-in is factored in. I recall reading in one or two of the threads with people complaining about getting noticeably worse trade in values compared to going to other makes' dealerships. Hard to prove with others' cars not being fixed price, however in a way it makes sense because we are dealing with two profit centers, not one when trading at any dealership.

 

[Edmguy]

That is a good point. I have never traded in a vehicle and didn't when I purchased my G70 so I can't comment on that.

 

[Edmguy]

As long as the price is "fair" I don't have a problem with it. Even the best deal under our system leaves you thinking you got screwed somehow. Sure, everyone has to make a profit but don't make this month's share just on me. If the sticker price is reduced enough, it could work. Everyone knows the present sticker is way too high to allow some negotiation.

Some dealers here do post a No haggle price and seem to be making it work.

And in Canada anyway, I think the current pricing is fair and still a bargain without being able to negotiate. It is just a difficult mental hurdle to get over when buying new car for me anyway. I just had trouble accepting it. lol

 

[Mcc]

I recall reading in one or two of the threads with people complaining about getting noticeably worse trade in values compared to going to other makes' dealerships.

Other makes that do not have a fixed new vehicle price can make it seem like you are getting a better trade in price by take more profit (giving you a worse deal) on your new car. Only way to really compare is to sell your car independently of your new car purchase.

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[dougjp]

Other makes that do not have a fixed new vehicle price can make it seem like you are getting a better trade in price by take more profit (giving you a worse deal) on your new car. Only way to really compare is to sell your car independently of your new car purchase.

Absolutely. The other (more positive) side of the coin is, with Genesis at a fixed price, the number of variables is reduced so its much easier to determine if we are getting a decent trade in value. It would be good to hear the opinions of those who have traded same make (ie; Hyundai) for a Genesis, any model will do.

 

[Afehr]

I traded in my GMC Sierra for the G70 and actually got a better price from Genesis/Hyundai than I was offered by the GM dealership where I originally purchased the truck - several thousand better - and was pretty close to what I would have expected if I had sold privately. I guess I just kind of assumed that since the price of the G70 was fixed, one way to push the cars was to accept a lower profit margin on the trade-in.

 

[EdP]

It would be good to hear the opinions of those who have traded same make (ie; Hyundai) for a Genesis, any model will do.

I traded a 2015 Hyundai Genesis for a 2018 G80. I got $1000 more in trade than I expected according to KBB. I also got $2000 less discount than I hoped for based on my previous deal.

Obviously I thought it was acceptable since I drove out with the T handle shift knob upgrade.

 

[Buckdes]

I traded in my BMW 335i and got the exact same number that my BMW dealership settled on and i had a couple other dealerships offer me several thousand less than what i got from Genesis

 

[PMCErnie]

Direct from the manufacturer???? In reality, the CA Genesis dealership owns a local Hyundai dealership. Just go there if you want to see the cars in stock. That's also where the Genesis models are prepped and serviced. Yes, at the nearby Hyundai dealer.

 

[YEH]

^ As been covered numerous times, orders/sales are placed directly w/ Genesis Canada.

In many ways, Genesis is ahead of the curve or near the front when it comes to automotive retail moving forward (at least in certain markets).

Lexus dealerships have been pushing for online ordering, as well as more looking to adopt the set/no-haggle pricing.

And Mercedes is looking to use pop-up stores (basically similar to the Genesis boutiques in Canada; just not as permanent) to get more people exposed to MB products.

The direct-from-manufacturer sales model (along w/ the set and increase in pricing for the Genesis brand) has certainly impacted Genesis/G80 sales.

The Genesis sedan used to sell somewhere btwn 3k and 4k in Canada annually, well ahead of everything not the E Class or 5 Series.

But the switch-over to the Genesis brand and G80 moniker saw sales of the mid-size sedan decline all the way to 433 last year.

Which is still ahead of competitors like the GS and Q70, but no longer outselling them by many multiples.

 

[Edmguy]

I do hope this model works for Genesis Canada and catches on. It was definitely the best new car buying experience I have had yet.

I noticed the other day when I logged in to Genesis at Home that I can still view a copy of my bill of sale which is kind of cool.

 

[YEH]

^ Doesn't seem to have caught on yet.

Canadian Genesis sales for July - 135.

Don't have the breakdown yet, but figure that the G70 was the bulk of those sales (somewhere btwn 100-110).

Maybe the problem is the lack of more Genesis boutiques?

How many are currently up and running in Canada? 5-6?

 

[PMCErnie]

This boutique "aura" buying experience has been way overrated. Most buyers want to get a whiff of real auto employes. We want to see the service shop where our 4-wheeled baby will be a cared for and smell petroleum products. Buying a Genesis "downtown" next to Givenchy and Tiffany doesn't do it for me.

We all know that the Canadian boutiques are prepping and servicing Genesis vehicles at the nearby Hyundai dealers that they also own. Okay, some dealers are setting up exclusive Genesis service shops, but that likely amounts to a different sign above the shop door.

By the way, I also like to save the 30% depreciation that a new car loses in the first year. From now on, it's a newly used car for me. That philosophy worked very well when I bought my '14 Santa Fe with 7,500 miles on it.

 

[TOGuy242]

G70 and the Genesis brand is still really unknown (which is obvious by the number of people that constantly ask me about the car). I think that is going to be the biggest struggle for Genesis. I have definitely been doing my part by telling people that I have no regrets buying this car and highly recommend it.

The firm pricing is also something difficult to get used to. It really bothered me paying full price because typically, the person that walks into the dealer and pays full price is an idiot. But ultimately it is the better system. I just hope it works out for Genesis and others follow. Tesla does it and it seems to work. Although they have a whole other level of brand recognition.

I had that same issue, but then when I was comparing it against a comparable 340 or AMG C43 I was coming to about $15K less. So I was ok with the fixed pricing!