Edmunds' Senior Analyst discusses the numbers behind Infiniti's sole U.S.-built product.
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Beyond the number and spreadsheets, I actually have a few other pastimes. I like to eat. I like to travel. I like to watch TV. So, you can only imagine my excitement when my worlds collided and I saw a promo for Bravo's Around the World in 80 Plates. Travel AND food on TV — what was there not to love? Apparently a lot. I watched the first episode and found it pretty disappointing. I never tuned in again, but the frequent Infiniti product placement spots stuck with me. In fact, among the grand prizes for the winning chef, the participants were competing for a new Infiniti JX, among a host of other items. With an average transaction price of nearly $50K, it's a pretty sweet prize for these chef-testants who seemed easily perplexed.
The JX is the newest nameplate from Infiniti, is built here in the USA, and has sold 5,297 units in its first three months on sale. So even though Around the World in 80 Plates didn't gain me as a viewer, I am interested in taking a closer look at its grand prize.
1.7%
The JX competes in the midrange luxury SUV category, which has made up 1.7% of the market in 2012. But, don't let that small number fool you. 1.7% is more than the combined market share of Mini, Land Rover, Fiat, Porsche, Suzuki, Jaguar and Smart. It also outsells its car counterpart in the midrange luxury category.
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This is a very lucrative segment for automakers. If you take a look at all of the different luxury segments, midrange SUV has the lowest price-to-incentive ratio. This translates into more profit for automakers. In 2012, the incentive spent to sell these vehicles was 7% of the purchase price. This is lower than the industry average of 11%. Bottom line is that a vehicle in this category should be able to sell itself and not rely on big automakers budgets. Luckily, the JX hasn't had to report much in regards to incentive spending. And as an all-new vehicle, it shouldn't. What little money that has been spent has gone to a subsidized leasing program, which is normal. The JX lease rate is fairly on par with what you'd expect for a new vehicle from the segment — 37%. It's slightly higher than the midrange luxury SUV category, which tracks in the low 30% range. YTD, midrange SUV has the lowest lease penetration rate of all luxury categories with the exception of its big brother, premium luxury SUV.
Beyond the number and spreadsheets, I actually have a few other pastimes. I like to eat. I like to travel. I like to watch TV. So, you can only imagine my excitement when my worlds collided and I saw a promo for Bravo's Around the World in 80 Plates. Travel AND food on TV — what was there not to love? Apparently a lot. I watched the first episode and found it pretty disappointing. I never tuned in again, but the frequent Infiniti product placement spots stuck with me. In fact, among the grand prizes for the winning chef, the participants were competing for a new Infiniti JX, among a host of other items. With an average transaction price of nearly $50K, it's a pretty sweet prize for these chef-testants who seemed easily perplexed.
The JX is the newest nameplate from Infiniti, is built here in the USA, and has sold 5,297 units in its first three months on sale. So even though Around the World in 80 Plates didn't gain me as a viewer, I am interested in taking a closer look at its grand prize.
1.7%
The JX competes in the midrange luxury SUV category, which has made up 1.7% of the market in 2012. But, don't let that small number fool you. 1.7% is more than the combined market share of Mini, Land Rover, Fiat, Porsche, Suzuki, Jaguar and Smart. It also outsells its car counterpart in the midrange luxury category.
This is a very lucrative segment for automakers. If you take a look at all of the different luxury segments, midrange SUV has the lowest price-to-incentive ratio. This translates into more profit for automakers. In 2012, the incentive spent to sell these vehicles was 7% of the purchase price. This is lower than the industry average of 11%. Bottom line is that a vehicle in this category should be able to sell itself and not rely on big automakers budgets. Luckily, the JX hasn't had to report much in regards to incentive spending. And as an all-new vehicle, it shouldn't. What little money that has been spent has gone to a subsidized leasing program, which is normal. The JX lease rate is fairly on par with what you'd expect for a new vehicle from the segment — 37%. It's slightly higher than the midrange luxury SUV category, which tracks in the low 30% range. YTD, midrange SUV has the lowest lease penetration rate of all luxury categories with the exception of its big brother, premium luxury SUV.
