Last post on Aug 17, 2012 at 1:32 PM
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Hyundai Sonata, Sedan
#6988 of 7871 Re: Good news? [targettuning]
Feb 27, 2007 (10:39 am)
US Inventory Troubles Hyundai Motor
By Kim Yon-se
Hyundai Motor is selling cars at a clearance discount in the United States as its price competitiveness has weakened and inventory of its Santa Fe and Sonata models has piled up.
Its inventory reached 171,000 units in January at its corporations and dealerships there, up 36 percent from 125,000 units a year before. The figure includes some 100,000 Sonatas produced in Hyundai’s Alabama plant.
The automaker’s U.S. market inventory has been increasing since late 2004 in accordance with the won’s gradual appreciation against the dollar over the past few years.
After reaching a record high of 173,000 units in February 2005, its stockpile inched down for several months before bouncing back.
The company’s clearance of inventory accelerated after it launched U.S. sales of the New Santa Fe, a popular sport utility vehicle (SUV) model in Korea.
Consumers are buying the initial model of the Santa Fe with its 2.7-liter engine for $17,695, 22-percent off its regular price of $21,695. Those cars were imported from Korea while the New Santa Fe is being produced in the Alabama plant.
``The stockpile has increased as consumers book for the made-in-Alabama Santa Fe,’’ a Hyundai spokesman said. ``But we believe it will be sold soon thanks to bargain sales.’’
Hyundai also started discounts for its NF Sonata sedan last year, offering a reduction of $2,500-$3,000 for the vehicle.
The spokesman said the large discount is a habitual corporate marketing practice, though profitability could worsen, adding, ``Discounting is better than stockpiling.’’
Analysts say Hyundai Motor’s bargain sales could undermine its profitability and spark criticism among Korean consumers, even though the company expects the discount to help boost its sales in the U.S. market.
In Korea, the initial model of Santa Fe was sold for about 30 million won ($31,600), much more expensive than the discounted price of $17,695 in the U.S.
#6989 of 7871 Re: Good news? [llamania]
Feb 28, 2007 (7:13 am)
So then you have no real point other than a Korean news release indicaticates that the "old" Santa Fe is being sold more frequently because of a large discount? Also a gradual increase of the value of the won verses the dollar has prompted an increasing inventory. News for you...the value of the dollar verses the yen, euro etc has always dictated the price of "foreign" cars to some degree and the Japaneese have frequently been accused of "dumping" their vehicles at less than cost to sell in the USA. This kind of corporate manipulation has always happened. It all comes out in the wash and Hyundai,due to discounts helping in the selling-out of the older models of its various brands will do fine.
#6990 of 7871 Re: Good news? [targettuning]
Feb 28, 2007 (7:27 am)
Just possibly the point might be that Hyundai will probably have to increase dealer incentives and/or customer rebates so as to move their inventory glut.
Just a thought.
#6991 of 7871 Re: Good news? [targettuning]
Feb 28, 2007 (11:04 am)
The Japanese have stopped their "dumping" practices LONG ago... They just don't NEED it anymore, and haven't in the past 10 years, at least.... Maybe Detroit needs to start that practice?...
And I don't know what Hyundai's "selling-out of the older models" you're talking about, targettuning.
#6992 of 7871 Re: Good news? [mamamia2]
Mar 01, 2007 (7:14 am)
Well, the article seems to indicate the "older" Santa Fe's made in Korea are being heavily discounted. You are probably aware there is now a new version. The Elantra was just totally redesigned for 2007 so I presume there may be some of the older or previous design left on some lots. And finally while it has been a litle while the Accent was also totally redesigned and there MAY be some of the older versions of those around too. So yeah there are older models of at least three of Hyundai's model line-up that have been recently redesigned.
#6993 of 7871 I bought 2007 GLS for $16300 OTD with the premium package and mats
Mar 01, 2007 (10:22 am)
I almost bought my Silver 2007 Sonata I4 with premium package (power driver seat, etc.) for 17k OTD. The car is very clean with only 13 miles on it. The dealership has about 8 I4 Sonatas with different colors. I think the Silver color with the premium package is all I need at this time. The red color is also great. I almost chose the red one but I feel the silver is more conservative. I am 45 years old.
I was lucky because before I signed the papers I received a call from another dealer I talked to him earlier. He told me to come for a lower price and a better rate. Then the war broke between the two dealers! I am not going to talk about that Hahahahaha. I was able to get it for $16300 including taxes and everything and it also includes the premium package with the many great features and mats. I figured out the price to be below 15500 given the tax is 5%. Also, I got a really low inetrest rate from Hyundai. This is unbelievable. A great car fully loaded for 15K. The dealership was great. They cleaned the car and filled the tank.
The car drives straight without leaning toward right or left. It is stable at high speed without any steering shaking. As you know shaking in new cars is due to wheel alighnment in most cases. I went up to 80 miles per hour for a short period of time to test the car. I kept the speed below 60 mph most of the time.
The Toyota Camry with the same specs will cost over 21K. There is over 5k in savings. This is significant. Also, Hyundai warranty is great. The price of the car plus the interest during the next 5 years is 2000 dollars less than the Camry.
#6994 of 7871 Re: I bought 2007 GLS for $16300 OTD with the premium package and mats [aalsherri]
Mar 01, 2007 (10:50 pm)
Congratulations! You got a great deal, aalsherri. It's always the consumer's advantage when two dealers are fighting a war over him. I say: Make war, not love.
Enjoy the car! And, btw, if you took the loan in order to get an extra Hyundai rebate (or dealer's discount) you can probably (it may differ from one state to another) REPAY your loan in full -- after one monthly payment...
#6995 of 7871 IIHS low-speed crash tests
Mar 02, 2007 (12:48 pm)
The IIHS just published a report on low-speed crash tests for mid-sized cars. The results show that the bumpers on today's cars don't do as well protecting other components as did bumpers from years ago, before standards were loosened. The Sonata finished 12th out of 17 in terms of overall repair cost, but it was the best performer in the "rear full" test. The article notes that Hyundai beefed up the rear bumper in anticipation of the tests.
#6996 of 7871 Sonata reliability?
Mar 02, 2007 (2:19 pm)
Any one has information about the Sonata long term reliability? How about rust resistant and parts quality?
Mar 02, 2007 (2:24 pm)
I got 6.50% interest rate from Hyundai. I was not qualified for the low 5.29% due to my score. BTW the rate is about 2 points less than the local bank quote.