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High End Luxury Cars

24700 messages,  Last post on Dec 01, 2009 at 12:24 PM

You are in the Sedans Forum. Your Hosts are pat & karens

What is this discussion about? Audi A8, BMW 7 Series, Jaguar XJ-Series, Lexus LS 460, Mercedes-Benz S-Class, Volkswagen Phaeton, Maserati Quattroporte, Mercedes-Benz CL-Class, Sedan



Let's try to define this forum as being limited to luxury performance vehicles where the mainstream version in a typical configuration has an MSRP of at least $60k.

A luxury vehicle with a base price of $59k qualifies because it would typically be bought with some additional equipment, bringing the MSRP over $60k.

Vehicles like the E, 5, A6, M, or GS, even if available in certain versions over $60k, don't qualify because they are cars from companies that have higher end cars in their lineups.



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#20062 of 24700
Re: This thing about the Audi image [blkhemi] by tagman
Oct 18, 2006 (5:19 pm)
Reply

Replying to: blkhemi (Oct 18, 2006 2:59 pm)

blkhemi - I think houdini1 already knows that his "exclusive" remark was not one of his best posts. He said it as bait. I answered him in post 20021 and in his next post 20022 he sort of threw in the towel on the remark.
 
If you need to do so, check out those posts.
 
So, in my opinion, we can let him off the hook regarding his "exclusive" remark . . . he knows it wasn't one of his better posts and I expect he'll be making quality posts here again soon.
 
TagMan
#20063 of 24700
Re: Lexus Quality Slipping [tagman] by brightness04
Oct 18, 2006 (6:32 pm)
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Replying to: tagman (Oct 18, 2006 4:30 pm)

Having a higher price tag does not necessarily mean costing more or worth more. If a car has an MSRP of $100k, is usually leased with a 3-yr residual of $60k, but can never fetch more than $40k at auction after the lessee returns the car after 3-yrs . . . how much is the car really worth to begin with? It shouldn't take a rocket scientist to figure that out. I mean, how much is a $50 Filet Mignon really worth if it comes with a $20 gift certificate or a second meal of equal or less value with every serving?
#20064 of 24700
Re: This thing about the Audi image [tagman] by houdini1
Oct 18, 2006 (6:48 pm)
Reply

Replying to: tagman (Oct 18, 2006 5:19 pm)

Let me off the hook? What is that? I thought I was letting you guys off the hook. And when I say exclusive, I mean exclusive. One of my more clever remarks. Looks like we are going to game 7.
#20065 of 24700
Drivetrain Experimentation by dewey
Oct 18, 2006 (7:02 pm)
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I know how much Lexus hybrid efforts have been ridiculed in this forum especially in the form of the GS450H but believe it or not a dedicated Mercedes man who happens to be the head of research at DaimlerChryselr is completely impressed and overwhelmed by the Lexus GS450H.
 
STUTTGART Every couple of months, Thomas Weber, head of research for DaimlerChrysler, gets behind the wheel of one of his own cars, or that of one of his competitors, and drives through the mountainous terrain of Europe or on long stretches in the United States.
  
While taking a spin this year, the lifelong Mercedes man found himself impressed with a novelty on the European market: Toyota Motor's new Lexus GS 450H, the world's first luxury car that incorporates an electric hybrid motor but still performs for a demanding driver like Weber.

 
Based on the Herald Tribune article I linked below it certainly does seem that Mercedes, Audi and BMW are very serious about hybrids. Diesels are not going to be their sole pursuit in terms of fuel efficiency.
 
So I guess we are going to see a lot of future drivetrain experimentation for the three German marques. There will likely be many models offering both diesel and hybrid drivetrains simultaneously. A Audi Q7 diesel sold simultaneously with a Q7 hybrid, a diesel MB S sold side by side with a hybrid MB S or hybrid diesel MB S and so on and so on.....
 
SOURCE: HERALD TRIBUNE
#20066 of 24700
Merc by
Oct 18, 2006 (7:06 pm)
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Well, Mercedes have never been comparison winners, save for the SL. I don't think Mercedes cares a great deal.
  
    The same is probably true for Lexus. You don't want to be a bottom-feeder, in either case. But what would you rather be good at? I'm sure they don't build cars to please journalists.
  
    The M35/45 has put a nice string together, and can't outsell the beleaugered GS!

 
    This previous post of mine seems to have you chaffed, still.
 
    I apologized for not including GL and AMG vehicles.
 
    All comparisons count, but I due place more credit on beating 6-7 cars in a comparison than 1 or 2 cars.
 
    Apparently you didn't get my point, which was that winning a comparison and being #1 in sales have different values to different people.
 
    The M has won at least two major comparisons, and it has it's work cut out keeping up with such unpopular cars (around here) as the Lexus GS.
 
    Lexus has stated they want to sell 30k GS a year. As far as I can tell, every month they are getting 2500 a month out of it, so even if it isn't King of The Mountain, it is successful to it's maker, and to 30k buyers.
 
    No one "copped out". Just stating the facts. I was the first one to say I envisioned a design more in the 5-series idiom, than what we received.
 
    The SC doesn't have to win comparisons to be a success. Neither does the C-Class. Or the Lexus ES.
 
    I remember when the 1996 Isuzu Trooper won an 8-truck SUV comparison in C&D.
   
    Would you call the Trooper a success? No. Why? Because no one bought one.
 
    If the boring LS can, consistently, win comparisons with other sexier, sportier, more powerful rides, it says something about Lexus and their ability to execute.
 
    Usually when something is labeled "critically-acclaimed", that means nobody is buying/watching it.
 
    DrFill
#20067 of 24700
Re: Lexus Quality Slipping [brightness04] by dewey
Oct 18, 2006 (7:17 pm)
Reply

Replying to: brightness04 (Oct 18, 2006 6:32 pm)

Your Filet Mignon and gift certicate argument makes a lot of sense.
 
But any auto maker that uses your inflated residual argument will end up perishing due to losses or at least suffering the slow and gradual death that is afflicting the Big 3.
 
BMW and Audi profits are healthy and growing while MB profits are going through a healthy recovery(apparently the same cannot be said about Chrysler). Fortunately such economics as you are describing above is not applicable to the three German luxury marques.
 
 
#20068 of 24700
Re: BlkHemi [blkhemi] by lexusguy
Oct 18, 2006 (7:39 pm)
Reply

Replying to: blkhemi (Oct 18, 2006 2:53 pm)

And the G35 is outselling it too!
 
The 2006 G35 is also a lame duck. G35 sales should get a nice boost next year.
#20069 of 24700
Re: Lexus Quality Slipping [dewey] by brightness04
Oct 18, 2006 (7:52 pm)
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Replying to: dewey (Oct 18, 2006 7:17 pm)

Discounting does not automaticly mean financial death sentence righ away, if the price was marked up to begin with. A classic example is jewlry: has any of us ever purchased diamond at full appraised value, instead of say, 30%, 50% or even 70% below "appraised value"? Obviously, jewlers are not going out of buisiness in droves. They have been doing it for decades. Marking up then offer "incentives" is the classic game played by purveyors of luxury goods. It makes no difference to the eventual bottom line at all whether an S class is priced at $80k for a straight sale or lease it at $100k with a $60k residual then later auction the car off at $40k . . . ignoring interests for the moment, the car company gets $80k from the car through either sales method.
 
There are however three consequences of this game:
 
(1) a higher sales revenue is booked at inception of the lease, to be followed by a $20k write-down disgorgement three years later. So long as the sales volume is expanding, the front-ending of the book (ie. more new cooked up sales than lease return coming back to roost) looks good for the current quarter. The day the sales volume drops (i.e. not enough new cooked up sales to offset write-downs from previous fake sales), the company is in trouble. That's how the domestics ran into trouble a decade ago: they had to increase volume at all cost. In other words, this particular marketting method can be either a profit booster or loss booster . . . it's a leveraged play on sales growth.
 
(2) It allows the leasers to brag about having a car with higher MSRP: $100k vs. $80k, even if the real worth of the car (ie. the life time revenue of the car for the manufacturer) is the same $80k.
 
(3) In states that collect excise tax based on MSRP, it results in a higer tax bill.
#20070 of 24700
Re: Lexus Quality Slipping [brightness04] by tagman
Oct 18, 2006 (7:58 pm)
Reply

Replying to: brightness04 (Oct 18, 2006 6:32 pm)

I mean, how much is a $50 Filet Mignon really worth if it comes with a $20 gift certificate
 
Even MORE . . . $70
 
(I get your point, though)
 
TagMan
#20071 of 24700
Re: Lexus Quality Slipping [tagman] by brightness04
Oct 18, 2006 (8:03 pm)
Reply

Replying to: tagman (Oct 18, 2006 7:58 pm)

And somehow, you would go to the steakhouse insisting on charging $50 for the chunk of meat and give you $20 back, instead of another one that simply charges $30 for the same chunk of meat to begin with? Guess what, you are simply out on the tax on the extra $20 plus the whatever tip per centage you normally pay.
 
edit: See your edit. Thanks for the witty reparte

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