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Re: Delivery on Enclave [seloo]
by JBaumgart on Fri Oct 12 06:50:28 PDT 2007
Part of the motivation is that when a very desirable new model comes out, and it meets with more demand vs. supply, some people will gladly pay full MSRP just to have it. They make a decision that for them this model is more attractive and offers more value than competing models, even those that are being heavily discounted. Other buyers choose to wait until prices (hopefully) come down. This is how the marketplace settles the demand vs. supply equation, with real-world transaction prices. How quickly prices come down depends on to what extent the manufacturer is able (or chooses) to boost supply. Some car makers run into problems with suppliers, technical issues, etc. that prevent them from boosting supply as quickly as they would like. Others have a tradition of purposely limiting supply so they don't flood the marketplace, in order to keep prices up. And to some extent this isn't entirely within their control, as other competing models are introduced and become the next "hot car". Right now the Enclave is clearly a hot car, and it's unclear what Buick intends to do as far as meeting the demand, including those who are holding out for better pricing. If Buick ends up flooding the market, and discounts become widely available and you end up seeing one around every corner, the Enclave could lose some its luxury appeal. I would guess Buick will take the middle road, trying to sell as many as they can while still limiting supplies somewhat so prices hold pretty firm and those buying now don't experience rapid depreciation as soon as they drive it off the dealer's lot.

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