Suzuki Dealers Desperate to Sell Cars Right Now
April 19, 2012
Five years ago, Suzuki was selling over 100,000 vehicles each year in the U.S.
Last year, they sold barely 25,000. The majority of their dealers are now selling on average less than 6 vehicles per month. With sales down 2% last month, things do not look good for the carmaker.
If Suzuki doesn't turn things around soon, their U.S. operations may go under (they'll still have their motorcycles and overseas operations, however).
But what's bad for the manufacturer can be good for potential buyers. The desperation of dealers gives you a bargaining advantage when it comes time to purchase. And if the company does go under, that will result in the remaining orphaned vehicles selling at very deep discounts.
Instead of preparing for the long-term, Suzuki seems to be looking to cut costs in the short-term, which isn't a good sign for them. For those who have an interest in buying a Suzuki, your best bet is to keep an eye on the situation and wait to see how this pans out.
The Suzuki Kizashi is the most attractive vehicle currently offered by the brand, but even so, it doesn't compete very well in the mid-size category. The SX4 and Grand Vitara are both outdated. However, if the price is deeply discounted, it may be worth waiting to see what happens with the company.
I wouldn't recommend buying a Suzuki right now because the residual values will plummet if the company does go under. It's best to wait and see what happens.
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About: Gregg Fidan
Gregg Fidan +
is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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