Friday, March 25, 2016

Pricing Announced on Gas Nissan Titan XD – Enough to Sway Tundra Buyers?

Pricing has been announced on the gas version of the Nissan Titan XD and it is pretty close to the current MSRP of the Toyota Tundra. How close? Really close. Which leaves the ultimate question: will it sway buyers?

Pricing Announced on Gas Nissan Titan XD - Enough to Sway Tundra Buyers?

Nissan has announced the pricing on the gas version of the Nissan Titan XD. Is it close enough to the Tundra pricing to sway consumers?

Nissan says the starting price of their base “S” grade 4WD crew cab will be $38k. Looking at the comparable numbers, we found the pricing to be about $3k more for a Ford F-250 and the Toyota Tundra starts at $35k in the base, 4wd version.

This small price difference of $3k pretty much breaks down to about $50 for most buyers financing at 60 months by our calculations.

While rebates and incentives will play a factor in pricing, it is going to be an interesting discussion with buyers. Sure, when you are spending that amount of money and your payments are in the $500-600 range, $50 may not seem like a lot or will it?

Also, many consumers simply buy on price and not on what the differences in the trucks maybe. The Titan fits right in the middle of the F-250 and Tundra in price, yet it isn’t an apples to apples comparison on truck capability.

Tough Apples to Apples Comparison with Nissan Titan XD

For example, if you looked at a comparison online and saw the Tundra has a 5.7L V8 engine and the Titan has a 5.6L V8 engine, you would think they towed about the same. However, the frame, suspension and overall setup of the XD version of the Titan makes it a better towing rig than the Tundra – sorry Tundra fans.

Yet, how would you know that unless you brought a 10,000 lb trailer with you on your test ride at the dealer? You wouldn’t.

This makes it a tough proposition for Nissan. The Tundra is also known for towing prowess and Nissan is going to have a hard time convincing buyers its gas version is THAT MUCH better to justify the price increase.

Plus, the Tundra is known for its reliability while Nissan products don’t have the same track record. Paying $50 more a month for a truck that the Nissan says tows better than the Tundra without the numerous J.D. Power awards for reliability is a tough sell to some consumers.

Now, there are those who will immediately point to the F-250 and suggest prospective Titan XD buyers would just opt for the 3/4-ton. Frankly, I don’t see it. Why? The difference between the Nissan Titan XD and a half-ton comes down to towing heavy loads – a hard factor to distinguish for many buyers. However, the difference between the 3/4 and Titan is much easier to feel through ride comfort. Test driving these trucks back to back, it is obvious the Titan rides better. I know. I’ve driven the diesel version and then drove the F-250. I suspect the gas version will ride about the same. Not sure on the gas engine performance just yet.

Sure, there will be a variety of 3/4 truck customers who don’t care about ride quality, yet the market is changing. I hear from consumers and manufactures on how ride comfort is playing an increasingly large role in the buying process. Heck, ask many Tundra ex-owners and current owners and they will talk about ride comfort as well. It simply is becoming an issue for many new truck buyers.

What do you think about the pricing? Is it enough to sway Toyota Tundra buyers?

 

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