2010 SRX Has Largest Gains In Sales And Residual Value In Segment

[Drew Dowdell]

2010 SRX Has Largest Gains In Sales And Residual Value In Segment

Sales up 493 percent, projected resale value up 17 percentage points

2010-06-14 - Via

GM Media

DETROIT – Since its debut last year, the all-new 2010 Cadillac SRX has posted the largest gains in its segment for both sales and projected resale value, establishing SRX as a leader among mid-size luxury crossovers.

SRX total U.S. sales through May have risen almost 500 percent, compared to the first five months of last year, outselling the Mercedes-Benz M-Class, Audi Q7, BMW X5 and Acura MDX. The average transaction price for the new SRX is more than $2,300 higher than the previous model.

Along with the sales and transaction price increases, SRX's projected resale value has risen 17 percentage points in the past year, the largest gain in its segment. SRX's projected resale value after 36 months is 48 percent of the initial purchase price, compared to 31 percent for the previous model, according to the May/June forecast by ALG, an industry benchmark for residual values and depreciation data.

"Cadillac has done all the right things to support higher residual values for the SRX," said Matt Traylen, ALG's Chief Economist. "The all new 2010 model is substantially improved, but was launched with a significantly reduced MSRP. This resulted in record low incentive spending for the SRX, lower reliance on fleet sales, a quicker turn time on dealer lots and ultimately a positive impact on brand value."

The SRX has remained in high demand since its launch last summer, said Kurt McNeil, vice president of Cadillac sales. The 2010 SRX delivered bold design to the fast-growing mid-size luxury crossover segment, he said.

"Residual value is a key indicator of the strength of the new SRX," McNeil said. "SRX has succeeded by offering distinctive styling, great handling and a host of features that help it stand out in the luxury crossover crowd."

Offered in all-wheel and front-wheel drive versions, SRX comes standard with a 3.0L direct injected V-6 engine. It has an optional 2.8L turbocharged V-6. SRX's available features include a cargo management system, pop-up navigation screen, adaptive forward lighting that swivels the headlamps in synch with vehicle steering, integrated hard drive for audio storage and pause-and-replay radio and a dual-screen system for rear entertainment.

[FAPTurbo]

From: General Motors

To: Everyone who thought this vehicle would suck:

[pow]

SRX total U.S. sales through May have risen almost 500 percent, compared to the first five months of last year, outselling the Mercedes-Benz M-Class, Audi Q7, BMW X5 and Acura MDX.

I thought it was a GLK, A5, X3, and RDX competitor. Then again, this "tweener" strategy is working well for Cadillac, like with the CTS, which is gradually moving upmarket.

[Drew Dowdell]

I think that comparison is a bit off. It may be as big as the M-class, MDX etc on the outside but it's X3, RDX, GLK on the inside and priced the same as those as well.

[siegen]

GM built a good CR-V here.

Would like to see more comparative, objective information, instead of the typical cherry-picking. Of course the SRX is going to see huge increases in sales percentages and residual values; the last gen was a dud. If the next gen RL saw huge increases it'd be the same story.

The SRX outsold the MDX last month by a few dozen units (and sits a couple thousand ahead year-to-date), yet the MDX starts $10,000 higher and only comes in AWD. And don't forget the RDX, since the SRX takes on both vehicles simultaneously.

On a side note, the Cadillac website is horrible. Just as bad as the Chevrolet website. WTH is GM doing?

[Drew Dowdell]

GM built a good CR-V here.

Would like to see more comparative, objective information, instead of the typical cherry-picking. Of course the SRX is going to see huge increases in sales percentages and residual values; the last gen was a dud. If the next gen RL saw huge increases it'd be the same story.

The SRX outsold the MDX last month by a few dozen units (and sits a couple thousand ahead year-to-date), yet the MDX starts $10,000 higher and only comes in AWD. And don't forget the RDX, since the SRX takes on both vehicles simultaneously.

On a side note, the Cadillac website is horrible. Just as bad as the Chevrolet website. WTH is GM doing?

GM's sizes don't always match up with the pricing of the competition and Cadillac isn't GM's only luxury brand. The SRX isn't GM's only entry in this segment. They also have the Enclave and Acadia as an MDX competitors and the Escalade above that where Acura fields nothing. A large portion of the Enclaves sold are highline CXL-AWD models that sell over $40k, not $33k base ones.

So while Acura sold 5,800 total crossovers last month (RDX, MDX, ZDX), GM did that much in just Acadias (5,800) then adds in another 4,700 from the Enclave, and 4,000 from SRX.

And the residual increase isn't the real news. The real news is that the SRX's residual is now in line with the import competition.

[siegen]

GM's sizes don't always match up with the pricing of the competition and Cadillac isn't GM's only luxury brand. The SRX isn't GM's only entry in this segment. They also have the Enclave and Acadia as an MDX competitors and the Escalade above that where Acura fields nothing. A large portion of the Enclaves sold are highline CXL-AWD models that sell over $40k, not $33k base ones.

So while Acura sold 5,800 total crossovers last month (RDX, MDX, ZDX), GM did that much in just Acadias (5,800) then adds in another 4,700 from the Enclave, and 4,000 from SRX.

This is so tiring looking at this argument once again. It seems like every comparison that has anything to do with sales and GM incurs this argument. I would just like to say that I do not care about Buick or GMC (or the Escalade for that matter). Cadillac is a direct competitor to Acura. If you want to throw in GMC and Buick, you might as well throw in Honda and Chevy while you're at it. Then you can show how GM sells more crossovers overall than Honda, which certainly isn't a surprise and completely ignores the original point I was trying to make, which I don't even know anymore. I suppose it is that the MDX starts at a much higher price point than the SRX and doesn't offer a base FWD model.

And the residual increase isn't the real news. The real news is that the SRX's residual is now in line with the import competition.

This is what I'm talking about. The huge percentage number is meaningless. GM PR is annoying. And before you say "but everyone does it". Not everyone is going from dud products to good products and has the option to use ridiculous percentage numbers in their marketing. We'll see I guess if the next RL is going to be as good as they're saying it will be. It could see 300% sales increase or something.

[Intrepidation]

I would say Buick is a closer competitor to Acura, Cadillac more for Lexus/BMW/Mercedes.

[siegen]

I would say Buick is a closer competitor to Acura, Cadillac more for Lexus/BMW/Mercedes.

You're crazy; Buicks are for old people who want sedate, comfy generic transportation but don't want a Toyota Avalon. I used to own one, I would know!

[hyperv6]

The scope was right on Lexus on this one and GM made that clear from the start. It show that if GM makes the car the market wants it will sell in great numbers.

Just because we here say the pulblic want this or GM says they must have that does not always work. Many of the best selling cars on the market are FWD non enthusiast cars and this proves it right here.

The lesson learned here is on the money makers give the public what they want and then take the profits to build the fun limited or enthusiast cars.

Like I have said before the boring cars pave the way for the fun things.

[Intrepidation]

You're crazy; Buicks are for old people who want sedate, comfy generic transportation but don't want a Toyota Avalon. I used to own one, I would know!

Meanwhile Acuras are for people who wanted tarted up Hondas with a little more luxury than their Accord has, and an ugly chrome beak on the front of them.

[Drew Dowdell]

This is so tiring looking at this argument once again. It seems like every comparison that has anything to do with sales and GM incurs this argument. I would just like to say that I do not care about Buick or GMC (or the Escalade for that matter). Cadillac is a direct competitor to Acura. If you want to throw in GMC and Buick, you might as well throw in Honda and Chevy while you're at it. Then you can show how GM sells more crossovers overall than Honda, which certainly isn't a surprise and completely ignores the original point I was trying to make, which I don't even know anymore. I suppose it is that the MDX starts at a much higher price point than the SRX and doesn't offer a base FWD model.

GM simply has more brands than Honda and that is my point. The GMC Acadia and Buick Enclave overlap both the RDX and MDX in price. You can't say they don't count just because you don't feel the Buick or GMC badge is premium enough. Buick moved 4,700 Enclaves in May and GMC moved 5,700 Acadias after 3 years on the market.... that's 10,400 people in one month who felt that $38k-$45k wasn't too much to ask for a Buick or GMC when the MDX next door was priced the same with similar equipment.

If you want me to throw in Honda I can... but I was going to leave the TSX out of this fight.

[smk4565]

I side with siegen on this one. Cadillac is getting a bit too close to Acura. Buick is not a luxury brand, the LaCrosse is their top car and it starts around $27k, that sounds like an Avalon or Maxima, not a luxury car. And I know the Enclave goes up to $45,000 but so does a Nissan Armada or Ford Flex.

The last SRX was a dud, so comparing the new SRX while it is fresh on the market to the old model that was withering on the vine for 5 years isn't all that meaningful. Cadillac had to abandon M-class level pricing and drop below the RX350 and on par with the RDX and MKX to get sales. Macy's can move more volume than Nordstrom or Niemen Marcus, but who's making the profit and who has the image.

[NINETY EIGHT REGENCY]

Cadillac trumpets success of SRX crossover

02:38 PM

General Motors is trumpeting the sales success of its 2010 Cadillac SRX, a luxury midsize crossover.

GM says the SRX has posted the largest gains in its segment for both sales and projected resale value. That may be because the new one is so great, or the old one was so unpopular. Or both.

See our SRX Test Drive review here.

There is no disputing the sales increase. SRX's sales rose 654% in May compared with the same month a year, Autodata figures show. In the first five months of the year, Cadillac says SRX outsold Mercedes-Benz M-Class, Audi Q7, BMW X5 and Acura MDX. The average transaction price for the new SRX is more than $2,300 higher than the previous model. Then there is resale value:

Cadillac says SRX's projected resale value has risen 17 percentage points in the past year, the largest gain in its segment. SRX's projected resale value after 36 months is 48% of the initial purchase price, compared with 31% for the previous model, according to the May/June forecast by industry tracker ALG.

"Cadillac has done all the right things to support higher residual values for the SRX," said Matt Traylen, ALG's chief economist.

link:

http://content.usatoday.com/communities/driveon/post/2010/06/cadillac-trumpets-success-of-srx-crossover/1

[smk4565]

Cadillac says SRX outsold Mercedes-Benz M-Class, Audi Q7, BMW X5

So Cadillac has outsold 3 vehicles that cost $15,000 more than the SRX. The Honda CR-V and Toyota Rav-4 outsold the SRX, who cares, different price points, different clientele.

[GXT]

And the residual increase isn't the real news. The real news is that the SRX's residual is now in line with the import competition.

Certainly a big improvement. Honda/Acura still beat it by a fairly significant margin, but it does look to be at Toyota/BMW level.

I think GM has to be a little bit careful how much they talk about resale. They've still got a lineup largely dominated by some of the worst resale around (Cobalt 21% @ 60 months, Aveo 20%, Impala 23%, etc.) and even the mightily improved Malibu still trails the Accord by a good margin (was that on GM's short-lived Malibu/Accord comparison list?).

And after a year+ of monthly sales releases where GM trumpeted the cuts to fleet sales, in the past several months they have returned to their old ways with a vengeance. They better be careful that they don’t end up informing their bread and butter consumers about residual values just before GM tanks them again.

[hyperv6]

Well it was targeted at Lexus and if sales continue it will not be compared to anything. The others will compare to it.

The SRX is what it is and people like it. So right now Cadillac needs to build on what it has and become the bench mark other compare to and compete with.

Product value and quality are what this vehicle delivers. It also shows you can afford better than many other products out there and image rate high in this class.

Image is something you can't design in you have to earn it with the vote of cofidence from the buying public.

Edited June 16, 2010 by hyperv6

[regfootball]

CRV is a pile of $h! i don't know why it sells. oh yes, i do. women love em, and guys who don't care what they drive or care to shop too.

MDX has no cargo space and no advantage aside from that over a 10k cheaper and nicer Lambda.

RDX drinks fuel at a v8 rate and nobody buys them. Overpriced crap. No style.

Crosstour redefines ugly. Only reason it sells is its an Accord wagon.

New Pilot is ugly. I read a new recent review of it where it got trashed as being slow heavy and inferior to most other class offerings.

ZDX, interesting but pointless, and the sales show it.

Honda lays the biggest turds in the crossover segment. Some of them still sell because of the H but they are setting themselves up for disappointment from unhappy buyers who at some point will realize they can get better for less pretty easily and won't have to look at ugly anymore.

The new SRX may be a Vue, but all you need to do to sell one is get the buyer inside it. It's posh and sellable and why you'd want an ugly turd of a Honda instead is beyond any thinking and reasoning person's ability to comprehend.

Edited June 16, 2010 by regfootball

[SingleStylish]

New Pilot is ugly. I read a new recent review of it where it got trashed as being slow heavy and inferior to most other class offerings.

Apparently you haven't heard that it is in the 10 Best and has the best resale value of any midsize SUV. Go look at used car prices. They are high. The pilot has seating for 8 adults and has more fuel economy than a suburban/expedition EL which are the only other two to carry 8. The pilot has the same wheelbase as a Tahoe with less overall length and similar fuel economy at a lower price. Much lower. The interior is well built and refined with great features not found on other SUVs. Factory acoustic glass, sun shades, 110V power outlet, iPod docking, bluetooth to name a few. The pilot is good at what it is good at. If you need to tow kids and their stuff or an extended family on a budget in comfort and luxury at an affordable price it is THE suv. Don't knock it 'till you've tried it.

[Drew Dowdell]

It might have seating for 8 adults as long as all are under 5'6"....

The interior is well built and refined with great features not found on other SUVs. Factory acoustic glass, sun shades, 110V power outlet, iPod docking, bluetooth to name a few.

With the exception of the sunshade, you just described the Acadia and Enclave.

[siegen]

To get some perspective, I did an Autotrader search for new 2010 vehicles:

2010 SRX

5,619 results

Low: $30,995

Avg: $43,094

High: $66,919

2010 Enclave

4,504 results

Low: $31,352

Avg: $44,026

High: $57,990

2010 Acadia

3,826 results

Low: $24,165

Avg: $40,513

High: $70,976

2010 MDX

3,361 results

Low: $39,998

Avg: $47,374

High: $55,305

Interesting results. Just about anything can be derived from them if you look at only the things you want to look at. What I get from this is that the Buick is indeed right up there with Cadillac, even higher than it actually. However, the MDX still sells on average at a significantly higher price, and has a much higher entry point (I'm sure in large part due to the lack of a FWD option). All 4 vehicles can certainly be cross-shopped, though it is a bit disingenuous to get excited about the SRX outselling the MDX, when it is at a lower price point.

I could also come to the conclusion that if the Cadillac or Buick did not offer cheaper FWD trims, they would probably be much closer to the MDX in terms of starting and average price. But they also wouldn't sell as much. Perhaps they'd (together) still sell more than the MDX... it is difficult to say. Regardless, the only point that can be made here is that the MDX doesn't sell as much as the Cadillac and Buick, but it is also sold at a higher price. I would also like to add that Acura doesn't have the old people market like Buick does. Zing!

[Drew Dowdell]

Is old people's money worth less than young people's money?

Average buyer age for the Enclave is 59 years old, for the MDX is 48 years old. It's not Edgar and Mable Bluehair buying either of these vehicles, it's people in their peak spending years.

But you're really just picking at straws to try and make the MDX seem like it's doing better than it really is. Whether you like it or not, with just the Acadia, GM outsold every crossover Acura built from a base model RDX to a top of the line MDX. On top of that, GM also sold more Enclaves than Acura sold MDXes and GM sold over 2 times more SRXes than Acura sold RDXes.

[siegen]

Is old people's money worth less than young people's money?

Average buyer age for the Enclave is 59 years old, for the MDX is 48 years old. It's not Edgar and Mable Bluehair buying either of these vehicles, it's people in their peak spending years.

But you're really just picking at straws to try and make the MDX seem like it's doing better than it really is. Whether you like it or not, with just the Acadia, GM outsold every crossover Acura built from a base model RDX to a top of the line MDX. On top of that, GM also sold more Enclaves than Acura sold MDXes and GM sold over 2 times more SRXes than Acura sold RDXes.

On the contrary, I think you're protracting an argument where I am not trying to make one.

GM sells more SRXs than Acura does MDXs. However, when comparing the SRX to the MDX, or even the SRX & Enclave to the MDX, the MDX sells at higher transaction prices and has a much higher start price/MSRP. Are the sales proportional to the higher price? No, since GM is a much larger company and there are far fewer MDX's on the lots relative to its sales. The initial point is that GM is proclaiming how the SRX beat all these other crossovers in sales, yet it is a less expensive vehicle.

[Drew Dowdell]

What I think we need is an average transaction price.... which would probably be hard to get. Just because the SRX or MDX start at certain prices doesn't mean that's what most of them are selling at.

[siegen]

What I think we need is an average transaction price.... which would probably be hard to get. Just because the SRX or MDX start at certain prices doesn't mean that's what most of them are selling at.

True, the average price on Autotrader may indicate what the average asking price is, but it doesn't tell exactly what people are able to buy the vehicles for. You could perhaps look at the average incentives on vehicles.

[Z-06]

$70 Large for an Acadia?

Is that price for one or two?