Backstory to May's Camaro & Mustang sales stats

[Tran]

Up until this past May, the Chevy Camaro had outsold its closest competitors (the Mustang and Challenger) for 11 straight months. However, the 2010 Mustang managed to wrestle away the monthly sales title for May 2010, selling 10,225 units to 8,931 Camaros.

Now we're not making excuses (full credit given to Ford for such a hot seller last month), but there is a backstory to these numbers. There was a factor which contributed positively to the Mustang's strong sales numbers - Ford's incentives to clear out 2010 Mustangs.

Of the Mustangs sold in May 2010, 43% were 2010 models which were being cleared out with incentives of $2,500 off with 0% to 5.9% financing. Also, the 2011 Mustang has $1,500 on the hood for returning lessees, plus financing as low as zero percent for 36 months.

No, this isn't about sour grapes, but beyond comparing horsepower and performance between the Camaro and the Mustang, Camaro and Mustang fans like to compare sales figures, and this bit of info helps us more accurately interpret the latest sales figures.

[CloudXTC]

we will see what happens as the months roll on!

[v6sonoma]

We'll see how things are next month. Also don't forget Mustang has a convertible model and the Camaros isn't out yet.

[Spiv]

I take satisfaction in knowing that the camaro sells without major incentives.

[Legend]

Originally Posted by Spiv

I take satisfaction in knowing that the camaro sells without major incentives.

And I think it has since introduction right?

[GaryTucker]

The big issue is how many are still sitting on dealer lots? We've seen dealers still trying to get MSRP or above on cars...so if there are a number on the lots, you may see discounts to "clear them out" as the 2011 are now rolling down the line.

Also, I believe you'll see a slowing of sales as the new model year comes out. You won't see the "gotta have the hottest thing on the market" crowd rebuying a camaro (unless the Z28 ends up being the "next hottest thing") and you've satisfied quite a bit of the pent up demand from the years of no production and many of those people aren't going to buy a new car after only one year.

Only time will tell on what the numbers look like.

[motorhead]

That why I said in the last thread started about this that we need to wait and see what the five year sales numbers are to really see the story.

[BackinBlackSS/RS]

I look at it this way. People love discounts and coupons and all that jazz. Ford was giving some great deals, hek I saw 2010 GT's selling for like 22-23K. That's amazing. What amazes me more is even with all those
off the chart deals, the Camaro was not that far from the Mustang numbers.

[phenixdragon]

Sadly a good friend of mine bought a 2011 Mustang. :(

[CaniacFan]

Originally Posted by EnvyTerra

Maybe I am understanding this wrong, but it's bad for a car company to sell cars with incentives? a sold car is a sold car am I right?

You are correct. More incentives to customer, less revenue/profit to dealer.

But what Tran was trying to say is that Chevy - is not offering incentives on the Camaro whereas Mustangs are being sold at deep discounts and 0% financing - hence, Ford/Mustang's numbers were highly inflated for the month of May.

Thankx Tran...

[Hesh]

Originally Posted by EnvyTerra

Maybe I am understanding this wrong, but it's bad for a car company to sell cars with incentives? a sold car is a sold car am I right?

Yes a sale is a sale but sometimes they make no money ,or lose money doing it just to get it off the lots. They are willing to take the hit so they can get room for the new inventory.

[wavrun2000]

I have a feeling that once there are a good amount of 5.0 on the lot the Camaro will have to work hard to stay ontop, because at that point all the diehard Mustang fans that have been waiting for the new motor to come out will go out and buy one.

[Berean]

Originally Posted by Tran

Also, the 2011 Mustang has $1,500 on the hood for returning lessees, plus financing as low as zero percent for 36 months.

Wouldn't it blow off during test drives?

[ssump29]

Originally Posted by EnvyTerra

Maybe I am understanding this wrong, but it's bad for a car company to sell cars with incentives? a sold car is a sold car am I right?

Yes and no, depends on how much the incentives are and what's offered. If the company can afford to clear inventory by taking less money and thus not adding to the overall bottom line, then they will. The problem that happens with this tho is over time it catches up to you and taking less then what is needed for break even will start to hurt your business. That's what help put Ford and GM in trouble before. Too much inventory to begin with, and then having to sale that inventory for far less then what you projected your numbers to be. In the overall scope of things, selling more cars at less then what you expected to get for them isn't better then a competitor who is selling just under you but getting the prices they want.