FisforFast

Well, the same image comes to mind as when the Genesis came out. I honestly cannot imagine a top executive getting an oil change for his luxury barge Equus, sitting in the lounge next to a kid with a baseball cap and baggy shorts, getting an oil change for his beat up '01 Accent. Hyundai really needs to release a luxury brand ASAFP. Dealership experience is 90% of the sale.

madoka

Not everyone is a snob.

I spend 1-2 hours waiting for an oil change. I either ask for a ride home or I bring my laptop to work on. Big deal. My last Lexus oil change cost $225. My last Nissan oil change cost $20. There is no amount of free water, donuts, newspapers, or pampering that Lexus can do to justify the extra $200 on a 1 hour oil change IMHO. Some people are comfortable enough with themselves that they don't need to feel like a big shot at a car dealer.

FisforFast

I don't think you realize that if I pay over $60,000 for a car I don't expect to be sitting next to Eminem in his Elantra, blasting his mad beat with super bass EQ settings, down his ear canal and consequently yours with the use of his stolen iPod.

KA8

iTrader: (1)

They don't NEED a luxury brand just yet. Of course they'd sell more premium sedans with new brand but that won't justify spending billions for it. Established luxury brands are suffering right now so what makes you think hyundai would be any different with their new luxury division? US market is important but they have bigger fish to fry in China, India and rest of the world.

Speaking of dealership experience I was at Newport Lexus couple of days ago test driving a used LS430. The dealer is nice with waterfountains, new builidng, exclusive hand towels, and water bottles. But that made me think they must rip their customers off in order to pay for all this. It did feel good but I wasn't really excited about their prices. If I was a multi-millionaire I probably wouldn't care but for most people it's what they can get most for their money and Hyundai knows this.

AlexusAnja

It's not being a snob or not... there is a reason Lexus/MB/BMW commands the prices that they do, because they've built a reputation of making either reliable and/or well engineered vehicles that people see value for that $60-80K in. Hyundai has not doen either yet and there will only be a handful of people that will pay even $48K for a Hyundai, much less close to $58K.

Any vehicle that costs over $45K is not in the "family vehicle" league where a family with two children is going to purchase easily. They're going to stay at the Accord/Camry range and be very happy with it. The $45K and above are being bought by families that are more well off, have "made it" and want to start enjoying their place on the "ladder of success." Hyundai does not have either the image or the appeal of "succeess" that the others have built.

I think for the price of say $50K, most buyers that are about at that leave to afford a $50K car would rather "downgrade" to a GS350 let's say, than to buy a Hyundai. It might be snob factor, it might be just urge to be seen at more "upper class" but whatever it is, it's a human trait that can't be denied and anyone that says they love the Equus and would buy it... you'll be in the minority, but honestly, you'll get a very good car for the money.

madoka

Back on point. . . answer me this: Would you rather pay $200+ for you oil change and be in a nice environment or would you keep your $200 and get your oil changed at a normal dealership?

I dunno about all you guys, but I know that daddy didn't give me all my money. I had to earn it and so I'd rather keep it.

PAULGS430

Most of the Equus sold in KDM are not driven by owners. My brother-in law will be getting the limo-version soon. Mother-in law already has the current version so I should be checking them out real soon. I'll report back how the copy rides. lol.

FisforFast

Unfortunately you have to pay to play and $200 oil changes is part of the equation.

madoka

Have you actually sat in the waiting room at any non-luxury brand? Heaven forbid you have to quietly sit next to middle class people for a whole hour. I'd rather save my $200 and not sit with a bunch of posers thinking they are bigshots because they drive an ES.

FisforFast

Yes, I have.

UDel

$225 just for an oil change? That is insane even for a Lexus dealer. The Lexus dealer closest to me does synthetics for my GS for $65, they are less expensive then the Toyota dealership and they just moved to a large building and remodeled it. I am sure they lowered their prices because people are smart and refuse to pay a bunch more for an oil change or regular work to just sit in a nicer waiting room and go to the Toyota dealership to save a bunch of money. I would never pay anywhere near $225 for a oil change even if a steak and lobster dinner was included with it at a nice restaurant.

madoka

Longo Lexus last week:

http://i35.tinypic.com/m7t9fo.jpg

As an added bonus, they scratched my front passenger rim then tried to deny, deny, deny.

UDel

You think punks, ignorant ghetto people, and those dumb yo boys wearing over sized white t shirts blasting hardcore gangster rap all the time don't buy and drive Lexus and get their Lexus serviced at dealerships? I see those characters driving around in Lexus vehicles all the time and see them at Lexus dealerships too, they don't just buy and drive Hyundai's. Not all Lexus vehicles cost 60K, the vast majority of cars that Lexus sells don't cost anywhere near 60K and are priced in the 30's and low 40's not even counting all the used ones that sell in the teens and 20's. If you want to avoid those types of people you are going to have to buy a much more exclusive brand like Ferrari or something along those lines because they buy and drive Lexus too.

If it means not getting ripped off and saving a bunch of money on routine maintenance I will happily sit at a less exclusive dealership and if a eminem wannabe comes in I will just shake my head and ignore him.

UDel

BMW and Mercedes are among some of the most unreliable brands you can buy, they certainly did not build a reputation for reliable vehicles, they have built up the badge that many people will overpay on by a long history of offering numerous drivers or luxury cars that clicked with the public. Most BMW and Mercedes don't sell anywhere near the 60K-80K price range and most people these days who buy them are not well off or have "made it". They are mostly middle and upper middle class who are buying them for the brand and "image" and often can't realistically afford them. That is why BMW have such attractive lease rates and 4 year free maintenance because the clientele is not rich and cannot afford them at what they normally charge. Lexus is the only brand you have mentioned that has built a reputation for reliability, quality, all the while undercuttting the more expensive German cars by a good margin on pricing.

Most full size or large SUVs cost 45K or over and they are the "family vehicle" of many of the middle class. Most of these SUVs are not from luxury makes yet are still well over 40K being sold as "family vehicles". Many middle class buyers seem to feel it is okay to pay over 40K for a SUV where they would never pay that much for a nice sedan or coupe for some reason.

If Hyundai decides to spend billions and have a upscale dealership/brand to satisfy the snob factor and move more Genesis and Equus then the price of those vehicles are going to skyrocket and they still won't have the image to sell them at the higher prices. If you can get a loaded v8 Genesis for 42-45K you will have to pay 52K-55K+ or 10K+ more just because it is being sold at a fancier dealership under a fancier brand and the consumer loses out a bunch of money just for a "badge" and a nicer waiting room. People these days in this economy are not going to waste 10K+ just on a badge and nicer dealership. Priced in the low 40's the v8 Genesis seems like a good deal for what you get and people will overlook some of the faults but once it is priced closer to the luxury competition its faults like cheap interior bits and bland design will be unacceptable and people will just spend more on established lux brands. In this economy it is a lose lose situation for Hyundai to spend billions to establish a more upscale lux brand when sales of all luxury cars/brands are down, how many more Genesis and Equus are they going to realistically sell under a nicer brand-maybe 5% which is not going to make up for the investment and they could actually lose sales when the prices of those vehicles go up and people start to not think they are great cars for the price anymore.

silversprucesc3

Actually you dont....

Paying more for less makes no sense. Many of those who can afford to, DONT, because its foolish and wasteful.
Gimme a break