LexFather

BTW, flipside, thanks for the sales data, its appreciated.

wogey

Well, it has been quite awhile since I've visited this forum. Been quite busy with work and travelling so I really haven't taken the time to write. However, I am quite updated now with the recent sale prices of the 2006 GS(s). I helped my friend buy one this week. Dealers are selling Nav cars for $1000 over invoice and non-Nav cars for $500 over. As I predicted back in Feb, GS3 is the next PC like depreciation phenomenon. Imagine, if one bought the car in March for MSRP, one would be in a world of hurt. The way I see it, $6K off MSRP (current sale prices), lost of sales tax (8% x $50K), approx. 20% standard depreciation from year 1 ownership, that is $6K+$4K+$10K=$20K depreciation for year 1. Isn't that like a PC?

For those of you who are interested, please read this older Feb/2005 post on the GS350 between Flip and myself:

https://www.clublexus.com/forums/sho...5&page=2&pp=15

My buddy flipside909, your credibility and your opinions regarding the 2006 GS are very questionable. What went wrong here with the Lexus strategy?

The bottleline here is even though the M has the ugliest and class-less interior, it is giving the GS a good run for its money with a very nice looking exterior, more interior room, and much better performance and extras for the money. If only Infiniti is smart enough to fire all the fools responsible for the interior of the M, they would one day really kickass on the GS.

Now for Lexus, if only they would fire all the execs and marketing stooges responsible for this GS campaign. They lost the opportunity to be the top car in its segment. As bad as the Bangled 5 is, it is still the class of the sport sedan.

flipside909

Ahh guess who's back. Glad you helped your friend buy a new GS. Hope he/she enjoys the vehicle for many years to come. So tell me, which dealer did you help your friend or shall I say which dealership did you grind to make a deal for your friend? Not all dealerships as you claim are giving the same deals. Your predictions are a bit off because the first weeks of sales of the of new GS since February 14, no dealership was giving anything below sticker. On the contrary, the new GS sold quite well for the month of March (not including the initial sales from February 05). People did buy the car at MSRP regardless of model or option package. Obviously you're not going to get a discount on a car that was just released adverse to what you claim. 3000+ units for combined GS sales is pretty outstanding considering Infiniti sold a 1000 less that same month of their new M.

https://www.clublexus.com/index.php/...iew/5833/1/10/
"The Lexus Division reported its best-ever March with total sales of 25,471 units for the month. Lexus' March luxury utility vehicle sales were led by the GX 470 mid-size luxury SUV, which posted sales of 3,097 units, an increase of 1.2 percent. GS sales were boosted by the launch of the all-new 2006 GS 300 and GS 430 luxury performance sedans in late February. The GS 300 had sales of 2,482, an increase of 428.8 percent, while the GS 430 posted sales of 727, an increase of 914.6 percent. "

Okay lets see...you posted this 2/24/2005
https://www.clublexus.com/forums/sho...0&postcount=26

You have yet to prove which dealerships have discounted the GS300 when it first was delivered for sale to dealerships circa the week of Feb 14. Tell me one dealership selling the car below MSRP or any sort of discounting during that part of February before the official national launch of March 1, 2005. None. I agree with you there is not a line for the new GS as there is the RX400h, but they are selling and not sitting on dealership lots from February and that's fact not fiction. I'm going to agree w/you on releasing the GS350 sooner than expected, that's not traditional strategy to release a new model/powertrain like that. I don't lease cars since I drive too many miles anyway. The only way I would take advantage of a lease is through the employee company lease program if I was a TMS employee.

How are they questionable? In fact you come here as the opponent of Lexus marketing and you are the only one to here to bash it. Everyone is entitled to their opinion. Nothing went wrong with the Lexus strategy, some dealerships are selling certain models at MSRP due to the fact of demand and availability. They aren't discounting it heavily as you predicted. Dealerships are businesses to make money. Not give freebees to every grinder out there. The base GS300 models w/no nav are being sold w/ bigger discounts but it wasn't the case when the vehicle just came out. It is now June 2, 2005, expect the discounts to be given to the not so popular optioned models. There is more of a demand for the GS3 w/Nav & ML and the GS430 than the base models. Plain fact is, the car is selling and people have paid that MSRP for the first few months...and are continuing to buy the car at MSRP for those fully loaded models. Is it my loss? nope...is it your loss? nope. Is it the buyer's loss? Well that's up to them and how they value their purchase. You may think they're idiots but then again when did your opinion matter when they were buying the car?

You and I may think they're fools, but people will buy the car they like, not by what people dictate to them through media or word of mouth. It's their decision.

Well Lexus has always had that opportunity from the start, but you can't convince or change those tradionalist BMW & MBZ consumers out there. Sure if there was such thing as a powerhouse GS430 or 460 that topped the 5 series in every way shape or form, it still wouldn't kill the 5 series sales. There are loyalists out there that wouldn't buy anything else. The M45 is a phenomenal car for the price and it's full of value. In my opinion the M45 beats out the 5 series in many aspects, but if bigger is better and faster is better, don't you think Infiniti would have already knocked the 5 series out by now in sales and rankings? That's obviously the wrong way to look at it. Your ideas are a bit skewed. Simple supply and demand works. My background is in Business Econ and understand how Lexus marketing/strategy works. It does work and explains why they are successful and continue to break records each month.

lexuslover

wogey, i'm not quite sure what you are trying to point out . . . that any of the early buyers at or near MSRP should feel bad for not waiting? at launch, demand dictated the price, not the other way around. if people were willing to pay MSRP to have one of the first GS's, so be it. there is a value given by those early buyers, whether or not it's dumb or greedy or rich-kid is not the point. the point is those cars were sold at that price by a willing buyer. it's capitalism, and it works. supply and demand, that's all it is.

sure, the depreciation is large, but always is on a car. if you worry so much about depreciation, then you probably wouldn't buy a new car anyway. i don't think ONE person who bought at or near MSRP didn't expect for prices to fall or expect to take a hit on depreciation.

and i'm not sure why you think Lexus marketing is so stupid - isn't this what all car mfr's do? all new body styles will sell at MSRP at first, then when supply increases faster than demand, the prices must fall. Infiniti, Acura, MB, BMW, even the Prius. that's economics, plain and simple. all the companies do it, not just cars either, all kinds of businesses.

LexFather

The GS chased the 5 with dynamics but with Lexus interpretation of a sports sedan. Which we all know won't be the sportiest stock.
Lexus strategy DID NOT fail. It has placed well in every car comparsion and sales are on par for the Lexus goal. As I stated before they are selling more ist year 3GS than ist year 2GS and this car is 5k more expensive in stock form.

As for the aggresive pricing, back in 1998-2003, the leaders were simple, the E, 5 and GS. Audi simply has never caught on even with improved products. Now we have a great Acura RL, Infiniti M, Cadillac STS to compete with, doubling the cars that one should choose from, instead of being "also-rans". This segment has never been more competative in history.