2007MY Chevy Suburban Continues Value Pricing
- February 24, 2006
- Cadillac, Chevrolet, GM, GMC, More Categories...
- Posted by George Peterson
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Pricing for 2007MY Suburban Follows Tahoe with a Drop in MSRP
According to an announcement from Chevrolet, a comparably equipped 2006 Chevrolet Suburban LS was $2550 more expensive than a 2007MY LS. This may well be true for the new Suburban’s MSRP, but the transaction price for the outgoing SUV was far lower than MSRP, sometimes varying appreciably from month to month. GM’s new approach to pricing is logical, whether customers can be weaned off incentives or not. If your vehicles almost never sell for full price and there is a significant difference between transaction prices and MSRP, the MSRP is clearly set above what customers are willing to pay. Moving MSRP and transaction prices closer together, in the long term, should improve the image of the brand. Some buyers will feel smart for getting the “great deal” incentives can appear to be, but others are turned off by constant loud and dramatic incentives.
While a 2006 Suburban 1500 4WD started at about $42,500, the LTZ package (which included the 6.0L engine) also added almost $11,000 to the price. For 2007, Chevrolet says the 4WD LTZ starts at $48,455. Though the trim package components may have shifted a bit, both LTZs get the bigger engine and there is a price drop between the models.
The reduced pricing strategy is supposed to help Chevrolet and GM reduce their dependence on rebates, incentives, a deal-of-a-lifetime sale periods, like last fall’s Employee Pricing for everyone and even the $5500 hundred sitting on the hoods of 2006 Suburbans through at least the end of February. Dropping the price by something in the neighborhood of $2500 can earn some goodwill as well as setting themselves up for potentially smaller rebates if they are needed down the road. Whether this really works with customers now conditioned to blow-out sales and large incentives remains to be seen.
Read on for the official Chevrolet 2007 Suburban pricing release.
Chevrolet Continues To Offer Top Selling SUVs At Best Prices
Suburban Maintains Momentum spurred by Chevy Pricing Strategy
CLEVELAND – Chevrolet announced pricing today on its 2007 Suburban, continuing a pricing strategy that helps customers understand the strong value offered by GM’s largest division. Chevy’s all new 2007 Suburban LS, equipped with a standard 5.3L engine, begins at $36,990; starting price for an LT 5.3L is $37,740; and an LTZ, equipped with 5.3L begins at $45,655. All prices include $875 Destination Freight Charge (DFC) and are 2WD. The LS model is $2,550 less than a comparably equipped 2006 LS.
Suburban four-wheel drive models begin at $39,790 for the LS; $40,540 for the LT; and $48,455 for the LTZ. Suburban 3/4 -ton, equipped with 6.0L engine pricing is as follows: 2WD LS begins at $38,165; 2WD LT is $38,915; 4WD LS starts at $40,965 and 4WD LT sells for $41,715.
“We continue to offer America ‘s Number 1 brand as well as America ‘s Number 1 value,” says Chevy General Manager Ed Peper. “We’re hearing from customers that they really like our strategy of bringing great vehicles to the market place at great prices.”
Chevrolet announced its new pricing strategy during the North American International Auto Show in January, showcasing exceptional pricing on the all-new Tahoe — the first of the new Chevy full-size trucks.
“Chevy’s goal is to bring expressive design and spirited performance combined with great value to its customers,” Peper says. “We know consumers are looking for more features and standard equipment at competitive prices, and that’s what we will offer.”
Currently, the Chevy Suburban has no direct competitors. The vehicle is capable of hauling more passengers and cargo than any other vehicle in the segment – and offers a 360-degree safety system of occupant protection and crash-avoidance technology that demonstrates GM’s commitment to providing world-class safety.
Led by strong full-size pickup and launch vehicle sales, Chevrolet was the best-selling vehicle brand in the United States in 2005. Chevy led the industry in total sales of sport utilities last year, with combined sales of 239,316 Tahoes and Suburbans. So far this year, Chevy full-size utilities sales are up 36.8 percent over last January and share is up 13.1 points. During January 2006, Tahoe and Suburban had a combined share of 50.7 percent, indicating that one out of every two full-size SUVs sales went to Chevy.
“More Americans buy Chevys than any other brand,” Peper says, “and we intend to defend our sales position with a continued strong product assault in 2006, led by our new trucks.”
Chevrolet is America ‘s No. 1-selling automotive brand. With the largest dealer network in the United States, Chevy is the leader in full-size trucks and the leader in sales of vehicles priced $35,000 and above. In addition, Chevrolet delivers more-than-expected value in every vehicle category, offering cars and trucks priced from $9,995 to $72,235. Chevy delivers expressive design, spirited performance and great value with standard features usually found only on more expensive vehicles.
Chevrolet’s global headquarters is at the GM Renaissance Center in Detroit. For more information, go to www.chevy.com.