2011 Hyundai Equus targeting ‘people that can afford to spend more but don’t see the need to’

I like that simple marketing mission.

There is a growing number of consumers that aren't as impressed with the typical German/Japanese luxury brands and see the Equus as a way to have the same levels of luxury w/o having to spend 2-3 times the money.

The Equus should be able to compete with an S-class or 7-series or LS with available interior content & gadgetry that's become expected with the luxury brands that's been around for decades. It also seems that the Equus will immediately be a tough competitor to the US domestic brands as they usually come up short when compared to comparable foreign makes.

I agree that it's a good marketing mission as well. However, I must add that my husband and I are in our twenties and make a combined income of around $125k, and by no means would we consider ourselves able to to afford a 50k car, let alone one that costs more, as Hyundai posit. This is not because we're "poor", but because it doesn't seem like a fiscally responsible decision, when there are so many good, slightly used cars in the $25k range. Therefore, we still have money left over when emergencies happen.

Perhaps buying cars valued at half of one's annual income is part of the reason this country (the USA) is in a financial pinch at the moment: people buying things they really shouldn't be. Just my $0.02.

@Foreigner

Ditto and +1,000,000. Seriously, I laugh at people who have no business spending a large chunk of their incomes on BMWs. I'm skeptical our savings rate will remain where it is, but this recession should have taught us a thing or two about spending responsibly.

Initially this was lexus strategy as well!

Hyundai pulling great strides no matter how much you all hate on them. I may not buy their car any time soon, I certainly respect their effort. While they are moving forward, established entry level luxury brand maker Acura, FAILS miserably. Just watch in 5 years Hyundai will gain more respect. Most won't admit it though. I'm an S-class and LS driver and I can acknowledge this Equus as a great car from Hyundai. Not the same level but certainly following footsteps like the LS did when it first started. It's off on the right steps.

It is a sensible strategy, however if I could afford something "more" then I'd probably go for "more", because I find the Hyundai pretty hideous to look at.

The problem as I see it is that Hyundai isn't a new brand.. for years and years and years I've seen the manky old bloated looking inferior and massively ugly faded dull red Hyundai coupes on our roads, and it will take a long time for my image of a Hyundai to move away from that, however good the product is.

If it comes with an iPad, I'll consider it.

I was in Seoul last month and was driven around in an Equus for a week. I was amazed at the quality of the vehicle, and I generally enjoy making fun of Hyundai. At any rate, I'm a convert for this vehicle. It certainly is a good alternative to a Benz or BMW.

While in Seoul, I was driven in an S500 and the Equus, after the 3rd day, I told them to bring the Equus. A much better car to be driven, specially w/ massage and reclining seats, audio and 3 screens w/70 plus satellite channels to watch and beat that miserable traffic.

Hyundai is crazy if it is targeting people who only make $125,000 to buy this car. This is a "family" car which means this family of 4 has to pay for the following as well:
1. house
2. food
3. children's education

$125,000 after taxes/health insurance/401K is $85,000. That comes to $7,000 per month.

Housing expense: $3,500 (mortgage, taxes, insurance)
Home maintenance: $300
Utilities/phone/internet: $500
Food: $500
Education/childcare/clothes: $1000
Fuel and maintenance for 2 cars: $300
Entertainment: $200
Car payments: $700

$700 for car payments means you are most likely buying a brand new fully loaded Camry/MiniVan not an Equus.

The family that can afford an Equus is the $150,000 annual income crowd.

A single guy in his 50's with no kids would NOT be buying an Equus - wouldn't he rather get a BMW coupe? Any coupe? Mid-life crisis is not solved by the Equus. He's more likely to get a used Cayman.

*Looks around in shock*

^That family needs to manage their money better! Utilites, Home maintenance, and Clothes per month is insane but what do I know.

Whatever though. *shrugs shoulders and goes back to filing nails*

Equus has the price, have you ever thought about that??

If I am going to spend that much money to buy a car, definitely it is not a Hyundai. I will go for big name instead of no name.

@Tennis_Player

That just means you're a lemming. Hyundai never planned to market to lemmings in the first place with the Genesis and now the Equus.

I've seen the marketing before, yeah, worked real well for the Pheaton.

The Genesis isnt doing well here? Someone just said the same thing about the new Taurus! Those cars are everywhere in Chicago!

So many in LA too...

you're right. it's exactly what lexus and infiniti have done. worked for them.

Well, traditionally most 50k cars are sold on lease (most BMW's are). Lease terms tend to sit well with those who want the luxury treatment (aka warranty coverage, dealer attention etc) and if one looks at the cost of these leases they tend not to be really that expensive (way cheaper than buying). The kicker is that Leases tend to be writeoffs as expenses as opposed to buying (becomes an asset) . So for those who are self employed, they are a no brainer. (Wont go into the over 6000lb tax loophole)
The important thing with Leases is residual value hence a BMW 3'er can be better value than a A4 simply because of that.
In this particular segment ( to whom Lease is a better choice), the Hyundai is a bad choice from the financial standpoint ...as depreciation will be far higher then on a more expensive (BMW, MB, Lexus etc.) unless its highly subsidized by Hyundai.

High mileage drivers should never lease. If you drive at least 18,000 miles a year like I do, a lease simply does not work. The mileage penalty will kill you come time to return the car.

translation: people who don't really care much about cars. exactly who lexus has always targeted.

The strategy and product are sound, but the target demographics is off. They should be looking for household income of about twice that $125k amount to find people able but uninterested in spending more. Both the Equus and Genesis also need an AWD option to fully compete in the Northern parts of the US. All their competitors have this option and most examples in this class I see rolling around are AWD.

"people that can afford to spend more but don't see the need to" usually drive Camry's, Accords, Hybrids and other various economy cars.

A 50k car is never a need. It's a want.

targeting ‘people that can afford to spend more but don’t see the need to’ Is what Subaru has been doing for years!! No other car company has a higher percentage of it's vehicle bought in cold hard cash then Subaru for this reason....they are missing the boat.

Im going to say that the car is targeting people who want people to *think* they have money, but chose to be cheap and not buy a real luxury car.

I'd buy this car just to see the looks on the faces of my business partners/associates as I park it alongside their 760s, S63s, and LS460s. The ensuing confusion and storm of questions would be a lot of fun. In looks alone the Equus definately plays the part.

Nice enough car, but as others pointed out, $150k ain't what it used to be, especially if you have kids. Where I live, that household income is easy to come by, but the average home costs upwards of 500-600k in a decent neighborhood, so I don't see many responsible families buying cars that cost north of 30-35k.

I drive a honda and the wife a MDX and I feel like we're spending too much give we have 2 kids.

Luxury is in the mind of the beholder. Some beholder's should get their minds checked. This car should be a hit.

Walmart dose not sale fine wine.

and this idiot Huu76 said koreans would also be embarassed to drive Hyundais, come to LA where the second largest Korean population is, in Koretown and see what they are driving...Hyundais, a lot of them.