Nissan is reaping fruits of cutting prices of vehicles in May

Article by Anita Panait, on July 6, 2013

Nissan’s move to cut factory prices of a number of its popular nameplates in May 2013 is now bearing fruits. Dan Mohnke, Nissan's director of marketing operations, remarked that the price cuts are leading into lower incentives and higher residual values without hurting transaction prices.

As reported to J.D. Power and Associates, Nissan's average per-vehicle incentives were $2,088 in June, which is $539 per vehicle lower than in April. Mohnke says that transaction prices are $231 higher.

In June 2013, the average transaction price was $24,114 per vehicle, compared to $23,883 per vehicle in April. Mohnke remarked that Nissan is right where they “intended to be."

He said that they lowered their visual prices to the consumer without affecting our transaction prices. Nissan trimmed prices of seven of its best-selling nameplates: the Altima, Maxima, Rogue, Pathfinder, Sentra, Murano and Armada.

The move was done to get vehicles more in line with rivals on Internet shopping sites as online search engines typically provide results grouped by price. Nissan was worried that several models were priced too high to appear near the top of search results.

Nissan’s move, however, created an issue when critics claimed the price cuts were evidence that the carmaker was using the recent depreciation of the Japanese yen to gain a competitive advantage.

Mohnke countered that the models which prices were trimmed -- except the Rogue and Murano are built in North America – which means they do not benefit from the yen's exchange rate. He noted that Nissan is shifting output of the Rogue and Murano to the United States.

If you liked the article, share on:

Comments

Recommended

Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Fireball Performance Cars has been known to make the fastest sixth generation LT1 Camaros in the world. Once again it has managed to walk the talk as it hit a...
by - February 22, 2017
The North American unit of German premium carmaker BMW is recalling around 19,000 units of its BMW i3 electric vehicle because of the risk of fuel leak. You may ask,...
by - February 22, 2017
A publication by the U.S. Patent and Trademark Office revealed that Honda is still looking into the Project 2&4 Concept. Officially unveiled during the 2015 Frankfurt Motor Show, the Project...
by - February 22, 2017
Barely a month before its official debut, Hyundai gave everyone a taste of what’s to come with the 2017 Hyundai i30 Wagon. Despite what little was shown, it did not...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries