Less Dealer Enthusiasm for Genesis?

[Hghwy52]

I was at a dealer in CT yesterday to pick up a part and noticed that there was no Genesis sedan in the showroom, no 2010 sedans in stock and the same two '09 sedans listed in their online inventory for the past three months. It seems odd since this is a modern, high volume dealership that had prominently displayed the Genesis sedan both in the showroom and outside for over a year. I did a search of online inventory in CT and found 28 '09 sedans and no 2010s. I know that dealers may be reluctant to list new models before the old ones are sold, but there were no 2010s even at dealers with 0, 1 or 2 '09s listed. It makes me wonder how well the sedan is selling and whether some dealers are pulling back from the Genesis sedan.

It is impossible to know how many sedans are actually being sold since figures released combine sales for both sedans and coupes. For Nov. that number is 1751.

As to why dealers may pull back from promoting the Genesis I can think of a few possibilities:

- Genesis Sedans have been selling at substantial discounts, according to posts on this forum, and dealers may not be making much on each transaction;

- Genesis buyers may be more sophisticated, demanding and less able to be conned than the typical Hyundai customer;

- Whatever halo effect is achieved by displaying the Genesis, it might be offset by making other models look cheap by comparison.

I may be over thinking this, but if dealers are loosing their commitment to the Genesis now, what does it portend for next year when the new Sonata will take center stage? Has anyone else noticed less dealer enthusiasm fo the Genesis sedan lately?

 

[Mark_888]

Maybe you are right, or maybe you are jumping to the wrong conclusions even though your facts are accurate.

It may be that the 2010 models are in short supply and are selling briskly. We know there was pent-up demand for the 2010 (for reasons we are not allowed to discuss). If someone wanted the 2010 that was in the showroom, and that is all they had left for 2010, then it would be sold. I would not assume that if they don't have any 2010 models in stock or in the showroom, that they are not selling well. There is no reason to spend money on advertising or waste show room space if the car sells itself.

For the same reasons (that we are not allowed to discuss), the 2009's are clearing out rather slowly, so the fact that the same two 2009 models are still in stock is not totally surprising.

 

[ASHDUMP]

How many 2009 sedans or coupes were made and brought to the USA?

 

[ttsig]

That's certainly doesn't seem to be happening in my area (SC/NC). The dealers in my area all have more 2010's than 2009's on the lot and seem to have a better selection than when I purchased last year. Maybe the 2010's are slow to arrive in your area, or are being snapped up quickly. I don't know, I'm just saying there might be other reasons and it certainly doesn't seem to be universal.

My local dealer told me they are selling several Genesis a week and, as I'm driving by, the inventory appears to be turning over much more the last few months than it did early in the year. I'm also finally starting to see more Genesis' on the roads around my home area (SC).

 

[sandy]

I live in Ct close to the NY border. Punched my zip into Cars.com to check dealer inventory in a 40 mile area...most NY dealers had both '09's and '10s while Ct dealers showed only '09's. Could be Ct begins Hyundai's "New England Region" which has yet to get '10's??/

 

[ilovemygenesis]

I live in Ct close to the NY border. Punched my zip into Cars.com to check dealer inventory in a 40 mile area...most NY dealers had both '09's and '10s while Ct dealers showed only '09's. Could be Ct begins Hyundai's "New England Region" which has yet to get '10's??/

I noticed the same thing when i went to my ct dealer to get my speaker cover installed in my trunk. While waiting I walked around the showroom and they were moving everything else but the Genesis. I only saw 2 on the lot and when i asked a salesman they didn't have any idea when they would get the 2010. Not sure why CT is behind in the Genesis market but they need to get on the ball!!!!!

 

[knight]

I have a possible explanation. Perhaps there is a competition among dealerships in given areas where some will make the "cut" to becoming a full-blown Genesis dealership when they separate the brand. Not all dealerships will make it, yet they may be carrying some inventory as a result of initially vying for the chance or just to make sure they have all the current Hyundai models and don't limit their customer base. Those dealerships that realize they don't have a chance are probably "losing interest" in the Genesis and most likely are not the ones that will give the best service and experience in this class of vehicle. I looked for a dealership when I bought mine that was selling a significant amount of Genesis (for the area).

Caveat: I have never worked at a dealership or for a car manufacturer so this is total speculation, unfounded, not corroborated, etc. etc.. oh, and most likely wrong .

-knight

 

[SullyC]

Well I'm a newbie to this forum and although I have a deposit on a new Genesis V8, I have not taken delivery because my dealer and the regional rep have not gotten what I want and I'm in central CT. I'm getting my w/o the tech package and the rep tells me that most of those go to the South region and in the NE, most V8's are sold with the tech package. I'm told they have a car in Baltimore that is scheduled to go South and they are trying to re-direct it to CT.

I also agree that I have yet to see a 2010 at a CT dealership.

 

[Mark_888]

Well I'm a newbie to this forum and although I have a deposit on a new Genesis V8, I have not taken delivery because my dealer and the regional rep have not gotten what I want and I'm in central CT. I'm getting my w/o the tech package and the rep tells me that most of those go to the South region and in the NE, most V8's are sold with the tech package. I'm told they have a car in Baltimore that is scheduled to go South and they are trying to re-direct it to CT.

I also agree that I have yet to see a 2010 at a CT dealership.

As I suggested before, if your situation is any indication, it sounds like all the 2010's are sold before the dealer even takes delivery.

 

[sandy]

As I suggested before, if your situation is any indication, it sounds like all the 2010's are sold before the dealer even takes delivery.

I don't think this is the case. It appears dealers around the country have 2010's in stock, with Ct being one exception I'm aware of. As per Cars.com, one dealer alone in the Atlanta are has a dozen '10's listed. To suggest 2010's are sold before the dealer takes delivery...only in Ct...seems a stretch. Also, a friend in the process of trying to buy a '10, has spoken with several CT. dealers, all of which tell the same story...waiting for delivery. Curious situation.

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[Mark_888]

I don't think this is the case. It appears dealers around the country have 2010's in stock, with Ct being one exception I'm aware of. As per Cars.com, one dealer alone in the Atlanta are has a dozen '10's listed. To suggest 2010's are sold before the dealer takes delivery...only in Ct...seems a stretch. Also, a friend in the process of trying to buy a '10, has spoken with several CT. dealers, all of which tell the same story...waiting for delivery. Curious situation.

All I said is that dealers are selling all the ones they get. If there is a supply problem, then that doesn't mean that dealer enthusiasm has diminished. I also suggested that demand for 2010's was higher than expected (for the reasons not allowed to be discussed).

Maybe that region was overstocked in 2009's and maybe they also assumed that demand for a rear-wheel car in winter would not be very high, so they did not plan for many to be delivered to dealers? Personally, if I lived in area with a lot of snow, I would not be interested in a rear-wheel drive car if that meant changing to snow tires in the winter. There are just too many other all-wheel or front-wheel drive options available and I only want to own one car at a time.

 

[ilovemygenesis]

All I said is that dealers are selling all the ones they get. If there is a supply problem, then that doesn't mean that dealer enthusiasm has diminished. I also suggested that demand for 2010's was higher than expected (for the reasons not allowed to be discussed).

Maybe that region was overstocked in 2009's and maybe they also assumed that demand for a rear-wheel car in winter would not be very high, so they did not plan for many to be delivered to dealers? Personally, if I lived in area with a lot of snow, I would not be interested in a rear-wheel drive car if that meant changing to snow tires in the winter. There are just too many other all-wheel or front-wheel drive options available and I only want to own one car at a time.

I think what's going on is either there is no demand for Genesis in CT, or the other Hyundai cars have a higher profit margin for dealers to take up showroom space for the Genesis. If someone wants a Genesis i guess they just go out and order one instead of keeping one in the showroom.

 

[dataguy]

My dealer has additional markup on the 2010's, so I guess the demand is fairly high.

 

[Sayantsi]

It could be a lot of things. For one, its December, and car sales are always down in December, and car salespeople know this. Second, with 10s coming, there are some buyers that want the newer model while the 09s are priced the same or close. Once Hyundai starts offering dealer cash on the 09 cars, salespeople will push them harder - being so close to getting the extra cash for selling a late model, car salespeople will "hold" the cars until they can make more money.

Also, there are unpopular packages. Without knowing exactly what cars are sitting on lots, you don't know if this is a reason. A base V6 may not be selling at all because people want sunroofs - we don't know. The 09s still on lots are the ones no one's wanted over the past year. Maybe that's due to the color/interior combination, packages or lack thereof, etc. I personally had to get a car from 500 miles away because none of the cars closer to me had the color and package I wanted.

Also, dealerships get no money on HAPP sales, and some will not even deal with you if you try to buy through HAPP, but will happily work with you if you don't.

Fwiw, there are 8 09 sedans and 2 10 sedans within 75 miles of me - that is I think 7 dealerships, so there is no supply. Also, its not cold and snowy here, like it is up North, so people are still buying rwd cars.

 

[Mark_888]

I personally had to get a car from 500 miles away because none of the cars closer to me had the color and package I wanted.

I had to get my base model shipped about 300 miles from another dealer because I did not want a sunroof. Dealer was willing to give me $500 off the premium model he had in stock (so only $1500 difference) but I was adamant about getting the extra headroom without the sunroof.