DSM guys... best thing about the Ralliart!

Fourdoor · Oct 24, 2009, 08:56 AM

As an oldschool DSM guy, I have to say the best thing about the Ralliart is the price to performance ratio!

Back in the late 90's sticker price on a 2G AWD was about the same as a Ralliart is today, but it had slower 0-60 time, slower 1/4 mile time, smaller brakes, smaller wheels / tires, less power, tinny stock turbo, tinny stock intercooler, open front differential, Viscus coupling center and rear differential, less advanced AWD system, less utility, less base model features, less optional features, crank walk, and about the same sticker price.... but that was in 1998 dollars!

Using on-line inflation cost calculators a loaded 2G AWD that would have cost you $28,000 in 1998 would have cost you $36,985 in 2008. So, if you look at purchase power of those dollars, the 2G AWD cars were going for the equivalent price of an EVO GSR today. This right here is one of the reasons Mitsubishi almost went bankrupt... they priced the AWD DSM's way above what they should have cost and wondered why they didn't sell well.

Now we can get all these great features in a car that cost 28,000 in todays dollars...
The same purchase power today would have bought you crap from Mitsubishi back in the day. $28,000 in todays dollars would have been about $21,500 in 1998 dollars... about the price of a non-turbo FWD 2G DSM in 1998.

Keith

japan101 · Oct 24, 2009, 06:33 PM

That is a nice bit of information to share at a local meet to start a conversation.

505RA · Oct 24, 2009, 07:44 PM

interesting info, i never thought if it that way.(what i could have gotten back in the day for the equivelent of todays 28,000)

Fourdoor · Oct 24, 2009, 11:08 PM

Why it came to mind was the many people who heckle the Ralliart owners saying that you could almost get a bare bones basic EVO GSR for the same price as a loaded Ralliart, and that got me thinking about what was available for the same price from Mitsubishi a few years ago. The Ralliart is an incredible bargain, and the EVO is actually priced about the same as a loaded AWD DSM was back in the day making it a heck of a bargain as well.

Keith

TTP Engineering · Oct 24, 2009, 11:15 PM

The economic times offset the savings though and bring you back to square one again.

Fourdoor · Oct 24, 2009, 11:49 PM

Quote:

Originally Posted by TTP Engineering

The economic times offset the savings though and bring you back to square one again.

????

What are you talking about?

Yeah, if you are out of work you can't afford a Ralliart... pretty sure that if you were out of work in 1998 you could't afford a 2G AWD DSM either. One slow year doesn't wipe out 10 years of inflation.

Keith

TTP Engineering · Oct 24, 2009, 11:54 PM

Yes, people are not spending the money they used to. If Mitsu released this pricing during the housing boom 2-4 years ago it would make sense. They would seem cheap. After the housing market bubble bursting, people are wary of spending money and unemployment is at an all time high.

EricJ@AMS · Oct 25, 2009, 12:03 AM

If you can't afford a 28k car due to being out of work, you wouldn't be able to afford a 24k car either. I don't think Mitsubishi's pricing is out of line, if that's what you are saying.

TTP Engineering · Oct 25, 2009, 12:26 AM

The Ralliarts are the best deals out there for a performance sedan, period.

Comparing 28,000 for a DSM from that era to 28k today with worse economy is not as far of a spread monetarily considering the state of the economy. People are not spending money like they use to, period and more people are on a budget as well as finance companies tightening finance terms.

Ladogaboy · Oct 25, 2009, 02:21 AM

I don't think the economy has that much to do with how much we are getting for our money; I think it is simply a matter of competition. If you applied inflation, and Mitsubishi attempted to sell a car like, say, the Ralliart for $36k, they would have a hard time. Not because people couldn't afford $36k for a car, but because too many other competitors can offer more for the money.

Let's not forget that the median income is a little over $45k a year, and that is an important number. Most people are not going to pay as much for a car as they make in a year, regardless of the economy, and I'm sure there is some percentage of income that the bean counters for various auto manufacturers determined was the cutoff for what most (and that is key: MOST) people would be willing to pay. If you consider that the median income has not changed significantly in the last 10 years (maybe up $4-5k at most), a $28k price tag for this type of vehicle is very appropriate.

Once you take into consideration what your customers are willing to spend and what your competitors are able to offer at that price, you can figure out your pricing and what you want to include. In the case of the RA, we got a lot of stuff for the money, but I wouldn't say it is that much better than the DSMs. They were the best we could get at the time (and had very little competition in that class, other than the Dodge versions).

Rough 01 · Oct 25, 2009, 06:43 AM

The economy sucks right now and a lot of people are having very hard times. This doesn't stop the person who has to buy a car (not "wants" to buy a car). My previous vehicle turned out to have water damage and the electrical system was shorting out.

I was able to get an 09 Ralliart for $23,500 + taxes ($4,000 less than any Subaru I looked at). I've only had the car for 3 weeks but I feel the fun/cost value is amazing. I can't believe there aren't more of these cars out on the streets.

jkennedy293 · Oct 25, 2009, 07:11 AM

You really can't compare the prices of the two cars based on inflation. Time generally makes technology cheaper, so you will always get a bigger bang from your buck.

For example, if you took an '83 Camaro and adjusted the price for inflation it would cost a ridiculous sum compared to today's vehicles, and woefully lack in every category, but thecar was on par with cars made in that year.

Trojan man · Oct 25, 2009, 07:45 AM

when you look at the exchange rates for usd to yen is when you really see the difference in the money that Mitsu is actually making on these cars - since they are designed, sourced, and built in Yen (correct me if i'm wrong about the RA built in Japan).

1998 $1 = 118 Y

2009 $1 = 92 Y

So that's an additional 22% reduction in income that mitsu makes on each RA compared to what it made on the 2g's. It's amazing that we're able to get this pricing, but not amazing why mitsu is having trouble staying competitive in the US market.

show time · Oct 25, 2009, 07:49 AM

$23,400 For mine and I am happier then a pig an S!#T! I don't care R/A/, Evo light, what ever they want to call it. 4B11 T with AWD! This is my 4th lancer (O2 OZ,04 R/A,08GTS,09R/A) and its worth every single penny. I finally got to step up and the mods are in the mail.

Fourdoor · Oct 25, 2009, 07:59 AM

My main points were these:
1. We have a great car at a reasonable price.
2. The AWD 1G DSM's were a great car at a reasonable price, the AWD 2G DSM's were a great car at an unreasonable price.

I base number 2 on a comparison with it's competition in the car industry. In particular look at the Ford Mustang. In the early 90's (1990/1991) you could get a Ford Mustang with 215 HP for around the same cost you could get a 1G AWD dsm with 195 hp... pretty comperable performance AND price. By the late 90s you could get a 2G AWD DSM with 210 HP, or for the same price get a Mustang Cobra with 320 HP. No comparison on the $$$ to performance ratio.

They did the same thing to with the 3000GT. In the early 90's (91/92) you could get a 1G AWD 3000GT with 300 HP for the same cost as a Corvette of the same year with 250 HP... pretty comparable performance and price due to the much lower weight of the Corvette. By the late 90's you could get a 2G AWD 3000GT with 320 HP for the same price as a Corvette of the same year with 345 HP... during that some time period both the DSM and 3000GT gained a huge amount of weight while the Mustang and Corvette went up in weight very little. The Corvette performance skyrocketed upwards while the 3000GT for the most part stayed the same.

They priced themselves out of the market and wondered why the cars didn't sell. They have now returned to a reasonable price point and are doing much better. They are still one step behind the current competition on advertised HP from the factory. The WRX STi has had a higher advertised HP from the day it arrived here compared to the same year EVO, and the regular WRX has more advertised HP than the Ralliart. A 30 HP bump on the EVO and Ralliart would cost Mitsubishi very little, and would increase sales.... someone please explain to me why they haven't figured this one out?

Keith