If there’s a poster car for wholesale heaven, the Mercury Milan is it. No surprise in my neck of the woods. The oft-forgotten sibling of the Ford Fusion is flogged by a dealer network dwarfed by Ford’s name brand Goliaths. More to the point, around Atlanta, it seems like Lincoln/Mercury dealers are either closing shop, changing brands or giving-in to the white flag of consolidation. I saw over 50 Milans today. Only 10 sold. The number of Lincoln Mercury dealers buying? Zero. The Toyota Prius, on the other hand, is on fire. I saw a low-end 2004 model go for $15,800. When you incorporate the auction’s fee, that equates to a $2500 premium over a similar Prius on Ebay’s completed items section. Near-new Priora are following suit. Low-mileage 2008 examples were only going for around $21k a few weeks back. Many of them are now selling in the $23k to $25k range. When the Prius factory comes on-stream in ‘Ole Miss, prices should ease. But will they? A rising tide may lift all boats, but the Volt begins life seriously outgunned.
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Can you get one of these w/ the 4-banger and a stick?
I’ll be interested to see what happens to Prius resale values after the 8 year/ 100,000 mile mark.
That’s when the warranty on the battery pack expires and since a new one will cost a bundle, I would expect the market to price that (possible) cost in. We’ll have to see what the failure rates are.
As of this past June, the price of a a new battery pack from Toyota had been lowered to $3000. In a few years, who knows? But still the cost equivalent of, say, a new transmission in other cars.
“Can you get one of these w/ the 4-banger and a stick?”
yes you can, I’ve never actually saw one in the flesh, but yes you can.
SWMBO and I had been looking at the Fusion/Milan for her winter beater,
the only requirement was the AWD package, which included the V6 and 6 speed
tranny. We drove a bunch of them, made offers on the purchase price, though we
were shopping for the 2008 models, none of the dealers would bite on what I
thought was a good deal for all parties concerned.
She went shopping on Sunday, you know, with the girls type of shopping,
and came home with a 2008 Subaru Imprezza, for 17K, and it’s the exact car
that we shopped Ford/Mercury for. AWD, bargain basement price, good economy,
and cheaper than the F/M offerings…
No wonder they’re in the shit…
SteveL
@jjdaddyo
a recent post here mentioned the battery pack is now 2300 – I assume that’s taking into account the $300 trade in value on a spent pack. That’s getting close to to the cost of major engine/tranny work which starts to become likely around then on a normal drivetrain. Although the early reports on the prius are that the battery is good well past 100k miles, we’ll see if they age by time as well. I would not be surprised to find an 8yr/50k mile battery pack to be at the same level as an 8yr 150k pack.
EDIT: FWIW, here’s the post https://www.thetruthaboutcars.com/toyota-to-build-cng-hybrid-camry/
i personally thought the battery price drop for the prius was a bigger deal than the cng camry.
You can certainly get a Milan with the stick and the four cylinder. Today I even tried to find one. But unfortunately they are as rare at the auctions as TDI’s in good condition. However if you want a Premier with leather, you could have just thrown a rock in any direction at today’s sale. You would have hit at least two.
In Ford’s defense, the Impreza and Milan are at two very different price points. The Milan is a direct competitor to the Camcords and has a more upscale interior while the Impreza hits the very upper end of the Civic range and a nice swath of the Jetta’s price point.
On a related tangent I like Subarus, and my wife absolutely adores the Outbacks of the mid to late 1990’s. I’ve had four SVX’s and about a dozen other models including a 1993 Impreza that I bought for $25 and sold on Ebay… which was then driven all the way back to California by a rally coordinator for Subaru. Now THAT was an amazing experience.
Unfortunately, Subarus have a very tough battle in the southeast region due to the fact that very few people here need AWD. The few who do don’t want to ante up to the Subaru’s price premium. Two dealerships in Atlanta have closed despite the fact that Subaru has a slightly upscale image in the marketplace here. A new one opened recently, but Subaru is quickly becoming a regional player in a way similar to that of Saab and Volvo. Subaru has a nice swath of the Northern country, while the other two makes are still only predominant in the Northeast.
Having had a rental Ford Fusion, I never really appreciated the car until I had the (dis)pleasure of renting some other domestic cars shortly after. I couldn’t really see the point of the Mercury, nothing on it screamed upscale compared to the Ford. Locally, many Ford, Lincoln and Mercury are sold at the same dealership, so the servicing doesn’t seem like it would be superior. Their marketing must be terrible, I either didn’t know, or didn’t pay attention that there was an AWD model. Who knows, I might have considered one, if they offered a wagon or a hatchback. Instead, I bought a 2008 Subaru Impreza. I don’t think the comparison is completely insane. In 2008 the Impreza grew in size so that it is about as large as the older Legacy was, but it is still smaller than a Milan. Unfortunately, Subaru wasted all of their improvements to the suspension by making it softly spring like an American car. Well, at least that’s what you think until you actually get in to a Toyota and realize what it would have felt like had Subaru actually turned the car into a complete sponge.
Unfortunately, Subaru wasted all of their improvements to the suspension by making it softly spring like an American car.
if you want the Impreza but think its too soft then get it altered – like a suit, its never going to be right just out of the dealer. a good set of tyres, springs & shocks, new cams, tune and exhaust should work nicely.
“I saw over 50 Milans today. Only 10 sold.”
If only ten sold, I assume the other forty couldn’t bring bids high enough to meet the reserve. I can’t believe there’d be absolutely no bids. Surely buyers would offer, say, $10-12K as a “can’t lose” bid. Might it be the seller (FoMoCo?) had unrealistic expectations that Milans should bring significantly higher prices than Fusions? Edmund’s says trade-in for an ’07 Milan Premiere is about $15K, roughly a grand more than for a comparable Fusion. Personally, I don’t see why.
If Fusions are selling well (or at least better than Milans), my guess is the problem is (a) Mercury’s invisibility, and/or (b) Milan’s ugly two-tone interior decor.
As usual, the better vehicles currently coming out of Detroit are actually based on vehicles that are engineered and designed by the Japanese. The Fusion/Milan uses the Mazda6 platform, just like the Pontiac Vibe is actually a Toyota Matrix underneath. Maybe that’s why some Lincoln/Mercury dealers think they can get away with holding a hard line on Milan prices.
As to the Prius battery-pack issue, the Prius has been in production since 1997 and in the US since 2001, meaning that the 8-year warranty will soon be expiring on the first US Priuses, so the longevity and replacement costs of the battery-packs for US cars are just now being seen in actuality.
From what can be gathered, battery-pack replacement and cost haven’t yet been a major issue with any of the non-US Priuses that have been in production since 1997.
My Lincoln-Mercury closed in July – the owner accepted Ford’s offer to close shop.
The owner was third generation, and is a smart guy – he has a PhD. He could see the writing on the wall for Ford, and Mercury in particular.
I’m waiting to see where he turns up in the auto industry.
HEATHROI :
if you want the Impreza but think its too soft then get it altered – like a suit, its never going to be right just out of the dealer. a good set of tyres, springs & shocks, new cams, tune and exhaust should work nicely.
It is insane to buy a new car that needs several thousand dollars of modifications to be the way you want it. That is why I went from a 2 time Subaru Impreza owner to a VW GTI owner, in fact. I was set on buying an 07 WRX until I realized I hated the stock wheels, tires, struts, springs, and swaybars. I started shopping around and found I could get a GTI exactly how I wanted it right from the factory. A year and a half later, I’m completely happy with my completely stock, 32mpg highway GTI. Subaru seems to have finally removed their head from their posterior with the 09 WRX giving it proper tires and suspension from the beginning. I purchased my 01 2.5RS with the intention of fixing the things that were wrong (spoiler, painted sideskirts, different wheels, tires, sway bars). Now that I’ve given the car to my little brother, that was $2k down the tubes. I should have left it stock or bought a different car.
I actually prefer the Milan’s external appearance to the Fusion (does that make me a “girly-man”? – wait, don’t answer that!), but the Fusion was more often seen with the 2.3/5spd.
But, as per Ford and their goofy options parsing, it was hard to find either model with the exact mix of options that you wanted; you had to order the car. I think that turned a lot of people away.
HEATHROI:
You’re right on the money. A substantial portion of the driving experience is based on components that can easily be replaced. Most folks aren’t aware of this, and I’m surprised that very few dealerships offer these modifications or at least consider informing the customer of specials once the vehicles ages.
50Merc:
Edmunds is very good at pricing older model vehicles (5 years and beyond). For the nesr-new stuff they are useless. I seriously doubt any of the 2007 vehicles could have gone past 13k retail without a heaping help of financing.
The interior of the Milan is decent. But I despise the slab like leather seats and the tones within the interior are sometimes discombobulated depending on the option package you get. The only other Ford product that has even worse interiors is the Lincoln Zephyr which is truly horrendous.
Quentin:
If VW had produced their cars in the U.S., I suspect that their sales would be far stronger than they are today.
shaker:
I agree with you. The Fusions exterior is completely destroyed by the razor blade front fascia and the deformed rear taillights. I do like the rest of the car… but Ford needed a Euro design for the NA market and didn’t get it.
In looking around, one does tend to see many more Fusii than Milan. I have a 2006 SE with the 5 spd/4 cyl drivetrain. Overall, I do like the car. Came with the sunroof and has the steering wheel stereo controls along with the alloy rims. Is it in the same league as an Accord? No, but I don’t consider it that far off the mark. I like the styling, though I’m not over the moon with the interior (but then again, it seems every car not costing $50k has nearly 100% plastic interiors. Can’t anybody put a swath of cloth on a door anymore??). It’s comfortable and roomy, quiet over the road and has a big trunk. And the kicker is that I bought it for a good bit under $12k used (primarily because the dealer had falsely advertised it as a six cylinder with five speed, which doesn’t exist in FWD trim…so I called him on it and got more taken off of the asking price!). For that coin, I don’t think I could have bought an Accord/Camry, especially with what few options I have on it. It ain’t my dream car, but for the next few years it will do its duty to get me and my family around. Funny, as I kind of prefered the styling of the Milan to the Fusion, but the cost difference wasn’t/isn’t justified (hmmm…like just about every other badge-engineered derivative car!).
Interesting article, Steven…now would be a good time for a full-fledged editorial detailing how various models are doing on the wholesale market, and how their demand (or lack thereof) reflects on the parent manufacturer’s current condition.
I like the Fusion grille, but the taillights have to go. The update planned for 2010 does look promising.
To get back to the original post, it takes a couple of reads to see that the subject is about auction activity. The typical percentage of cars sold at a given auction is 60-70% so it is very common for any brand of late model cars to have a low “sold” number. The Prius would be an exception for now because of demand. One downside of using auction prices as a guide is that a person wanting a specific car can have a “dealer friend” bid on that unit and drive the price artificially high because it is for someone, rather than sit on a lot for 30-60 days. That could account for the out of whack prices you see for some units. You could have used any brand of late model car to make the point that the Pruius is hot right now. Judging by the number of Corollas and Camrys in the Hertz fleet, there are going to be days when there are large numbers of them at auction, also with “no sale” on many units. In the end this post is yet another unjustified rip on domestic brands.
I actually don’t mind the styling of the Fusion/Milan so much. Wish they would’ve given them the Taurus/Sable name instead of that boat that was the 500 but that’s another discussion. And if the price is right I can’t afford an Accord I’d buy one.
It is insane to buy a new car that needs several thousand dollars of modifications to be the way you want it.
I tend to agree with this, but since TTAC readers usually aren’t the masses it probably makes sense for the companies to do the things as they do. My latest gripe is that the standard wheels/tires on a 2007 Accord don’t fit the wheel wells. If I bought one I’d have to invest in new tires and wheels to widen the stance and fill up that huge overhang. Seen a few like that and it makes a world of difference. Maybe that’s why I buy used, because I know I’ll be dropping a few extra $$ just to customize my ride. When the depreciation has fully bottomed out at well over 100k miles I sell to local high school kids. Seems to work ok.
I think the Fusion/Milan is a very handsome car, and having sat in more than a few it also sems well-sorted. However, for the same money, all the Domestic Backers can go out and get the marvelous Malibu, which beats the snot out of the FoMoCo offerings on almost every metric – especially gas mileage. The poor MPG ratings of the Fusion/Milan has stricken it from my list of next cars, and it doesn’t look like they’re upping the game any in 2009 according to fueleconomy.gov, while the Malibu is getting bumped up some (mostly as the 6-speed tranny makes it’s way down the line). The Fusions/Milan is coming in at the bottom of almost every family sedan comparo I’ve seen recently, though in my opinion if it could be brought above 31 MPG highway it would get a lot more lookers.
So, battery packs for Prii are down the “same cost as a replacement engine or transmission”.
Question: Who in their right mind would ever buy a used car KNOWING it needed major repair work?
austinseven :
So, battery packs for Prii are down the “same cost as a replacement engine or transmission”.
Question: Who in their right mind would ever buy a used car KNOWING it needed major repair work?
as long as it’s factored into the price why not?
austinseven, you buy a used car knowing it MIGHT need major repair work. Big difference, for varying values of MIGHT.
One possibility with Prii batteries is in the future you may be able to purchase a snazzier Li-ion pack when your nickel pack goes south. That would help make such a cost more palatable to a user, knowing they can make the car better than it was new with a component they have to replace anyways at some point.
Nickel packs lose capacity over time though, its not just like one day the thing goes from hero to zero. How bad does it get on a Prius by year five compared to driving it off the lot? Does anyone know if there is an impact on the fuel economy of a Prius as the battery goes south over time? It would make the notion of a 2006 46 MPG Prius not a genuine claim. Not that I would condone such behavior, but there is a possibility that could even be a class-action lawsuit if you can get John Edwards and his ilk sniffing money from flush Toyota for “false advertising” or some horseshit that “justifies” a shark attack on Toyota.
geeber: “now would be a good time for a full-fledged editorial detailing how various models are doing on the wholesale market”
I second the motion. I love your reports from the “real world.”
plee: “The typical percentage of cars sold at a given auction is 60-70% so it is very common for any brand of late model cars to have a low “sold” number.”
And I’d love an explanation of how dealer-only auctions work. I gather the prices paid are many thousands under retail prices, but how can sellers that need to thin inventory afford to wait months for vehicles to bring a satisfactory bid? Aren’t huge incentives on new cars making near-new used cars a bad alternative?
I’ll third the motion, there is a lot of interesting insight in the comments on TTAC and I’m all for hearing more from Steven. Would love to read a piece or 10 from mikey as well.