Now with SUV's Brand Need Upgrade Dealer Experience

[albertkelley]

Looks like a fantastic competitor to Audi, BMW, Mercedes-Benz, Lexus, etc. However, the dealership experience is a critical component and regrettably, I don't think Hyundai dealers are ready for these products. It reminds me of the failure of the Volkswagen Phaeton about 15-20 years ago. It was a fantastic vehicle but with a VW badge and WV dealer experience, it failed. So a superior product at a good price is not enough, in my opinion. Fully loaded the Genesis SUV will sell for over $70,000. Granted it will be comparable to others at $100,000. But presently, the dealer experience is not even close. I've been purchasing/leasing Mercedes-Benz, Jaguar, Range Rover and Audi vehicles for 30 years. Buyers for these vehicles are not just buying transportation. I recently went to the Hyundai dealer in Lexington, Kentucky to consider ordering a Genesis SUV. Currently I have a 2017 Audi Q7 and 2019 Audi Q5. It was a dismal experience at the Hyundai dealer and I could not image purchasing a vehicle there.

 

[Aquineas]

This is the fight that former Genesis USA head Erwin Raphael was fighting. Unfortunately the Hyundai dealers are resisting this change vehemently, and honestly it cost a ton of sales when things were in limbo. Now Mark Del Rosso inherited basically the same exact problem:

1. Hyundai dealers, who admittedly were absolutely critical in the headway that Genesis/Hyundai have been able to make so far, don't want to stop selling $50K+ cars.
2. Unfortunately those same dealers don't want to spend the money upgrading their facilities, and in particular the service experience, which is the thing that most owners complain about.
3. Meanwhile people who are used to a luxury experience from the German big-3 or Lexus (and to some degree, Acura, depending on location) don't like being treated like Accent owners
4. Genesis struggles to offer the same luxury experience

#2 is the big problem

 

[albertkelley]

From a business owners viewpoint, I understand. However, it would be wise to have at least a few Genesis signs and logos and a designated desk or something that would help a prospective buyer. The dealer should understand where these buyers are coming from and what the buying experience is like at premium automobile dealerships.

 

[EdP]

From a business owners viewpoint, I understand. However, it would be wise to have at least a few Genesis signs and logos and a designated desk or something that would help a prospective buyer. The dealer should understand where these buyers are coming from and what the buying experience is like at premium automobile dealerships.

Some dealers to have designated sales and service advisors for Genesis customers. There is training available for them.
My personal experience was much better than my Mercedes dealer that I will not use again but that is just a couple of dealers. First impressions are critical. There are a few dealers for different brands that I'd never set foot in again.

 

[albertkelley]

Since Hyundai clearly has long term objectives for Genesis, they will figure this out. Buyers get most of their information on new cars from the internet, anyway. As a result, a buyer may know more about a particular vehicle than a sales person at the dealership. One of the only reasons to go to a dealership now is to actually see a particular vehicle and take it for a test drive prior to purchase. Other than that, the dealership sales person brings little to the transaction. A savvy buyer knows the details of the car and expected price before entering the dealership. All manufacturers have "build your own" tools on their websites and its easy to shop the specifications from various dealers. Flying out of state and driving a car back for the right price is not uncommon. I've had a dealer in Florida deliver a new car to my home in Kentucky in the past as well as a dealer in Rhode Island deliver a car to me in New Hampshire. In both cases, it was because the price was better than from a local dealership even with the added transportation costs. With COVID, many premium brand dealers are offering free delivery to your home of a vehicle for a test drive to facilitate purchase without having to go to the dealership at all to complete the transaction. With that sales model, Genesis buyers would never have to set foot in the dealership. Service could be done the same way. True premium experience for a premium product.

 

[RCH04]

From a business owners viewpoint, I understand. However, it would be wise to have at least a few Genesis signs and logos and a designated desk or something that would help a prospective buyer. The dealer should understand where these buyers are coming from and what the buying experience is like at premium automobile dealerships.

This situation has to be frustrating to Hyundai and the Genesis. Their lineup of impressive vehicles continues to expand only to loose momentum when they hit the dealer network. I'm sure a few Hyundai dealerships will take a longer term view towards improving the experience they offer to potential buyers but it's obvious there aren't enough of them yet.

 

[PMCErnie]

The Phaeton didn’t fail because of the VW dealers. It failed because few people wanted such an expensive vehicle with a VW nameplate.

As for the Genesis brand, it risks overpricing itself out of its buyer marketplace. That is the biggest risk that I foresee. MANY Genesis buyers are Hyundai owners who saw a Genesis at their dealership and “fell in love.”

 

[EdP]

The Phaeton didn’t fail because of the VW dealers. It failed because few people wanted such an expensive vehicle with a VW nameplate.

As for the Genesis brand, it risks overpricing itself out of its buyer marketplace. That is the biggest risk that I foresee. MANY Genesis buyers are Hyundai owners who saw a Genesis at their dealership and “fell in love.”

Took my Sonata in for service. They had to keep it overnight and gave me a Genesis for a loaner. Next day I took my wife out to lunch with it. About six months later I bought one. The dealer screwing up my computer eventually got them a sale.

 

[pulsar]

Dealers won’t even spring for a Genesis sign. I love my G70 and had zero issues when buying and have needed no warranty work yet. My dealer threw the towel in on selling Genesis even though they had been selling plenty and had been getting good inventory. Made no sense other than they did not want to update or build a stand alone dealership. I’ve said befor the first dealer in a major area like DFW to pony up and build a stand alone dealership with the luxury experience will get the sales and warranty work from most all of us in the area. Uppity BMW, MB and Audi folks I don’t see going to Hyundai dealers and dropping $70k on an SUV. Specially if they do any home work about typical Hyundai service. I’m seeing GV80 commercials every day now so Genesis is advertising it way more than I saw the G70s so sales have potential of being very good for the GV80.

 

[PMCErnie]

Dealers won’t even spring for a Genesis sign. I love my G70 and had zero issues when buying and have needed no warranty work yet. My dealer threw the towel in on selling Genesis even though they had been selling plenty and had been getting good inventory. Made no sense other than they did not want to update or build a stand alone dealership. I’ve said befor the first dealer in a major area like DFW to pony up and build a stand alone dealership with the luxury experience will get the sales and warranty work from most all of us in the area. Uppity BMW, MB and Audi folks I don’t see going to Hyundai dealers and dropping $70k on an SUV. Specially if they do any home work about typical Hyundai service. I’m seeing GV80 commercials every day now so Genesis is advertising it way more than I saw the G70s so sales have potential of being very good for the GV80.

I’m guessing that dealers are prohibited from putting out Genesis signs. Must be a contractual thing. It certainly doesn’t cost much to buy a vinyl sign and hang it on a wall outdoors.

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[RCH04]

I’m guessing that dealers are prohibited from putting out Genesis signs. Must be a contractual thing. It certainly doesn’t cost much to buy a vinyl sign and hang it on a wall outdoors.

The Hyundai/Genesis dealer nearest to me still doesn't have a sign on the building. Just a smallish sandwich board type sign out on the grass near the street. This is a large dealership in an area where virtually every mainstream, premium and luxury dealership has stores. I don't get it - They seem to have a decent amount of cars in inventory (mainly G70's).

 

[GarnetTy1473]

I’m guessing that dealers are prohibited from putting out Genesis signs. Must be a contractual thing. It certainly doesn’t cost much to buy a vinyl sign and hang it on a wall outdoors.

Not prohibited, it's actually encouraged. It's just that most Hyundai dealers don't have the facility to put a sign up. Most don't even have a separate showroom for Genesis. We were the first dealer in the country to have a sign up on our building. Designed and paid for 100% by my owner. No help from Genesis at all, because they hadn't come up with a standard design yet. We were lucky and already had the facility where we had a used car showroom on the opposite side of the building from our Hyundai showroom. This made it easy for us to turn it into Genesis with very little remodeling. Mostly just nicer furniture and accommodations for our guests.

 

[PMCErnie]

Not prohibited, it's actually encouraged. It's just that most Hyundai dealers don't have the facility to put a sign up. Most don't even have a separate showroom for Genesis. We were the first dealer in the country to have a sign up on our building. Designed and paid for 100% by my owner. No help from Genesis at all, because they hadn't come up with a standard design yet. We were lucky and already had the facility where we had a used car showroom on the opposite side of the building from our Hyundai showroom. This made it easy for us to turn it into Genesis with very little remodeling. Mostly just nicer furniture and accommodations for our guests.

Interesting. My dealer doesn’t even advertise the Genesis brand in local newspapers. It’s the largest volume Hyundai/Genesis dealer of four in my area. How does that make any sense? They will continue selling the Genesis, as well. Maybe I should offer to buy them a vinyl sign?

 

[GarnetTy1473]

Interesting. My dealer doesn’t even advertise the Genesis brand in local newspapers. It’s the largest volume Hyundai/Genesis dealer of four in my area. How does that make any sense? They will continue selling the Genesis, as well. Maybe I should offer to buy them a vinyl sign?

We do print, tv, and billboard advertising for Genesis. We are also the highest volume Genesis dealer in their Central region. We typically sell as many Genesis in a month as the other 4 dealers in Indy do combined.

 

[RCH04]

Not prohibited, it's actually encouraged. It's just that most Hyundai dealers don't have the facility to put a sign up. Most don't even have a separate showroom for Genesis. We were the first dealer in the country to have a sign up on our building. Designed and paid for 100% by my owner. No help from Genesis at all, because they hadn't come up with a standard design yet. We were lucky and already had the facility where we had a used car showroom on the opposite side of the building from our Hyundai showroom. This made it easy for us to turn it into Genesis with very little remodeling. Mostly just nicer furniture and accommodations for our guests.

That's more like it. Nice looking facility. I haven't seen anything like that here in the Chicago area. They may be out there but haven't seen one. Back when Genesis seemed to going ahead with standalone dealerships, before the lawsuits etc., I don't think Chicago was one of their initial focus markets. Maybe that has something to do with it.

 

[tarhoosier]

Where do you rank in sales in Indy for Hyundai, as a comparison?

 

[GarnetTy1473]

Where do you rank in sales in Indy for Hyundai, as a comparison?

There are 6 Hyundai dealers in the Indy market. 5 of which sell Genesis. As far as Hyundai goes, there are 3 of us that are always swapping honors of being the top in sales for the city. Usually it's just us, or Ray Skillman Southside. Every once in awhile Napleton will jump in there.

 

[EdP]

We do print, tv, and billboard advertising for Genesis. We are also the highest volume Genesis dealer in their Central region. We typically sell as many Genesis in a month as the other 4 dealers in Indy do combined.

I would think Genesis corporate would be sending other dealers to you to observe and learn something. Do what works.

 

[GarnetTy1473]

I would think Genesis corporate would be sending other dealers to you to observe and learn something. Do what works.

They have done training videos from our dealership.

 

[PMCErnie]

We do print, tv, and billboard advertising for Genesis. We are also the highest volume Genesis dealer in their Central region. We typically sell as many Genesis in a month as the other 4 dealers in Indy do combined.

You have to wonder WHY Genesis corporate would not be INSISTING that dual dealers HANG A GENESIS SIGN OUT FRONT and advertise in newspapers. Can you shed some light on that?