Last post on Dec 05, 2013 at 2:28 AM
You are in the Smart Shopper
What is this discussion about?
#92245 of 95833 Re: Sales Story [driver100]
Jun 19, 2013 (9:56 am)
I heard Ford was going to do away with the touch screen, they were getting low scores because people were finding it hard to use, or at least learn.
You heard wrong. They are still going to have touch screens and MySinc. What they're adding are knobs so you're not forced to only use the touchscreen.
#92246 of 95833 Re: Sales Story [bwia]
Jun 19, 2013 (10:00 am)
Surely a company cannot sell below invoice and still remain in business, at least not for very long.
Like venture said, the dealer didn't really pay invoice.
Not that this is the case, but sometimes a dealer will take a loss in a car if it means reaching a certain target and qualifying for a big bonus. It's all about the big picture.
#92247 of 95833 Re: Short Impala update [robr2]
Jun 19, 2013 (10:07 am)
Yeah, but it seems it's a short term gain that hurts the brand long term. Those rentals flood the market in large numbers. It's not just the resale value. A consumer buys a used one, thinking it should have this and that (consumer research websites said so) then he or she finds it's not even half as good. Removing safety features, like side impact airbags would be one of those items retail Impalas have standard and rental may have removed. When one finds out, they surely would feel cheated. Word gets quickly around stay away from those used Impalas - how quickly would that spill to staying away from those new ones?
#92248 of 95833 Re: Sales Story [verdugo]
Jun 19, 2013 (10:29 am)
That's right. Today's "invoice" price is no longer real dealer cost, hasn't been for a while. Holdback, volume bonus, customer satisfaction bonus, annual bonus, quarterly incentive, yada, yada. Who knows what the real cost is and that's the whole idea. In world of the internet and information they had to bury it much deeper from public's view and show some shiny object to distract them. Basically, a slight of hand created by the manufacturers and dealers to create an illusion of "beating the system". If it were a true cost, those guys would have been out of business long time ago, as now too many transactions are "below invoice". What they did they narrowed the window of negotiation. Look - there is only $1500 markup on this Focus or Corolla, I give you all of this, I don't know how I pay the receptionist and the power company. You need to give me at least a couple of hundred bucks.
Not to mention that in many states the markup was shifted from invoice price markup to those infamous fees. Latest is $600-800 around here. With that kind of fee, one could sell "under invoice" and still be well off, especially if "invoice" isn't real, anyway.
#92249 of 95833 Re: Short Impala update [dino001]
Jun 19, 2013 (10:29 am)
So you argue that nobody should sell rental cars?? After all the brand is hurt no matter the brand. The idea for selling the old Impala is so the new Impala isn't flooded into the rental fleets.
BTW - all vehicles require side air bags, ABS, et al today so that point is moot.
#92250 of 95833 Re: Short Impala update [robr2]
Jun 19, 2013 (10:43 am)
Yeah, today it's moot for those, but there will be something else. Something not mandatory, but desired by the market. Perhaps not just a safety feature, perhaps fabric on seats, or better stereo, whatever it is.
I'm not really arguing against fleet sales per say. It is their choice to make. Those are hard choices, that's for sure. Especially that even fleets are not equal. For example, every time I get a vehicle from Avis, it's usually a well equipped version, often above what average consumer of that brand and model would buy in retail. From several, I almost always got upgraded engine, leather seats, sunroof, etc. - either top of the line, or close. Hertz is similar. Enterprise, Dollar, Alamo - exact opposites. THE cheapest they can get is the one they buy. National or Budget - in between. I wonder if that would change, as it is now essentially only three companies that own all those brands. I think they'll keep those at least for a while, but there is no saying how it will look like in ten years.
One just needs to recognize that the choice is hard. Chase volume at cost of quality (in a wide sense) and you may get punished later. They just need to understand and be able to live with consequences, especially if they cheapen the vehicle beyond recognition.
BTW, not everybody does this, Honda has a very small fleet sale percentage and it serves them well. Even GM and Ford partially withdrew, which allowed Toyota and Hyundai to pick some fleet market up.
BTW, I did have Impala once, a cheap version. Awful powertrain, uncomfortable seats, cheap interior. Yeah, real advertisement. The only redeeming quality was I did not expect much (and did not get it). BTW, it was Enterprise.
#92251 of 95833 Re: Short Impala update [dino001]
Jun 19, 2013 (10:46 am)
>Removing safety features, like side impact airbags would be one of those items retail Impalas have standard and rental may have removed.
Do you have a link saying the RPO for a fleet rental Impala has the standard airbags 86'ed? Otherwise, it's not right spreading that idea that safety has been compromised.
#92252 of 95833 Re: Short Impala update [imidazol97]
Jun 19, 2013 (11:16 am)
Years ago it happened. IIRC, Chevy was equipping all Cobalts with side airbags as standard before regulations required them. A rental agency asked for GM to manufacture for them Cobalts without the side airbags to save cost. GM complied with their specification.
#92253 of 95833 Re: Short Impala update [dino001]
Jun 19, 2013 (11:21 am)
For example, every time I get a vehicle from Avis, it's usually a well equipped version, often above what average consumer of that brand and model would buy in retail. From several, I almost always got upgraded engine, leather seats, sunroof, etc. - either top of the line, or close. Hertz is similar.
But that's the rental car company that specifies those features. The manufacturer isn't telling them they have to take those options - they must be specifying those. It's the same thing with the old Impala - GM offers it because the rental agencies want an inexpensive, full size vehicle. They are filling a market need. Further, I'll venture that 95% of the renting public won't care that it's not chiseled from a piece of stone.
#92254 of 95833 Re: Short Impala update [dino001]
by Kirstie@Edmunds HOST
Jun 19, 2013 (11:23 am)
Offering totally stripped-down versions as rental cars seems mostly a thing of the past. Perhaps you can still get them - I rarely rent, so I don't know. But my SO travels several weeks per month for business, and he gets all sorts of neat vehicles as rentals, and hasn't had a cheap-o version of anything in years.