Filed under: Car Buying, Sedans/Saloons, Chevrolet, GM
Buyers dropping more coin on the 2008 Chevy Malibu
The 2008 Chevy Malibu has snatched up awards and media accolades, and JD Power data shows that customers are paying Chevy dealers handsomely to own one. The average transaction price of a Chevy Malibu is $22,358 -- $5,000 higher than the inherently uncool last-gen 'Bu. Twenty-one percent of buyers are also opting for the top-of-the-line LTZ vs. only 5% for the outgoing model.
The news isn't all rosy, however, as most of these customers are trading in other GM products to get themselves into the North American Car of the Year. Only 1.4% of buyers traded in a Toyota Camry, 1.3% swapped a Nissan Altima, and less than 1% turned in a Honda Accord. Those aren't exactly the kind of numbers GM will want to brag about, but at least the General is pulling in the equivalent of two Tata Nanos more per car than the last generation model did.
[Source: Detroit News]
Reader Comments (Page 1 of 4)
Franz 2:24PM (3/30/2008)
This is good news for Chevy, but bad news for GM in general if most buyers are getting rid of other GM products to get one... a very good friend of mine is actually considering trading in her '06 CTS for a Malibu LTZ. They really need to be wrestling sales away from the Japanese instead.
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mj 4:12PM (3/30/2008)
This is NOT good news. The new Malibu is in the same category as the old Impala - it's bigger and more expensive and it's in the first year of sales. Of course it's going to sell for more money.
Anyway, it's still early, let's see what happens in the summer sales season with a freaked out American consumer and ever higher oil prices.
Disgruntled Goat 9:01AM (3/31/2008)
As long as GM is selling cars and turning a profit it's all gravy after that. I'm sure if you wanted to trade in your existing GM car for a brand new GM car every year they would have no problem with that.
Robert O 2:28PM (3/30/2008)
This is great news, and proof that GM can build a world class car (even if I don't personally like the two-toned interior). But I can't figure out why this car gets all the kudos, when, stylistically and option-wise, it isn't much of a step apart from the Fusion. Oh well.
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John 2:42PM (3/30/2008)
If you looked at the interior and felt the ride quality you would know the Malibu is the real deal and a true competitor to Camry and Accord. The Fusion is just a pretender and not much more than fodder for the likes of Hertz and Avis.
Robert O 5:20PM (3/30/2008)
I've driven a Fusion, and I've sat in both of them. I've also driven Camry and Accord. Never driven the Malibu, but if materials and looks are all that matter, the Fusion isn't any different; I think it is just perception and media hype.
cxvargas 2:28PM (3/30/2008)
This is a great car from Chevy but as a current Accord owner the only way I would trade my Honda for the Malibu would be on price or content. My 03 Accord still feels like a new car with no rattles and vibrations and with only 2 minor recall problems fixed early the car has been marvelous.
The Malibu is a head turner and I'm sure a fantastic car but is going to take years and consistent product/marketing development from GM to create the kind of loyalty that the Accord and Camry has in this segment.
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Tourian 2:47PM (3/30/2008)
IMO its going to take at least 8 years of solid Malibu performance, as well as a good mid cycle update and a good successor in five years to see any appreciable attrition of import conquests. Perception is reality. And right now most people believe that Toyota, Honda and Nissan build a better car.
Irfan 3:31PM (3/30/2008)
thats how i feel about it as well. it will take a few years of problem free road time before the japanese sedan buyers are convinced that the build quality is up to par. it looks great now, and drives great now, but buyers arent convinced it will hold up in the long run. the ones buying it now already have enough trust in GM hence the cannibalizing of other GM cars... after a few years, if the malibu is still holdint up well and not rattling/wearing out/breaking down too much, I think the import buyers will give it more serious consideration.
For now GM shouldnt even worry about the accord and camry sales... just make sure the malibus hold up over time, and it will get its sales. its got the style, power, comfort and design, just needs reliability which cant be proven for a few years.
Silver 4:27PM (3/30/2008)
I agree with the above comments 100%. As a long-time GM hater (because of their shoddy vehicles), I am very impressed with the quality I'm seeing in their new vehicles. While vehicles like the Camry have gone the GM direction with cheap interior plastics, some of the new GM vehicles have very German-esque interiors. I'm glad to see GM finally realizes that quality matters.
That said, let's see how things hold up. What will the long-term reliability be? Will domestics still suffer horrific resale value compared with their foreign competitors? Only time will tell. And many buyers (myself included) aren't willing to give GM the $25,000+ benefit of the doubt at this early stage, despite the very promising signs.
Mi key 2:46PM (3/30/2008)
This is great news for GM. This car is way better than the previous Malibu model. Hopefully GM will improve the rear taillight design during the MMC.
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why not the LS2LS7? 2:48PM (3/30/2008)
Agreed. The taillights aren't fantastic, and more importantly, they looked dated the day it came out.
zac 2:47PM (3/30/2008)
Nice car from GM, makes you wonder though where this left the Impala? doesn't it actually sticker higher than the Malibu? the impala is kind of old school tech, hell, if GM can get msrp or close, more power to 'em..nice car that starts @20k.
GM's lame ass 36k bumper to bumper has to go, at least match Kia!...GM's 100,000 powertrain isn't all that, any modern car will easily go 100K on it's original powertrain....marketing. Give an Accord/Altima shopper a convincing reason to buy this instead, like a killer warranty...the style is there, Now back the whole car...
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why not the LS2LS7? 2:49PM (3/30/2008)
Seems you've never owned a German car.
ZF = zero faith
John 3:16PM (3/30/2008)
Does a longer warranty on a GM vehicle really appeal to the likes of a Honda or Nissan buyer? No. It goes back to argument of perceived quality. If the GM vehicle gives a longer warranty isn't that going to make an import shopper wonder why they need a longer warranty in the first place? It would make me wonder what is going to break if GM feels they need to have the longer warranty.
why not the LS2LS7? 3:27PM (3/30/2008)
Seems to be working for Hyundai.
paul34 1:17AM (3/31/2008)
Toyota STILL offers a 3 year/36,000 mile warranty on many of their cars (Scion included), and people still buy them in drones.
I agree with the others - it is the PERCEPTION of quality that matters here.
Despite Hyundai having its 10 year warranty for many years now, only now are they finally starting to have a massive following. It took them many years to get to where they are now.
Mathew 10:47AM (3/31/2008)
I disagree with John, I think a longer warantee will show how the builder expects the vehicle to hold up and are willing to stand behind the quality of this car... this also gives the potential buyer a little incentive and piece of mind.
montoym 10:25PM (3/31/2008)
@zac: Spoken like someone who believes everything he sees in commercials.
Kia and Hyundai's 10yr/100K warranties are only powertrain warranties as well. Their bumper to bumper warranties are both 5yr/60K miles. Yes, that is better than 3yr/36K, but hardly the amazing warranty they tout in their commercials. Even Chrysler's Lifetime Powertrain warranty beats it out now anyhow.
iQuack 3:03PM (3/30/2008)
It'll take a few years to convince happy Accord owner (like me!) to move to Chevy. All indications are that the new Malibu is a winner and the more I see of them, the more I like their style.
GM needs to re-establish its reputation for quality and value which GM had for decades until building junk in the mid '70s and lookalike models in the '80s that ruined GM's once distinctive brands.
GM still must dig itself out of the hole that the late Roger Smith dug for the company.
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