Question on price difference between sedan and hatchback (convertibles, CUV, SUV)
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This is about cars that are on a platform available in both sedan and hatchback versions. Is the structure of a hatchback really a few thousand dollars more expensive to build over the sedan or is it a difference in packaging with some brands using their hatchback versions as an up market level?
This is about cars that are on a platform available in both sedan and hatchback versions. Is the structure of a hatchback really a few thousand dollars more expensive to build over the sedan or is it a difference in packaging with some brands using their hatchback versions as an up market level?
Few thousand? Must be talking about ones that involve upscaling as well. The Impreza is only $500 more as a hatchback.
The price difference rarely is based on the additional material cost. Convertibles for example can run about $5000 more than a hardtop, but there's no way a soft top's mechanism is actually $5000K. They just know people are willing to pay $5K more for it.
Wheels are the worst. Some manufactures sell wheel/tire upgrades for $2K more than the standard wheels. That would mean the upgraded wheels actually cost what the standard wheels are worth plus the $2K upcharge. Its probably actually $200 more and the rest is pure profit.
I am thinking maybe Subaru Legacy vs Outback. The basic entry level model of each, the 2.5i, have a $3,700 difference in price. Some of this is due to the Outback having extra stuff (but not fancy stuff). Roof rack, rear tailgate with rear wiper, higher suspension, etc. The basic suspension that makes it more of a CUV. Does that make it worth $3,700 more than a Legacy in build costs, engineering costs, and equipment? Probably not.
Some economics of market segments come into play here too. The Legacy is not a class leader in the midsize class which causes it to struggle some for buyers, and the midsize car class is already highly price competitive. Plus it's a market segment that is shrinking. All this adds up to Subaru needing to be very competitive on price, which may bring the MSRP down a bit compared to the Outback. On the flip side, they easily sell every Outback they can make. Although somewhat unique in class, it is a class leader and very popular. So they can get more for it. In a way, the Legacy may be a bit of a loss leader just to compete in the midsize sedan class, with the Outback selling for a higher profit margin justifying the platform (and carrying the Legacy).
In defense of convertibles, they are usually a small volume seller among a model line, but involve a lot of engineering and design costs which is also part of the markup in addition to the basic cost of the soft top material.
Last edited by Checkered24; 12-22-2017 at 07:39 AM..
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