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The Big Picture for Infiniti ©2012 Fighting Chance® & James Bragg

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The Big Picture for Infiniti ©2012 Fighting Chance® & James Bragg The Big Picture for Infiniti ® ©2012 Fighting Chance & James Bragg MARKET OVERVIEW — Recovering from the But holdback dollars are ‘chump change’ compared depths of the recession, new-vehicle sales increased to the money dealers get from automakers’ secret 11.1% to 11,589,844 in 2010 and 10.1% to 12,762,308 in “below-the-line” bonus programs, typically based 2011. Analysts’ 2012 predictions average 14 million, on total sales objectives set dealer-by-dealer — and about 11.3 million of which will be retail units, the unrelated to your purchase. Often the payoff levels balance being less profitable fleet sales. depend on a dealership’s ratings in subjective areas such as employee training, Internet marketing pro- Results so far in 2012: Industry sales increased 13.4% grams, Certified Pre-Owned programs and custom- in the first 5 months (5,986,598 sold vs. 5,279,877 er satisfaction. To learn more, be sure to read year-ago). Cars gained 15.1%; trucks were up 11.4%. “What I’ve Learned About ‘Below-The-Line’ Dealer Cash Programs. Facts No One Else Is Telling You,” INFINITI OVERVIEW — Infiniti sales gained 27.5% and “The Missing Link: The ‘Top-Secret’ Fact The to 103,411 in 2010, then slipped 4.8% to 98,461 in New-Car Business Has Been Hiding From Consum- 2011, when the auto market was up 10.1%. ers For 17 Years, Finally Uncovered.” So far in 2012: Sales were up 7.2% in the first 5 Remember: New-car buyers, lessees and service cus- months months (43,941 sold vs. 40,986 year-ago). tomers get questionnaires asking them to rate their dealership experience. Automakers use this research How does Infiniti score in J. D. Power & Associates' to give dealerships a CSI (Customer Satisfaction In- Initial Quality Surveys? Well above average. In the dex) score. Dealers scoring below certain levels can 2011 model study, Infiniti ranked #8 of 32 brands. It be penalized financially; some may get no bonus, was #9 in ’10, #11 in ’09, #2 in ’08, #9 in ’07, #7 in ’06, regardless of their sales. So you will find sales peo- #9 in ’05, #8 in ’04, #3 in ’03, #2 in ’02, #7 in ’01. ple urging you to provide the highest ratings. Long-term reliability? In J. D. Power’s 2012 Depend- If you’re leasing, study the leasing piece. (We don’t ability study of 3-year-old 2009 models, Infiniti include it if you’re buying.) Before you sign a lease, ranked #27 of 32 nameplates. The complete rankings call us at 562/433-8489 between 9:00AM and 4:00PM are listed in the piece in this package, “What They Pacific time. We'll run the numbers with you, check- Don’t Want You To Know About Product Quality.” ing the residual value in the Automotive Lease On a relevance scale of 1 to 10, the Initial Quality Guide. But keep us in loss prevention, not triage; study is a 2 and the Dependability study is a 10. once you sign, you're stuck with the payments. In its April Annual Auto issue Consumer Reports rates • G Series — The rear-wheel drive G sedan and vehicle reliability, based on frequency-of-repair data coupe compete with the BMW 3-Series and the from subscriber questionnaires. I’d check their data Lexus IS and accounts for about 53% of Infiniti sales. at a library and avoid vehicles rated below average. G sales were up 23% to 58,143 in 2010, when the av- (Or visit www.consumerreports.org, where you erage dealer sold 19 sedans per month and 8 coupes can purchase access to the CR ratings in all product & convertibles. categories. Annual subscriptions: $26.00. Monthly: $5.95.) I’d also check to see if recent models of my 2011 results: G sales were flat at 58,246 in 2011. vehicle were on their list of “Used Cars To Avoid.” • Sedan sales gained 5% (43,759 sold vs. 41,653 year- June 1 Infiniti inventories were ample: 18,700 cars/80 ago). Sedans were 75% of units sold. days’ sales. 7,200 trucks/41 days. The market aver- • Coupe/Convertible sales fell 12% (14,487 sold vs. ages: cars/43 days, trucks/61 days. (An ideal sup- 16,490 year-ago). 25% of units sold. ply: 50-to-70 days, providing enough color and equipment choices without burdensome carrying 2012 so far: G sales down 4% in the first 5 months charges for manufacturers and dealers.) 23,473 sold vs. 24,531 year-ago). • Sedan sales were essentially flat (17,835 sold vs. Infiniti’s 196 dealers get holdback, money that’s built 17,683 year-ago). into the invoice price, then returned as the cars are sold. Infiniti's holdback is 1.5% of the base sticker • Coupe/Convertible sales fell 18% (5,638 sold vs. price (MSRP), excluding the destination charge and 6,848 year-ago). any additional equipment packages or accessories. Dealers don’t share this money, but mentioning it strengthens your negotiating stance. Transactions reported on the sedan: Product notes: • $2,000 under the sticker price (MSRP) in Hartford, • A G37 hardtop convertible arrived in June ‘09. (But CT. $1,000 over the dealer invoice in New York City. convertible and coupe sales are reported as one total, $800 over in Concord, CA and Boston, MA. $750 not separated by vehicle type.) No transactions re- over in West Palm Beach, FL. $700 over in San Jose, ported yet on the convertible. CA. $640 over in Orland Park, IL. $500 over in Hou- ston, TX and Redwood City and Thousand Oaks, CA. • Infiniti added an entry-level sedan to the 2011 model lineup, the G25. It’s essentially a G37 with a • $487 over in Beaverton, OR. $400 over in Santa smaller engine and a lower price. It’s expected to Clara, CA. $355 over in Boston, MA. $300 over in account for about 30% of G-Class sales. (But sales are Columbus, OH. $265 over in Hanover, MA and Jack- not reported separately for the G25. They’re includ- son, MS. $242 over in Ardmore. PA. $230 over in ed in the sedan total.) Dublin, OH. $100 over in Gainesville, FL. G25 transactions reported: $1000 below invoice for a • Right at invoice in Melbourne, FL, Gwinnett, GA G25x Journey in Greenville, SC. $1,252 below for a Milwaukee, WI, Torrance, CA, Hoffman Estates, IL, base G25 (also in Greensville, SC). $1,846 below in- Columbia, SC, Scottsdale, AZ and Jacksonville, FL. voice for a G25x model in Alexandria, VA. • $130 below invoice in St. Louis, MO. $200 below in The G sedans will be re-engineered for the 2013 Tamarac, FL and Edison, NJ. $228 below in Houston, model year, the coupe and convertible a year later. TX. $300 below invoice in Euless, TX, Redwood City and Fresno, CA, Atlanta, GA and Willow Grove, PA. • M-Series —Spurred by the March arrival of the $400 below in Denver, CO. redesigned 2011 model, M sales surged 72% to 14,618 • $500 below in Sacramento, CA and Atlanta, GA. in 2010, when the average dealer sold 7 per month. $550 below in Denver, CO. $600 below in Jacksonville, But sales dropped 26% to 10,818 in 2011. FL. $685 below in Atlanta, GA. $700 below in Kansas So far in 2012: Down another 14% in the first 5 City, MO, Virginia Beach, VA, Fairfield, CA & Alba- months (4,126 sold vs. 4,822 year-ago). ny, NY. $1,000 below in Marietta, GA and San Jose, CA. $1,100 below in Santa Monica, CA & Greenville, Transaction reports on the current model: $1,000 SC. $1,137 below in Egg Harbor Township, NJ. over invoice in West Long Branch, NJ. Right at the • $1,192 below in Atlanta, GA. $1,500 below in Fair- dealer invoice in Glendale, CA, Ft. Lauderdale, FL field, CA. $1,600 below in Ann Arbor, MI. $1,693 be- and Willow Grove, PA. $1,890 below invoice in Van low in Sherman Oaks, CA. $1,800 below in New Ha- Nuys, CA. $2,130 below in Lisic, IL. $3,000 below in ven, CT. $1,900 below in Minneapolis, MN. And Torrance, CA. $2,300 below in White Plains, NY. Transaction reports on the previous model: $1,028 Here are two deals with reports of the other price over invoice in Davie, FL. $400 over in Alexandria, proposals received in the competitive bidding: VA and Sarasota, FL. $250 over in Cerritos, CA. $200 over in Marietta, GA. $114 over in Valencia, • A G37x sold for $1,200 below invoice in Norwood, CA. Right at invoice in Ramsey, NJ, Shreveport, LA, MA. Other bids: $1,500 over invoice. $1,000 over. Dallas, TX and Chantilly, VA. $200 below in Edison, $500 over. And a second bid @ $1,200 below invoice. NJ. $144 below invoice in Edison, NJ. $435 below in • Another G37x AWD model went for $1,735 below Euless, TX. $500 below in Alexandria, VA. $600 below invoice in Willow Grove, PA. Other bids: $301 below. in Newton, MA. $2,600 below in Barrington, IL. $1,167 below. $1,228 below. $1,301 below. $1,500 below. $2,700 below in Monrovia, CA. $1,600 below. And $1,757 below. All bids were below invoice. Product note: a Hybrid version, the M35h, has joined the brand’s 2012 lineup. • A G37 Journey model sold for $2,252 below invoice (including a free $650 spoiler and two free $60 oil • FX SERIES — FX sales slipped 6% to 10,420 in changes)in Redwood City, CA.
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