Who's ready to buy a $67,000 Hyundai

[89911]

They had a review of the Equus in my paper today claiming it was the deal of a lifetime. Would anyone here even consider this car if you were in the market? On paper it sounds good, but I know buyers willing to spend this kind of money are image concious and this car has no image, in fact a negative image. Seems they would of been better creating a new name like Lexus or Acura. I can't see anyway this car doesn't fail. Interesting article:

http://www.nytimes.com/2011/03/13/automobiles/autoreviews/13-hyundai-equus-review.html?_r=2&pagewanted=all

My favorite line: “This is the knockoff Louis Vuitton bag you bought in Chinatown,” she said. “It looks cheap, and you’re not fooling anyone.”

[HardDrive]

As for me, no. But you have to remember that there are many successful asian Americans who have a different view of the name Hyundai......and......and....oh what the hell....asians are complete cheap asses! Don't deny it!

[NoLift911]

I am not sure why Hyundai does not do what other manufacturers have done for decades if they want to move up market.

Create a new brand...just like Lexus, Infiniti etc...will take a while and sure everyone will know it is made by Hyundai but creating a new brand/company to sell upscale autos has been done for years with much success.

It even works in the reverse with the likes of Scion - targetted towards kids...cheap.

This will be a much short route for "street cred" in the auto world with high dollar autos, high qaulity etc on par with the rest of what we would pay for vs. inching the brand up with the same name plate.

Surely they have thought of this before....?

[nostatic]

Forget the Hyundai - they said a loaded Lexus is $97K. Really?!? I'm totally out of touch. I guess I'm a cheap sob capping my shopping at $30K...

[kaisen]

Originally Posted by P-Dawger

I am not sure why Hyundai does not do what other manufacturers have done for decades if they want to move up market.

Create a new brand...just like Lexus, Infiniti etc...will take a while and sure everyone will know it is made by Hyundai but creating a new brand/company to sell upscale autos has been done for years with much success.

It even works in the reverse with the likes of Scion - targetted towards kids...cheap.

This will be a much short route for "street cred" in the auto world with high dollar autos, high qaulity etc on par with the rest of what we would pay for vs. inching the brand up with the same name plate.

Surely they have thought of this before....?

Hyundai is still considering separating the Genesis/Equus brands. Notice there are no Hyundai badges or references on an Equus.

BUT..... it costs huge money to establish a new brand, esp establishing a dealer network and support/logistics. It would have added $2500-3500 to each car sold (according to an article in Automotive News a few years back). So Hyundai decided, at that time, to sell them through the established Hyundai dealer network and sell them for less.

It is still on the table.

[sc_rufctr]

And it's ugly.

[pwd72s]

Originally Posted by sc_rufctr

And it's ugly.

While the Porsche 4 door is gorgeous..

[Targa Me]

If I had $67k for a new car, I would NOT be looking at Hyundai's.

[pwd72s]

Originally Posted by Targa Me

If I had $67k for a new car, I would NOT be looking at Hyundai's.

Me neither...650 horsepower and 200 mph can probably be purchased for that.

[kaisen]

Originally Posted by Targa Me

If I had $67k for a new car, I would NOT be looking at Hyundai's.

Again, most Pelicans are out of touch when it comes to how much new near-luxury cars really cost (not singling you out Targa Me)

The entry level BMW 3 series for 2012 is the four cylinder 328i. A journalist friend of mine has one in his driveway today. Sticker price...... well over $50K. And this is the base 4 banger.

And he just had a new 2012 911 CS to drive and it stickered for over $130K!! Again, a "regular" 911, not a RS or Turbo!

You can pass $67K in a 5-series or E-Class, where the Equus is 7-series or S-Class territory. And if you didn't know, the high-zoot S-classes can break $200K.

You will lose more money on the S-Class in the first year than the Equus will lose in four years. And you get a 10 year 100K mile warranty with the Equus.

Where's the "smart" money?

[Shaun @ Tru6]

Because the VW Phaeton was such a huge sales success.

[ZAMIRZ]

People will buy this car because it is a "good deal", which is also an attractive image to portray. Just like the Genesis, I'm sure the Equus will sell. I don't think this car is aimed at the S-Class or 7-series drivers, moreso the ones who want to be at that level, but just can't quite pull it off...yet.

[89911]

Lexus, Acura, Infinity seemed to have payed their dues. Create a car line that was initally slightly higher priced, marginally improved over what the main divisions offered. These cars continually evolved up until what the offer know, which can be extremely high priced, high end cars. It seems Hyundai just wanted to skip all the effort and time and go right to the same car. Selling a $67k car next to the $15k cars or what ever their price. Who exactly is going to jump on that.

[intakexhaust]

Interesting views and good pointers by Eric. The stand alone store and associated cost.

From someone who sold high-end cars years ago, most buyers seemed about the image and perhaps 15% were really into the technical value.

No matter, I still remember giving the ladies with fur-coats off-road, intense grade, axle deep mud demo rides and then switching seats in Range Rovers. The SUV market was just lighting up here in the states and we now had a reason to sell $65,000 trucks vs. a Blazer or Exploder. When the buyer was coming out of the ether, it still was about the image.

Whether Hyundai has a good product or not, its about the image. I see in a crystal ball of a short lived model here and a backlash trend away from most high-end asian sedans. The German marques had a strong 2011 and chiseling away for the lower priced market too.

[DonDavis]

Originally Posted by kaisen

You will lose more money on the S-Class in the first year than the Equus will lose in four years. And you get a 10 year 100K mile warranty with the Equus.

Where's the "smart" money?

Well said ( as usual, kaisen speaks wisely ). And using this example, it fits a lot of the U.S. consumer base. We're surrounded by a "throw away" market. My $1300 plasma is 5 years old and showing it's age. The new TVs now kick it's butt at under 1k.

I bet that Equus is a sweet ride till about 100k miles. Most drivers hit that in 4 years, then they'll buy something else. Not my cup o' tea but I'm just one voice and Hyundai isn't targeting me.

[nostatic]

Originally Posted by DonDavis

I bet that Equus is a sweet ride till about 100k miles. Most drivers hit that in 4 years, then they'll buy something else. Not my cup o' tea but I'm just one voice and Hyundai isn't targeting me.

Actually I'm willing to bet that most "luxury" cars are leased, not purchased. So they'll never hit 100K miles under the original owner....er...renter.

[McLovin]

I think the warranty on the Equus is shorter than the other Hyudais, 4/50,000 miles instead of 10/100,000. It think it would not be cost possible for Hyundai to warrant a car like that for 10/100,000.

The Korean mfrs are where the Japanese were in the mid 80s. In 1982, if you would have said that Toyota would some day be stealing big sales from E class, S class, 5 series, 7 series, etc., most would have have laughed at you.

I have no doubt that the Koreans will successfully follow the Japanese with car mfring and image, and expensive/fast/upmarket Korean cars will be common in 10-15 years, for a variety of reasons:

1. Globalization of production techniques and materials. In 1975, cars were made in different countries using very different materials and methods. Now it seems like they are all made, for the most part, the same. Same techniques, same suppliers, materials, etc.

2. People are being desensitized to country of origin. 50 years ago, something made in China was a novelty. 50 years from now, a good number of cars on the road will probably be made in China. People are caring less and less where the car is made.

3. Cars, even luxury cars, are increasingly becoming viewed as mid-term appliances. Like DonDavis says above, were in a "throwaway" society and cars are becoming a part of that. For the most part, no one needs or wants a car designed to last for 30 years. What they want is a car that is attractive to them, drives nice, doesn't break down and has a low lease payment.

4. As also said above, $67K isn't a huge amout of money today for a luxury car, esp. when you consider that the Equus only comes fully loaded (no options). When you fully load up a BMW or Mercedes, the price gets huge.

There is no doubt in my mind that the day will come when a $70K Hyundai is a common sight, and accepted in the same class as a Lexus. It'll take some time, but it will happen.

[kaisen]

Originally Posted by McLovin

I think the warranty on the Equus is shorter than the other Hyudais, 4/50,000 miles instead of 10/100,000. It think it would not be cost possible for Hyundai to warrant a car like that for 10/100,000.

All Hyundais, including Genesis and Equus have:
5 year / 60,000 mile bumper to bumper warranty
10 year / 100,000 mile powertrain warranty
5 year / unlimited roadside assistance

Equus adds home or work pickup/drop off with loaner so you never need to visit the dealership

Mercedes and BMW have 4 year / 50,000 total warranties

Acura, Lexus, and Infiniti have the same 4 year / 50,000 bumper to bumper warranties, but add 6 year / 70,000 mile powertrain coverage

[McLovin]

Those are pretty nice warranties. I think they have helped Hyundai tremendously, giving people confidence to buy.

A 4 year old Equus with 40K miles on it may be a nice, really low cost luxury commuter!

[kaisen]

Furthermore, Hyundai offers a unique Trade-In Value Guarantee

If you buy a new 2012 Equus ($59,900 MSRP) they guarantee the car to be worth $22,800 on trade after four years with up to 60K miles on it, the same mileage the bumper-to-bumper warranty runs out.

So if you paid window sticker with no discount, it would cost you $37K, or $773 per month in depreciation. AT MOST. You may do better, it's really just a set floor.

Since an equivalent S550 depreciates more than $37K after just two years or 30K miles, the Equus pencils out rather well. According to Manheim data, the avg $100K 2010 S550 now sells wholesale for about $60K with 30K miles, in good condition.

So four years in an Equus costs less than two years in a S550.

Anyway, I got to drive an Equus and it's a pleasant car. Quiet, smooth, powerful.... very much like the Lexus LS, not a driver's car.
There's nothing wrong with it. It may not impress the neighbors, but it may impress your financial advisor.