Interesting. Didn't realise Fezza had control of the used market. Certainly residuals support the new car selling price. Could be we will be in for a very soft residual if demand softens as the economy splutters forwards.Being a car Manufacturer trying to create a valued brand comes with responsibilities that go far beyond simply selling new cars and relying on the Market to do the rest.
I do not believe that there is an adequate plan for previously owned cars and there insufficient control or Influence with dealers once the car is sold except for maintenance which is excellent.
TheItalians manage and massage used prices by controlling their dealers! This may seem unreasonable but it works. Residuals on their V8 range are amazing. 2 year old cars are being advertised at list price and 2011 at list plus. This is due to a number of reasons.Dealers are not permitted to advertise used cars until the model has been on UK sale for a year and I think with California it was increased to two as residuals at that time were weak. Further they may only advertise 2 cars even if they have 8 in stock. New stock release is rationed. This controls availability,creates the appearance of shorter supply pleases owners and strengthens the brand where a clear and predictable residuals can be expected. Customers can purchase without fear and in consequence replace their new cars regularly!
In our case we have one Franchise dealer that has advertised too many cars at low price for weeks. This and the very short lead times being quoted screws the market. Woking need to react now or the damage to the brand in the UK will make it second division and compete with Bentley and Aston in depreciation levels.
Just my opinion and possibly wide of the mark?
Interesting insight, bruce. I don't know what is the right answer, but I think those ideas need some thinking through in the context of launching a new brand, vs an established one. I know that over here prospective Ferrari customers are often told NO, there are no cars available or that the lead time is 12 months for example, only to get a call a few weeks later saying a car has just magically been made available in their exact spec or the lead time for same is now drastically shorter. Overall, it is hard to say whether the advantage to current owners is outweighed by prospects being turned off. Again, I bring this up because McLaren is a new brand and is trying to establish their dealings as honest and fair. Ferrari has the inherent advantage of the established brand, which they can leverage to control both the dealer and the customer. There are Ferrari customers that absolutely loathe the company, but yet continue to buy every car because it is Ferrari. It will take McLaren many years to develop a brand so powerful and I would argue that will be accomplished by building the best cars and winning races, not controlling dealers and customers. Seems to me the issue, if there is one, at the moment is simply supply vs. demand in the local UK market. It has been said on this board that McLaren has already acknowledged that and is capping UK supply. Not sure of the accuracy of that statement, perhaps andy can chime in again. If so, I suspect that might be the most effective way to deal with it. Not saying you are wrong, I'm just posing more questions than answers, I guess!Being a car Manufacturer trying to create a valued brand comes with responsibilities that go far beyond simply selling new cars and relying on the Market to do the rest.
I do not believe that there is an adequate plan for previously owned cars and there insufficient control or Influence with dealers once the car is sold except for maintenance which is excellent.
TheItalians manage and massage used prices by controlling their dealers! This may seem unreasonable but it works. Residuals on their V8 range are amazing. 2 year old cars are being advertised at list price and 2011 at list plus. This is due to a number of reasons.Dealers are not permitted to advertise used cars until the model has been on UK sale for a year and I think with California it was increased to two as residuals at that time were weak. Further they may only advertise 2 cars even if they have 8 in stock. New stock release is rationed. This controls availability,creates the appearance of shorter supply pleases owners and strengthens the brand where a clear and predictable residuals can be expected. Customers can purchase without fear and in consequence replace their new cars regularly!
In our case we have one Franchise dealer that has advertised too many cars at low price for weeks. This and the very short lead times being quoted screws the market. Woking need to react now or the damage to the brand in the UK will make it second division and compete with Bentley and Aston in depreciation levels.
Just my opinion and possibly wide of the mark?
I understand your point of view 6th but clients in the UK wont comeback if they loose their shirts. They must cap UK supply yesterday ! Review their dealer strategy,I have never heard of a Ferrari where delivery came forward quite the reverse in fact (again UK experience only). McLarens integrity is clear and plain to see and very very welcome but doing as you say is not enough.Interesting insight, bruce. I don't know what is the right answer, but I think those ideas need some thinking through in the context of launching a new brand, vs an established one. I know that over here prospective Ferrari customers are often told NO, there are no cars available or that the lead time is 12 months for example, only to get a call a few weeks later saying a car has just magically been made available in their exact spec or the lead time for same is now drastically shorter. Overall, it is hard to say whether the advantage to current owners is outweighed by prospects being turned off. Again, I bring this up because McLaren is a new brand and is trying to establish their dealings as honest and fair. Ferrari has the inherent advantage of the established brand, which they can leverage to control both the dealer and the customer. There are Ferrari customers that absolutely loathe the company, but yet continue to buy every car because it is Ferrari. It will take McLaren many years to develop a brand so powerful and I would argue that will be accomplished by building the best cars and winning races, not controlling dealers and customers. Seems to me the issue, if there is one, at the moment is simply supply vs. demand in the local UK market. It has been said on this board that McLaren has already acknowledged that and is capping UK supply. Not sure of the accuracy of that statement, perhaps andy can chime in again. If so, I suspect that might be the most effective way to deal with it. Not saying you are wrong, I'm just posing more questions than answers, I guess!![]()
Then that indicates that there is no demand and if there is no demand...........Adam Smith figured it out in 1776.Total Nightmare UK one reduced on Pistonheads to £173k and dealers wont buy them![]()
Might it be a good idea for this thread to be on main forum so that the dealers can see the owners concern? If owners drop a lot of cash, many will be reluctant to support future product and that won't be good for the factory or the dealer..........Then that indicates that there is no demand and if there is no demand...........Adam Smith figured it out in 1776.
Bad news.
AgreedThink this discussion should remain in the owners forum - nothing stopping us all stressing to our dealers and McLaren contacts the importance of residuals in retaining customers and the need for McLaren to have a strategy on this front however.
Point well madeThink this discussion should remain in the owners forum - nothing stopping us all stressing to our dealers and McLaren contacts the importance of residuals in retaining customers and the need for McLaren to have a strategy on this front however.