Percent deviation from what? MSRP? If you're paying 12% below MSRP on the Volvo and MSRP on the Kia, how will that compute 5-10 years down the road?View attachment 13561
Compare Depreciation for Volvo Models vs Kia Models
Car Depreciation Comparison Charts for Volvo Models vs Kia Modelscaredge.com
I agree. It is just a data point to me that means if you buy a Volvo you can't afford to buy above MSRP unless you don't care about taking a huge hit. But if you buy the Telluride a little above MSRP, it's just a sunk cost but not potentially as bad as a Volvo that drops off after 2 years a lot more.
Good for them if they can find customers as willing/naive as that.
Depreciation is predicted but most models use average sales price as cars don't usually sell at MSRP. GM and ford discount certain vehicles $10-$15k this time of year so that will figure into the average retail price. If not, first year depreciation would be +30%. So, if you pay over average retail price you are already behind.
where and how did you order, nowcar?
Being a Chinese brand is not necessarily a bad thing. All cars on the road today contain manly Chinese electronics in them regardless of the brand. Sure, 10-15 years ago the idea of a Chinese car would be laughable. However, 50 years ago the idea of a Japanese car was also laughable and Korean was laughable 15 years ago. What you are typing on right now was made in China regardless if it is a computer or smart device and it works just fine (I assume).
Nothing against Chinese brands - It's just that Japanese, Korean, German and American brands have a long history and are each known to have certain strengths (Reliability, Value, Engineering and Power being the strengths respectively). Volvo was known for safety - but with almost every manufacturer now putting all safety features as standard, they have lost their advantage. After Geely acquisition, while the SPA architecture has been a runaway hit - their reliability has taken major suffering. I never expected to see Volvo at the very bottom of consumer reliability ratings (2017 and 2018).
XC90 has a souped up 2.0L 4cyl... let's see how they digest 100K miles with occasional towing....
It’s relevant when a badge like Volvo use to have a calling card of being known as one of the safest family vehicles and prideful owners of driving very high miles reliably and that reputation slips after new ownership. Lambos might be owned by VW Group now but they are still handmade in Italy, the core of the brand has not changed.
Volvo too.
www.volvoaustin.com
The brand Volvo was known for reliability and safety. They use to have a 150k club with TV commercials with pride filled owners bragging about their high mileage Volvo. A used Volvo was one of the most reliable cars you could buy so they held their value. It was normal to see an old Volvo on the road still being used as a daily driver. I think the Guinness World Record for a car with the most miles is still held by a Volvo with 3 million on the odometer. Now Volvo is expensive to maintain, shows up no where near the top in reliability comparisons and has one of the highest depreciation percentages of any brand. But I guess the core of the brand hasn’t changed because to the logo is still on the grille so people should just blindly assume it’s still a Volvo.
My point precisely. What better way to sell Geely sourced EVs to the American public than to assemble them in Texas and South Carolina and pass them off as Swedish influenced and American made. If I want a Chinese EV I can order a Kandi K27 which is taking orders in the US and it’s not trying to impersonate anything else. BTW Kandi sells EV batteries to Geely and in exchange Geely designs their cars. So I could buy a K27 for $15,500 with no haggle pricing (so no markups) before incentives or I can buy a Volvo with Kandi batteries for four times more. We can pretend that the headlines say Volvo bought Polestar and we are going to get EVs from Volvo to rival Tesla with hope of all that great Swedish tech we are use to. I have a hard time understanding how a brand that was acquired because they were struggling less than a decade ago can completely change their strategy overnight after acquiring a startup EV (that Geely really bought) to say that they are going to be all EV or hybrid in less than 5 years. Maybe Geely bought struggling Volvo out of the kindness of their hearts to keep the company alive and remain independent in Sweden to help the global economy. That’s not usually how acquisitions disguised as mergers play out.Where is Volvo From? | What Country Makes Volvo?
Have you ever wondered who owns Volvo or what country makes Volvo vehicles? You’re not alone. Find out where Volvo is from with Volvo Cars of Austin.
Well . . . we started with dealer's having what some people thought was excessive markup, but as we examined further it's really about value that the Telluride offers to what is out there. People with means willing to overpay because the alternatives to what they feel is value in a 3-row midsized SUV are slim and they are impatient. We heard Kia being irresponsible for not forcing dealers to price higher, we heard suckers for impatient buyers with means willing to spend more, we heard dealers being greedy for trying to make maximum profit in a free market and we heard competitors that use to be a solid choice no longer what they use to be. I think we are all trying to explain why the markups. I think it comes down to cars aren't like they use to be, the economy isn't the same as it was and buyers aren't operating like they use to. That's the crux of it, some buyers are patient and do their research and want to stick to MSRP, some buyers aren't patient and see the windows sticker with the markups ignoring MSRP and find value in other areas. We are all different and motivated by different things.
Well . . . we started with dealer's having what some people thought was excessive markup, but as we examined further it's really about value that the Telluride offers to what is out there. People with means willing to overpay because the alternatives to what they feel is value in a 3-row midsized SUV are slim and they are impatient. We heard Kia being irresponsible for not forcing dealers to price higher, we heard suckers for impatient buyers with means willing to spend more, we heard dealers being greedy for trying to make maximum profit in a free market and we heard competitors that use to be a solid choice no longer what they use to be. I think we are all trying to explain why the markups. I think it comes down to cars aren't like they use to be, the economy isn't the same as it was and buyers aren't operating like they use to. That's the crux of it, some buyers are patient and do their research and want to stick to MSRP, some buyers aren't patient and see the windows sticker with the markups ignoring MSRP and find value in other areas. We are all different and motivated by different things.
I tend to think that some shoppers tend to consider a lease and only want to keep their car for a couple years and they have an amount of acceptable loss because they will be buying an EV in a couple years. I agree with the comment above that electric vehicle adoption is the big unknown. But all the major manufacturers seem to think it's where they are headed.
With regard to Geely's global strategies, it should come as no surprise that the happy marriage with Sweden is starting to dissolve. They want a piece of the global market that Kia and Hyundai are jumping into feet first and to be the first major breakout Chinese car company to become a global player will be a big deal. You can't be global without breaking into the US. For now none of those Chinese car companies have had to go far beyond China since China has more car sales than any other country. BUT, when you consider the EV market . . . an EV is just an electric appliance with wheels that you sit in. As Tesla has proven the car can be a vessel for the technology. For example everyone knows the TV household names that export from Japan (Sony, Panasonic, Sharp) and South Korea (Samsung, LG). But all the other budget brands, Vizio, Hisense, TCL, Onn, etc. are all manufactured in China with a different circuit board and operating system and varying levels of quality. (FYI, Element TVs are the only TVs assembled in the US). What evidence do we have that global auto manufacturing won't follow the same path as the television as a household electronic appliance? After all, you will have to plug it in at home.
Ford has determined their exit strategy is to just focus on SUVs, Trucks and EVs because that's where their profit is going to come. GM just announced that Cadillac will go all electric and any dealers that don't like it can leave. So this is why there is a markup on Telluride SUVs, there is an opportunity for a market in high demand in the US amongst a number of different buyers and uncertainty in other brands and quality and reliability issues in others, while Kia looks like a sure bet. Maybe there is a market for cheap cars and SUVs that we use and throw away and replace every couple of years like iPhones. But in the US market we have a pretty big secondary used car market that also offers an opportunity to sell better quality cars. We like to haul and tow more than most and we also have more highways than some countries so we travel, so we like SUVs and Trucks more than some other markets. Many Americans buy or lease with depreciation in mind so if you have a car that will be better built and can be resold in a few years and you can enjoy the ride more for a few years, you are willing to take a little more of a loss for that opportunity.
I see your "Now get off my lawn!" and raise you:
“You have to know the past to understand the present.”
― Carl Sagan
My point is that we seem to want to blame someone for markups but there is no blame to be had. Everyone is different and motivated differently. If you don’t want to pay a markup, keep looking and know that patience is required. But MSRP isn’t the only thing people measure. A free market is people paying what they think something is worth and it may go down with time but if you wait too long there is also a chance that it may go up.
