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Randy Chase said:
Ridge, I firmly believe that Lotus sees the bigger picture and understands that it is quite normal to see speculation and price frenzies on a new release. That has been true for most hot sports cars. But we did not see Honda raise the MSRP on the S2000s when they first came out. Or Minis. Or whatever... the dealers just made more cash for a short time...or some time.

In this case, the normal thing to have happened would have been that MSRP would be $39,985 and we would all be paying market prices. I am thankful that Lotus took the position of trying to make the dealers sell at MSRP. Originally the plan was to insist all the dealers sell at MSRP, as they do in the UK. But to the surprise of Hethel... that was not legal.

But the other side of the coin is indeed the dollar vs the pound. Financial calculations were done to make sure there was enough profit margin for the dealers, for LCU, and for the factory at $38,500. Yet.. the profit margin on the car was reduced by around $6-7k because of the value of the dollar. That comes out of the margins. Some of that was recouped at $39,985. Some of that is made up for in the options and paint. But the margins are so thin on this car now, that LCU can't hire people, that dealers are not making enough to make it a priority when they can just as easily sell a Ferarri and make 10 times the profit or more.

I do not think you will see Lotus raising the price substantially to take advtantage of the market now. They see the Elise as the ticket to get market share in USA and move people up to the other two models coming in the next two years.
Randy: The Datsun Z was a track-ready sportscar in 1970 that, at $3,500, was well below the price of anything comparable. Even though there was no problem with the 'yen vs dollar', as there is now with the 'pound vs dollar', and Datsun was turning out many more than 2,200 cars annually,
dealers were getting double the price for the car. You will note that Datsun then began upping the price of the car each of the following years and sales held strong for a long, long time. How many of these developments could repeat itself with Lotus is up for debate.
 

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OneFastLotus said:
I didnt know they sold Caviar at Walmart! I'll check there next time we have a party! :clap: :p
Thank you. You have just made my point for me. Nobody expects Vauxhall to market a decent sportscar. Even if you happend upon caviar in WallMart, you would prefer people to think that you had bought it from Bloomingdales. Not that you are a snob, but because people are bound to think that WallMart caviar must be rubbish.
 

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Randy Chase said:
They see the Elise as the ticket to get market share in USA and move people up to the other two models coming in the next two years.
If I do end up paying the $1k increase even though my car is already built and they've basically trapped me - that will have left a bad enough taste in my mouth to where I'll look elsewhere when I decide to replace the Elise.

$945 won't hurt me financially, but Lotus tacking that $945 on after my car is already built is pretty much stealing as far as I'm concerned... and I don't do business with thieves.
 

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Ridgemanron said:
Randy: The Datsun Z was a track-ready sportscar in 1970 that, at $3,500, was well below the price of anything comparable. Even though there was no problem with the 'yen vs dollar', as there is now with the 'pound vs dollar', and Datsun was turning out many more than 2,200 cars annually,
dealers were getting double the price for the car. You will note that Datsun then began upping the price of the car each of the following years and sales held strong for a long, long time. How many of these developments could repeat itself with Lotus is up for debate.
I remember that car's introduction. There are some similiarities, ut I think most people at the time of the Z's introduction thought it was very much underpriced as you noted. I don't think everyone thinks the Elise is all that underpriced. Performance/dollar is great, but that is not the only metric.
 

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Another factor to consider in this equation, is residuals/resale values. Whilst supply is outstripped by demand, second-hand vehicles will show unheard of low levels of depreciation. Until the intoduction of the S2 in the UK market, the S1 depreciated at glacier-like speed.
 

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MikeAR303 said:
If I do end up paying the $1k increase even though my car is already built and they've basically trapped me - that will have left a bad enough taste in my mouth to where I'll look elsewhere when I decide to replace the Elise.

$945 won't hurt me financially, but Lotus tacking that $945 on after my car is already built is pretty much stealing as far as I'm concerned... and I don't do business with thieves.
Amen brother, amen.
 

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let me understand. you are saying that the car is built. i assume the dealer is yet to be invoiced for the car. has LCU been billed for the already-built car? if not Hethel is facing the exchange rate problem. If they do not sell the car to LCU for more they lose money- or at least that seems to be the premise. given that case, how can they NOT raise the price? one way would be to lose money on the car as an investment in the future. is that a good investment? not from your peerspective, but from Hethel's it may be a mandate.
 

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Price changes during a model year on other cars is not unusual - other marques have done this as well. Heck, for some small-volume carmakers the MSRP can vary from car to car much less from month to month. What matters is what your contract says - read the fine print. If you don't have a contract yet there is no sense getting bent out of shape, because by the time you do get a contract things will have changed again.
 

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You can't fool the market.

If the price of the Elise is now too high....demand will drop and you'll be able to get a discount from list to cancel out the increase.

I think that won't happen though as I feel the car is quite a value.
 
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