FRONTLINE January 2015 Vol 17 Issue 1 Dedicated to the Success of the Acura Retail Sales Professional The Winning Edge: 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 ratings 1 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 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 for the majority of car shoppers looking for a compact luxury crossover, the 2015 Acura RDX receives an Edmunds.com A rating for bringing all the basics, done wonderfully well, in a keenly priced, easy-to-live-with package. 2015 BMW X3 2015 RDX AWD Tech Package 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 (continued on page 2)
(continued from cover) 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 Edmunds.com 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 ratings 1 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 Ratings 1 : 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 Edmunds.com 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) 2015 Acura RDX AWD Technology Package 3.5-liter V-6 273 @ 6,200 251 @ 5,000 2015 BMW X3 xdrive 35i 3.0-liter I-6 Turbo 300 @ 5,800 300 @ 1,200 2015 Toyota Highlander Limited V-6 AWD 3.5-liter V-6 270 @ 6,200 248 @ 4,700 Variable Cylinder Management (VCM ) Standard Not Available Not Available Direct Injection Not Available Standard Not Available Transmission 6-Speed AT 8-Speed AT 6-Speed AT Hill Start Assist Standard Standard Standard Paddle Shifters Standard Standard Not Available Drivetrain AWD AWD AWD Brakes (Front/Rear) 312-mm Ventilated Disc/305-mm Disc 328-mm Ventilated Disc/330-mm Ventilated Disc 328-mm Ventilated Disc/310-mm Disc Suspension (Front) Independent Strut-Type Independent Strut-Type Independent Strut-Type Suspension (Rear) Independent Multi-Link Independent Multi-Link Independent Wishbone Alloy Wheel Dimensions (Inches) 18 18 19 Specifications Wheelbase (Inches) 105.7 110.6 109.8 Track Front/Rear (Inches) 63.1/63.4 62.8/63.4 64.4/64.2 Passenger Volume (Cubic Feet) 103.5 Not Listed 142.2 Seating (Standard) 5 5 7 Cargo Volume Standard/Maximum (Cubic Feet) 26.1/61.3 19.4/56.5 13.8/83.2 Headroom Front/Rear (Inches) 38.7/38.1 40.7/39.1 39.5/39.6 Legroom Front/Rear (Inches) 42.0/38.3 39.9/36.5 44.2/38.4 Shoulder Room Front/Rear (Inches) 58.7/57.2 57.3/56.0 59.3/59.6 Curb Weight (Pounds) 3,852 4,230 4,508 Turning Diameter (Feet) 38.9 39.0 38.7 Tow Capacity Maximum (Pounds) 1,500 3,500 5,000 Comfort and Convenience Metallic Paint Standard Optional $550 Standard High-Intensity Discharge Headlights Standard Standard Not Available Power Moonroof Standard Standard Standard Voice Activated Controls Standard (including for HVAC, Audio, Navi, and Bluetooth Devices) Navigation System $2,150 Standard (including Audio, Navi, and Bluetooth Devices) GPS-Linked Climate Control Standard Not Available Not Available Rearview Camera Standard (Multi-view Rear Camera w/dynamic Guidelines) Driver Assistance Package $950 Standard (Multi-view Rear Camera w/dynamic Guidelines) Speed-Sensing Interval Wipers Standard Standard Not Available Navigation System Standard Navigation System Standard Leather-Trimmed Seats Standard Premium Package $2,200 Standard Front Heated Seats Standard Optional $500 Standard (also Ventilated) Carpeted Floor Mats Standard Optional $139 Carpet Floor Mats and Cargo Mat $225 Surround Sound Audio System Standard Harman Kardon Surround Sound System $875 Not Available Satellite Radio Standard Premium Package Standard Automatic Tilt-Down Exterior Rearview Mirrors Standard Standard Not Available Remote Keyless Access Standard Standard Standard Pushbutton Ignition Standard Premium Package Standard Safety & Security NHTSA Overall Vehicle Score 5 Stars Not Rated 5 Stars NHTSA Frontal Crash Overall Rating 5 Stars Not Rated 4 Stars NHTSA Side Crash Overall Rating 5 Stars Not Rated 5 Stars NHTSA Rollover Rating 4 Stars Not Rated 4 Stars IIHS TOP SAFETY PICK Status No No 2015 TOP SAFETY PICK+ IIHS Small Overlap Front Rating Not Rated Not Rated ACCEPTABLE IIHS Moderate Overlap Front Rating GOOD GOOD GOOD IIHS Side Rating GOOD GOOD GOOD IIHS Roof Strength Rating GOOD GOOD GOOD IIHS Head Restraints & Seats Rating GOOD GOOD GOOD IIHS Front Crash Prevention Rating Not Available BASIC (w/optional Equipment) ADVANCED (w/optional Equipment) Quality & Value Analysis Edmunds.com Rating A (Excellent) Not Listed A (Excellent) 0 60 mph Acceleration (Seconds) (Edmunds.com Testing) 6.5 5.8 7.3 EPA Fuel Economy Ratings 1 19/27/22 19/26/21 18/24/20 (City/Highway/Combined mpg) ALG Residual Value 36/60 Months 50%/36% 46%/32% 55%/39% Basic Warranty (Months/Miles) 48/50,000 48/50,000 36/36,000 Powertrain Warranty (Months/Miles) 72/70,000 48/50,000 60/60,000 Base Price (MSRP) $40,195 $45,500 $41,300 Destination Charge $920 $950 $885 Comparably Equipped Price (MSRP) $41,115 $53,814 $42,410 1 Based 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 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. 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. 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 2015 Audi A3 1.8 2015 Lexus IS 250 AWD Monthly Payment $209 $285 $349 $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 +$750 Audi Loyalty Incentive 1 Dealer Contribution Required Mileage Limitation $2,499 $3,723 Yes Yes Not Listed Yes 10,000/Year $.15/mile for excess miles 7,500/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 2015 Mercedes-Benz CLA250 Coupe 10,000/Year $.25/mile for excess miles Availability Nationwide Dealer Offer 10 Western States Nationwide Expiration Date Expires 03/02/2015 Expires 01/08/2015 Expires 02/02/2015 1 Lessees who do not qualify for Audi Loyalty Incentive must pay an additional $750 up front. Expires 02/02/2015 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 Edmunds.com, 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. Edmunds.com 04
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. 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 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. 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
2014 Was a Very Good Year! Congratulations and Thank You for a very successful 2014! A strong finish in December resulted in total sales of 167,843 for the year, an increase of 1.5% over our performance in 2013, and our best sales year since 2007. Strong sales performances by MDX, RDX, TLX, and ILX led the way. Highlights Highlights of the year in sales: MDX and RDX combined for new all-time annual and all-time monthly sales records resulting in combined year-to-date sales of 110,546 units, up 12.6%. December sales totaled 11,919, an increase of 10.7%. MDX continued as the brand s best-selling vehicle with sales of 6,761 for the month of December (up 3.4% over 2013) and 65,603 sales for the year, an increase of 23.7% over 2013. RDX recorded December sales of 5,156 (up 22.3% for the month) and annual sales of 44,865 units (up 0.3%). TLX is off to a great start, finishing with total sales of 19,127 since its mid-august debut even though December sales were somewhat limited by tight supplies of key models. New TLX Pricing Announced The following updated pricing has been announced for the 2015 TLX. Please quote the new pricing for ordered vehicles going forward: Trim Name New MSRP * Increase 4D 2.4 L4 8-Speed DCT $31,445.00 $450.00 4D 2.4 L4 8-Speed DCT w/technology Package $35,500.00 $475.00 4D 3.5 V-6 9-Speed AT $35,320.00 $100.00 4D 3.5 V-6 9-Speed AT w/technology Package 4D 3.5 V-6 9-Speed AT w/advance Package $39,375.00 $125.00 $42,600.00 $100.00 ILX posted a strong December with sales of 1,730 units, an increase of 10% over 2013. ILX posted annual sales of 17,854 units. Looking Ahead We see continued strong performance in 2015 with the upcoming product actions: Introduction of the redesigned ILX Introduction of the highly anticipated NSX supercar Congratulations and Thank You again for a successful 2014! We re looking forward to even greater things in 2015! Notes & Quotes Lower Price for Replacement Tire Sealant Bottles Acura Parts Division has set a new, lower price for the replacement sealant bottle for the Tire Sealant and Inflator Kit included with certain Acura vehicles. Effective October 6, 2014, the price (MSRP) for the replacement sealant bottle has been reduced to $33.33. Quotes TLX with 8-Speed Dual-Clutch Transmission The industry s first application of an 8-speed dual-clutch transmission with a torque converter gives 4-cylinder TLX models an edge in performance and fuel economy while delivering super-smooth, quick shifts. KBB.com 4D 3.5 V-6 9-Speed AT SH-AWD w/technology Package 4D 3.5 V-6 9-Speed AT SH-AWD w/advance Package *Prices do not include $895 Destination Charge. $41,575.00 $125.00 $44,800.00 $100.00 TLX V-6 with SH-AWD A top-line Acura TLX V6 model equipped with SH-AWD is the best of both worlds: the safety of all-wheel-drive traction on slippery roads and tremendous handling featuring sharp turn-in when pushed to the limits on dry pavement. KBB.com 06
Pull Your Own Strings: Take Control of Your Success in 2015! y Do you believe your success is mostly the result of your own efforts or that it is affected by outside influences beyond your control? Who s pulling your strings? Are you an innie or an outie? What s your locus of control? For example, how might you respond to the following situation? Acura has introduced a new or updated model and you ve just read a review of the vehicle by an automotive journalist, who is very critical of it. Which would you be more likely to say to yourself? y Oh man, this car has some problems and it s going to be tough to sell. What was Acura thinking? y Hey, I ve driven the car and I like it. This writer just doesn t understand what it is and what it has to offer. I think I ll be able to sell a bunch of em! The statement you selected provides an insight into whether you have an external or internal locus of control. (See the sidebar: Locus of Control.) Of course, the best way to determine what your tendencies are is to complete an assessment that includes a number of such pairs of statements. Such an assessment may be found at: http://www.mindtools.com/pages/article/newcdv_90.htm Take Control of Your Success If you ve been operating as if you re controlled by outside influences, here are some steps to help you adopt an internal orientation. y Monitor and change what you say to yourself and others: If you catch yourself blaming outside influences for your performance and behaviors, consciously change what you say to be more positive and self-directed. (Reviewing the articles, Mastering the Mental Edge in the January and February 2014 issues of Frontline is a good place to start.) y Set concrete and specific goals for yourself: Start by setting a goal that you can control like specifying the number of people you will contact every day. Track your results and if you still aren t selling the number of cars you d like to sell, increase the number of daily contacts you make. (Keep in mind that each contact you make is like planting a seed that may germinate to be harvested at a later date.) y Take action: Make your contacts every day. Arrive at the dealership ready to work and make every minute count. If you aren t talking to a client on the showroom, be contacting potential clients by telephone, text, email, or even snail mail. Work smart contact those people with the highest potential for a sale (e.g., people who ve recently contacted you, current clients in three-year-old vehicles, orphan clients coming off lease, loyal service clients, etc.). At the end of the day, push yourself to make one more call or send one more email. y Avoid hanging around people who are complaining: They waste your time and bring you down. Locus of Control Your locus (a Latin word meaning place or location ) can be either internal or external. If you have an internal locus of control, you think you re in charge of your life. If you succeed, you take the credit and if you fail, you blame yourself. If you define yourself with an external locus of control, however, you believe other people, your environment or a higher power controls what happens you re helpless. fastcompany.com TALK TO US! Print Individual Frontline Articles You are now able to print individual articles for your use from the electronic versions of Frontline available on the Acura Sales Portal. Check out this capability by going to the Jumbotron located on the Acura Sales Portal and clicking on the Frontline link to access the current issue. While you are there, click on TALKBACK to provide feedback on the current issue and this print functionality or to suggest future topics you d like to see covered. Acura Frontline I January 2015 07
The Acura MY2016 In-Dealership Training Tour Is Coming to Your Dealership! Acura has made some dramatic changes in the Acura lineup for MY2016. More than just a mid-model change, we have packed our vehicles for performance, with new drivetrains, new standard features, and new trim levels. Why? Because we listen to our clients. During this training event, you ll learn: What clients are saying they want How Acura listened and made those changes EVEN IN A MID-MODEL CHANGE YEAR The stories behind the ILX, RDX, MDX, and RLX The latest improvements to in-car electronics The new trim levels and packages for 2016 Visit www.acuralaunchtraining.com to confirm your contact information for tour communications. WHAT YOU NEED TO KNOW Training sessions are approximately three hours. Most dealerships will have two sessions. Contact your Sales Manager about which session to attend. Sales Managers are responsible for registration via eenrollment. Don t miss the Acura MY2016 In-Dealership Training Tour! Acura Frontline is published by the Auto Sales Division of American Honda Motor Co., Inc., Sales Communications Department solely as an informational aid for Acura Retail Sales Professionals. By publication of this material, Acura does not create any warranty either expressed or implied as to Acura products. Employees, representatives or agents shall not be held liable for any omission of data or inclusions of erroneous data. 2015 American Honda Motor Co., Inc. Printed in U.S.A.