Favorable New Car Prices

May 24th, 2022 by

Kia Country offers favorable new car prices in a difficult and competitive environment. New car prices have risen 12.5% since January 2021. Driven by a chip shortage that has impacted global manufacturing, production, and supply, the average new car price is just above $47K according to Consumer ReportsEdmunds.com estimates that 82% of all new vehicles are being sold above MSRP. Pre-pandemic it was common for dealers and manufacturers to offer incentives up to $2000 below MSRP.

Kia Prices

A recent study by Cox Automotive, the parent company of AutoTrader.com and KBB.com revealed that 40% of customers are willing to pay up to $5000 over MSRP and that only 37% of buyers intend to wait for prices to drop. In fact, some manufacturers have started to see minor improvements in inventory which may help to stabilize prices.

According to KBB, the average Kia dealer is selling vehicles above MSRP. Even so, the average transaction price of a new Kia is over $10K less than the $47K average of all new cars. Clearly, Kia still provides a compelling choice. As always, KIAs represent considerable value over many competing brands, in terms of features, equipment, dependability, cost of ownership, and an industry-leading warranty.

We understand customers’ frustration with both vehicle availability and pricing. We are making every effort to find vehicles and maintain reasonable price adjustments. Our sales management team regularly checks pricing to maintain competitiveness and recently analyzed Kia model prices within Kias’ Southern Region. Kia Country’s prices for the Sportage, Soul, Rio, K5, Carnival, and Forte are lower than the regional average. Prices for the Sorento were slightly higher but the averages do not account for a trim level or optional features. The few Sorentos we’ve had in 2022 have been fully loaded top trim level units. The fact is many consumers will travel within the region for the best value. We are mindful of our competition and strive to maintain favorable pricing.

While these price adjustments are difficult for some to swallow, it is prevalent across the industry.  Online brands, like Tesla, just bake the increase into the sales price. Some Tesla models have had $20k price increases this year.

Price pressure is further fueled by surging pre-owned vehicle pricing.  If your two-year-old model is still worth what you paid for it; or considerably more in some cases, it follows that there must be added value in a similar new vehicle as well. We will pay top dollar for your well serviced, preowned family vehicle whether you trade it or we buy it from you.

All things being equal, Kias still presents an incredible value compared to the competition, and each and every new model that is introduced is an award winner. Don’t miss out on the hottest products in the market today.