GM-Volt.com : Questions to Darryl Harrison Jr. of Nissan USA

[Cacti]

Interesting?

Editor’s Note:
Co-incident with Nissan’s announcement I had to chance to ask the following questions of Darryl Harrison Jr. a Nissan USA communications manager:

How are the 9500 geographically distributed?
We received orders from throughout the U.S., unfortunately, we haven’t broken down specifics just yet.

How will you prevent dealer markup?
We as a manufacturer can only recommend a suggested price. Dealers set the actual purchase price.

When do people pass the refundable barrier, ie when is an official contract signed? It looks like someone on the list lets say in Idaho or Utah through early on the list may not get a car until 2012 from what I see.
More information regarding the Nissan LEAF purchase process will be shared in several weeks. Stay tuned for more details about this after June 30.

Are people given priroity with regard to how early they registered on the NissanUSA site?
Yes, consumers who have made reservations will be placed in order for their particular market."

http://gm-volt.com/2010/05/15/nissan-leaf-open-reservations-start-today-in-the-us-no-protection-against-dealer-gouging/

 

[mwalsh]

I'm not sure I like the answer about the dealer markup, especially in light of the speculation that we may HAVE to deal with dealers in a limited geographical area.

 

[efusco]

I'm not sure I like the answer about the dealer markup, especially in light of the speculation that we may HAVE to deal with dealers in a limited geographical area.

There's absolutely no other answer he could give. Nissan USA cannot, by federal law, control the pricing. They can cajole, they can beg, they can make promises about future profit potential, but they cannot force dealers to sell @MSRP.

 

[mwalsh]

There's absolutely no other answer he could give. Nissan USA cannot, by federal law, control the pricing. They can cajole, they can beg, they can make promises about future profit potential, but they cannot force dealers to sell @MSRP.

I know, but that doesn't make me like it any better.

Oh, and if that's the case, then why shouldn't we also be able to buy from whom we want.

 

[evnow]

Note that Lyle tries to put some FUD about Leaf in every post. In this he added this (and put that in the title) even though static said nothing about it. Lyle essentially treats Nissan Leaf as a "competetor" to GM Volt.

This comment captures the situation well.

Lyle, remember when you used to be for the electrification of the automobile and the Volt was one means of achieving that?

In that spirit how about you stop going out of your way to put down the Leaf? Or at the very least, don’t take a Statik article (which I always enjoy reading) and make such a sad attempt to twist it.

 

[efusco]

There's absolutely no other answer he could give. Nissan USA cannot, by federal law, control the pricing. They can cajole, they can beg, they can make promises about future profit potential, but they cannot force dealers to sell @MSRP.

I know, but that doesn't make me like it any better.

Oh, and if that's the case, then why shouldn't we also be able to buy from whom we want.

You can buy from whomever you want...

 

[mwalsh]

You can buy from whomever you want...

We don't know that to be true yet. SBNissanLeaf reckons there may be geographical limitations as to whom they can sell.

 

[SBNissanLeaf]

You can buy from whomever you want...

We don't know that to be true yet. SBNissanLeaf reckons there may be geographical limitations as to whom they can sell.

and this we know very well Nissan can enforce.

 

[efusco]

Totally different, they can control distribution, but not price. So yea, you can cry about not being the first area to get the car, but that'll do you no good. But amongst the dealers selling the car you can choose who you want to buy from.

 

[LTLFTcomposite]

So I understand the part about mfrs not setting prices. You see incentives offered on cars like "$2500 cash back" or "0% for 60 months" but you never see nationwide ads like "Toyota Camry LE $15,999 sale ends May 31st".

Leasing seems to be another matter though. You routinely see nationwide ads for lease rates, e.g. Camry LE $149 a month with X down blah blah blah. So what's with that? Mfrs can "set" lease prices but not purchase prices? (that would make sense in a way in that they are not selling the car, so maybe a way around that "federal law")

 

[efusco]

So I understand the part about mfrs not setting prices. You see incentives offered on cars like "$2500 cash back" or "0% for 60 months" but you never see nationwide ads like "Toyota Camry LE $15,999 sale ends May 31st".

Leasing seems to be another matter though. You routinely see nationwide ads for lease rates, e.g. Camry LE $149 a month with X down blah blah blah. So what's with that? Mfrs can "set" lease prices but not purchase prices? (that would make sense in a way in that they are not selling the car, so maybe a way around that "federal law")

I suspect that's due to the fact that they are the lease holder/financer.

 

[SBNissanLeaf]

So I understand the part about mfrs not setting prices. You see incentives offered on cars like "$2500 cash back" or "0% for 60 months" but you never see nationwide ads like "Toyota Camry LE $15,999 sale ends May 31st".

Leasing seems to be another matter though. You routinely see nationwide ads for lease rates, e.g. Camry LE $149 a month with X down blah blah blah. So what's with that? Mfrs can "set" lease prices but not purchase prices? (that would make sense in a way in that they are not selling the car, so maybe a way around that "federal law")

I suspect that's due to the fact that they are the lease holder/financer.

Be careful not to confuse Nissan NA; the manufacturer, wth NMAC, Nissan Motor Acceptance Corporation; a bank among many leasing and financing Nissan products.
Yes, there is a relationship between the two, NMAC being the "captive" lender and Nissan of North America, the associated manufacturer.

 

[LTLFTcomposite]

Be careful not to confuse Nissan NA; the manufacturer, wth NMAC, Nissan Motor Acceptance Corporation; a bank among many leasing and financing Nissan products.
Yes, there is a relationship between the two, NMAC being the "captive" lender and Nissan of North America, the associated manufacturer.

OK, but does any of that equate to the lease price being a bit closer to being "set in stone" whereas a purchase transaction leaves the buyer totally at the dealers mercy for whatever additional markups or junk fees they want to tack on?

 

[SBNissanLeaf]

Be careful not to confuse Nissan NA; the manufacturer, wth NMAC, Nissan Motor Acceptance Corporation; a bank among many leasing and financing Nissan products.
Yes, there is a relationship between the two, NMAC being the "captive" lender and Nissan of North America, the associated manufacturer.

OK, but does any of that equate to the lease price being a bit closer to being "set in stone" whereas a purchase transaction leaves the buyer totally at the dealers mercy for whatever additional markups or junk fees they want to tack on?

When you see a lease advertised, as in "Nissan Altima for $199 a month", It is just that...an advertisment. Unless a specific VIN number is listed, no dealer is required to honor. These are national ads, paid for by Nissan NA. If a dealer had the applicable vehicle they may be foolish to not honor the ad, but they are not required to do so.
Local dealer ads, with proper disclosures must be honored.

 

[Gonewild]

I ask my local dealer and he said he never over charges.

 

[LEAFfan]

Interesting?

Editor’s Note:
Co-incident with Nissan’s announcement I had to chance to ask the following questions of Darryl Harrison Jr. a Nissan USA communications manager:

How are the 9500 geographically distributed?
We received orders from throughout the U.S., unfortunately, we haven’t broken down specifics just yet.

How will you prevent dealer markup?
We as a manufacturer can only recommend a suggested price. Dealers set the actual purchase price.

When do people pass the refundable barrier, ie when is an official contract signed? It looks like someone on the list lets say in Idaho or Utah through early on the list may not get a car until 2012 from what I see.
More information regarding the Nissan LEAF purchase process will be shared in several weeks. Stay tuned for more details about this after June 30.

Are people given priroity with regard to how early they registered on the NissanUSA site?
Yes, consumers who have made reservations will be placed in order for their particular market."

http://gm-volt.com/2010/05/15/nissan-leaf-open-reservations-start-today-in-the-us-no-protection-against-dealer-gouging/

Nothing new here...but he confirmed info we already knew...so that's good.

 

[Jimmydreams]

OK, but does any of that equate to the lease price being a bit closer to being "set in stone" whereas a purchase transaction leaves the buyer totally at the dealers mercy for whatever additional markups or junk fees they want to tack on?

As I see things, Nissan cannot legally set the price, but they will do it anyway to avoid bad press.

How can Nissan do this? One quick phone call like:

"Uh, Dealer Bob? Yeah, this is Nissan Corp. Listen, if we find out that you overcharged for the LIMITED cars we send you on this Leaf rollout, you'll, uh, NEVER get another limited rollout of ANYTHING. EVER again. Got it? Thanks. (click)" Problem solved.

I'm not worried about gouging. There will be too many people watching this.

 

[evnow]

Leasing seems to be another matter though. You routinely see nationwide ads for lease rates, e.g. Camry LE $149 a month with X down blah blah blah. So what's with that? Mfrs can "set" lease prices but not purchase prices? (that would make sense in a way in that they are not selling the car, so maybe a way around that "federal law")

Even lease prices are dependant on a purchase price. They usually mention that in small latters when they advertise lease. The Leaf lease has this disclaimer "Dealer contribution may affect actual price set by dealer.", for eg.

One reason dealers can set the initial purchase price is the trade in value of the traded in car. What the leasing company really sets is the money factor & the residual value.

 

[LEAFfan]

I ask my local dealer and he said he never over charges.

ALL of Nissan Owned Dealers are ONLY allowed to sell at MSRP. Other dealers, NOT owned by Nissan can tack on extra 'fees'. I would strongly advise them not to because there are many Nissan Owned dealers that people can buy/lease from.

 

[LTLFTcomposite]

Even though Nissan may be the only EV game in town at a particular point in time, at the end of the day I have to resign myself to the fact that it's a free country, and that car is their property until such time as I enter into a contract with one of their dealers to make it my car. If I find myself competing with other buyers for a limited supply who are willing to pay premiums, I'll just step aside and let them be the early adopters. Never in my life have I regretted not buying a car; there is always another one on the horizon.