New Models Currently Selling at Widely Divergent Discounts - GM cars with the highest

[Ming]

Edmunds Price Index (EPI) Reveals New Models Currently Selling at Widely Divergent Discounts



SANTA MONICA, Calif., March 14 /PRNewswire/ -- Not all new car models first introduced in the 2005 model year are faring as well in others in today's competitive marketplace, according to the Edmunds Price Index released today by Edmunds.com, the premier online resource for automotive information.

Of the new introductions, Land Rover LR3, Chrysler 300 and Hyundai Tucson sold at the smallest discounts -- 0.1%, 2.8% and 3.6% below sticker price, respectively. Pontiac G6, Buick LaCrosse and Chevrolet Cobalt had the highest average discounts: 19.9%, 14.7% and 10.4%, respectively. Overall, new models averaged a 9.0% discount from MSRP in February 2005, compared with the industry average discount of 15.0%.

Since 1995, the number of models available to consumers has soared 23%, increasing from 256 models to 316. Information on these vehicles can be found at www.insideline.com.

"Manufacturers and dealers have learned they can benefit from the buzz generated by new model introductions," explains Dr. Jane Liu, Vice President of Data Analysis for Edmunds.com. "A constant flow of appealing new models capitalizes on the trend of personalization, gives great material for advertising messages and can draw continual traffic -- representing various demographics -- to dealership showrooms."

A typical indication of vehicle popularity is days-to-turn, which measures how many days on average it takes to sell vehicles after they arrive at dealerships. In February, the newly introduced models averaged 36 days-to-turn, while the industry average was 64 days. Of the new introductions, Buick Terraza moved the fastest at 21 days, followed by Mercury Montego and Chrysler 300 at 24 and 25 days, respectively. Dodge Magnum has the highest days-to-turn, 62, while Pontiac G6 takes 48 days and the Hyundai Tucson takes 42 days, on average.

"Typically, high days-to-turn statistics reflect poor sales performance, and force manufacturers to offer generous incentives as a way to balance supply and demand," explains Dr. Liu. "However, in some cases, popular vehicles sit on dealership lots because its buyers prefer to place orders and wait for precisely customized vehicles rather than purchase standard versions available immediately."

FULL Article Here: http://www.autospectator.com/modules...hp?storyid=948

[Proetus]

...Pontiac G6: 19.9% below sticker price...

Did GM use the dartboard method to come up with the pricing for this vehicle?

[dindak]

Problem is, GM priced the G6 like a premium sedan. It's a good car but you can get a larger Grand Prix for almost the same price.

Drop the MSRPs and get the base 2.4L model out soon. This will save sales big time.

[ponchoman49]

With stickers hovering around 27-28k for most G6 GT models I have to wonder what kind of crack the General is smoking. It almost makes the 30K LaCrosses seem fairly priced. Not!

[paul8488]

MSRP of the G6 V6 in Canadian dollars: $24,700
MSRP - 19.9%: $19,784.70

How much attention would a $19,995 G6 grab? Some days I wonder if GM just wants an excuse to fold up and quit making cars.

[MelvinJ]

How about that Terraza, with the lowest days-to-turn ratio of any of the new models. Sounds like a runaway success.

[paul8488]

Hmmm yeah, that's true. I'd rather see GM have huge successes like that with larger volume vehicles, though any positive news should be applauded. Still, they surely didn't have super ambitious plans with their luxury minivan, so I'll guess they judged the market right and built the proper number of vehicles. GM can do things so well sometimes that I get frustrated when they mess other things up.

[gmsickofan]

Originally Posted by dindak

Problem is, GM priced the G6 like a premium sedan. It's a good car but you can get a larger Grand Prix for almost the same price.

Drop the MSRPs and get the base 2.4L model out soon. This will save sales big time.

The thing is, the 2.4L is more advanced and probably costs GM more to make than the "new" 3.5L pushrod engine.

[AdmiralViscen]

Nice to see the Montego selling briskly.

[dindak]

Originally Posted by gmsickofan

The thing is, the 2.4L is more advanced and probably costs GM more to make than the "new" 3.5L pushrod engine.

You may be right though the 2.4L has to be cheaper than the V6. That's the rule.

;-)

[mgescuro]

Originally Posted by MelvinJ

How about that Terraza, with the lowest days-to-turn ratio of any of the new models. Sounds like a runaway success.

Ironic, isn't it?? HOw everyone panned the Terraza (myself included) and it seems to be doing the best of all the new GM vehicles.

[gmsickofan]

Must be a lot of loyal Buick buyers with pent-up Minivan needs, because the Rainier wasn't a success. Either that or there is one per dealership, and it gets sold and wow, surprise - surprise, there's a short turn around.

[mgescuro]

Originally Posted by gmsickofan

Either that or there is one per dealership, and it gets sold and wow, surprise - surprise, there's a short turn around.

Heh... that's probably the case!!!

[MelvinJ]

Originally Posted by mgescuro

Ironic, isn't it?? HOw everyone panned the Terraza (myself included) and it seems to be doing the best of all the new GM vehicles.

I was kind of surprised at this, since my local dealer has a bunch of them. Then again, my local dealer is HUGE, so he has a lot of everything.

I would love for the CSV's to be a big sales success to quiet all the naysayers in the world.

Of course, I'm not holding my breath...

[rob2299usa]

I doubt that the 2.4L costs more to make because although you have one extra camshaft and some other VVT mechanisms you have 2 less pistons, 2 less connecting rods, a smaller crankshaft, smaller block, etc., etc.