MSRP tidbit

tb3573

Registered Member
48
22
8
Genesis Model Type
No Genesis Yet!
A dealer (which is sticking with MSRP by the way) told me that Genesis has communicated pretty strongly to their dealer network not to go above MSRP, but that they can't really do anything about it. Supposedly a standalone building was part of the agreement - not sure why pricing couldn't be as well - perhaps they didn't include it and that horse has left the barn. Apparently dealers are getting around it by not posting an above-MSRP pricing on anything consumer-facing (web, etc) and then posting on the car a "market adjustment."

They also told me that Genesis has warned that dealers going above MSRP would have their allotment adjusted. I like hearing that, but if for some reason (I can't imagine why if it's above MSRP) that dealer is moving cars, I suspect they'll look the other way.

I don't have a way to verify these comments, but seems to be reasonable.
 

csu87

Registered Member
125
69
28
Genesis Model Year
2021
Genesis Model Type
Genesis G70
A lot of times dealer get around this by including "Dealer Packages" in their pricing to adjust for the market. "Optional" dealer packages that cant be removed.
 

KDav

Registered Member
127
61
28
Genesis Model Type
No Genesis Yet!

csu87

Registered Member
125
69
28
Genesis Model Year
2021
Genesis Model Type
Genesis G70
They can lick my ass. Just because they have a unit in hand early they may get some sucker but when there's inventory available more broadly I don't see them getting away with that in a month or two.
They arent targetting the person wanting to wait a couple months. they are targetting the person who wants the newest car now
 

KDav

Registered Member
127
61
28
Genesis Model Type
No Genesis Yet!
They arent targetting the person wanting to wait a couple months. they are targetting the person who wants the newest car now
Was my response not consistent with that? Yes they will get the sucker now, probably not later.
 

dav

New member
12
5
3
Genesis Model Type
No Genesis Yet!
I can wait. My car has been paid off for awhile now, and still running well.
 

Etex

Registered Member
57
26
18
..... Supposedly a standalone building was part of the agreement - not sure why pricing couldn't be as well - perhaps ...
In regards to this, FWIW, the dealer I was put in touch with volunteered that Genesis had given them a 1 year extension (due to Covid) to complete construction of separate facility (they have the land next door). Which begs the question, what happens if they don't? I wonder how many dealerships have actually started or completed this process.
______________________________
 

Speeder

Registered Member
560
262
63
Quinton, NJ
Genesis Model Year
2021
Genesis Model Type
Genesis GV80
In regards to this, FWIW, the dealer I was put in touch with volunteered that Genesis had given them a 1 year extension (due to Covid) to complete construction of separate facility (they have the land next door). Which begs the question, what happens if they don't? I wonder how many dealerships have actually started or completed this process.
My local dealer (Genesis of Cherry Hill) is still using the same line about the 'new' facility they used in February of 2019 when I bought my G80. The line, "should be starting construction within a couple of months'.
 

Backslack

Registered Member
961
522
93
A dealer (which is sticking with MSRP by the way) told me that Genesis has communicated pretty strongly to their dealer network not to go above MSRP, but that they can't really do anything about it. Supposedly a standalone building was part of the agreement - not sure why pricing couldn't be as well - perhaps they didn't include it and that horse has left the barn. Apparently dealers are getting around it by not posting an above-MSRP pricing on anything consumer-facing (web, etc) and then posting on the car a "market adjustment."

They also told me that Genesis has warned that dealers going above MSRP would have their allotment adjusted. I like hearing that, but if for some reason (I can't imagine why if it's above MSRP) that dealer is moving cars, I suspect they'll look the other way.

I don't have a way to verify these comments, but seems to be reasonable.
The irony is that the dealerships would all defend their right to charge markups but immediately sue Genesis when asked for them to build separate showrooms and facilities. They're in an enviable position where they get to make top dollar on high-margin luxury vehicles without having to provide any of the services of a luxury brand like Genesis wanted.

The bad experience with these dealers is probably why Genesis opted to go with direct sales in pretty much every other global market.
 

Gurgeh

Registered Member
125
69
28
Genesis Model Type
No Genesis Yet!
Three words: state franchise laws.
Plus four more (note #2 in particular): Manufacturer Suggested Retail Price

In the U.S. there is little Genesis can do. They made their bed when the Genesis brand first launched and they struck the agreement to sell them only through the existing Hyundai dealership network. Now they have to live with that decision.
 

partytimeson

New member
4
1
3
Genesis Model Type
No Genesis Yet!
Three words: state franchise laws.
Plus four more (note #2 in particular): Manufacturer Suggested Retail Price

In the U.S. there is little Genesis can do. They made their bed when the Genesis brand first launched and they struck the agreement to sell them only through the existing Hyundai dealership network. Now they have to live with that decision.
New here so sorry for the dumb question. So does that mean Genesis will never have their standalone dealerships in the states?
______________________________
 

EdP

Supporting Member
SUPPORTING MEMBER
SUSTAINING MEMBER
9,430
5,148
113
Parrish, FL
Genesis Model Year
2018
Genesis Model Type
Genesis G80
New here so sorry for the dumb question. So does that mean Genesis will never have their standalone dealerships in the states?
No, they are working on it and some under construction. What it means though, they cannot force the present dealers to give up selling the Genesis or starting a new store for them.
 

Bargamon

New member
5
3
3
Genesis Model Year
Tissuegv70
Genesis Model Type
Genesis G70
I don’t have an issue with mark up. I have the right to negotiate on a model that they have excess inventory on so why can’t they mark it up based on demand. We view as gauging and get all upset? It’s not water or milk for children, it’s a luxury car. Inventory matters to those that want it now. Nobody needs a luxury car. I’ll order and wait. If not, I’ll buy another brand or find a dealer that won’t mark it up.
 

Speeder

Registered Member
560
262
63
Quinton, NJ
Genesis Model Year
2021
Genesis Model Type
Genesis GV80
No, they are working on it and some under construction. What it means though, they cannot force the present dealers to give up selling the Genesis or starting a new store for them.
There's was no visible construction in my area (about 15 Delaerships) when I was looking for a GV80. Lots of talk but no dirt being moved.
 

YEH

Registered Member
2,691
720
113
NYC/MD
Three words: state franchise laws.
Plus four more (note #2 in particular): Manufacturer Suggested Retail Price

In the U.S. there is little Genesis can do. They made their bed when the Genesis brand first launched and they struck the agreement to sell them only through the existing Hyundai dealership network. Now they have to live with that decision.

Ford has the same issue with Lincoln dealerships that share a space with Ford stores.

There really was no other option when launching the Genesis sedan - only one model (and a relatively slow selling sedan at that when CUVs were really starting to gain traction) at the height of the Great Recession.

Good luck in any of the ownership groups getting financing for a new auto dealership at a time when the banks had pretty much stopped lending.

What H/G should have done was to let Hyundai dealerships continue to sell the 2G Genesis sedan, while launching the G90 (and later, the G70) with the dealerships willing to invest in a new store for the Genesis brand.

Then when the 2G Genesis sedan was at the end of its life-cycle, just not replace it; the G80 being an all-new model (I'm sure there would be litigation over this, but Genesis would have a good case).


New here so sorry for the dumb question. So does that mean Genesis will never have their standalone dealerships in the states?

There are at least 100 dealerships (# of dealerships under the original plan that was thrown aside due to the lawsuits) planning on going ahead with building new facilities; only Genesis knows how many of the other 250 or so dealerships are planning to do the same.

There are those who aren't willing to make such an investment and Genesis is trying to get them to give up their Genesis franchise, but there's only so much they can do.


Now, the question is - did the higher than expected MSRP lower the amount iof markups that dealerships are asking?

It's like concert tickets which are marked up by ticket brokers; much rather see that $ go to the artist/manufacturer (this is the reason why the big acts started to charge hundreds, if not thousands of dollars for the choice seats to their concerts).
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