When do you think supply will catchup to or surpass demand?

[Logic717]

Honestly my wife loves this vehicle and we have been considering the palisade as well because of the lower demand/price for that but I’m wondering when the high demand for the telluride will be satisfied so that prices can stabilize. I’m in no rush for the purchase but I’ve had my eye on this since last year and hoping it’ll happen some time next spring. Thoughts?

 

[Familyman20]

When's the next Olympics?

 

[noles1983]

No idea, when I first got serious looking into this vehicle a few months ago, I was surprised by the demand. Figured nobody would be buying vehicles during a pandemic that has millions unemployed. The supply issues with COVID didn't surprise me, I guess the unrelenting demand for a 50k vehicle has though. Annoying, to say the least.

 

[Tellthemride]

“When the sun rises in the west, sets in the east. When the seas go dry. When the mountains blow in the wind like leaves.”

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[Logic717]

View attachment 8889
“When the sun rises in the west, sets in the east. When the seas go dry. When the mountains blow in the wind like leaves.”

So you saying there’s a chance?

 

[jw_tx21]

So you saying there’s a chance?

A chance, in the not so distant future. Yes.

 

[ebox3000]

Do what I did, call every dealership in the state looking for the one that doesn’t charge above MSRP. Ask for your preferred trim/color and then wait until it comes in. I got lucky and didn’t have to special order. Ordered July 17th, delivery is 8/29. If you don’t need a vehicle ASAP, then it’s the way to go.

 

[Tellthemride]

Do what I did, call every dealership in the state looking for the one that doesn’t charge above MSRP. Ask for your preferred trim/color and then wait until it comes in. I got lucky and didn’t have to special order. Ordered July 17th, delivery is 8/29. If you don’t need a vehicle ASAP, then it’s the way to go.

I feel like this was a one time deal since KIA was trying to get a bunch of nightfall editions pumped out to promote their new 2021 MY update. Even before fulfilling a bunch of backorders too for customers who have been waiting months already. If buyers were to try this on a non-nightfall, especially a prestige, they would probably have very little success not ordering through the proper channels.

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[alexdrums]

Honestly my wife loves this vehicle and we have been considering the palisade as well because of the lower demand/price for that but I’m wondering when the high demand for the telluride will be satisfied so that prices can stabilize. I’m in no rush for the purchase but I’ve had my eye on this since last year and hoping it’ll happen some time next spring. Thoughts?

Given that Kia is a relatively small company, the demand will probably only cease when a competitor can manufacture a vehicle equal to the Telluride. That could be some time.
Maybe when Hyundai does a redesign of the Palisade?

 

[StephenCantrelle]

Keep in mind this is with zero advertising... zero special finance rates like 0%.. zero rebates other than 500 cash taking higher APR through Kia.. in my opinion this continues till next fall at earliest even with increasing production levels

 

[ms8613a]

Keep in mind this is with zero advertising... zero special finance rates like 0%.. zero rebates other than 500 cash taking higher APR through Kia.. in my opinion this continues till next fall at earliest even with increasing production levels

We will be saying this 18 months from now as well

 

[Logic717]

Well damn.

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[ebox3000]

I feel like this was a one time deal since KIA was trying to get a bunch of nightfall editions pumped out to promote their new 2021 MY update. Even before fulfilling a bunch of backorders too for customers who have been waiting months already. If buyers were to try this on a non-nightfall, especially a prestige, they would probably have very little success not ordering through the proper channels.

ya, that's why I said I got lucky. This guy said he's not in any hurry... so find the dealer that doesn't charge a "market adjustment" request/order the one you want and just wait. Now, if you need a car asap, say after an auto accident or something, that's a different story. You'll be taking the bus for a long while. I'm fortunate that I want the Night Fall Edition and happened to start looking for a Telluride just as they were coming online.... now if the car would just show up at the dealership. I want my new toy!

 

[BrendonSF]

If the factory keeps cranking at it's current pace, my mildly informed opinion is that we'll start to see some noticeable ease on the supply side come October in many markets. There's a major backlog after the covid shutdown, but production is currently at record levels, and dealer allocations have been tweaked for 2021 to better supply some of the more difficult markets (such as California).

Other factors:
-Competition is catching up (Redesigned Toyota Highlander, Ford Explorer, etc)
-Economic conditions are likely to further put a damper on car sales
-The new Kia Seltos will likely poach some Telluride buyers

 

[StephenCantrelle]

If the factory keeps cranking at it's current pace, my mildly informed opinion is that we'll start to see some noticeable ease on the supply side come October in many markets. There's a major backlog after the covid shutdown, but production is currently at record levels, and dealer allocations have been tweaked for 2021 to better supply some of the more difficult markets (such as California).

Other factors:
-Competition is catching up (Redesigned Toyota Highlander, Ford Explorer, etc)
-Economic conditions are likely to further put a damper on car sales
-The new Kia Seltos will likely poach some Telluride buyers

Highlander clients are frustrated with redesign and them reducing 3rd row room. So imo since they are on 5 year redesign turnarounds are not a factor.
Explorer is nice but at a higher price point even if you get from dealers with markups.
The Seltos is the size of a HRV so not really in any way in comparison. Maybe you are meaning to say the 2021 Redesign Sorento?

It is great to finally seeing them crank out units again and at a higher pace than ever before. We shall see how things progress over the next 6 months

 

[Tellthemride]

If the factory keeps cranking at it's current pace, my mildly informed opinion is that we'll start to see some noticeable ease on the supply side come October in many markets. There's a major backlog after the covid shutdown, but production is currently at record levels, and dealer allocations have been tweaked for 2021 to better supply some of the more difficult markets (such as California).

Other factors:
-Competition is catching up (Redesigned Toyota Highlander, Ford Explorer, etc)
-Economic conditions are likely to further put a damper on car sales
-The new Kia Seltos will likely poach some Telluride buyers

@jw_tx21 Will quote you on this come October. Better have an answer ready for him.

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[mrmac]

Honestly my wife loves this vehicle and we have been considering the palisade as well because of the lower demand/price for that but I’m wondering when the high demand for the telluride will be satisfied so that prices can stabilize. I’m in no rush for the purchase but I’ve had my eye on this since last year and hoping it’ll happen some time next spring. Thoughts?

Anything can happen between now and next spring, however, I bet there is a better chance of reaching equilibrium by next summer than there is this year.

If you set the whole idea of "price" aside, and look just at value, the Telluride's value currently exceeds its price-point.

Most new model SUV's are either out, or known to potential buyers. There is nothing comparable at the Tellurides's price-point, other than the Palisade. The market has decided the Palisade has less appeal. The exploder is priced too high compared to its value proposition. The Highlander and Pilot both excel at BORING. I see none of this changing before next summer.

I think the general population is done with this whole virus drama. Thus, while supply is increasing, so is demand.

I just checked Manheim Auctions and there are 2 pre-owned Tellurides on the line, an "S" and an "LX."

The "S" has nearly 46,000 miles, is 2WD, and the price is $35,000. The "LX" has 1,921 miles, it's average auction value is $33,500 with a price of $40,700.

Thus, there isn't enough pre-owned to relieve the demand for new.

Even once supply and demand reach equilibrium, I expect MSRP to be the normal acquisition price for a long time....

 

[MarcinTexas]

I think the only thing that will dampen demand on the Telluride is when the Sorento comes out. And that is assuming KIA can build those fast enough. The Sorento, K5 and Telluride all come from the same factory that is running at peak capacity right now. I hope KIA builds a ton of the new Sorentos before launching it so they have some dealer inventory. @StephenCantrelle might be able to give some insight on when the Sorento launches - but suffice it to say at this point - KIA has the best possible problem on their hands - a vehicle that will have waiting list well into its second year - and long term reviews by magazines such as Car & Driver and Motor Trend are showing this is a solid vehicle. About the time demand subsides - KIA will do a refresh on it...and demand will go up again.

 

[Logic717]

Good thing we’re not in a hurry. At the very least the extra time gives me more time to save up haha. Targeting a regular 2WD or AWD SX non-p so hopefully that’ll be in less demand than some of the other combos. If not then we may go with the palisade limited. Those can be found for 42k new near me.

 

[mrmac]

Good thing we’re not in a hurry. At the very least the extra time gives me more time to save up haha. Targeting a regular 2WD or AWD SX non-p so hopefully that’ll be in less demand than some of the other combos. If not then we may go with the palisade limited. Those can be found for 42k new near me.

Yes, for those who don't find the Palisade ugly, they should buy it versus waiting for Telluride prices to drop.