Dealers To Charge Up To $129,000us

[Blitz_R33]

Found this interesting read from http://exhaustnote.com/2008/01/30/dealers-...he-nissan-gt-r/

If we feel ripped off with paying around $150k here, think how pissed the americans are having to pay $129,000US...

PS. Sorry if its a repost

So much for getting a GT-R at anywhere near sticker. There’s no doubt in anyone’s mind that the 2009 Nissan GT-R won’t be sold at invoice. With the new cost associated with the GT-R business, a little market value increase is expected, as dealerships have to train their technicians on the new vehicle.

We made 15 phone calls to dealerships in various states including California, Virginia, Washington, Florida, Illinois and Texas. The general consensus is that would-be GT-R owners are, in a few cases, going to pay almost double the sticker price of the 3.8L two-door.

One of our first calls, a friendly sales rep at Nissan of Huntington Beach (California), told us, “We are marking it up. We’re seeing averages of 20-30 grand [from dealers]”. Another salesman at a dealership in Seattle, Washington told us, “It’s going to be like an auction, going to the highest bidder. Only the General Manager and owner of the store are allowed to sell [GT-Rs]. Just like an auction.”

George, a salesman from a dealership in Carson, California stated, “I spoke with finance and they said, ‘ it’ll be $50,000 over sticker.’” Take note, he was pretty nonchalant when he told us that the mark-up would be roughly the price of one 350Z and a Sentra combined. That wasn’t the highest mark-up we found; another dealership told us that it’ll be first come, first serve and that they won’t accept deposits, but that consumers should expect to pay “$35,000 to 60,000 over sticker.” Let’s see, $69,000 plus $60,000..

We’d be blind and deaf to not see a pattern here, but there’s no much interested buyers can do. Nissan plans to produce roughly 1,500 units per year through the vehicles lifecycle. There’s little supply and a whole lotta demand. Dealerships are expected to get between 2-8 units, most will be closer to the former with only high volume dealerships getting more GT-R vehicles. And even though the dealers are expecting a scant few vehicles, they’re still taking names, with one list up over 40 people. With odds like that, don’t even bother to put your name down on a list.

There’s not much that Nissan can do to “fix” this problem. When contacted for a statement Nissan stated, “We are being very vocal about pricing of the car with consumers and the dealers to reinforce the value. As you know, we legally can’t prevent dealers from setting their own price as they are a franchise, but we will do what we can to reinforce the resistance to mark-ups.

“For the sale of GT-R’s we are asking dealers to require dealer principals and/or Executive Managers to deal with consumers interested in buying the GT-R. This ensures that management at the highest level of the dealership is making the deal.

“Additionally we are working with dealers to look at the long term plan for the vehicle on how mark-ups may hinder that plan. We are working closely with them so that they are aware and understand what we envision for the vehicle beyond the first model year and ensure they understand how their active involvement will help with that. This is definitely a partnership (as with any vehicle) so we want to reinforce that.

“Allocation of GT-Rs will be based on a number of criteria including the sale of current 350Z models so that may help ease some of the mark-up pressure.

“Finally we are requiring dealers to submit pre-sale paperwork through our regional offices which includes the sale price so that Nissan can provide ongoing counsel regarding mark-ups of the vehicle.”

It’s true, as independently owned businesses the dealerships are free to set their own prices, but this is something that will only hurt the brand and GT-R moniker, not help it.

Edited April 2, 2008 by Blitz_R33

[Zoggy]

For a car thats high in demand, why not !!!

[Mr. Keets]

Why not? sure it's a capitalist system...no problems; I'll be sure to remember that when I'm in the deli and there another set of hands reaching for the last Red Bull

"it's going to be like an auction" arsehats!

[scathing]

There’s not much that Nissan can do to “fix” this problem. When contacted for a statement Nissan stated, “We are being very vocal about pricing of the car with consumers and the dealers to reinforce the value. As you know, we legally can’t prevent dealers from setting their own price as they are a franchise, but we will do what we can to reinforce the resistance to mark-ups."

That bit is just bullsh*t. Being a franchise has nothing to do with it.

The world's most famous franchise chain, McDonalds, has its menu prices fixed anywhere within its country of operation. It doesn't matter if you're eating in the CBD of Sydney or at a servo in the middle of nowhere, the prices are the same and determined by head office. They control everything the franchisees do, to manage their brand.

And, at any rate, there is something Nissan can do to prevent marking up. Sell dealers the cars only when they put the paperwork through (since they require it to be submitted anyway), and if they mark it up heavily then refuse to sell them any more. Its not like there's a shortage of dealers wanting access to the car, so burning one dealer isn't going to mean it won't get sold.

That customer will go somewhere else and still buy it, and get it at a lower price. Nissan USA still gets their sale, the customer doesn't get ripped off, the only person who "loses" is a greedy-as-f*&k middleman.

[Angus Smart]

well, it is America after all..

did you really expect anything different? i see very similar things happening in the industry i am in.

[xr8eater]

thats not to bad the exchange rate is verry close to us at the moment

sorry to sound like a smart arse but franchise owners can and will charge what ever they want they dont have to sell at a set price like mc d's unless its stated in the global contract hence nissan aus selling there cars for what ever they want for them

[Blitz_R33]

thats not to bad the exchange rate is verry close to us at the moment

sorry to sound like a smart arse but franchise owners can and will charge what ever they want they dont have to sell at a set price like mc d's unless its stated in the global contract hence nissan aus selling there cars for what ever they want for them

Ahhh cant wait to see how much dealers here will really sell them for..

[Adriano]

I wonder why nissan usa dont just put the price up?

[sh@un]

Shame the Yanks don't have SEVS

We can already get them for less than Nissan Au will be charging for them new

http://www.j-spec.com.au/list/index.php?ID=12311

pwnzored

[MFC05]

Shame the Yanks don't have SEVS

We can already get them for less than Nissan Au will be charging for them new

http://www.j-spec.com.au/list/index.php?ID=12311

pwnzored

LOL

[xr8eater]

it will be on like donkey kong people importing like crazy

[700HP-GTR33]

If they are not careful and dealers behave in this matter Nissan may have to give it to the Infinity dealers in the US.

It will be the Infinity GTR. Don't think it will hurt their sales, more than likely increase them.

Nissan dealers are not up to marketing such a great product...not here or in the US.

They are arrogant and have no people skills.To train them could not help Nissan Australia...nor Nissan US.

Just my 2 cents worth.

[Amir]

If they are not careful and dealers behave in this matter Nissan may have to give it to the Infinity dealers in the US.

It will be the Infinity GTR. Don't think it will hurt their sales, more than likely increase them.

Nissan dealers are not up to marketing such a great product...not here or in the US.

They are arrogant and have no people skills.To train them could not help Nissan Australia...nor Nissan US.

Just my 2 cents worth.

the car will sell itself. The dealer could have no knowledge and look like a complete tool and they will still sell it.

And yes they will be arrogant.

[flyingfridge]

Apparrently there's rules in place that prevent your average run of the mill salesman from selling the GT-R in the US. Only Managers and Dealer Principals are to be dealing with GT-R customers.

Bumping up prices on sought after models is pretty normal, the GT 40th anniversary and Cobra Falcons had a much larger dealer delivery fee than a normal car at the dealership I work at. There'll be opportunists trying to sell the cars above market value when the inevitable supply shortage happens anyway.

Still, the markups they're talking about in the US are huge. But then if buyers are patient, they'll get their GT-R without the massive markup eventually, it really just comes down to how much people are prepared to pay to get one quick. If there are suckers out there willing to part with that much folding, then dealers should be well within their rights to charge it. Supply and demand.

[R338OY]

Poo.

I can see the excuse for the markup. But that's just bad business.

If Nissan Oz charged $250,000 what would YOU do?

(Buy a Porsche)

[scathing]

If Nissan Oz charged $250,000 what would YOU do?

(Buy a Porsche)

Z-Tune. :-)

[Marco-R34GTT]

Z-Tune. :-)

F430 ffs!!

[carizma]

Yanks do....

http://www.nhtsa.dot.gov/CARS/RULES/IMPORT/

and there are only 10 or 15 compliance workshops for the whole country.

it's not called SEVS though, and there are lots more models on the approved list.

Shame the Yanks don't have SEVS

We can already get them for less than Nissan Au will be charging for them new

http://www.j-spec.com.au/list/index.php?ID=12311

pwnzored

[CS_180]

just so every one knows.....at todays exchange rates 150k here is 136k US. so if they are selling them over there for 129K then we are the ones getting ripped off not the yanks

[carizma]

from the article:

“Finally we are requiring dealers to submit pre-sale paperwork through our regional offices which includes the sale price so that Nissan can provide ongoing counsel regarding mark-ups of the vehicle.”

That bit is just bullsh*t. Being a franchise has nothing to do with it.

The world's most famous franchise chain, McDonalds, has its menu prices fixed anywhere within its country of operation. It doesn't matter if you're eating in the CBD of Sydney or at a servo in the middle of nowhere, the prices are the same and determined by head office. They control everything the franchisees do, to manage their brand.

And, at any rate, there is something Nissan can do to prevent marking up. Sell dealers the cars only when they put the paperwork through (since they require it to be submitted anyway), and if they mark it up heavily then refuse to sell them any more. Its not like there's a shortage of dealers wanting access to the car, so burning one dealer isn't going to mean it won't get sold.

That customer will go somewhere else and still buy it, and get it at a lower price. Nissan USA still gets their sale, the customer doesn't get ripped off, the only person who "loses" is a greedy-as-f*&k middleman.