[NoteyB]

Do you think Fiat need to position the 124 based on price? Make it cheaper than the Mazda to try and sell more?

The Mazda is the most well known and will outsell it otherwise I think.

What are your thoughts?

 

[Busta]

I don't know if they can position it cheaper then Mazda. They have to pay Mazda for the volume already and in most cases the producing company will build in a non-compete type agreement where the original is allowed price superiority by a certain percentage or something. It also depends on if FIAT puts any of their own kit into the car... what does that add, where does the work happen, on the Mazda assembly line or at another factory... who knows right... I think we need more logistical info before we can make educated guesses...

 

[WMBL]

I'm betting the price will be similar.

What will differ is the financing options. Fiat/Chrysler are used to lending to a more subprime customer, so those customers are going to find it easier to qualify for financing for a 124 than a Mazda MX-5. Fiat/Chrysler can offer excellent financing too for qualified buyers, so I'm hopeful that I can get a better interest rate from Fiat than Mazda.

 

[NoteyB]

Yeah a 0% finance deal which they offer quite a lot in Europe would be good.

 

[Busta]

I'm betting the price will be similar.

What will differ is the financing options. Fiat/Chrysler are used to lending to a more subprime customer, so those customers are going to find it easier to qualify for financing for a 124 than a Mazda MX-5. Fiat/Chrysler can offer excellent financing too for qualified buyers, so I'm hopeful that I can get a better interest rate from Fiat than Mazda.

Why not come in pre-approved and cut out the middle man ie the dealer? They make stupid money simply from the arbitrage on the buy rate they get and the sell rate they quote you at..

 

[WMBL]

Why not come in pre-approved and cut out the middle man ie the dealer? They make stupid money simply from the arbitrage on the buy rate they get and the sell rate they quote you at..

That's always worth a try. It's just that in my experience, the manufacturer's captive finance arm subsidizes the rates in order to move the metal. So the dealer ends up offering the cheapest financing in the end.

 

[Jack]

I think pricing will be around the same. Fiat doesn't have to price it less than Mazda. I think they'd want to be regarded as a brand equal to Mazda as far as where they are in terms of price for the market. Maybe they will differentiate through standard features, options and packages.

 

[WMBL]

I think pricing will be around the same. Fiat doesn't have to price it less than Mazda. I think they'd want to be regarded as a brand equal to Mazda as far as where they are in terms of price for the market. Maybe they will differentiate through standard features, options and packages.

I hope the styling is a significant enough differentiator...

 

[Busta]

That's always worth a try. It's just that in my experience, the manufacturer's captive finance arm subsidizes the rates in order to move the metal. So the dealer ends up offering the cheapest financing in the end.

Where are they making their cut then? I've always understood that the dealers real money is made from the arbitrage...