Mazda losing money on each 5 sale?

[jandree22]

I know cars like the Hybrid Civic and Prius lost money (or still are) on each sale to make it more attractive and affordable to buyers... could the same be possible for the Mazda5? After all, the target audience are generally people with low cash on their hands, young couples just getting established with kids. I mean, I just ordered a minivan, LOADED with features and even Sirius, DVD and a sunroof to boot for a pinch over $20k. Granted the Odyssey and Sienna have a V6 and a little bit more room, but the equivelant would be pushing $30k. Also, besides the 5, everything else that seems to fit meet my versatility needs generally STARTS stripped at like $23k-$24k.

What do you guys think?

 

[was98strat]

hmm, how can a car that cost nearly 30K (out the door) be a car for people with "low cash" on their hands?? I don't see Mazda offering any massive discounts to get the 5 sold. They don'thave to, they can't keep them on the lot!

As to the Hybrids, It's entirely possible that Honda nad Toyota are losing a bit of money on each unit to help boost their CAFE numbers . My guess is that's why GM is now rebdging a bunch of Suzuki's and selling them as GMs, to do the same.


Still waiting for my '06 Mazda5 GT mtx w acc

 

[Rocket]

There is no chance that they are losing money. Don't compare it to big mini vans, compare it to Toyota Matrix, Ford Focus, etc. and you might come to the conclusion that they have a very healthy profit in each one.

 

[jandree22]

Well why can't I compare it to large minivans? Basically the only difference is a V6 and some more sheet metal. Sure especially the addition of the V6 is no light proposition, but $8k-10k?!

I do see that the Matrix XRS (most comparable performance-wise) is actually a little bit cheaper, but the Matrix also lacks third row seats, 3 rows of side curtain airbags, standard sunroof, automatic climate control, 6 cd changer, DVD system, Sirius radio, 17" rims... those features added together are easily worth $3,000 IMO.

hmm, how can a car that cost nearly 30K (out the door) be a car for people with "low cash" on their hands?? I don't see Mazda offering any massive discounts to get the 5 sold. They don'thave to, they can't keep them on the lot!

I'm working with USD, not your Canadian funny-money. (usa) $20,500 USD is pretty damn cheap for a car in the states. Sure one can be had for less if you're talking stipped Civics or Kias, but by no means is $20k what I consider expensive. And you're right, they can't keep them on the lot, it's an incredible value for the money so people can't resist them... my entire point


I dunno, maybe this is a wrong assumption on my part. Just seems like you're getting way to much outa this car for what you pay.

 

[fam]

there are no space age materials, it weighs 3300 lbs, thats the same a v6 mustang or any other comparison car, so....its gonna have about the same amount of steel and metal if not less, hence the lower cost. The other tanks weigh 4k lbs. Remember its beased off the 3, its not got thicker metal like the minitank market. Mazda is making money, and customers are laughing at the minitank and SUV owners at the gas pumps.

 

[ntron1]

It really pretty simple. The 5 is made in Japan on the same line as the Premacy. In Europe this is a very profitable car. It is overall volume that brings the profit not the 14,000 in North America.

See Ya in Chocolate World.

 

[Zoom5Zoom]

Jandree

Listen the 5 rocks and is of a very well priced for the package. I can't wait until you get your 5 so you can understand what questions your asking....like really JMO

 

[mazdaFIVEmike]

Well why can't I compare it to large minivans? Basically the only difference is a V6 and some more sheet metal. Sure especially the addition of the V6 is no light proposition, but $8k-10k?!

I do see that the Matrix XRS (most comparable performance-wise) is actually a little bit cheaper, but the Matrix also lacks third row seats, 3 rows of side curtain airbags, standard sunroof, automatic climate control, 6 cd changer, DVD system, Sirius radio, 17" rims... those features added together are easily worth $3,000 IMO.


I'm working with USD, not your Canadian funny-money. (usa) $20,500 USD is pretty damn cheap for a car in the states. Sure one can be had for less if you're talking stipped Civics or Kias, but by no means is $20k what I consider expensive. And you're right, they can't keep them on the lot, it's an incredible value for the money so people can't resist them... my entire point


I dunno, maybe this is a wrong assumption on my part. Just seems like you're getting way to much outa this car for what you pay.

Ahem.... our Canadian "funny-money" is nearing "on-par" with your US bucks!!(glare)

 

[was98strat]

Ahem.... our Canadian "funny-money" is nearing "on-par" with your US bucks!!(glare)

Add to that, the rate at which the US Dollar is depreciating, and our "funny-Money" will likely be worth more than the US dollar in the near future!!

 

[the tortoise]

Ahem.... our Canadian "funny-money" is nearing "on-par" with your US bucks!!(glare)

That only makes the price discrepancy more difficult to bear!

 

[jandree22]

Jandree

Listen the 5 rocks and is of a very well priced for the package. I can't wait until you get your 5 so you can understand what questions your asking....like really JMO

What exactly do you mean... you were let down by the car after actually owning it for a while? (huh)

 

[D-rock240]

I know cars like the Hybrid Civic and Prius lost money (or still are) on each sale to make it more attractive and affordable to buyers...
What do you guys think?

Where did you get that info? Because around here hybrids still have a 20% dealer markup and there is a wait. Even used hybrids are selling close to the purchase price.

 

[dommo_g]

Where did you get that info? Because around here hybrids still have a 20% dealer markup and there is a wait. Even used hybrids are selling close to the purchase price.

The dealers may be marking them up, but the manufacturer lowered their profit margins on these cars. And just because your area marks them up doesn't mean it's like that all around the country. It just means you live in a town full of hippies.

Look, all business is in business for one reason. To make money. They're not going to lose money intentionally just so they can see you happy in their car. That s*** only happens with cell phones and dish TV. That's because you sign a service contract for one or two years. Manufacturers aren't going to sell a car without turning a profit. The only time this happens is possibly in the first model year of a new car run. Because depending on the car, they may have costs for retooling the plant, or building a new plant, R&D for cars that aren't built on an existing platform like the 5 is, and a slew of other factors. You can't compare it with the Hybrids, because that's a unique situation. Toyota and Honda wanted to get those cars to market, and had no idea of how they would do. Those vehicles also had much higher R&D costs just by the nature of them being hybrids.

 

[TheMAN]

the manufacturer to dealer cost for mazda cars has ALWAYS been much lower than honda and toyota... hence why the cars are a much better deal than the over priced junk you find at the honda/toyota dealership (even at MSRP)

but they ARE making money
but if you want to talk about breaking even or losing money, the MSP was it

 

[jandree22]

^^^ ic... thanks

 

[jmcglynn]

Some comments on the market for the 5

I worked as an automotive manufacturer's consultant for a while, so I know a little about the business. Yes, while manufacturer's will sometimes produce a model at a loss to attract buyers (and develop brand loyalty) it's the exception, not the rule... particularly with a company like Mazda.

Pricepoint wise, at least in the US, the base price of a nicely optioned M5 is only $18,000. Well within the under 20K for a young family hauler, and a good price for value in my opinion. If you shop well you can even do better. I bought mine on a dealer sale for $2000 off MSRP. The dealer may not have made much on this, but less invoice and dealer holdback, Mazda still wins. And let's not forget, the real money is in the financing.

Let's also remember... the traditional minivan is a lot bigger than the M5, and is generally produced in countries like Canada, Mexico, and Korea, where costs are less than US or Japan. Sure, you can get a Kia Sedona nicely loaded for the same price as a base level M5... but let's face it... It's a Kia. Not a lot of zoom-zoom.

And the M5 is less a minivan, and more of a SAV. When compared to the Toyota Matrix or the Pontiac Vibe, it's certainly competetive.

I applaud Mazda for actually giving the M5 a go in the US. Primarily designed for Asia and Europe, where similar vehicles are the norm (even from Toyota, Nissan, et al), I think it's great to get that extra row of seats in a package that's a lot smaller than a traditional US minivan (which is far from "mini" these days).

Look... if you think a minivan is such a bargan compared to the M5... then get yourself a minivan. I, like most M5 owners, got the M5 because I DIDN'T want a minivan.

 

[jandree22]

Look... if you think a minivan is such a bargan compared to the M5... then get yourself a minivan. I, like most M5 owners, got the M5 because I DIDN'T want a minivan.

I never said that. Actually, I was arguing the opposite.... that the Mazda5 is the bargain. Just one of multiple reasons why I'm eagerly waiting for my order to be built and delivered. (yes)

 

[jandree22]

is the 5 ready for you that is my question

what do you mean?

 

[jmcglynn]

Quite right...

I never said that. Actually, I was arguing the opposite.... that the Mazda5 is the bargain. Just one of multiple reasons why I'm eagerly waiting for my order to be built and delivered. (yes)

Yes... you're quite right. Perhaps I got off on a rant there... so my apologies. It's just get so frustrated sometimes about this whole "minivan" thing with the 5. I just know you're going to love it when you get it.

Zoom-zoom!

 

[jandree22]

Yes... you're quite right. Perhaps I got off on a rant there... so my apologies. It's just get so frustrated sometimes about this whole "minivan" thing with the 5. I just know you're going to love it when you get it.

Zoom-zoom!

ha, don't worry about it. For some reason this topic kicked off WWIII it seems! I appreciate your reply, though... Zoom Zoom indeed. (hi)