A ticket average close to $20,000 on these cars - not bad at all, for the dealers and Hyundai, I guess. I was hoping that slhttp://
www.autoweek.com/news.cms?newsId=103331]SourceQuote »Hyundai says its redesigned Sonata can run with the big dogsMARK RECHTIN | Automotive News Posted Date: 10/10/05LOS ANGELES -- In the six months since its launch, the redesigned Hyundai Sonata sedan is gaining ground on its main competition.The Sonata has found its way onto shopping lists that include the Japanese Big 3: the Toyota Camry, Honda Accord and Nissan Altima.What's more, Hyundai is winning an increasing share of those battles, at higher transaction prices than before, a Hyundai executive says.With a new design, and power and equipment levels on par with class leaders, the Sonata is expected to be Hyundai's U.S. volume leader, eventually selling about 150,000 units annually.In 2004, Hyundai sold 107,189 units.Early in the game, Hyundai has found a niche in selling the value-priced GLS V-6 version of the Sonata, which starts at $21,495, including shipping.The GLS is expected to account for 35 percent of Sonata sales, mostly because it has a lower sticker price than some four-cylinder Japanese sedans."Our secret weapon is a $21,000 car," says John Krafcik, Hyundai's vice president of product development and strategic planning. "We are grabbing four-cylinder Camry and Accord intenders."Overall, vehicles with V-6 engines will account for slightly more than 60 percent of all Sonata sales, although customers who configure a car on Hyundai's Internet site choose a V-6 more than 70 percent of the time, Krafcik says. That is a far higher percentage than among the Sonata's main Japanese rivals, whose V-6 trim levels account for about one-third of sales.Better shoppers, better dealsHyundai is selling Sonata's value pricing all the way up the price ladder, using a lower sticker as a way to avoid the incentives war. In that sense, Hyundai can say its base four-cylinder model has a $1,880 advantage over a lesser-equipped Honda Accord, while the Sonata GLS V-6 costs $2,935 less than a comparable V-6 Camry.For sales occurring from May 1 through Sept. 25, the 2006 Sonata averaged a $19,943 transaction price, according to Power Information Network data.That compares with $16,524 for the outgoing Sonata, a 20.7 percent increase.That also compares with an average transaction price of $20,332 for the Camry and $21,120 for the Accord over the same period, the Power data show.To keep transaction prices high, Hyundai is using incentives judiciously.There is a $1,000 rebate coupon for loyal Hyundai customers, which accounts for about 25 percent of Sonata sales.There also is a $1,000 coupon used as a lure for owners of aging Camrys, Accords, Civics and Corollas. That has accounted for about 15 percent of Sonata sales, Krafcik says.Also using Hyundai Motor Finance Co. nets a $1,000 rebate."These aren't across-the-board consumer rebates," Krafcik said.The car, not the dealBut it has been the car itself, and not the deal, that has drawn the increased traffic, Krafcik says.The number of Sonata shoppers seen at auto dealerships has increased 87 percent, to about 75,000 consumers per month, according to Hyundai data.In addition, about 20 percent of all potential car buyers will now consider buying a Sonata, up from 15 percent for the old model, according to data from market researcher Allison-Fisher International, of Southfield, Mich.And the number of Camry shoppers who also are looking at the Sonata has increased 50 percent compared with the figures for the old Sonata.The number of Accord shoppers who also stop by the Hyundai dealership are up 60 percent, and the cross-shopping rate for the Altima is up 71 percent, according to Compete Automotive of Boston, which tracks shopping trends.Getting on those Japanese Big 3 shopping lists means 15,000 additional Sonata shoppers a month, Krafcik said. That's only about one additional interested customer a day, for each of Hyundai's 660 dealers -- but it's a start.If dealers can close 20 percent of those sales, that would mean 36,000 annual sales conquested from the Japanese Big 3.For now, Hyundai is gaining most of its new blood from domestic brands, despite their "employee pricing" tactics.According to Power Information Network data of 2006 Sonata sales from July through September, 22 percent of Sonata trade-ins were other Hyundais, which speaks well of owner retention.On the other hand, Toyota, Honda and Nissan trade-ins accounted for just 13.2 percent of Sonata deals. Ford, Chevrolet and Dodge vehicles accounted for 27.6 percent of trade-ins.Wow, an average ticket of close to $20K, good for Hyundai and their dealers, not so much for customers. So much for hoping sluggish sales that I am seeing in this area would translate into a good rebate. It would seem the car is selling well, but I'd like to know what market they are selling well in. I still see none around here, in fact the dealer still has that one Aquamarine GL sitting on that lot that came in with the original batch this summer. I have had maybe a dozen '06 sightings since they went on sale. Very strange, the previous car sold very well here, I could go out right now and find one running around somewhere... I would say the higher price has something to do with it, BUT... The majority of the last gen Sonatas I see running around were either GLS or LX models, so the price was up in that range anyhow. (but still less, since they did have rebates then.)I guess I can live without rebates if I end up with a lower sticker price... We'll see how that strategy works out for these guys, (and GM too! lol)