Nissan attempting to reduce markups on GT-R orders
Pre-orders for the 2009 Nissan GT-R have already begun, with 691 certified dealers across the US ready to service the new offering. The expected sales volume is in the range of 2,500 vehicles for the first year and 1,500 anually after that. Do the math and you'll see the equation adds up to limited consumer availability. Mix that with high demand and you know that markups follow. Eager enthusiasts are up in arms over the possibility that their greatest desire might he priced out of reach as a result. Even Nissan expects to see its dealers make an attempt to cash in.
Hoping to alleviate fears of $60,000 fees tacked onto the $70,000 GT-R, Nissan North America spokesman Darryll Harrison spoke with Inside Line about the automaker's actions aimed at curtailing dealer markup. After all, Nissan worked hard to create a high performance machine that sits in a more affordable price range and it wants it to reach its originally intended consumers. Harrison revealed that not only is Nissan requiring all GT-R sales to go through dealership management staff, but paperwork must also be filed with Nissan North America's regional sales offices. The term "counsel" was used to describe the interaction between the dealership and regional sales office. What this "counseling" entails is unknown, but sounds like it involves discouraging dealerships from engaging in egregious rip-off artistry. How successful this approach will be remains to be seen.
[Source: Inside Line]
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Reader Comments (Page 1 of 3)
Kentaros 9:18AM (2/10/2008)
Woohooo!!! for Nissan!!!!! Now I really consider to buy it :)
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TwinTurbo3000GT 2:23PM (2/10/2008)
markups are just the price you pay for being impatient.
big L 11:54PM (2/10/2008)
Hahahahahahaha!
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Shaft 10:00AM (2/10/2008)
70 large for a Datsun............does it come with a garage too?
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AZMike 10:02AM (2/10/2008)
this is a whole bunch of nothing.
a few things to remember here:
-first and foremost, remember who owns the car. it's NOT Nissan, it's the dealer. as an independent business, they are free to do as they want; they've already purchased the car from Nissan.
most dealers have been in business for many years; I don't think they need to be "counseled" by Nissan on how to sell cars. perhaps this "counseling" should be with all cars they sell, then; perhaps Nissan will provide good advice on selling the timeless, future-collectible Versa when fuel prices drop 50 cents per gallon, as they are predicted to do. were there "counseling" sessions back in the 70's when the classic Datsun F-10 was available? if you don't know what an F-10 is, be sure to Google one on an empty stomach.
-this is a free-market economy. if there are no takers at a silly, inflated price, it will drop.
if you think I like the idea of addendum stickers, you're completely wrong. I owned a new car dealership in California for ten years (the "home state" of addendum stickers), and I absolutely refused to ever do this on a single car. however, dealers are free to see what the market will bear. if there are fools who are stupid enough to pay, so be it. always remember: there is not a special place in the Kelley Blue Book (or the NADA guide for those in the East) with values for those "who paid over MSRP".
...and an interesting sidebar about stupid: the rapidly deflating Smartfortwo balloon. went by the local dealer again yesterday, and lo and behold, almost all of the cars that were there two weeks ago are still there. bear in mind here, all were "sold" two weeks ago.
perhaps the silly concept of allowing anyone to order a car online with a $99 refundable deposit was not such a good idea, was it? the real bottom line now is that the cars are available for sale (so much for the reservation system), but they are still there. the one (or two) addition(s), however, was the return of two of the units that actually sold. their new owners didn't like them, so they are now being sold as used cars.
so much for the "eighteen month wait".
AZMike
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Rocketboy 2:48PM (2/10/2008)
One MAJOR thing to remember, is that Nissan does not have to give dealerships that are behaving badly as many cars as one that does. MINI USA worked hard in keeping markups to a minimum. Heck, many MINI dealerships used the online configurator to set the price.
f3rg 10:02AM (2/10/2008)
Well, all this means is it'd be easier for a customer to buy the car at a reasonable price and then resell it a day later for an extra $60k.
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GhostDoggy 10:09AM (2/10/2008)
And it will be the manufacturer's discretion to send said dealer a second unit or not. In fact, maybe Nissan should sell them directly to the consumer.
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Tim 10:13AM (2/10/2008)
This guy probably has a hopped up Chevy Cavalier.
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jordan 10:19AM (2/10/2008)
I'm a bit confused by the way they're handling this. I agree that they have a right to "counsel" (discourage) dealers from adding a huge mark-up (perhaps at the cost of not being able to sell another GT-R or another well-selling model, as stated above, if they do add X mark-up), because they, too, are a business, and they don't want to be called liars for marketing it as a (relatively) affordable super-car, of sorts.
Now, if they really cared about the consumer so much, why don't they just build more than 2,500 for the first year and 1,500 each year after? I don't understand the low production output based off of this blog entry, because this would also help keep the mark-up down.
You can't have your cake and eat it, too, Nissan. Well, you can in this case, but now you're just making people frustrated with you for saying one thing and acting in a different manner. :)
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Nick 10:31AM (2/10/2008)
It's not a Datsun.. it's a PRINCE! remember?
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Michael 10:46AM (2/10/2008)
I recall driving by a Dodge dealer in 91 or 92 and seeing a 100, 000 price written in big letters across the windshield of a brand new Viper . Someone paid a lot to be the first on the block . Let it happen now . In time the price will drop.
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why not the LS2/LS7? 10:55AM (2/10/2008)
I think f3rg pretty much has it covered. As much as I don't like dealer markups, there's no real way to ration out something other than by raising the price until some buyers drop out.
If you use another system, even a fair one like a lottery, then you will just have people enter the lottery hoping to win and sell out to the highest bidder.
Honestly, I think it is Nissan's best interest to get involved to try to fend off a Z8-style initial boom and bust. There's far too much hype surrounding this car, probably too much to sustain once the car becomes available. And 2500 or 1500 a year really isn't a vanishingly small supply when you're talking $70,000 cars.
It's a good car, and it's a good value, it's just too bad this whole thing is so screwed up now.
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DKB_SATX 11:32AM (2/10/2008)
As dumb as it sounds when you think about what it means about how people are spending money (or credit), $70k isn't all THAT much for a vehicle these days. An H2 is over $60k before your finger gets tired of clicking the mouse on options boxes. A 7-series INVOICES right at $70k without options. I haven't figured out quite WHY, but I see cars in that price range every day. I guess since Americans don't save, we think we might as well borrow.
FSU GTO 12:46PM (2/10/2008)
I think with some pretty creative policies, you could artificially keep the market price down
1. Force dealers who want to sell them to sign a contract limiting markup to say $5,000, and make the breach of contract right of action a part of the sale so that any seller who over pays has an immediate right of action to recover the overpayment.
Then, make the warranty 5 years so that it is quite valuable and then void all warranties on vehicle sold within the first 2 years without Nissan's permission.
or
2. Do what GM did with the EV and only allow leases with a pre-set MSRP, residual and money factor, and limit Nissan Motor Credit to the only financier of the GT-R.
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Quattrofan 12:31PM (2/10/2008)
It's simple supply and demand issue. More buyers then cars will ultimately result in people competing with other buyers for the privilege of being seen FIRST in the GT-R.
For anyone silly enough to pay that premium, this is the worlds smallest violin playin'... [rubbing thumb and index fingers against self].
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Rob 12:44PM (2/10/2008)
Even marked up it's still a better deal than a marked up Shelby.
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Mike 12:51PM (2/10/2008)
It's ridiculous to think Nissan will actually do anything about markups.
I'm sure the "certified GT-R dealers" are all high volume. These are the dealers that Nissan needs to continue to move product and I highly doubt that a smart OEM is going to piss in their biggest partner's Wheaties over markup on this car.
But, even if they did, ask yourself as a businessman, what is a better move, marking a car up $40k and risk getting no more, or sell 5 of them for a $5k profit and only making $25k? Plus then there are 4 more customers that could potentially be too picky or have problems with the car that the dealer has to deal with, not to mention any potential issues arising from having this vehicle pass through the dealers' hands.
This is another ploy by Nissan to hype of this product and get publicity. While I'm sure it's a plenty capable car, there's just too much BS surrounding it, it sure as hell isn't worth $100k.
When Ford came out with the Ford GT, there was plenty of interest for the car without Ford creating hype. When they did come to production, Ford offered the vehicle to it's highest performing customer satisifaction dealers then had a lottery for the remaining units. Then they left the dealer alone to make the business decisions they thought were right for them.
Lets face it, these things are going to be marked up by someone, might as well be the dealer.
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shuref00t 12:56PM (2/10/2008)
Nearly doubling the original MSRP. You know the dealers are going to do it, and there's pretty much nothing Nissan can do about it.
I'd love to read the invoice on one of these, and how to dealer's will try to justify the mark-ups:
List Price: $70,000
"Because we can" fee: $20,000
"If not you, there's another sucker waiting" fee: $20,000
"Just bend over and take it" fee: $20,000
Tax, Title, other fees: $ who cares!
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Louis Duran 1:14PM (2/10/2008)
This is an area where the "free market" should decide. If Nissan priced its new supercar too low the market will correct that mistake. I sure wouldn't want just every average schmoe driving around in one of these.
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