Should I buy a Holden?
Holden has announced massive discounts to clear discontinued stock.
Car buyers have been advised to tread carefully when considering heavily discounted Holden models.
Following General Motors’ (GM) announcement that the Holden brand would be retired in Australia, dealers have slashed prices of discontinued vehicles to clear stock.
The amount of savings on individual models is unclear, but it is understood dealers have been told to “move quite quickly” in clearing remaining stock as part of GM’s $1.1 billion exit package.
RACQ Principal Technical Researcher Russell Manning warned consumers not to be blinded by the price tag and to consider servicing, warranty and resale value before making a purchase.
“From what I see, the public hasn’t been persuaded by the discounts,” Mr Manning said.
“Consumers seem to be staying away from Holden dealers in droves, though what they’re offering is quite good on paper.
“The reality is Holden got into this situation because they had product that wasn’t attractive to buyers and discounting it hasn’t appeared to change anything.”
Mr Manning said he did not believe the discounted prices would be beneficial to consumers when it comes to their resale value.
“While there’s no doubt discounting will help move stock, I don’t believe we will see a stampede of consumers heading to Holden dealerships,” he said.
“When you start discounting Holdens, or any new cars for that matter, it affects resale value down the track, particularly in this case as the Holden brand recognition begins to fade.
“There have been some discussions Holdens will go up in value as they’re no longer made in Australia, but I think that might be optimistic and only time will tell.
“If anything, that’s likely to apply to Australian models, not the imports we’re dealing with at the moment.”
GM Holden Interim Chairman and Managing Director Kristian Aquilina said the company would honour all warranties and servicing offers made at the time of sale.
“Holden will provide servicing and spare parts for at least 10 years, through national aftersales networks in Australia and New Zealand,” Mr Aquilina said.
“As required, Holden and its aftersales network will also continue to handle any recalls or safety-related issues if they arise, working with the appropriate governmental agencies.”
Through the retirement of the Holden brand, 800 employees will lose their jobs, but GM will ensure 200 employees remain in Australia for the next decade to meet warranty and servicing obligations.
Mr Manning said while warranty and support would not be an issue, the timeliness of the service may become one.
“My personal view is we may see some service issues,” he said.
“There will be a reduced workforce within the remains of Holden to figure out problems or work on things like software patches to fix issues.
“It doesn’t mean they won’t get done. It just means it might be slower than customers are used to.
“Parts will still be available, but there will likely be fewer dealers.
“We understand all dealers have the opportunity to retain their Holden service operation, but a lot are likely to transition to other brands, so you may have to travel a bit further to access servicing.”
Holden Customer Care is available to answer customer inquiries and all warranties and service agreements. Contact 1800 46 465 336 or visit www.holden.com.au