RDX Bests BMW X3 (and Toyota ... - Acura Launch Training
FRONTLINE January 2015 Vol 17 Issue 1 Dedicated to the Success of the Acura Retail Sales Professional
INSIDE THIS ISSUE
RDX Bests BMW X3 (and Toyota Highlander) ILX Competitive Landscape (Lease Offers) Selling the ILX 6-Speed Manual Why Lease? 2014 Was a Very Good Year! Notes & Quotes Pull Your Own Strings: Take Control of Your Success in 2015! The Acura MY2016 In-Dealership Training Tour Is Coming
The Winning Edge:
2015 RDX AWD Tech Package
RDX Bests BMW X3
(and Toyota Highlander)
RDX demonstrates why it's the market leader among premium compact crossovers.
RDX offers premium compact crossover buyers an unbeatable combination of attributes, including:
>> Strong performance >> Excellent EPA fuel economy ratings1 >> Roomy, comfortable interior >> Exceptional rear-seat legroom >> Ample cargo volume >> Superior crash test ratings >> Extensive standard features list >> Superior value >> Renowned Acura reliability >> Low cost of ownership
"...for the majority of car shoppers looking for a compact luxury crossover, the 2015 Acura RDX receives an A rating for bringing all the basics, done wonderfully well, in a keenly priced, easy-to-live-with package."
2015 BMW X3
Luxury Market Leadership with Mass-Market Appeal In addition to leading the premium compact crossover segment in sales, the RDX demonstrates mass-market appeal and affordability when compared against vehicles such as the 2015 Toyota Highlander V-6 AWD.
2015 Toyota Highlander
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The Winning Edge:
RDX Bests BMW X3 (and Toyota Highlander)
Key RDX advantages are listed vs. BMW X3 xDrive 35i and Toyota Highlander Limited V-6 AWD. Additional areas of RDX advantage are provided in the accompanying Features and Specifications chart.
2015 BMW X3
2015 Toyota Highlander
2015 RDX AWD Technology Package vs. 2015 BMW X3 xDrive 35i X3 strengths:
>> More horsepower and torque >> Greater maximum tow capacity
RDX's top advantages include:
>> Greater Legroom/Shoulder Room and Cargo Space: RDX provides a roomier interior environment for greater driver and passenger comfort and more cargo-carrying utility, including: ?? 2.1 inches more front-seat and 1.8 inches more rear-seat legroom
?? 1.4 inches more front-seat and 1.2 inches more rear-seat shoulder room
?? 6.7 cubic feet more standard and 4.8 cubic feet more maximum cargo volume
>> Greater Value: When the 2015 X3 xDrive 35i is comparably equipped, RDX AWD with Technology Package is priced (MSRP) an amazing $12,699 less! Popular features like a rearview camera, voice-activated controls, leather-trimmed seats, heated front seats, satellite radio, pushbutton ignition, and paddle shifters are all extracost options on X3.
>> Lower Overall Cost of Ownership: According to True Cost to Own? (TCO?) figures, the 2015 RDX AWD with Technology Package will cost its owners $11,760 less than the 2015 X3 xDrive 35i over 5 years and 75,000 miles. (TCO varies by location. Figures are for ZIP code 98026.) RDX's advantage is due to RDX's: ?? Lower depreciation ($6,662 less)
?? Better EPA highway and combined fuel economy ratings1
?? Significantly lower maintenance ($913 less) and repair ($1,528 less) costs (Lower maintenance cost difference includes the three years of included maintenance on the BMW.)
2015 RDX AWD Technology Package vs. 2015 Toyota Highlander Limited V-6 AWD Highlander strengths:
>> Three rows of seats/seating for 7
>> Greater maximum tow capacity
RDX's top advantages include:
>> Better EPA Fuel Economy Ratings1: In addition to RDX's slightly higher horsepower and torque output, it has a 1-mpg EPA city rating advantage, a 3-mpg EPA highway rating advantage, and a 2-mpg EPA combined rating advantage over the 2015 Toyota Highlander Limited V-6 AWD.
>> More Responsive Performance: RDX AWD with Technology Package weighs 656 pounds less than Highlander Limited V-6 AWD, resulting in quicker acceleration for better highway merging and passing when needed. (According to testing, RDX accelerates from 0?60 mph in 6.5 seconds vs. 7.3 seconds for Toyota Highlander V-6 AWD.) Paddle shifters are standard on RDX, Not Available on Highlander Limited V-6 AWD.
>> Premium Vehicle Appointments, Feature Content, and Warranty Coverage: The Toyota Highlander Limited V-6 is aimed at the mass market so can't match RDX's upscale styling and interior appointments. Premium features like speed-sensing interval wipers, High-Intensity Discharge (HID) headlights, and GPS-linked climate control are standard on RDX AWD with Technology Package but Not Available on Highlander Limited V-6 AWD. RDX also offers longer basic and powertrain warranties.
>> More Personalized Purchase and Ownership Experience: With their sophisticated technologies and extensive standard feature content, premium and luxury vehicles require that clients receive a more personalized experience. Given the sheer number of sales they must generate, mass-market dealers are rarely able or inclined to provide the same level of individualized attention.
02
Premium Experience/Exceptionally Well Equipped
The 5-passenger 2015 RDX AWD with Technology Package is also priced (MSRP) $1,295 less than the 7-passenger 2015 Toyota Highlander Limited V-6 AWD.
Feature and Specification Comparison (Vehicles with advantage for a given feature/specification are highlighted.)
Feature/Specification
Performance & Engineering Engine Size/Type Horsepower @ rpm (SAE net) Torque (lb-ft) @ rpm (SAE net) Variable Cylinder ManagementTM (VCM?) Direct Injection Transmission Hill Start Assist Paddle Shifters Drivetrain
2015 Acura RDX AWD Technology Package
3.5-liter V-6 273 @ 6,200 251 @ 5,000
Standard Not Available 6-Speed AT
Standard Standard
AWD
2015 BMW X3 xDrive 35i
3.0-liter I-6 Turbo 300 @ 5,800 300 @ 1,200 Not Available Standard 8-Speed AT Standard Standard AWD
2015 Toyota Highlander Limited V-6 AWD
3.5-liter V-6 270 @ 6,200 248 @ 4,700 Not Available Not Available 6-Speed AT
Standard Not Available
AWD
Brakes (Front/Rear) Suspension (Front) Suspension (Rear) Alloy Wheel Dimensions (Inches) Specifications Wheelbase (Inches) Track Front/Rear (Inches) Passenger Volume (Cubic Feet) Seating (Standard) Cargo Volume Standard/Maximum (Cubic Feet) Headroom Front/Rear (Inches) Legroom Front/Rear (Inches) Shoulder Room Front/Rear (Inches) Curb Weight (Pounds) Turning Diameter (Feet) Tow Capacity Maximum (Pounds) Comfort and Convenience Metallic Paint High-Intensity Discharge Headlights Power Moonroof Voice Activated Controls
GPS-Linked Climate Control Rearview Camera
Speed-Sensing Interval Wipers Navigation System Leather-Trimmed Seats Front Heated Seats Carpeted Floor Mats Surround Sound Audio System Satellite Radio Automatic Tilt-Down Exterior Rearview Mirrors Remote Keyless Access Pushbutton Ignition Safety & Security NHTSA Overall Vehicle Score NHTSA Frontal Crash Overall Rating NHTSA Side Crash Overall Rating NHTSA Rollover Rating
312-mm Ventilated Disc/305-mm Disc Independent Strut-Type Independent Multi-Link 18
328-mm Ventilated Disc/330-mm Ventilated Disc Independent Strut-Type Independent Multi-Link 18
328-mm Ventilated Disc/310-mm Disc Independent Strut-Type Independent Wishbone 19
105.7 63.1/63.4
103.5 5
26.1/61.3 38.7/38.1 42.0/38.3 58.7/57.2
3,852 38.9 1,500
110.6 62.8/63.4 Not Listed
5 19.4/56.5 40.7/39.1 39.9/36.5 57.3/56.0
4,230 39.0 3,500
109.8 64.4/64.2
142.2 7
13.8/83.2 39.5/39.6 44.2/38.4 59.3/59.6
4,508 38.7 5,000
Standard Standard Standard Standard (including for HVAC, Audio, Navi, and Bluetooth Devices) Standard Standard (Multi-view Rear Camera w/Dynamic Guidelines) Standard Standard Standard Standard Standard Standard Standard Standard Standard
Standard
Optional $550 Standard Standard
Navigation System $2,150
Not Available Driver Assistance Package $950
Standard Navigation System Premium Package $2,200
Optional $500 Optional $139 Harman Kardon Surround Sound System $875 Premium Package
Standard Standard Premium Package
Standard Not Available
Standard Standard (including Audio, Navi, and Bluetooth Devices)
Not Available Standard
(Multi-view Rear Camera w/Dynamic Guidelines) Not Available Standard Standard
Standard (also Ventilated) Carpet Floor Mats and Cargo Mat $225
Not Available Standard
Not Available Standard Standard
5 Stars 5 Stars 5 Stars 4 Stars
Not Rated Not Rated Not Rated Not Rated
5 Stars 4 Stars 5 Stars 4 Stars
IIHS TOP SAFETY PICK Status
No
No
2015 TOP SAFETY PICK+
IIHS Small Overlap Front Rating IIHS Moderate Overlap Front Rating IIHS Side Rating IIHS Roof Strength Rating
Not Rated GOOD GOOD GOOD
Not Rated GOOD GOOD GOOD
ACCEPTABLE GOOD GOOD GOOD
IIHS Head Restraints & Seats Rating IIHS Front Crash Prevention Rating
GOOD Not Available
GOOD BASIC (w/Optional Equipment)
GOOD ADVANCED (w/Optional Equipment)
Quality & Value Analysis
Rating 0?60 mph Acceleration (Seconds) ( Testing) EPA Fuel Economy Ratings1 (City/Highway/Combined mpg) ALG Residual Value 36/60 Months Basic Warranty (Months/Miles) Powertrain Warranty (Months/Miles) Base Price (MSRP) Destination Charge Comparably Equipped Price (MSRP)
A (Excellent) 6.5
19/27/22
50%/36% 48/50,000 72/70,000
$40,195 $920
$41,115
Not Listed 5.8
19/26/21
46%/32% 48/50,000 48/50,000
$45,500 $950
$53,814
A (Excellent) 7.3
18/24/20
55%/39% 36/36,000 60/60,000
$41,300 $885
$42,410
1Based on 2015 EPA mileage ratings. Use for comparison purposes only. Your actual mileage will vary depending on how you drive and maintain your vehicle.
Acura Frontline I January 2015 03
ILX Competitive Landscape
(Lease Offers)
When a client asks you to compete against competitive lease deals that are being advertised, suggest that you examine the details of the offer to make sure you are comparing comparable vehicles and conditions.
Also keep in mind that competitive lease offers typically do not include the added benefits of an Acura Luxury Lease such as:
>> Acura Loyalty Advantage, including Mileage Forgiveness? and Momentum Miles?
>> Excess Wear and Use Waiver
>> The lease offers may include additional fees such as a vehicle turn-in fee collected at lease end.
>> The lease offers may be limited to certain regions of the country. >> The lease offers are limited to very well qualified clients.
The real story of any lease offer is in the small print and lease promotions frequently include the following stipulations:
>> The lease offers are frequently limited to certain models that the manufacturer wants to move.
>> The lease offers are usually calculated on base trim levels or vehicles with limited equipment.
>> The lease offers usually include an upfront payment, similar to a down payment on a finance contract, in addition to the first month's payment, security deposit (if required), and other required fees to reduce the capitalized cost of the vehicle.
>> The lease offers frequently require a financial contribution from the dealership that limits the dealership's ability to negotiate further.
>> The lease offers include strict limits on the number of miles the lessee may drive--sometimes as few as 7,500 miles per year. Lessees are charged as much as $.25/mile for excess miles.
>> The lease offers sometimes require that the lessee qualify for special promotions such as a loyalty incentive for returning clients.
Here are some advertised lease offers available in ZIP code 98026 on January 6, 2015.
Vehicle Year/Make/Model
2015 Acura ILX 5-Speed AT
Monthly Payment
$209
2015 Audi A3 1.8
$285
2015 Lexus IS 250 AWD
$349
2015 Mercedes-Benz CLA250 Coupe
$329
Lease Term (Months)
36
36
36
36
Vehicle MSRP
$27,970
$33,775
$41,304
$34,725
Due at Signing
$2,399
$3,999
$2,499
+$750 Audi
Loyalty Incentive1
$3,723
Dealer Contribution
Yes
Yes
Required
Not Listed
Yes
Mileage Limitation
10,000/Year $.15/mile for excess miles
7,500/Year $.25/mile for excess miles
10,000/Year $.25/mile for excess miles
10,000/Year $.25/mile for excess miles
Vehicle Turn-in Fee
Not Listed
Not Listed
Not Listed
$595
Availability
Nationwide
Dealer Offer
10 Western States Nationwide
Expiration Date
Expires 03/02/2015
Expires 01/08/2015
Expires 02/02/2015
Expires 02/02/2015
1Lessees who do not qualify for Audi Loyalty Incentive must pay an additional $750 up front.
Selling the ILX 6-Speed Manual
Some clients, even those who consider themselves driving enthusiasts, may hesitate to consider the 2015 ILX 6-Speed Manual even though it promises an exhilarating driving experience, because of the manual transmission.
Encourage such clients to try the ILX 6-Speed Manual by:
>> Pointing out that, as noted by , the ILX 6-speed manual transmission is both easy and enjoyable to use.
>> Explaining how the Hill Start Assist feature helps drivers start out on a hill by briefly holding the brake while they move their right foot from the brake to the accelerator.
>> Offering to take the client to an empty parking lot to experience driving the car--with your coaching.
"Equipped with the 2.4-liter engine, the ILX is a different animal, as its sporting exhaust note and greater horsepower translate to quicker acceleration. We're also quite fond of the precision-machined action of the six-speed manual transmission, which is one of the easiest and most enjoyable to use in any car." ?
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Why Lease?
Leasing a new Acura vehicle through Acura Financial Services provides many potential benefits for your clients--and for you. Think of leasing as one of several financial tools at your disposal. Your task as a true automotive sales consultant is to help find the tool that is the best fit for each given client's circumstances. The better you are able to do that, the more successful you will be.
Why Lease: Client Benefits
Financial flexibility is an important consideration for many affluent clients. With multiple demands constantly being placed on their financial resources, the flexibility that leasing provides may be the right solution:
>> Less cash outlay up front: One of the biggest advantages of a lease is that it doesn't usually require a substantial down payment. In many states, clients can even pay the sales taxes as part of the monthly lease payment, rather than in a lump sum. This conserves capital for other uses and/or allows clients to obtain a new vehicle when cash flow is down.
>> Lower monthly payment: If the finance period is the same, the monthly payments will generally be lower when leasing compared to traditional financing because the payments are based on the vehicle's estimated depreciation. (The client contracts to use just a portion of the car's value, rather than buying the entire car). This means that the client can:
? Drive the same car for a lower payment--to conserve capital for other uses.
residual value in the lease contract at full term, the client can turn it in at the end of the lease term with no further obligation, assuming mileage and vehicle condition are within contractual limits. (If the vehicle is worth more, the client can purchase it for the residual amount and gain the benefit from the added value.) >> Tax advantage for business use: Clients who use a lease car for business purposes may find larger tax deductions with leasing than with buying a vehicle. (Always advise clients to check with their tax advisor.)
Why Lease: Sales Consultant Benefits
Leasing provides two primary benefits to sales consultants:
>> Leasing provides a means to help you provide additional and (possibly) better solutions to your clients, resulting potentially in more business.
>> Long term, a portfolio of lease clients provides a steady stream of high-quality business at regular intervals since lease clients must return at lease end.
? Can choose to drive the car for a shorter period of time for the same payment--to better match usage and needs.
? Can drive a better-equipped car for the same payment-- to obtain greater transportation value for the money.
>> Ability to change vehicles more often: A short-term lease makes it easy to drive a new car more frequently. Plus, if life changes demand a larger or smaller vehicle in a few years, a lease can make it easier to plan and adapt as needs change.
>> Guaranteed future value: The client doesn't have to worry about resale value. If the car depreciates more than the estimated
The Benefits of an Acura Luxury Lease
Not all leases are equal. Check with your business manager to learn the many benefits clients gain from leasing a new Acura through Acura Financial Services, including:
? Acura Loyalty Advantage
? Guaranteed Asset Protection (GAP) Coverage
? Excess Wear and Use Waiver
Acura Frontline I January 2015 05
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