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Is Pricing Going to Get Better This Decade?

zhelder

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While we all knew the Telluride (and yes, the Palisade too) were going to be a resounding success, I have to admit I didn’t think the pricing and availability insanity was going to last as long as it has. We’re ten months in (approaching 6 on the Palisade), and the gouging appears to be getting worse. It seems to be a whisker better for the Palisade than the Telluride, but it’s nuts for both vehicles.

I’m starting to think that paying above MSRP is going to be the norm for at least three years, if not longer. Any thoughts on this?

Even if the gouging keeps going, I’m already planning my NJ to Muncie trip when I’m hopefully ready to buy in the next six months to a year. A 10 hour trip to save $10,000 on the car (including the typical NJ dealer Tony Soprano mark-up price) seems like a small price to pay. Plus, I always wanted to try a Culver’s.

Is it gonna get better soon or is this going to be our norm?
 
You know the deal, when it does eventually calm down, it will be because Kia raised the price. Badabing! Furghettabouit!
 
While we all knew the Telluride (and yes, the Palisade too) were going to be a resounding success, I have to admit I didn’t think the pricing and availability insanity was going to last as long as it has. We’re ten months in (approaching 6 on the Palisade), and the gouging appears to be getting worse. It seems to be a whisker better for the Palisade than the Telluride, but it’s nuts for both vehicles.

I’m starting to think that paying above MSRP is going to be the norm for at least three years, if not longer. Any thoughts on this?

Even if the gouging keeps going, I’m already planning my NJ to Muncie trip when I’m hopefully ready to buy in the next six months to a year. A 10 hour trip to save $10,000 on the car (including the typical NJ dealer Tony Soprano mark-up price) seems like a small price to pay. Plus, I always wanted to try a Culver’s.

Is it gonna get better soon or is this going to be our norm?

It won't get better soon. Kia is selling into a white hot market for 3 row mid-size SUVs, and it's still in 9th place among mass-market targeted vehicles. Kia just can't manufacture enough of them to meet demand. They also have an allocation process that rewards the high volume dealers who have markups.

Based on average monthly sales, here's the order...

(1) Highlander
(2) Explorer*
(3) Traverse*
(4) Pilot
(5) Acadia*
(6) Atlas
(7) Ascent
(8) Durango*
(9) Telluride
(10) Pathfinder
(11) Palisade
(12) CX-9
 
While we all knew the Telluride (and yes, the Palisade too) were going to be a resounding success, I have to admit I didn’t think the pricing and availability insanity was going to last as long as it has. We’re ten months in (approaching 6 on the Palisade), and the gouging appears to be getting worse. It seems to be a whisker better for the Palisade than the Telluride, but it’s nuts for both vehicles.

I’m starting to think that paying above MSRP is going to be the norm for at least three years, if not longer. Any thoughts on this?

Even if the gouging keeps going, I’m already planning my NJ to Muncie trip when I’m hopefully ready to buy in the next six months to a year. A 10 hour trip to save $10,000 on the car (including the typical NJ dealer Tony Soprano mark-up price) seems like a small price to pay. Plus, I always wanted to try a Culver’s.

Is it gonna get better soon or is this going to be our norm?
Dealers in NJ are trying to mark it up 10k for you?!
I ask because I bought mine in NJ (Sansone) for MSRP minus incentives, granted it was ordered to exactly what we wanted. I went in for my first oil change 2 months ago, saw an SX-P available on the lot and a member from this group picked it up that night for MSRP minus incentives as well.
It does not seem like you'll get Costco pricing, but if you want to save yourself the trip, there are definitely dealers in NJ that charge MSRP..
______________________________
 
While we all knew the Telluride (and yes, the Palisade too) were going to be a resounding success, I have to admit I didn’t think the pricing and availability insanity was going to last as long as it has. We’re ten months in (approaching 6 on the Palisade), and the gouging appears to be getting worse. It seems to be a whisker better for the Palisade than the Telluride, but it’s nuts for both vehicles.

I’m starting to think that paying above MSRP is going to be the norm for at least three years, if not longer. Any thoughts on this?

Even if the gouging keeps going, I’m already planning my NJ to Muncie trip when I’m hopefully ready to buy in the next six months to a year. A 10 hour trip to save $10,000 on the car (including the typical NJ dealer Tony Soprano mark-up price) seems like a small price to pay. Plus, I always wanted to try a Culver’s.

Is it gonna get better soon or is this going to be our norm?
Things will calm down. Something will be hot next year. KIA didn't ex
While we all knew the Telluride (and yes, the Palisade too) were going to be a resounding success, I have to admit I didn’t think the pricing and availability insanity was going to last as long as it has. We’re ten months in (approaching 6 on the Palisade), and the gouging appears to be getting worse. It seems to be a whisker better for the Palisade than the Telluride, but it’s nuts for both vehicles.

I’m starting to think that paying above MSRP is going to be the norm for at least three years, if not longer. Any thoughts on this?

Even if the gouging keeps going, I’m already planning my NJ to Muncie trip when I’m hopefully ready to buy in the next six months to a year. A 10 hour trip to save $10,000 on the car (including the typical NJ dealer Tony Soprano mark-up price) seems like a small price to pay. Plus, I always wanted to try a Culver’s.

Is it gonna get better soon or is this going to be our norm?
While we all knew the Telluride (and yes, the Palisade too) were going to be a resounding success, I have to admit I didn’t think the pricing and availability insanity was going to last as long as it has. We’re ten months in (approaching 6 on the Palisade), and the gouging appears to be getting worse. It seems to be a whisker better for the Palisade than the Telluride, but it’s nuts for both vehicles.

I’m starting to think that paying above MSRP is going to be the norm for at least three years, if not longer. Any thoughts on this?

Even if the gouging keeps going, I’m already planning my NJ to Muncie trip when I’m hopefully ready to buy in the next six months to a year. A 10 hour trip to save $10,000 on the car (including the typical NJ dealer Tony Soprano mark-up price) seems like a small price to pay. Plus, I always wanted to try a Culver’s.

Is it gonna get better soon or is this going to be our norm?
Things will get better! When, don't know but hopefully not as long as you have suggested. MotorTrend SUV of The Year has really added gas to the fire. In other news-Huge Soprano fan here. Friend of mines father was head of security for the set in NYC. Got to tour. Laid down in Tony's bed and kicked my feet up in his recliner. It was epic!
 
Well there are only 3 more weeks left in the decade and I don't see anything easing up before then. Either go with Muncie or a different vehicle or brand. I too would be fuming if I didn't get lucky and manage to get one 1K off plus incentives.
 
While everyone at Kia is high fiving one another on how well this vehicle is selling, they are not going to gain much market share in this segment at this pace. The average car buyer is NOT going to go to the lengths people in this forum are doing to get the Telluride. Many dealers dont even have a vehicle to test because they want to sell them all. People will just move to another brand. All the awards the vehicle is winning won’t mean much if there is nothing on the lot to sell. Most people are not going to wait six months for a vehicle. Plus you have a lot of dealers acting like the bottom feeders of the car world which really tarnishes what Kia is trying to accomplish.

To me, if they don’t turn it around by next summer it will be more of a fail than a success. It’s a lot easier to track the successes by seeing sales but it would interesting to see how much is being left on the table by people just moving on. I would think the longer this continues the bigger that will grow.
 
Plus you have a lot of dealers acting like the bottom feeders of the car world which really tarnishes what Kia is trying to accomplish.

Yes, that is the problem. I posted this back in May, but worth reading again. Kia should know better... this article was from Sep 2017, two years later nothing different.

______________________________
 
It won't get better soon. Kia is selling into a white hot market for 3 row mid-size SUVs, and it's still in 9th place among mass-market targeted vehicles. Kia just can't manufacture enough of them to meet demand. They also have an allocation process that rewards the high volume dealers who have markups.

Based on average monthly sales, here's the order...

(1) Highlander
(2) Explorer*
(3) Traverse*
(4) Pilot
(5) Acadia*
(6) Atlas
(7) Ascent
(8) Durango*
(9) Telluride
(10) Pathfinder
(11) Palisade
(12) CX-9

Have to keep in mind that individually, K and H don't have the production capacity that the Japanese Big 3 each have and so it takes both of them to match one of the larger Japanese makes and even then, the Big 3 can produce a lot more RAVs, CR-Vs and Rogues/Rogue Sports than H and K can the Sportage and Tucson.

Last month, combined Telluride and Palisade sales were 12,092.

The Pilot did 10,260, so not bad at all (there's a bit of a differentiation in markets btwn imports and domestics).

Of course, Toyota can crank out Highlanders, so even if H/K had more production capacity, would be difficult to beat Toyota.



Things will calm down. Something will be hot next year. KIA didn't ex

Things will get better! When, don't know but hopefully not as long as you have suggested. MotorTrend SUV of The Year has really added gas to the fire. In other news-Huge Soprano fan here. Friend of mines father was head of security for the set in NYC. Got to tour. Laid down in Tony's bed and kicked my feet up in his recliner. It was epic!

Also, C/D's 10Best list and Best CUV for Edmunds, among others.

While (spoiler alert!), the Telluride didn't quite win this 3-row comparison test (Cars.com)...



This video (towards the end) shows not only how much better the Telluride and Palisade are than the competition, but how much of a value they are (the MSRP could be raised by a few thousand and they still would be a value compared to the competition), so even if things do cool down next year, think it would be more like a greater # of dealerships charging MSRP or lowering the amount that they are asking above sticker.

The only new/redone competitor slated for the next year is the Highlander and it doesn't look as good as the Koreans, nor does it match them w/ regard to the interior (it'll still sell extremely well as the outgoing Highlander, but don't think it'll have too much of an impact on prospective buyers who are looking strongly at the Koreans).

One note about the Cars.com comparison test - the Korean duo had the best observed fuel economy (unless using some sort of electrification, still no substitute for displacement).


Yes, that is the problem. I posted this back in May, but worth reading again. Kia should know better... this article was from Sep 2017, two years later nothing different.


While Kia needs to kick in the pants the more shady dealerships, there's really nothing shady about dealerships charging more than MSRP where demand outpaces supply.

Honda dealerships have done this for the CTR.

Ford dealerships for the GT and top performance variants of the Mustang.

And so on and so on.

W/ regard to the Stinger, it sells about as well as the 4 Series GC and A5 Sportback.

The biggest impediment to greater sales are the lease terms (cheaper to get into a BMW or MB) and the base engine could use an upgrade (which is coming).
 
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I think Jason nailed it..... the Telluride is still the new kid on the block right now, but nothing stands still and shortly there is going to be a new batch of SUVs hit the market that will be the latest/greatest, the extremely popular (for good reason) Highlander coming very soon. Whether that quells demand in a couple months or a couple years, I don't know, but it will happen. And production will ramp up to meet demand also.

- Mark
 




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