Discount from List prices, RX-8 included
12-29-2003, 10:16 AM
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Discount from List prices, RX-8 included
The lowdown on list prices
USN0000020031222dzct00001
Diversions; Automobiles
Richard J. Newman; edited by Marc Silver
1103 Words
29 December 2003
U.S. News & World Report
d12
Vol. 135, No. 23
English
© Copyright 2003 U.S. News & World Report. All rights reserved.
Who says nobody pays retail anymore? If you recently bought a Chrysler Crossfire or Mini Cooper, odds are you paid full freight.
But few vehicles on the market have the cachet to fetch sticker price. And as hefty rebates, zero-percent financing, and other offers have proliferated over the past two years, the marketplace for cars has taken on the din of a Turkish bazaar. Manufacturers often raise prices along with discounts and flash rebates on and off weekly or even daily. "These programs change so fast," says Mark McCready of the auto-shopping Web site CarsDirect.com, "that you can't keep track of them."
To help steer through the confusion, U.S. News teamed with CarsDirect to compile a list of mainstream vehicles and the actual discounts offered for each, on average--after all the rebates, trade-offs, and slick talk. The complete sortable list, available at http://www.usnews.com/auto, has a few limitations. The data are for the Chicago area, for instance, so trends may vary slightly elsewhere. Still, the discount list is a revealing look at which cars are hot and which are not--and how far some manufacturers are willing to go to move the metal.
Deals on wheels. Not surprisingly, vehicles from Ford, General Motors, and Chrysler are usually marked down much more aggressively than Hondas, Toyotas, and other imports (tables). But the degree of discounting indicates just how tough a sell some domestic vehicles are. Ford is already discounting the brand-new Ford Freestar minivan by 13 percent, a steep giveaway for a product just out of the gate. Competitors like the Toyota Sienna and Nissan Quest--both also new this year--don't need to be so solicitous. The Sienna sells for the asking price, and the Quest goes for about 5 percent below sticker. Chrysler's Pacifica wagon, another newbie, is off an even deeper 16 percent.
Some carmakers tend to be very discreet about advertising deals because steep price-cutting often suggests distressed merchandise. You'll never catch Porsche publicizing giveaways on its new Cayenne SUV, yet dealers are marking it down 3 percent. Toyota traditionally offers very limited incentives on the bestselling Camry but earlier this year quietly began offering zero-percent financing. And the discount data indicate that dealers have been shaving Camry prices by as much as 12 percent. Bob Schnorbus of J. D. Power & Associates figures Toyota has sweetened the deal to guarantee that the popular sedan ends the year with more sales than its perennial rival, the Honda Accord--which comes with less generous financing terms and is discounted a mere 9 percent.
Premium prices. Other companies are holding the line on price to protect their upscale image. Sales of Mercedes's M Class SUV have declined by more than 25 percent in recent months, yet the average discount is only about 5 percent. The data also help identify brands on the move. Newer Cadillac models, for example, have surprisingly strong traction for a domestic brand. Dealers discount the CTS sedan just 4 percent even though it's been on the market for three years--stronger pricing than tough competitors like the Lexus IS300 and the Mercedes-Benz C Class. McCready predicts the sassy new XLR roadster could even demand a premium, given Cadillac's plans to produce an extremely small number of the $75,000 two-seaters.
Finally, if you're hunting for a deal, our list tells you where to point your radar. The well-regarded Volvo S40 is one of the most discounted imports, since a new version is on the way. The Ford Explorer and Jeep Grand Cherokee go for nearly 20 percent off. And if you've been waiting for the right price on a Hummer H2, this could be your moment. It will still set you back $48,000, but the 4 percent knockdown might make it feel like a bargain.
IMPORTS UNDER $25,000
BIGGEST DISCOUNTS LIST PRICE DISCOUNT
Nissan Sentra $14,740 24 pct.
Kia Optima $16,040 22 pct.
Kia Spectra $13,590 21 pct.
Kia Sedona $20,615 15 pct.
Hyundai Sonata $20,339 13 pct.
SMALLEST DISCOUNTS
Mitsubishi Lancer $17,172 1 pct.
Toyota Echo $10,760 1 pct.
Mini Cooper $16,999 0 pct.
Toyota Prius $20,510 0 pct.
Toyota Sienna $24,800 0 pct.
DOMESTICS UNDER $25,000
BIGGEST DISCOUNTS LIST PRICE DISCOUNT
Pontiac Sunfire $15,495 29 pct.
Dodge Intrepid $22,035 24 pct.
Chevrolet Cavalier $18,090 23 pct.
Dodge Neon $15,115 23 pct.
Ford Taurus $20,730 21 pct.
SMALLEST DISCOUNTS
GMC Canyon $20,580 8 pct.
Saturn Vue $22,885 7 pct.
Chevrolet Colorado $18,545 6 pct.
Chevrolet Malibu $20,995 5 pct.
Dodge SRT-4 $20,995 0 pct.
IMPORTS OVER $25,000
BIGGEST DISCOUNTS LIST PRICE DISCOUNT
Volvo S40 $25,385 18 pct.
Saab 9-5 $40,140 17 pct.
Volvo S60 $27,645 17 pct.
Volvo V40 $30,530 16 pct.
Hyundai XG350 $26,189 15 pct.
SMALLEST DISCOUNTS*
Acura TSX $27,035 0 pct.
Mazda RX-8 $27,200 0 pct.
Volvo XC90 $35,475 0 pct.
BMW 330 $35,495 0 pct.
Mercedes-Benz E320 $48,170 0 pct.
DOMESTICS OVER $25,000
BIGGEST DISCOUNTS LIST PRICE DISCOUNT
Chrysler Concorde $26,860 20 pct.
Dodge Ram 1500 $26,980 19 pct.
Jeep Grand Cherokee $27,905 19 pct.
Ford Expedition $35,105 19 pct.
Chevrolet Avalanche $33,565 18 pct.
SMALLEST DISCOUNTS
Chevrolet Corvette $44,535 5 pct.
Hummer H2 $50,030 4 pct.
Cadillac CTS $31,185 4 pct.
Cadillac SRX $38,690 0 pct.
Chrysler Crossfire** $34,495 1 pct.
Data are for the Chicago metropolitan area as of Dec. 8, 2003. Most figures are representative of sales data in other metropolitan areas. List price is MSRP plus delivery fees. Entries represent the most popular trim line of a given model, and some models with minor trim line variations from other entries have been excluded. Does not include vehicles over $80,000.
*A sampling; 24 other models sell for full price.
**The percent for the Crossfire represents a markup.
Pictures: PRICE BREAK. The Jeep Grand Cherokee (above) and the Chrysler Pacifica (left) are deeply discounted domestics. (DAIMLERCHRYSLER (2)); Pictures: STICKER SHOCK. Customers typically pay full price for the popular Mini Cooper (above), but the posh Porsche Cayenne (left) often goes for less than list. (MINI USA; PORSCHE); Charts: Imports under $25,000 / Domestics under $25,000; Charts: Imports over $25,000 / Domestics over $25,000
USN0000020031222dzct00001
Diversions; Automobiles
Richard J. Newman; edited by Marc Silver
1103 Words
29 December 2003
U.S. News & World Report
d12
Vol. 135, No. 23
English
© Copyright 2003 U.S. News & World Report. All rights reserved.
Who says nobody pays retail anymore? If you recently bought a Chrysler Crossfire or Mini Cooper, odds are you paid full freight.
But few vehicles on the market have the cachet to fetch sticker price. And as hefty rebates, zero-percent financing, and other offers have proliferated over the past two years, the marketplace for cars has taken on the din of a Turkish bazaar. Manufacturers often raise prices along with discounts and flash rebates on and off weekly or even daily. "These programs change so fast," says Mark McCready of the auto-shopping Web site CarsDirect.com, "that you can't keep track of them."
To help steer through the confusion, U.S. News teamed with CarsDirect to compile a list of mainstream vehicles and the actual discounts offered for each, on average--after all the rebates, trade-offs, and slick talk. The complete sortable list, available at http://www.usnews.com/auto, has a few limitations. The data are for the Chicago area, for instance, so trends may vary slightly elsewhere. Still, the discount list is a revealing look at which cars are hot and which are not--and how far some manufacturers are willing to go to move the metal.
Deals on wheels. Not surprisingly, vehicles from Ford, General Motors, and Chrysler are usually marked down much more aggressively than Hondas, Toyotas, and other imports (tables). But the degree of discounting indicates just how tough a sell some domestic vehicles are. Ford is already discounting the brand-new Ford Freestar minivan by 13 percent, a steep giveaway for a product just out of the gate. Competitors like the Toyota Sienna and Nissan Quest--both also new this year--don't need to be so solicitous. The Sienna sells for the asking price, and the Quest goes for about 5 percent below sticker. Chrysler's Pacifica wagon, another newbie, is off an even deeper 16 percent.
Some carmakers tend to be very discreet about advertising deals because steep price-cutting often suggests distressed merchandise. You'll never catch Porsche publicizing giveaways on its new Cayenne SUV, yet dealers are marking it down 3 percent. Toyota traditionally offers very limited incentives on the bestselling Camry but earlier this year quietly began offering zero-percent financing. And the discount data indicate that dealers have been shaving Camry prices by as much as 12 percent. Bob Schnorbus of J. D. Power & Associates figures Toyota has sweetened the deal to guarantee that the popular sedan ends the year with more sales than its perennial rival, the Honda Accord--which comes with less generous financing terms and is discounted a mere 9 percent.
Premium prices. Other companies are holding the line on price to protect their upscale image. Sales of Mercedes's M Class SUV have declined by more than 25 percent in recent months, yet the average discount is only about 5 percent. The data also help identify brands on the move. Newer Cadillac models, for example, have surprisingly strong traction for a domestic brand. Dealers discount the CTS sedan just 4 percent even though it's been on the market for three years--stronger pricing than tough competitors like the Lexus IS300 and the Mercedes-Benz C Class. McCready predicts the sassy new XLR roadster could even demand a premium, given Cadillac's plans to produce an extremely small number of the $75,000 two-seaters.
Finally, if you're hunting for a deal, our list tells you where to point your radar. The well-regarded Volvo S40 is one of the most discounted imports, since a new version is on the way. The Ford Explorer and Jeep Grand Cherokee go for nearly 20 percent off. And if you've been waiting for the right price on a Hummer H2, this could be your moment. It will still set you back $48,000, but the 4 percent knockdown might make it feel like a bargain.
IMPORTS UNDER $25,000
BIGGEST DISCOUNTS LIST PRICE DISCOUNT
Nissan Sentra $14,740 24 pct.
Kia Optima $16,040 22 pct.
Kia Spectra $13,590 21 pct.
Kia Sedona $20,615 15 pct.
Hyundai Sonata $20,339 13 pct.
SMALLEST DISCOUNTS
Mitsubishi Lancer $17,172 1 pct.
Toyota Echo $10,760 1 pct.
Mini Cooper $16,999 0 pct.
Toyota Prius $20,510 0 pct.
Toyota Sienna $24,800 0 pct.
DOMESTICS UNDER $25,000
BIGGEST DISCOUNTS LIST PRICE DISCOUNT
Pontiac Sunfire $15,495 29 pct.
Dodge Intrepid $22,035 24 pct.
Chevrolet Cavalier $18,090 23 pct.
Dodge Neon $15,115 23 pct.
Ford Taurus $20,730 21 pct.
SMALLEST DISCOUNTS
GMC Canyon $20,580 8 pct.
Saturn Vue $22,885 7 pct.
Chevrolet Colorado $18,545 6 pct.
Chevrolet Malibu $20,995 5 pct.
Dodge SRT-4 $20,995 0 pct.
IMPORTS OVER $25,000
BIGGEST DISCOUNTS LIST PRICE DISCOUNT
Volvo S40 $25,385 18 pct.
Saab 9-5 $40,140 17 pct.
Volvo S60 $27,645 17 pct.
Volvo V40 $30,530 16 pct.
Hyundai XG350 $26,189 15 pct.
SMALLEST DISCOUNTS*
Acura TSX $27,035 0 pct.
Mazda RX-8 $27,200 0 pct.
Volvo XC90 $35,475 0 pct.
BMW 330 $35,495 0 pct.
Mercedes-Benz E320 $48,170 0 pct.
DOMESTICS OVER $25,000
BIGGEST DISCOUNTS LIST PRICE DISCOUNT
Chrysler Concorde $26,860 20 pct.
Dodge Ram 1500 $26,980 19 pct.
Jeep Grand Cherokee $27,905 19 pct.
Ford Expedition $35,105 19 pct.
Chevrolet Avalanche $33,565 18 pct.
SMALLEST DISCOUNTS
Chevrolet Corvette $44,535 5 pct.
Hummer H2 $50,030 4 pct.
Cadillac CTS $31,185 4 pct.
Cadillac SRX $38,690 0 pct.
Chrysler Crossfire** $34,495 1 pct.
Data are for the Chicago metropolitan area as of Dec. 8, 2003. Most figures are representative of sales data in other metropolitan areas. List price is MSRP plus delivery fees. Entries represent the most popular trim line of a given model, and some models with minor trim line variations from other entries have been excluded. Does not include vehicles over $80,000.
*A sampling; 24 other models sell for full price.
**The percent for the Crossfire represents a markup.
Pictures: PRICE BREAK. The Jeep Grand Cherokee (above) and the Chrysler Pacifica (left) are deeply discounted domestics. (DAIMLERCHRYSLER (2)); Pictures: STICKER SHOCK. Customers typically pay full price for the popular Mini Cooper (above), but the posh Porsche Cayenne (left) often goes for less than list. (MINI USA; PORSCHE); Charts: Imports under $25,000 / Domestics under $25,000; Charts: Imports over $25,000 / Domestics over $25,000
12-30-2003, 11:13 PM
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Originally posted by Elara
Yeah, they say there's not much discount on the Crossfire too, but my company's selling them for about $3900 below MSRP. Journalists don't know everything.
Yeah, they say there's not much discount on the Crossfire too, but my company's selling them for about $3900 below MSRP. Journalists don't know everything.
Originally written by Richard J. Newman; edited by Marc Silver
Data are for the Chicago metropolitan area as of Dec. 8, 2003. Most figures are representative of sales data in other metropolitan areas.
Data are for the Chicago metropolitan area as of Dec. 8, 2003. Most figures are representative of sales data in other metropolitan areas.
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