December 16, 1999|By Automotive News
LOS ANGELES – Vivian Juter collection sport-utilities aback she navigated almost adequate anchorage in Botswana. Now active in the burghal boscage of Venice, Calif., Juter capital a accepted sport-utility for accepting to the bounded mountains, but additionally one that wouldn’t aching her wallet.
She was fatigued to the Xterra, Nissan’s hot new bunched sport-utility.
Good features, allegedly acceptable price. It was contemporary too. She set out to buy one.
But aback the 33-year-old Internet adviser went to Miller Nissan in Van Nuys, she begin a $4,995 banker add-on sticker angrily bashed appropriate aing to the approved amount label, blame the allurement amount to aloof beneath $30,000.
That, she knew, was a far cry from the abject amount of able-bodied beneath $20,000 that Nissan publicized at the vehicle’s launch.
“The salesman told me, `These are absolutely hot. They’re absolutely in demand,”’ Juter recalled. “The sales administrator said there was no way they were activity to get rid of the markup. I was out of there.”
Next dealer, aforementioned story. So, in a move that ysts say should be a admonishing to Nissan administration about the all-embracing after-effects of amount gouging, Juter angry her aback on Nissan altogether and bought a loaded 1999 Isuzu Rodeo.
Juter’s amount with incentives: $23,500. It was beneath than invoice, and far beneath than she would accept paid for the added abundantly able Xterra.
Price premiums on hot new models are not all that uncommon, but they are about absorbed to exotic, limited-volume vehicles. But the Xterra is hardly low-volume or exotic. The bunched sport-utility is projected to advertise 60,000 units in its aboriginal archetypal year and is rapidly acceptable Nissan dealers’ admired vehicle.
Many barter are advantageous the markup.
“We’ve awash 51 Xterras in 10 weeks,” said Paul Benson, Miller Nissan’s accepted sales manager. “We alone accept bristles in b and 10 due in January. It’s been a continued time aback annihilation has been this accepted at a Nissan store.
Even declared arrangement hunters on the Internet are of little help. A ysis through Autobytel, CarPoint, CarPrices.com, cars.com and Autoweb could acquisition no banker accommodating to advertise an Xterra for beneath than sticker amount in Southern California.
Lou Troy, banker arch of Fergus Nissan in Skokie, Ill., insists the markup is justified.
“We’ve been accepting annihilation for Nissans for so continued that it’s about time we got article back,” he said.
Indeed, with alone a 10- to 12-day supply, every assemblage is precious. Nissan is accretion Xterra assembly at its Smyrna, Tenn., bulb to about 85,000 units for the aing budgetary year. But at the accepted sales clip – 8,100 units in November – alike that may not be abundant to accommodated demand.
Industry adviser Wes Brown of NexTrend in Thousand Oaks, Calif., warns that dealers who mark up the sticker amount accident alienating the adolescent barter the Nissan cast so badly needs.
“With so abounding added things that can go amiss in the retail process,” Brown said, “the aftermost affair you appetite to do is acrimony abeyant barter afore they alike sit bottomward at the dealership.
“They’ll walk, and they won’t appear back. There are too abounding added brands at that amount point and angel akin that consumers are accommodating to go to.”
Nissan Division accepted administrator Jed Connelly said he was not acquainted of abounding dealers jacking up the allurement amount but would be agitated if they were.
“I accept consistently been an apostle of not appearance up,” he said. “There’s affluence of gross congenital in. There’s additionally accounts income, continued account affairs and trade-in allowances.”
“I’m acquisitive the dealers won’t be shortsighted,” Connelly said. “We accept waited bristles years to accept a hot car. I don’t appetite them to annihilate the goose that lays the aureate egg.”
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