Lexus Leads U.S. Luxury Vehicle Registrations in 2015

[krew]

krew

Lexus leads this year’s U.S. luxury automotive market in new vehicle registrations despite being third in sales behind Mercedes and BMW.

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[spwolf]

hm... is it possible that small number of MB and BMWs are exported hence the difference in numbers?

 

[corradoMR2]

Not sure I understand the difference between being sold to the dealership (registrations) versus consumers (sales). Are the ones sold to dealerships include loaner vehicles perhaps?

 

[IS-SV]

Not sure I understand the difference between being sold to the dealership (registrations) versus consumers (sales). Are the ones sold to dealerships include loaner vehicles perhaps?

I'm thinking it's this way:

Sold to dealership (considered as automaker sales even if it sits on lot)
Sold to individual owners (registration) , or in tech business considered as "sell thru" to end customer.

 

[CIF]

Yes IS-SV has it correct.

To put it in the simplest terms, registrations are actual cars in customer's hands.
Sales, are those vehicles that have been "sold" to dealers, but that may be currently sitting on the lots, so not actually in the customer's possession yet. This "sold" number can also include those already sold to customers. The definitive number of vehicles in customer's hands though is the registration number.

 

[corradoMR2]

Got it, makes sense. In short, the more meaningful number though is registrations (sold to individual owners) IMO since this is ultimately a reflection of customer acceptance of the product and bottom line revenue for the company overall.

I'm thinking it's this way:

Sold to dealership (considered as automaker sales even if it sits on lot)
Sold to individual owners (registration) , or in tech business considered as "sell thru" to end customer.

Yes IS-SV has it correct.

To put it in the simplest terms, registrations are actual cars in customer's hands.
Sales, are those vehicles that have been "sold" to dealers, but that may be currently sitting on the lots, so not actually in the customer's possession yet. This "sold" number can also include those already sold to customers. The definitive number of vehicles in customer's hands though is the registration number.

 

[mmcartalk]

Yes IS-SV has it correct.

To put it in the simplest terms, registrations are actual cars in customer's hands.
Sales, are those vehicles that have been "sold" to dealers, but that may be currently sitting on the lots, so not actually in the customer's possession yet. This "sold" number can also include those already sold to customers. The definitive number of vehicles in customer's hands though is the registration number.

In some cases, though, "sales" can also include fleet-sales to rental-car companies, taxi companies, government agencies, police/fire departments, and limo-firms.

 

[IS-SV]

In some cases, though, "sales" can also include fleet-sales to rental-car companies, taxi companies, government agencies, police/fire departments, and limo-firms.

Of course sales include fleet sales (because they are sales) and so do registrations (including government agencies, even if fees are $0 in some states) Therefore the ratio of sales versus registrations doesn't change even for automakers with fleet sales.

 

[Carmaker1]

So, in other words, Lexus might be selling "more" than their competitors overall and considered "best-selling". I do not mind, as we are not that competitive in terms of sales and are hurt more by BMW and Mercedes-Benz than Lexus outside of the US and Middle East.

 

[mikeavelli]

I have no issues with fleet sales though, business's need cars many times. Hell Rolls Royce biggest order is not for customers, it is for high end hotels. They would be fools to say not to the order.
http://www.businessinsider.com/rolls-royce-hong-kong-macau-casino-2014-9

It is commendable Lexus is is #1 with consumers but fleet sales are needed many times.

 

[CIF]

Got it, makes sense. In short, the more meaningful number though is registrations (sold to individual owners) IMO since this is ultimately a reflection of customer acceptance of the product and bottom line revenue for the company overall.

You are partially correct; registrations are indeed reflective of the customer acceptance and ownership of the product, but sales as well as registration both reflect and affect the bottom line revenue. So even though sales are to dealerships, that still counts towards revenue. Obviously though any models sitting at dealerships are not in customer's hands, and not reflective of customer acceptance, until they become registrations.

 

[IS-SV]

And the more lingering cars that are on dealerships, the more likely "channel stuffing" has occurred, which is why "days on hand" in relation to inventory levels is a indicator often watched.

 

[spwolf]

You are partially correct; registrations are indeed reflective of the customer acceptance and ownership of the product, but sales as well as registration both reflect and affect the bottom line revenue. So even though sales are to dealerships, that still counts towards revenue. Obviously though any models sitting at dealerships are not in customer's hands, and not reflective of customer acceptance, until they become registrations.

quite often at the end of quarter and especially FY, we have manufacturers stuffing dealers to get better numbers... dealers do not pay for these vehicles right away.

So registrations are in general the best way to get actual sales. Reasons for small discrepancies could be channel stuffing as well as exports outside the USA.

 

[mmcartalk]

quite often at the end of quarter and especially FY, we have manufacturers stuffing dealers to get better numbers... dealers do not pay for these vehicles right away.

So registrations are in general the best way to get actual sales. Reasons for small discrepancies could be channel stuffing as well as exports outside the USA.

In addition to not having to pay for them right away, dealers sometimes get "holdback fees" from the manufacturer to help move certain vehicles by the end of the month.

 

[CIF]

quite often at the end of quarter and especially FY, we have manufacturers stuffing dealers to get better numbers... dealers do not pay for these vehicles right away.

So registrations are in general the best way to get actual sales. Reasons for small discrepancies could be channel stuffing as well as exports outside the USA.

Ah great point, I didn't even think of that .

You're right then, registrations are in fact the best way to get actual sales, based on the dealer stuffing you mentioned.