I think Genesis will take the country by storm next year with their new lineup. The G70 in particular should be quite popular, and I am planning to get one myself. Hopefully residuals will improve on them. I don’t see many Genesis posts on here probably due to that. But I think there is time to build a good relationship with Genesis dealers until then if you are a broker. GV80s and G80s are coming sooner than the G70 and those look really really nice.
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Just watched a nice thorough walkthrough on YouTube for those interested: https://youtu.be/r7WtExBVrCQ
I don’t share your fantasy. Genesis been around for years now and still sells poorly. The GV80 should bring in some customers but i don’t expect radical changes. For one, the dealer network is horrible, majority are being sold out of Hyundai/Kia dealerships and that alone is a huge turn off. I went for a test drive of the G70 3.3T and the service was just terrible , not what most people in this market are used to.
Furthermore, there are many who simply will not consider the Genesis simply due to the branding. That will continue to hamper their sales until at least they implement stand alone dealerships. Plus, this is a very competitive market. With all the hype Genesis has gotten you’d think that would equate to more sales but so far that has not been the case.
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Yeah their current models are pretty stale looking at the moment but I think the redesigns might change that perception. It’s too bad they have a poor dealer network and bad service though. They need to decouple themselves more from Hyundai/Kia dealerships so shake off that “cheapness” factor. I still want one because I love the looks and the price point.
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They shot themselves in the foot when they decided against standalone dealerships, that’s the biggest turn off. Those hyundai/Kia dealerships are just terrible and not set-up to deal with the demographics the Genesis should be targeting.
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Lol hopefully they are that unpopular so I can get a nice discount.
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BTW, I heard the GV80’s won’t be cheap so again there’s that. Granted the interior appointments are one of the best in the industry minus the steering wheel lol. I don’t like the exterior styling either but that interior is a beauty.
Definitely a shame. I was reading posts on a Genesis owners forum about just that. They said “I wouldn’t want to buy a luxury car on a Hyundai lot” and that they are “treated like a piece of meat.”
Interior is gorgeous. I don’t think that they are too expensive relative to the competition though. They start at sub $50K and you could probably get a nice one with AWD for closer to $55K. Maybe that’s considered expensive but with the interior and looks, I’d think it’s worth it.
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That’s MSRP. The problem w/ Genesis, IMHO, is that the MSRP looks low but the lease price ends up being the same or higher than a comparable German competitor. I’m not a brand snob, but I personally think, “Why would I pay the same price for a less prestigious brand w/ (possibly) inferior customer service?”
Lexus is really the only upstart luxury brand that has been successful. It did that being like 40% cheaper than the German equivalent and blowing them away in terms of power, reliability, resale value, and refinement. And, even then, I imagine the only Lexuses that sell well nowadays are the ES and RX.
Their strategy appears to be targeting purchase/financing customers.
They don’t have robust CPO sales to inflate their RV like BMW and MB do. Even Audi are conservative with RV 20+ years after becoming a bonafide luxury brand.
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The economics just don’t work. Go price out land where this demographic lives
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If the gv80 lease equivalent in % terms to an x5. I think they can make some serious headway…
I did a website build today and really am interested, but have a feeling these guys will mess up the leasing program
It’s not them messing it up, it’s the fact they don’t have money to throw behind these cars from healthy CPO sales like bmw can. They depreciate like rocks (most if not all of the historic genesis lineup), look at the sticker for a g80, and look at a 2017 example.
This retort is downright silly. The Hyundai /Kia dealer I went to test drive the Genesis is situated in one of the most expensive suburbs in South Florida.
@Max_g is right. See my post history with genesis and have done several of these for family members mainly g90’s. I also daily a genesis.
Most dealers were ready to tell them to find new franchisees if they stuck to the showroom mandate. Hyundai/Genesis almost followed through with it to the point where some SE dealers loaded stock to “approved” dealers. It was an amazing saga and you could really get dealers going. Dealers went in during some the dealer meetings that year, there are some articles on it.
They were trying to force dealers to build standalone showrooms for a sedan only line up when crossovers are what sell.
I was told by several dealers that the GV80 reservations are equivalent to the last 2-3 years worth of sedan sales. In addition, the incentives on the sedans are often best for lease to buy because of large lease incentives. Hyundai dealers also have coupons they can apply liberally on top of a the lease incentives and dealer discount. For 90’s the past three years there has been a 2-3 month window where they are heavily incentivized with many 250+ days on the lot. The 90 is a very nice car, maintenance is very reasonable.
They are subsidized by South Korea, the way to get market share in USA is to aggressively offer lease terms. So if the residuals suck they need a revolver to offer basically 0 MF
To be fair resale has been getting better since 18’, plus the 80 has a redesign this year. (much needed)
You get concierge service valet for 3/36k and I believe you can extend it.
Is there an advantage to that kind of strategy? I imagine most luxury car buyers are leasing, but I don’t know. Also, are the inflated RV just (or mainly) about having a lot of CPO sales. I imagine Lexuses are probably pretty desirable as CPOs, and their RV are pretty realistic, no?
There is/was a rumor that Lexus was able to offer the initial LS at such a low price b/c Toyota was getting help from the Japanese government…
Agree w/ you that Hyundai/Genesis needs to do something eye opening to get people into the showroom.