Quote:
Originally Posted by ByTheLake
Perception is reality, however. GM must wrestle with this every day.
I'm wondering if the perception issue affects the resale value? Does a Matrix hold more value after 5 years than a Vibe?
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I'm not sure. I work at a Pontiac store. Those Vibes do get a good trade in. Here's an example from last year. We had a lady with an 03 Vibe with 50k on it. Automatic trans, power windows and locks and a sunroof and fairly clean. She was given $9000 in actual cash value for the car!! Take this salesmans word for it, I've been selling GM products for a long time now. This car stickered new at $18,000 and after 5 years it retained half its value. A Grand Am of same year and mileage would be worth $6000 and that would have had a higher MSRP.
You're dead on with your quote that Perception is Reality. Our manager is always harping that we need to change peoples perspectives of GM one customer at a time. That's getting harder and harder as more people form their perceptions on what they read online. For the most part, they don't bother even visiting a GM store....they just go straight to the Honda and Toyota store and plunk down their hard earned cash.
It's definitely going to be interesting in seeing what happens in the next 5 years. I was speaking with a GM service manager who said that in 2007, there were over 100 GM dealer closures in the Northeast part of the USA (from Maine to the south end of Virginia) and this year there will be 200 more closing. That number alone is 25% of Toyotas total dealership base!!! The GM, Ford and Chrysler dealerbase is simply too much for the diminishing demand. I am glad to see that Toyota is building plants over here, and I notice they're NOT being built in Michigan, but rather in the south. I guess there aren't as many union issues to deal with there.
Ok...I'll get off my soapbox now.