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Discussion Starter · #1 ·
Using current models for pricing guesswork:

The 2004 Oldsmobile Silhouette Premiere AWD currently sells for MSRP of $36,795 with a $33,299 invoice.

The lowest priced Venture (extended) sells for MSRP $23,365 Invoice: $21,145

Existing rebates:

2005 Venture $2,000 1.90% 1.90% 2.90% 3.90% - 8/2/2004 -
2004 Venture $4,000 0.00% 0.00% 0.00% 0.00% 2.90% 8/2/2004

The 2005 Venture comes with 2000 bucks off, right out of the gate...






For comparison's sake, the KIA Sedona is offered for:$19,975, with a 195hp/218 torque engine.
 

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Originally posted by Ming@Jul 16 2004, 12:17 PM
Anyone care to elaborate on why high MSRP and high incentives might actually be good?
Because many people still tie the value of a car to the sticker price. A rebate means they are getting a good deal. A low sticker means that they are buying a cheap product. Call it naive, but don't tell me they're not out there, and in fairly large numbers. Even people that seem to know better will say, "I got a $31,000 Montana for $23,000 after rebates! If they didn't feel the sticker was relevant in some way, they wouldn't mention it.

The ones that don't view the sticker price that way are simply going to subtract the rebate to get to the bottom line and make their own comparisons of value from there.
 

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Discussion Starter · #4 ·
Originally posted by MelvinJ+Jul 16 2004, 08:56 AM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (MelvinJ @ Jul 16 2004, 08:56 AM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-Ming@Jul 16 2004, 12:17 PM
Anyone care to elaborate on why high MSRP and high incentives might actually be good?
Because many people still tie the value of a car to the sticker price. A rebate means they are getting a good deal. A low sticker means that they are buying a cheap product. Call it naive, but don't tell me they're not out there, and in fairly large numbers. Even people that seem to know better will say, "I got a $31,000 Montana for $23,000 after rebates! If they didn't feel the sticker was relevant in some way, they wouldn't mention it.

The ones that don't view the sticker price that way are simply going to subtract the rebate to get to the bottom line and make their own comparisons of value from there. [/b][/quote]
There's some truth to that, but the problem with that method is that people end up waiting until the end of the year, when the incentives will get better.

Why buy a 2005 Venture, mosltly unchanged from 2004 with 2000 bucks off right out of the gate, when you can get another 2000 dollars off of a 2004 that was assembled 2 months earlier? Just to say you have a "2005"?

There will always be people who wait for end of year deals, but if the MSRP is enticingly low, people will buy all year round. KIA/Hyundai figured that out.

The GM minivans also stack up poorly, feature wise, to Toyohonda Minivans, etc. - with less powerful engines and less versatile interiors. To price them the same at the MSRP level is a kind of insult to consumers' intelligence.
 

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But the manufacturers will not give the large discounts on the 2005 models till the dealers have cleared out thier 2004 models. Once that is done you will see $4000+ incentive on the 2005 models.

I think GM,Ford and DMX are scared of a No ****er Sticker. They try these things in thier Dealer Marketing Associstions and generally wind up adding the incentives back on then financing the vehicle at 0%

But what if 0% wasn't there and what if the Venture was only $19365, $600 less than the Kia? $4000 less than a Caravan? and so on. I think it would work,people would eventually finance at ?% and go on, telling thier friend they bought the Venture cause it was the least expensive 1 out there. But the problem of people oweing more than they trade is worth comes into play, they are now financed at a low interest rate and thier payment on the new 1 would be through the roof.

Incentives are a very big problem, waying out both sides it could be done, lower prices with no incentives. But this would take 6-10 years to accomplish, without loosing more marketshare to the imports.
 

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Discussion Starter · #7 ·
Originally posted by Rex Raider@Jul 16 2004, 01:29 PM
They should all be priced above $50000.

That way when people don't buy it, it will be due to the high price, not to it's total lack of competitiveness in the class.
So harsh, but so true... :p
 
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