Perplexed by the current state of the Evora

[Mike-engel]

Hi Everyone. I was curious about what was happening in the new Evora market so I did some quick looking around. I was expecting to see these cars start to be discounted, as the likely future owners are hopping on the Emira bandwagon in large numbers. I was surprised to see these cars are still listed in the $100-120K range. It had me wondering why that might be. Beyond the power differential (which can likely be overcome by some tuning of Emira since the engine is essentially the same), I don’t understand why a dealer would think they will be able to get those prices. Would anyone care to comment?

 

[CoryC]

The Evora is a very well sorted, purpose built car that was produced in limited numbers. Along with that exclusivity and GT performance, dealers don't really have much choice in "getting" that kind of money for them... it's what they cost new. I don't believe they'll be many "leftovers" but if you wait there may be a discount available... but I wouldn't expect too much for a current model year.

 

[RapidLotus]

I would expect the GT supply will be gone by the time the Emira is available at the dealers. Don't expect big discounts on GTs.

 

[old dusty]

The Evora is a very well sorted, purpose built car that was produced in limited numbers. Along with that exclusivity and GT performance, dealers don't really have much choice in "getting" that kind of money for them... it's what they cost new. I don't believe they'll be many "leftovers" but if you wait there may be a discount available... but I wouldn't expect too much for a current model year.

Hi Everyone. I was curious about what was happening in the new Evora market so I did some quick looking around. I was expecting to see these cars start to be discounted, as the likely future owners are hopping on the Emira bandwagon in large numbers. I was surprised to see these cars are still listed in the $100-120K range. It had me wondering why that might be. Beyond the power differential (which can likely be overcome by some tuning of Emira since the engine is essentially the same), I don’t understand why a dealer would think they will be able to get those prices. Would anyone care to comment?

From my limited understanding the main reason the Emira will/should sell for less than the current Evora is based on a higher level of volume/demand going through the plant. I heard they only produced 1500 Evora's per year and have a minimum target of 5000 per year of the Emira - this, along with a more efficient production process, reduces the overhead cost per vehicle to allow Emira to sell for less. The dealers cost on their inventory of current Evoras was set last year and they paid what they paid. As the Emira is probably a year away from hitting their showrooms it should, hopefully, give them enough time to move their stock and still make a profit. If they still have Evora stock when the Emira starts to arrive then you might seem some real price movement. I think it is just too early to see it now. That said I wouldn't be surprised if dealers start considering accepting lower offers now on any Evora stock they may have - then they would have accepted before the Emira launch.

 

[TomE]

It'll be interesting to see. The Emira launch has made a lot of new people more aware of the Lotus model line up. Demand for used Elise, Exige and Evora is strong, with some UK dealers having stock shortages and contacting existing owners to see if they'll sell.

For some people being able to get a new/nearly new Evora now rather than wait 12+ months for an Emira may be attractive. Particularly if they think depreciation may be low between now and getting that Emira. The +2 seating also appeals to a different group.

Next year as Emiras are delivered we'll see some current Elise/Exige/Evora owners trading in to get them. We don't know yet how many, but I expect there'll be an uptick in volumes of used cars for a while, so prices may soften for a few months through mid 2022.

 

[Mike-engel]

I agree that the economies of scale have a lot to do with the relatively lower price of Emira. I also agree that the dealers paid a much higher price to place these cars in their inventory (with the help of large loans of course), one could even argue that the Evora is a superior car for some buyers. I guess what bewilders me is why buyers wouldn’t prefer to wait 12 months to get the latest model once announced, which seems on the surface to be a substantial upgrade in creature comforts, fit and finish, etc. It’s not like an Evora or an Emira is an appliance that one needs to get around town. I imagine most people in the market have other wheels. For virtually any car I can think of, prior year models are discounted to move that inventory before new models arrive or are heavily discounted after they arrive. Holding an expensive asset on the lot is costing a dealer a lot in interest, and even depreciation if held long enough. Hold backs from the manufacturer help to make dealers whole for slow moving models, but typically 60-90 days on a lot represents a tipping point financially for cars with typical margins. I guess I just thought dealers would need to be further out in front, but I guess I’m wrong. Thanks everyone for the interesting discussion.

 

[TomE]

They've stopped making Evoras. So whatever new stock is out there, that's it. It's not a large volume of now-superseded cars. And at least 7 months until they have first Emiras. So I don't think dealers need to be discounting the current stock for several months yet. The Evora GT has had great reviews and is still selling.