97-SC300

iTrader: (17)

Nice to see Lexus and Toyota on the list. I was very very surprized to see the LX and GX Lexus be up there.... correct me if I am wrong, but isn't the LX only available through special order? that way you know you already have a buyer, thus it won't stand on the lot too long before getting picked up.

bitkahuna

iTrader: (20)

True, but that's assuming the LX is COMPLETELY undesirable, that is, there is NO demand, which isn't reality of course.

No, the list only means that supply closely matches demand. More people want Chevy Malibus than a lot of vehicles on that list for example, so it's certainly a HOTTER SELLER than many of those, but yes, supply may exceed demand so they may sit on dealer lots a bit (or a lot) longer but that doesn't mean it's a bad seller.

That's just an easy example, the same logic applies to all of them.

Do you have a link to the original article? I tried looking on WSJ but can't find it.

I know I'm being picky but I don't think your thread title is supported by this data. I believe it shows supply more closely matches demand on those models regardless of how many they sell.

Maybe they don't measure all vehicles either because I expect Ferraris don't "sit on the lot" long either - most are pre-sold, but they can hardly be called a hot seller, although maybe you would say they're hot because they don't sit on the lot, but if Ferrari quadrupled production volume I bet they'd sit on the lots for some more time, but that doesn't change the sales volume it would only have meant that their supply exceeded demand.

Maybe in the end we're saying the same thing two ways...

sirkfc

Well, I think 1SickLex is wrong and I don't think he'll be convinced, but it's not worth debating, I guess.

I'm sure the LX would sell pretty much the same numbers even if Lexus produced twice as much, and that will essentially double the inventory days...

Gojirra99

I think this survey result is more meaningful/useful for the dealers than the consumers anyway ...

TJW98LS

iTrader: (1)

Everyone wants ugly *** cars...its the way of the future Notice the Buick Enclave is on that list.

LexFather

Paul, thread title was taken from the WSJ

bitkahuna

iTrader: (20)

And I think headlines are often written by the editor to get people's attention rather than accurately reflecting the article.

I just saw this article and couldn't believe it in no way supported the direct assertion of the headline. http://www.timesonline.co.uk/tol/new...cle3382343.ece

Anyway, back to this thread's article, I think there's a flaw in it. Cars moving off lots quickly doesn't automatically mean they're "hot sellers", as I define it at least.

Mr Johnson

Agreed. You need other data to assert "hot sellers". Actually I think this list means almost nothing by itself. Even my favorite meaning of this list, namely "car makers profit centers" can be misread if the reason a car moves quickly is because of incentives.

Never let reality get in the way of a good story though. Why think too hard when headlines will do?!

spwolf

actually, it is very definition of hot sellers. Cars that dealers can not keep on the lots.

What it doesnt mean that they are high volume sellers, which not many of cars on the list are.

LX was just released, here in Europe we have distributors arguing who is getting more of L200's so we dont even know when will be actually able to sell some to the customers and we have waiting lists already. Its very much "hot" seller right now. On ther other hand, we have hundred Yarii on the stock and they sell 10x more than LC200's but are hey in hot demand? No.

Hot Demand is when you have more buyers than vehicles. Not when you have 200 Camry's on the lot and you sell 500,000 per year.

bitkahuna

iTrader: (20)

No it isn't. I'll try again, if a dealer gets ONE of something that there's demand for TWO of, it will go off the lot IMMEDIATELY. That does not make it a 'hot seller'. It just means demand outstrips supply.

To you then a hot seller is simply something that moves off the lot quickly. Mmkay.

A hot seller but you haven't actually sold (delivered) any?

Do salespeople get paid commission on orders or deliveries?

They are definitely in MORE demand than the LX, it's just you have too many in stock.

Agreed! Hot demand vs. supply is not a hot seller.

mmarshall

I'm about halfway between you and 1SICKLEX on this one. Perhaps the best way to gauge "sales" is to count up how many orders and deposits dealerships actually HAVE for the car. That, more than anything else, most accurately gauges the demand for it. If a customer at a dealership says "I want this car", equipped a certain way, places a deposit for it, signs a bill of sale or a promissory note, and has to wait for the car because there are none in stock (or none in stock equipped that way), then that, IMO, is a sale. It s not the customer's fault that the factory is underproducing or that the dealership just did not order enough of them...or any other reason why current supply cannot meet current demand. If the car he wanted WAS available on dealer lot, he would be driving it home that very day.

So, in a nutshell, if a dealership has 100 orders for a particular car, and can currently only fill 50 of them because of limited factory capacity or delays getting the cars delivered, IMO that still represents 100 sales, not 50.