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Nov
9th

Built for discounting

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I love doing comparo tests. In fact, it would appear as though you readers are of the same mindset. Every time we publish one, we get tons o' traffic.

In case you didn't know, AJAC's Test Fest is the ultimate comparative test. In all, at this year's event, there were no fewer than 60 nameplates; 45 of which I personally spent quality wheel time with. Over the course of 4.5 days of driving, I experienced thrills, spills, spin-outs (purposeful, of course), and made note of a few facts.

One of which was that some automakers really put effort into presentation. Most, if not all, exteriors of the cars on hand were good, however; cabins, not so much.

This got me thinking about who makes what, and what their marketing and promotion habits are. It then dawned on me: Manufacturer Suggested Retail Pricing (MSRP) is only meant as a scale on which to perch certain cars, it is not a reflection of the actual content that lies within the confines of the car's outer shell.

Look at it this way: If a car has too low an asking price, it'll be dismissed as being cheap. If the price is perceived as “right,” value may be found. After this point, they become too expensive.

Let's take a $30k car. For that kind of money, a consumer can (and should) expect quite a bit in 2013. The fact is that in many cases, the car offered at this price is well tailored, but there are some exceptions that fall flat on their dashboards when compared back-to-back.

These later cars are the ones that will typically, 3 or 4 months after being launched, be heavily discounted in order to compete more favorably with the better appointed cars. Only here and then do they become viable contenders.

So, what does it all mean? Well, I think consumers are already onto manufacturers that are big on discounts. Real and substantial value, quality and content have all but taken over from huge banners touting massive cash discounts. Sure, they still draw attention, but not to the extent they once did.

Consider the current crop of top selling compact cars: you'll not find a “cheap” car there. And as a final point; within an automaker, some cars are built for discounting while others are not.

And no, I'm not gonna do any name dropping.

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