Current prices / lease options

  • Thread starter Thread starter jkerbow
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shepdave said:
I paid $1K less than MSRP, which, according to the sales guy, included a $2K rebate from Kia. When I asked him why, then, the dealer's price was only $1K less than sticker, he said that it's because there was a $1K markup that the dealer put on.

This corresponds to my experience with the dealer where I test-drove a Niro EV three weeks ago. Those guys were going to charge a full $3,400 above MSRP. I had no interest in that; but it tells me that dealers around here are getting away with marking the price up beyond the sticker price.
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I've said it before - the problem KIA faces in selling EVs is their dealer network.
 
Jim Matthews said:
I've said it before - the problem KIA faces in selling EVs is their dealer network.
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This isn't a KIA exclusive thing; just about every brand is facing supply shortages and mark-ups on new and used vehicles. A few months ago I was cross shopping the Hyundai Ioniq EV (the original sedan) and it was marked up over $8000 (when you include "market adjustment" + high price "required" dealer add-ons), making the price over $50k OTD. We ended up getting one of the remaining 2020 Niro EVs that was still on a KIA dealer lot for a significant discount.
 
I'm suspicious that traditional dealerships are marking up EVs $7500 to drive buyers toward their ICE cars. My local Hyundai and KIA dealers did not want to go or the lease cash offered on either the Kona or Niro EVs. I had to go out of state and have it shipped. Here in the NorthEast, KIA has a deservedly horrible reputation for backward thinking, aggressive sales tactics (4 square) and marginal service staff.

At least most Hyundai dealerships cross-train with Genesis materials.

If the KIA EV6 and Ioniq 5 are to sell in appreciable numbers, they must be spun off from the main dealer network - it's that bad.
 
Jim Matthews said:
I'm suspicious that traditional dealerships are marking up EVs $7500 to drive buyers toward their ICE cars.
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Why would they? The dealer cares about net profit and probably to a lesser extant ROI (but unless they are losing sales due to not enough selection on the lot, or end of year inventory taxes are large per unit, I can't imagine ROI plays much role.) Unit profit needs to be balanced between maximizing that and driving the sale away.

Unless the dealer can manage a higher markup on the ICE car, what would be their motivation to drive people to that? If the same markup on both drives folks to buy ICE, that is just the market, right? Or am I missing something?
 
David T in Silicon Valley said:
Why would they? The dealer cares about net profit and probably to a lesser extant ROI (but unless they are losing sales due to not enough selection on the lot, or end of year inventory taxes are large per unit, I can't imagine ROI plays much role.) Unit profit needs to be balanced between maximizing that and driving the sale away.

Unless the dealer can manage a higher markup on the ICE car, what would be their motivation to drive people to that? If the same markup on both drives folks to buy ICE, that is just the market, right? Or am I missing something?
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My experience when shopping for my EV back in August of 2020 was EVs that had been on the lot for nearly a year were not discounted by dealers. This was prior to the pandemic.

The motivation to do so is in parts, repairs and necessary service an EV won't need, but an ICE vehicle does. Even if it's warranty service, there's more to fix with a gas powered car.
 
Every car on the dealer's lot costs them money every month in interest payments (aka "floorplanning"). This ongoing cost incentivizes the Sales Manager to not keep cars lingering on the lot. The Sales Manager doesn't give two beans about service revenue - that's someone else's responsibility.
If dealers are marking up cars (or not discounting them), it's for one reason only: the dealer makes more net profit on the sale.
 
skidad68 said:
If dealers are marking up cars (or not discounting them), it's for one reason only: the dealer makes more net profit on the sale.
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My point is that when a dealership raises prices on EVs (that haven't sold in 90 + days) while discounting standard ICE models, there's unclear motivation at play.

When KIA started tacking on "Dealer Adjustment" fees to the popular Telluride, it made sense from a demand standpoint.

At less than 3000 EV units sold, Nationwide in 2020 - something else is in play. I don't agree that it's a simple calculus.
 
I wish we had a bit more of a "grant" in Ontario. I did get $5k off from the federal grant at least, just no provincial money :(

Paid MSRP minus the 5k off. well plus their little fees and licensing/freight. I think it was around $52ish CAD.
 
CR EV said:
opps...this one was supposed to go in the Consumer Reports thread...sorry about that. Interesting note about current cash back, though
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If you're on mobile, you can delete your post by tapping on the 3 horizontal lines, then delete.
 
Jim Matthews said:
My experience when shopping for my EV back in August of 2020 was EVs that had been on the lot for nearly a year were not discounted by dealers. This was prior to the pandemic.
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I think we were in the pandemic already at that time.

I remembered there were a lot of dealer discounts and mfg rebates when I shopped for a Pacifica Hybrid ($11k off) in early September and a Nissan Leaf ($14k off) in late November.
 
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