I think these two are connected. The telluride/palisade are probably the two best entries in the non luxury mid size SUV segment. They are noteable because of their quality/features relative to their MSRP. That gets them press and gets customers in the door. Then dealerships can get plenty of uninformed customers to agree to terrible leases. Although in the non luxury segment people are somewhat more likely to purchase than lease, where the Telluride/Palisade are a better deal.
There is always a fool to separate from his money. But you can’t sustain a brand on fools.
From a purchase perspective, you can make a good argument that they are a fine deal even at/slightly above MSRP. I would rather pay 3% over MSRP for a top trim Palisade than 6% under MSRP for a top trim Pilot. Sure it would be a few thousand more expensive but it’s a much better car. MSRP is a arbitrary number (hence 1% rule being useless ). For purchases the buyer has to determine actual value.
Now the fool leasing it for $750 a month is a different story. Of course we know he could be driving a well equipped X5. But most Americans don’t understand how lease prices work/that they only very very loosely correspond to MSRP.
First one I’ve seen hit the market… Given what the palisade/telluride were doing at first, this is probably a very reasonable price if you have to be the first on the block with one.
I suppose as even mainstream brands become more expensive from a sticker price perspective the luxury brands have to adjust their pricing accordingly, even if it’s all BS and balanced out eventually with incentives. Otherwise they end up looking like the undesirably cheap option in the segment.
I think you have to separate car prices and truck prices. Car prices haven’t really changes that much relative to inflation. But trucks and SUVs… With the average F-150 selling for (not MSRP but sales price) for 47k and pretty much every non luxury brands comparable midsize crossover vehicle topping out around 50k, it certainly doesn’t seem weird that a luxury brand would price a top trim three row SUV above 70k. If they did otherwise there would be far too small of a price delta between the brands non luxury three row crossover and their luxury three row crossover.
). For purchases the buyer has to determine actual value.
