Z's BELOW MSRP... just wait!
Traveling around to a few dealers in different states, it seems about all of them will be getting cars for sale starting Dec. These will not be pre-order but regular dealer inventory! Have you noticed the posts in the classified sections? They are increasing every day.
So, I predict, that it will not be long until a few of these start eating up their floorplan money and need to be moved!
Not right away but 30-60 days after they arrive and if not sold, they will need to free up some money and that mean move the car! Not to mention that the economy right now is not doing that great, a war is a possibility, etc.
All this means is....
The days of dealer gouging are almost over! Time to remember who did the gouging and who didn't!
So, I predict, that it will not be long until a few of these start eating up their floorplan money and need to be moved!
Not right away but 30-60 days after they arrive and if not sold, they will need to free up some money and that mean move the car! Not to mention that the economy right now is not doing that great, a war is a possibility, etc.
All this means is....
The days of dealer gouging are almost over! Time to remember who did the gouging and who didn't!
I don't know about below MSRP though... They're still gonna be hot.. Right now I know a bunch of people who won't buy them at above MSRP but are waiting for them to hit MSRP... The dealers won't drop below unless they really have to.
I placed my order for an Enthusiast Model a few weeks ago with an anticipated delivery date of March 2003. My sales contract stipulates that I will pay exactly MSRP at the TIME OF DELIVERY. The dealer did this in case the MSRP price should be increased by Nissan. However, I have heard rumors that the MSRP may actually go DOWN a bit. Since my contract functions both ways, I was wondering if anyone has heard anything on the street about proposed changes in the MSRP - - I would be very interested to know.
Last edited by devaraj; Nov 10, 2002 at 04:35 AM.
Originally posted by devaraj
However, I have heard rumors that the MSRP may actually go DOWN a bit. Since my contract functions both ways, I was wondering if anyone has heard anything on the street about proposed changes in the MSRP - - I would be very interested to know.
However, I have heard rumors that the MSRP may actually go DOWN a bit. Since my contract functions both ways, I was wondering if anyone has heard anything on the street about proposed changes in the MSRP - - I would be very interested to know.
Out looking at other cars todays (not 350Z's but Z06 Corvette) and saw one of the new 50th Annaversary Models. It had a $5,000 'adjustment' on the window sticker.
Asking the sale person about that he basically told me the only reason for the markup is so that the car would NOT sell too fast. In other words, it would stay in the showroom so they could show it to others. I find that interesting!!
Asking if he expects to actually get it the answer was; 'Of course not, and we'll remove that once we have another to show'.
Wonder how many Nissan dealers are playing that game as well???
: In other words, it would stay in the showroom so they could show it to others.
That's what I've been saying for months. Just go to a dealership for 20 minutes, and watch how many people get to sit in it. The Z was created mainly to help push other Nissans, and the showroom is just one small way of leveraging it.
I also guessed back in Sept. that Z's would be readily available in December. And it might be at this rate.
That's what I've been saying for months. Just go to a dealership for 20 minutes, and watch how many people get to sit in it. The Z was created mainly to help push other Nissans, and the showroom is just one small way of leveraging it.
I also guessed back in Sept. that Z's would be readily available in December. And it might be at this rate.
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SInce it amost a year since the MSRP was announced for the 350Z, the pattern typical would be for a 3 to 4 % increase. If the 350 demand continues to out run supply the increase could be higher, if not the reverse is possible. If the 350 was under priced upon introduction, its anybodys guess.
I just mentioned that discounting would soon have to begin in my thread about not caring anymore. I think the Z was priced perfectly given the number of cars allocated for production and the expectation of a significant economic growth back when prices were first announced. Top models just below a 330ci to head off or attract german intenders, about even with the most similar competitor (s2k), and sub-30k models to attract 20-something buyers.
Today, things are different. The economy isn't picking up and people are concerned the economy will slow down further if we go to war w/ Iraq. The cars that experience the most precipitous sales drop in an econ. slowdown are sportscars (see porsche).
Furthermore, much of the initial demand was artificial because many of the pre-orders were dealer-placed and not real buyers. I've talked to a few dealers who ordered fully loaded track and touring models (incl. nav.) thinking that it would give them the largest margins. I could only laugh . . . when they sell these cars, the nav. is gonna basically be free. I guess they get what they deserve. Instead of thinking of potential customers and buying a variety of models, they chose only the most expensive models.
I don't know that we'll see discounting by Dec. or Jan., but sometime in the next several months people are going to be able to walk in and buy a 2003 Z for under MSRP.
I think MSRP was fair back in Aug/Sept if nothing else but to get the car first and exp. all the excitement around owning a unique automobile, but the longer I wait for my Z, the less I think MSRP is a good deal.
Today, things are different. The economy isn't picking up and people are concerned the economy will slow down further if we go to war w/ Iraq. The cars that experience the most precipitous sales drop in an econ. slowdown are sportscars (see porsche).
Furthermore, much of the initial demand was artificial because many of the pre-orders were dealer-placed and not real buyers. I've talked to a few dealers who ordered fully loaded track and touring models (incl. nav.) thinking that it would give them the largest margins. I could only laugh . . . when they sell these cars, the nav. is gonna basically be free. I guess they get what they deserve. Instead of thinking of potential customers and buying a variety of models, they chose only the most expensive models.
I don't know that we'll see discounting by Dec. or Jan., but sometime in the next several months people are going to be able to walk in and buy a 2003 Z for under MSRP.
I think MSRP was fair back in Aug/Sept if nothing else but to get the car first and exp. all the excitement around owning a unique automobile, but the longer I wait for my Z, the less I think MSRP is a good deal.
I just got my Le Mans Sunset Track last night. I paid MSRP, I placed my order on Nov. 4th and was expecting to get it by Feb. 4th. My sales person had told me that he would try to find the car before that date.
I was happy to pay MSRP, most places I went to were still trying to get 5k over. I think that it is still a great price for it.
If anyone is interesting in geting it for MSRP and live in the SF bay area. You can get it from Falore Nissan in Sunnyvale.
The sales person to talk to is Glen. He's a really easy guy to talk to.
I was happy to pay MSRP, most places I went to were still trying to get 5k over. I think that it is still a great price for it.
If anyone is interesting in geting it for MSRP and live in the SF bay area. You can get it from Falore Nissan in Sunnyvale.
The sales person to talk to is Glen. He's a really easy guy to talk to.
My sales guy told me that if there was an other dealer in the area that has the car or will get the car, that they would trade with them to get the one I wanted. I started checking the inventory of all of the dealers in the area. I found one a few days after I placed my order. I told my sales guy and he was able to do a trade.
Under MSRP in 2-3 years at the earliest .. simple economics .. the demand exceeds the supply for these cars even when more hit the dealers in december.. especially out here in cali i just went to a dealer who had 3 z's on showroom floor.. they just sold 2 for a 5k markup .. perhaps some of the higher priced models like touring or track will go for below msrp in < 1 year , but there are plenty of people prepared to line up for a enthusiast or a base model Z for MSRP (because the car is underpriced as it is)
Dealers will only move cars for under MSRP if they feel that the market will absolutely not bear the cost of the car. 30,000 cars a year only allocates about 3-4 per month per dealer which isnt that much if u think about it. they will probably use those cars to attract attention to the dealer and i see no reason why they would have any trouble finding buyers for a < $30k awesome sports car.
Dealers will only move cars for under MSRP if they feel that the market will absolutely not bear the cost of the car. 30,000 cars a year only allocates about 3-4 per month per dealer which isnt that much if u think about it. they will probably use those cars to attract attention to the dealer and i see no reason why they would have any trouble finding buyers for a < $30k awesome sports car.
Last edited by 350zpower; Nov 10, 2002 at 07:22 PM.
350Zpower: I agree with you in part--the Z is definitely going to command greater sums in California than it will in other places like the N.E.
However, as much as I like the Z, I think there are a lot of factors working against it:
1) Economy is sluggish
2) Wealth effect is dragging down consumption
3) The people who are buying the car now over sticker are not the same consumers who will be buying the car in a few months. This is probably the first visit to a Nissan dealer for most of these people. They are probably affluent and just wanted to have the latest, greatest toy. They're also likely to sell it once it becomes common. You are definitely going to run out of people very quickly who can afford an M3 or 911 but buy down to a Z just to have the current hot car.
4) Markups dissappear very quickly on hot cars. Look at the S2k which had only 15k units produced through 2002. Somewhere during the last year, 5k markups suddenly became 1k under msrp. And look at the T-bird. Yeah its produced by FoMoCo, but it was getting 5k over last year. This year, under MSRP.
5) A lot of the people clamoring for the car now are longtime Z fans. The rest of the pop. may like the car, but not buy one (at least not w/o a discount). Weren't the sales figues for the Z32 something like: '90: 41k ; '91: 17k ; '92: 6.5k ???
However, as much as I like the Z, I think there are a lot of factors working against it:
1) Economy is sluggish
2) Wealth effect is dragging down consumption
3) The people who are buying the car now over sticker are not the same consumers who will be buying the car in a few months. This is probably the first visit to a Nissan dealer for most of these people. They are probably affluent and just wanted to have the latest, greatest toy. They're also likely to sell it once it becomes common. You are definitely going to run out of people very quickly who can afford an M3 or 911 but buy down to a Z just to have the current hot car.
4) Markups dissappear very quickly on hot cars. Look at the S2k which had only 15k units produced through 2002. Somewhere during the last year, 5k markups suddenly became 1k under msrp. And look at the T-bird. Yeah its produced by FoMoCo, but it was getting 5k over last year. This year, under MSRP.
5) A lot of the people clamoring for the car now are longtime Z fans. The rest of the pop. may like the car, but not buy one (at least not w/o a discount). Weren't the sales figues for the Z32 something like: '90: 41k ; '91: 17k ; '92: 6.5k ???
I worked my way through school selling cars at a dealership. I don't know the biz like a dealership owner but I learned a few things.
1. Dealerships start paying for cars upon receipt. They pay the bank every month for every car in inventory. After 60-90 days the "holdback" and "incentives" from the manufacturer were nearly used up in paying the bank.
2. The willingness to deal on the units depended on how long the unit and units like it were sitting in inventory. A good "pop" (profit) made up for a few months in inventory.
3. If Nissan supplies more Z's than the dealerships can sell in 60-90 days, the dealerships will sell at below MSRP. Otherwise they won't. Tough negotiator-customers and salesman/manager/owner quirks and special pressures may push the envelope a tad, but the biggest factor when I worked te straight-sell line (admittedly a long time ago) was simple supply and demand dynamics.
4. It doesn't hurt to bargain hard. If you walk and the dealership doesn't cave it is a good indication you asked for too low a price. Don't be reluctant to go back. You will never see these people again and it is a simple contract negotiation. After you get the car the contraxct negotiation won't matter anymore.
1. Dealerships start paying for cars upon receipt. They pay the bank every month for every car in inventory. After 60-90 days the "holdback" and "incentives" from the manufacturer were nearly used up in paying the bank.
2. The willingness to deal on the units depended on how long the unit and units like it were sitting in inventory. A good "pop" (profit) made up for a few months in inventory.
3. If Nissan supplies more Z's than the dealerships can sell in 60-90 days, the dealerships will sell at below MSRP. Otherwise they won't. Tough negotiator-customers and salesman/manager/owner quirks and special pressures may push the envelope a tad, but the biggest factor when I worked te straight-sell line (admittedly a long time ago) was simple supply and demand dynamics.
4. It doesn't hurt to bargain hard. If you walk and the dealership doesn't cave it is a good indication you asked for too low a price. Don't be reluctant to go back. You will never see these people again and it is a simple contract negotiation. After you get the car the contraxct negotiation won't matter anymore.
The dealer where I recently ordered my 350Z, has had two Z's sitting on his lot for about a month or two. These are the ones that I (and tons of other people) test drove. I even pushed the one with the automatic tranny well over 100 MPH on a back road. However, the dealer is still asking an unbelievable $7,000 over MSRP for both of these cars. He even said that he now has to classify them as "used cars", but what a mark-up !!
Econmics and the Z:
Don't count on this car being sold below MSRP not for the first 2 yrs at least. Unless you know someone at the dealership you won't see this a penny lower.
Its a luxury item. Yes I realize that its a Nissan but still a sporty car with a name behind it.
Frankly I am very surprised that Nissan priced the car so low. I just ordered mine I paid exact MSRP.
Before doing that however I hit 4 dealers in the Miami area. Each one had an identical answer for me. Even though there is a few of these cars on the lot they are either a pre-owned or b floor models.
How else do you expect to sell these unless you put 2-3 around a dealership for people to see. Its all good advertising.
One last thing. If you are planning on just walking to a dealer and purchasing this car. Most of the models you will find are Performance, Touring & Track. And you will most likely buy them with things you don't want. And a small color selection.
I found a track model completely loaded with side airbags and Nav and LoJack ($1200) for 39,500. Personally I can live without those 3 things. Which knocks that sum to MSRP region.
My .02 if you are planning on buying this car go to a dealer and write up an order and ask for a purchase agreement.
Don't count on this car being sold below MSRP not for the first 2 yrs at least. Unless you know someone at the dealership you won't see this a penny lower.
Its a luxury item. Yes I realize that its a Nissan but still a sporty car with a name behind it.
Frankly I am very surprised that Nissan priced the car so low. I just ordered mine I paid exact MSRP.
Before doing that however I hit 4 dealers in the Miami area. Each one had an identical answer for me. Even though there is a few of these cars on the lot they are either a pre-owned or b floor models.
How else do you expect to sell these unless you put 2-3 around a dealership for people to see. Its all good advertising.
One last thing. If you are planning on just walking to a dealer and purchasing this car. Most of the models you will find are Performance, Touring & Track. And you will most likely buy them with things you don't want. And a small color selection.
I found a track model completely loaded with side airbags and Nav and LoJack ($1200) for 39,500. Personally I can live without those 3 things. Which knocks that sum to MSRP region.
My .02 if you are planning on buying this car go to a dealer and write up an order and ask for a purchase agreement.
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