"Pre order your camaro" Yeah Right
Registered User
Joined: Aug 2003
Posts: 2,272
From: Georgia
Registered User
Joined: May 2001
Posts: 1,018
Unless it's literally the first 5th gen production Camaro, nobody should pay over MSRP for the first batch that hits dealer lots.
If it's anything like the current-gen Mustang, there will be 2nd stickers and "market adjusted" pricing on the cars delivered in the first 6 months. Some people WILL be stupid enough to go along with it.
Then, when the rental companies start dumping their first fleets of Camaros, there will be a slurry of base automatic Camaros to bring down resale values which will leave the first "market adjusted" buyers owing a lot more than their cars are worth.
Moral of the story: Don't pay anything over MSRP, or wait until there's at least a bit of a used market (~6-8 months after release).
If it's anything like the current-gen Mustang, there will be 2nd stickers and "market adjusted" pricing on the cars delivered in the first 6 months. Some people WILL be stupid enough to go along with it.
Then, when the rental companies start dumping their first fleets of Camaros, there will be a slurry of base automatic Camaros to bring down resale values which will leave the first "market adjusted" buyers owing a lot more than their cars are worth.
Moral of the story: Don't pay anything over MSRP, or wait until there's at least a bit of a used market (~6-8 months after release).
Disciple
Joined: May 2004
Posts: 270
From: Toronto, Ontario, Canada (20 min. down the road from the "Shwa"!)
Best regardSS,
Elie
Registered User
Joined: Apr 2007
Posts: 287
From: Richmond, VA
I would be very surprised to see the Camaro showing up in rental fleets. I don't believe that is the intent of GM. I know they are fully aware (as you describe) of the effect this has on resale values and I don't think they want to let this happen with this car.
Best regardSS,
Elie
Best regardSS,
Elie
Clyde
Disciple
Joined: May 2004
Posts: 270
From: Toronto, Ontario, Canada (20 min. down the road from the "Shwa"!)
I don't think GMs intentions have anything to do with it. If car rental companies think that having Camaros will bring them more business, they'll buy some and I don't think Chevy/GM will turn down those extra sales. GM's business is about more about sales/profit rather than intentions, as it should be with any manufacturer.
Clyde
Clyde
http://www.btnmag.com/businesstravel..._id=1003615188
Under The Hood: GM Continues To Cut Car Rental Fleet Sales
By Michael B. Baker
JULY 23, 2007 -- Auto manufacturer General Motors this month reported that it has taken more than 92,000 daily rental vehicles out of its 2007 sales totals in the first half of the year. This included a reduction of 13,487 daily rental sale vehicles in June alone, a decrease of 22 percent from June 2006. Even though GM blamed the cutbacks for an overall 24 percent drop in sales in June, the company asserted that reducing car rental fleet sales remained its strategy. "We continue to believe that maintaining a disciplined approach to both incentives and daily rental car sales is key to making our marketing strategy work in the long run," Mark LaNeve, GM vice president of North American sales, service and marketing, said in a prepared statement. This strategy is common among auto manufacturers, and car rental companies have pushed for steeper rate increases amid the increased costs of maintaining their fleets (BTN, Sept. 11, 2006).
By Michael B. Baker
JULY 23, 2007 -- Auto manufacturer General Motors this month reported that it has taken more than 92,000 daily rental vehicles out of its 2007 sales totals in the first half of the year. This included a reduction of 13,487 daily rental sale vehicles in June alone, a decrease of 22 percent from June 2006. Even though GM blamed the cutbacks for an overall 24 percent drop in sales in June, the company asserted that reducing car rental fleet sales remained its strategy. "We continue to believe that maintaining a disciplined approach to both incentives and daily rental car sales is key to making our marketing strategy work in the long run," Mark LaNeve, GM vice president of North American sales, service and marketing, said in a prepared statement. This strategy is common among auto manufacturers, and car rental companies have pushed for steeper rate increases amid the increased costs of maintaining their fleets (BTN, Sept. 11, 2006).
Thursday, October 11, 2007
GM's new Chevy Malibu will be scarcer in rental fleets
Sharon Terlep / The Detroit News
WARREN -- General Motors Corp. said that it will cut by half the number of Chevy Malibu sedans it sells to daily rental car fleets with the madeover 2008 model.
The Malibu had been GM's most fleeted car but going forward the company intends that only 20 percent of its production output will be sold to rental car companies, compared to 40 percent of current Malibus.
Those that are sold as rentals will feature amenities such as sunroofs and more luxurious interiors.
Over the last couple of years, the Detroit Three have been trying to withdraw from sales to rental-car companies. Rental fleets can drive down the value of vehicles by saturating the market and undermining a vehicle's image.
Production of the Chevy Malibu will begin Monday at the GM Fairfax plant in Kansas City, Kan.
GM has said it will pump more than $100 million into a marketing campaign for the redesigned sporty sedan, considered one of the automaker's most key launches in years.
The first new 2008 Malibu had been scheduled to hit showrooms Nov. 1 as part of GM's effort to reduce its reliance on truck sales and make a splash in the passenger car market.
GM's new Chevy Malibu will be scarcer in rental fleets
Sharon Terlep / The Detroit News
WARREN -- General Motors Corp. said that it will cut by half the number of Chevy Malibu sedans it sells to daily rental car fleets with the madeover 2008 model.
The Malibu had been GM's most fleeted car but going forward the company intends that only 20 percent of its production output will be sold to rental car companies, compared to 40 percent of current Malibus.
Those that are sold as rentals will feature amenities such as sunroofs and more luxurious interiors.
Over the last couple of years, the Detroit Three have been trying to withdraw from sales to rental-car companies. Rental fleets can drive down the value of vehicles by saturating the market and undermining a vehicle's image.
Production of the Chevy Malibu will begin Monday at the GM Fairfax plant in Kansas City, Kan.
GM has said it will pump more than $100 million into a marketing campaign for the redesigned sporty sedan, considered one of the automaker's most key launches in years.
The first new 2008 Malibu had been scheduled to hit showrooms Nov. 1 as part of GM's effort to reduce its reliance on truck sales and make a splash in the passenger car market.
All one needs to do is examine the resale values for 1 and 2 year old Mustangs in order to appreciate the impact of large numbers of cars flooding the rental car fleets.
Best regardSS,
Elie
Last edited by sselie; Oct 27, 2007 at 10:15 AM.
Registered User
Joined: Apr 2007
Posts: 287
From: Richmond, VA
Fortunately, rental car companies don't get to call all the shots... and fortunately, GM is also taking a much more far-sighted view of achieving profits by working towards a more positive image for their vehicles in their attempt to keep resale values up. GM has already made good headway towards reaching these goals for their shareholders by keeping a tight rein on incentives while at the same time drastically reducing the number of vehicles being allowed into rental car fleets... and the cars that are going into the fleets are no longer strippers, but reasonably well equipped models.
http://www.btnmag.com/businesstravel..._id=1003615188
http://www.detnews.com/apps/pbcs.dll...59/1148/auto01
The Camaro is one car that GM will do everything it can reasonably do in order to not allow its image to be lessened or cheapened, even if this must be achieved by showing reduced sales numbers as a result of limiting (or preventing) sales of certain cars to rental companies.
All one needs to do is examine the resale values for 1 and 2 year old Mustangs in order to appreciate the impact of large numbers of cars flooding the rental car fleets.
Best regardSS,
Elie
http://www.btnmag.com/businesstravel..._id=1003615188
http://www.detnews.com/apps/pbcs.dll...59/1148/auto01
The Camaro is one car that GM will do everything it can reasonably do in order to not allow its image to be lessened or cheapened, even if this must be achieved by showing reduced sales numbers as a result of limiting (or preventing) sales of certain cars to rental companies.
All one needs to do is examine the resale values for 1 and 2 year old Mustangs in order to appreciate the impact of large numbers of cars flooding the rental car fleets.
Best regardSS,
Elie
Clyde
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