RE: PH Blog: price point

RE: PH Blog: price point

Friday 9th November 2012

PH Blog: price point

First diesels, now Harris wants a Dacia. Don't worry, we'll be back to V8s next week...



The new Dacia Duster might just be the most significant new motorcar launched in the past decade. For a UN-spec, two-wheel-drive version on steelies and with some white paint slapped on its panels, Dacia is asking just £8,995.

Sandero significant but not interesting!
Sandero significant but not interesting!
Keen What Car? readers among you will point out that the Dacia Sandero can be yours for just £5,995, but the pricing of that car is less impressive because I have no interest in driving one - whereas a few weeks watching French families happily bouncing around in Dusters had the opposite effect.

The French have always had exceptional taste in family wheels - they gave us the mass-market hatchback, the seven-seater estate, the Espace, the Scenic, Until they lost their way in the last decade, they had always defined the zeitgeist: the current needs and requirements of the motorist. With Europe being mostly skint, what we need is honest, rugged engineering, a dash of inverse-snobbery-cool and a list price that wouldn't constitute the optional extras on a lumpy 530d.

The Dacia range and its pricing will have a profound effect on the European motor industry because it questions the fundaments of the car transaction in the year 2012. People are less willing to spend money on cars, and yet cars become ever more complicated and, as a result, expensive.

Duster, meanwhile, has classless cool
Duster, meanwhile, has classless cool
Premium brands are surviving, but the middle ground is a bloodbath. It has taken just five years, a recession and a good measure of Korean discipline to permanently change the face of European motoring. Peugeot is staring into the abyss, Fiat has just tacitly admitted it cannot make money from building new cars in Europe and without Nissan and Dacia, Renault would be equally troubled. It makes you wonder how much longer VW will support SEAT.

Disruptive pricing strategies make a fine spectator sport: the Duster will strike fear into many £20K SUV vendors, but this tactic is appearing in other areas of the market too. Take the BMW M135i, a 320hp hatchback which is offered in a basic level of trim and available for under £30K. Many people on PH make the observation that the car can easily be specced to £38K, but that misses the point - this is BMW offering to sell you a basic car at a price point which, just like the Dacia Duster, completely undermines rival vehicles.

It's a potentially exciting precedent, and one that revisits the market conditions of the 70s, 80s and early 90s: namely that you could just about afford a prestige brand, but only if you ordered it with one seat, a single rear-view-mirror and an engine with around 90hp. Only now you get the fast motor, but are forced to spend if you want connectivity and lashings of dead cow.

Elsewhere the M135i is shaking things up
Elsewhere the M135i is shaking things up
This might just be the replacement for niche marketing. Ever since Renault produced the Scenic, carmakers have been obsessed with creating space for themselves by contorting conventional market segments. But there is only so much you can do with a tin box and four wheels, so this kind of disruptive pricing activity looks like an interesting new direction. Potentially risky, but also potentially rewarding.

It's happened before - remember when Daewoo arrived in the early 90s and started flogging tarted-up Cavaliers and Astras? For a time it worked. Around the same time Chrysler gave us the Cherokee 4.0L, which looked like such a bargain next to its rivals people hoovered them up - until they realised they were a bit crap.

In an industry already fracturing under poor margins and zero profitability, it seems unlikely that carmakers can afford to sell cars for less money, but if they can restructure themselves to lower the cost base, then we might just see more brands smashing their way into new segments, just like Dacia is doing right now.

How does this affect the average PHer?

Well, if you're like me, you probably avoid buying new cars because the initial depreciation is so harsh - so you pride yourself in finding real value through older metal. Now if I was looking for an £8K-£10K machine that could handle a harsh winter and could potentially be quite fun to own, I'd struggle to find anything that would match a Duster. Used Freelanders and CRVs just don't appeal, and they wouldn't have the warranty. A Discovery at this price is a ticking-bomb and nothing emanating from Korea remotely interests me.

So what Dacia is doing is not only questioning new car purchases, it is proposing a new car purchase instead of an informed used car purchase. That's classic PH territory.

I'm sure you think I've gone mad, and I won't drive a Duster until a few weeks' time, but it already looks like a great usable tool in the classic French (Romanian) mould: usable, robust and somehow classless.

Chris

 

Author
Discussion

rocketride

Original Poster:

141 posts

161 months

Friday 9th November 2012
quotequote all
I'm with you!
Already been and spoke to Renault but they recon March delivery as there has been overwhelming demand!

I just love cheap, classless, utilitarian, work slags!!! And on the plus side it doesn't look camp as fk like Vitara or Range Rover Vogue.

Its back to basics like the Mk1, Mk2 Foresters which i loved!



Edited by rocketride on Friday 9th November 14:21

davepoth

29,395 posts

198 months

Friday 9th November 2012
quotequote all
What does it mean? Cheap new cars mean that used prices go down too...

jeenyus

23 posts

188 months

Friday 9th November 2012
quotequote all
Nice one Chris, you have captured the very essence of this apparent paradigm shift in the second to last paragraph. You could almost include such vehicles as the 2CV and the berlingo/partner and kangoo in here for french utilitarianism motoring. Can't wait to see these on the roads...

Frimley111R

15,537 posts

233 months

Friday 9th November 2012
quotequote all
I'm not convinced about the UK though. Badge snobbery is rife here, more so than anywhere else. Consumers are used to getting amazing quality cars now, how many want to buy a basic budget car for what is still a not inconsiderable amount of ££ remain to be seen. The Duster in all the pics is not the one that is selling for £8995. I doubt if anyone with that cash saw a basic Duster would do anything other than run off in the other direction!

CDP

7,454 posts

253 months

Friday 9th November 2012
quotequote all
Frimley111R said:
I'm not convinced about the UK though. Badge snobbery is rife here, more so than anywhere else. Consumers are used to getting amazing quality cars now, how many want to buy a basic budget car for what is still a not inconsiderable amount of ££ remain to be seen. The Duster in all the pics is not the one that is selling for £8995. I doubt if anyone with that cash saw a basic Duster would do anything other than run off in the other direction!
I've had four broken alloy wheels in the last 18 months or so. A set of high profile tyres on steelies combined with soft springs will be just the job for our crumbling roads.

900T-R

20,404 posts

256 months

Friday 9th November 2012
quotequote all
Yeah, erm... maybe it's because I intensely dislike being seated a foot higher than I need to be so the price of 'rival' SUV-alikes on the market is inconsequential to me, but I'd take a punt on an old Saab 9-5 Aero Estate or MG ZT-T and keep £7.5K in the bank instead. smile

rocketride

Original Poster:

141 posts

161 months

Friday 9th November 2012
quotequote all
Frimley111R said:
I'm not convinced about the UK though. Badge snobbery is rife here, more so than anywhere else. Consumers are used to getting amazing quality cars now, how many want to buy a basic budget car for what is still a not inconsiderable amount of ££ remain to be seen. The Duster in all the pics is not the one that is selling for £8995. I doubt if anyone with that cash saw a basic Duster would do anything other than run off in the other direction!
Those who haven't got money tend to be badge snobs as there trying to prove they have money usually driving a Porsche, Ferrari, Range Rover and balls deep in dept! People i know who are rich and i mean rich drive round in the sttest cars as a daily driver and dress like they have had there clothes donated to them from a charity shop!

Stealth Wealth is super cool these days as the rich dont want to be confused for dept ridden a-holes!




Edited by rocketride on Friday 9th November 14:38

Beefmeister

16,482 posts

229 months

Friday 9th November 2012
quotequote all
This is the boggo model for £8995. I think it's bloody ace!


900T-R

20,404 posts

256 months

Friday 9th November 2012
quotequote all
Looks better (at least more 'fit for purpose') than the higher spec ones TBH...

I'd still let someone else shoulder the new car depreciation, though smile

CDP

7,454 posts

253 months

Friday 9th November 2012
quotequote all
Beefmeister said:
This is the boggo model for £8995. I think it's bloody ace!

Except you don't seem to be able to get it with air conditioning unless you move up the range. It's about the one extra that I actually like.

Efbe

9,251 posts

165 months

Friday 9th November 2012
quotequote all
Frimley111R said:
I'm not convinced about the UK though. Badge snobbery is rife here, more so than anywhere else. Consumers are used to getting amazing quality cars now, how many want to buy a basic budget car for what is still a not inconsiderable amount of ££ remain to be seen. The Duster in all the pics is not the one that is selling for £8995. I doubt if anyone with that cash saw a basic Duster would do anything other than run off in the other direction!
alternatively 90% of the UK has no idea or care about cars.
what it is like inside or out is unimportant to them, it's just a tool. Howver 'everyone knows' a new car is better.

The Dacia is already quite cool, amongst those who are not followers. It usually seems to take a year or so for the followers to catch on.

mattlad

261 posts

164 months

Friday 9th November 2012
quotequote all
Frimley111R said:
I'm not convinced about the UK though. Badge snobbery is rife here.
One down man ship is the new one up man ship.

Hellbound

2,500 posts

175 months

Friday 9th November 2012
quotequote all
mattlad said:
One down man ship is the new one up man ship.
Not with everything though.

My wife's uglier than yours or my house is smaller than yours just wouldn't work.


I read an interesting article recently which boiled done to this; the sub £99/month car sector is heating up. Very recently you could get a new SLK for £219/month.

A brown or green mud splattered Dacia Duster for around £75/month on pcp sounds like the best sort of motoring.

trunks82

252 posts

197 months

Friday 9th November 2012
quotequote all
mattlad said:
One down man ship is the new one up man ship.
Made me laugh but oh so true!

vrsmxtb

2,002 posts

155 months

Friday 9th November 2012
quotequote all
It's certainly come a long way from this one:

http://www.difflock.com/buyersguide/pastmasters/da...

Although even back then I seem to remember it being quite well regarded for what it was, and capable off-road.

BillericayDickie

34 posts

194 months

Friday 9th November 2012
quotequote all
Rightly or wrongly most of the British public are buying diesel powered cars now and the cheapest diesel Duster is £11,995. Also, I see little point in having a car like this without 4wd.. I'm thinking that if a car looks like a 4x4 then it should drive like a 4x4.. and that means shelling out at least £13,995.

To get aircon you have to move up to the top of the range Laureate versions at £14,995 (diesel), and for this kind of money you could easily get a good low mile Ford Kuga (the slowest depreciating car in the UK) which has a better engine, is better equipped and is better looking IMHO.

Their headline grabbing £8,995 may sound a bargain, but when you look a little closer it's not such a shift in the new car zeitgeist as it first appears.

Itsallicanafford

2,759 posts

158 months

Friday 9th November 2012
quotequote all
...i'm with you that pricing has gone made, walked pased a Kia garage and they had a seronto up for 30 large, i actually stopped me in my tracks, mouth wide open..

the stigs dad

378 posts

137 months

Friday 9th November 2012
quotequote all
Dacia are about as appealing as used bog roll.

Maldini35

2,913 posts

187 months

Friday 9th November 2012
quotequote all
Beefmeister said:
This is the boggo model for £8995. I think it's bloody ace!

That does look great.

Brilliant concept but is it better in theory than in practice?
Will the basic experience grate after a few months? Have we been institutionalised into thinking we now need all the usual added creature comforts? Will you find yourself chosing the wife's car for longer journies?
Dunno, but I will definitely be keeping an eye on people's experiences over the next 12 months.

JonathanLegard

5,187 posts

236 months

Friday 9th November 2012
quotequote all
CDP said:
Beefmeister said:
This is the boggo model for £8995. I think it's bloody ace!

Except you don't seem to be able to get it with air conditioning unless you move up the range. It's about the one extra that I actually like.
This. Dacia is a little sly in its price walk up. You have to buy the top spec Duster or Sandero to get air conditioning. It's not even available as an option on the others.