I think the question is — Are they going to be able to maintain that momentum into the fall? |
If people are comparing sticker prices, lower prices will certainly make their cars more attractive. What really brings success to brands is good product. Playing with pricing alone isn't going to enable them to recover their market share. But I do believe a lot of their cars are overpriced and they needed an adjustment. |
If people go in with the idea they are saving money, they are mistaken, |
In almost all cases, consumers end up getting the same level of incentives, which means - do the math - they're getting less for each vehicle. |
Incentives do work, up to a certain point, to give sort of a stimuli to sales and bring showroom traffic. It's just that you can't rely on incentives to bring people into the showroom day after day. It gives people a sense of urgency. You need to get this deal now because tomorrow, it's not going to be here. |
It might be a little more than that. |
It's a tough time when you have a new model that people are waiting to purchase in the coming months. |
It's not a surprise at all, and I think it will continue in the near future — the next three to five years. |
It's one of the best Januaries. |
Just three years ago, people ignored the fuel economy numbers on the sticker. Now it's one of the first things people ask about, especially the middle-income families. |
Mercedes-Benz and BMW are associated with quality engines, so it was a smart thing to do. |
Now, for vehicles priced under $40,000, it is one of the first questions people ask. |
The compact car segment is on fire. |
The consumer psyche has been indexed to getting those big deals, ... If the consumers come back and ask for the big rebates they got before, there's going to be a sort of reverse sticker shock with people saying, 'Where is the big rebate?' |
The debate on gas prices has accelerated the end of the life cycle for many old-style SUVs. But the SUV segment was already undergoing changes well before gas prices became an issue. |