Telluride Pricing Increase 1/3

[PB65stang]

I do think in a perfect world, the right thing to do is honor the prices for all existing orders (even those without a VIN), because customers agreed to those prices. That being said, I’m not going to overreact and let $600 ruin a deal on a car that I still think is, at a minimum, several thousand dollars in value better than the closest competitor.

 

[Buddy119]

The thread title sent me into a panic. We are close to ordering one, so when I read the title, I said - "How can they jack the price up by one third!?! I think they'll still sell, but that knocks me out for sure!" Turns out "1/3" was not the amount of the increase but the date of the increase. That makes a big difference.

 

[NREVANS]

They can do whatever they want unfortunately. Not much we can do about it. They have things together....keep in mind it's the Hottest SUV on the Planet and everyone wants one. They could have easily said "Sold Out" for 2020 but they increased production. It takes quite a bit to produce a vehicle and also have all of your suppliers step up as well. If you are unhappy with KIA you have the option to always cancel the order.

I’m not gonna cancel, you crazy! Haha. I just want my car!

 

[NDSweetpea]

Maybe Jason and the great people at Muncie will consider absorbing the increase instead of passing it along - at least for existing orders - as the black Friday deal that was hinted at but never came...

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[Lucas & Craig]

I do think in a perfect world, the right thing to do is honor the prices for all existing orders (even those without a VIN), because customers agreed to those prices. That being said, I’m not going to overreact and let $600 ruin a deal on a car that I still think is, at a minimum, several thousand dollars in value better than the closest competitor.

We have already been asked to discount even further or honor

Maybe Jason and the great people at Muncie will consider absorbing the increase instead of passing it along - at least for existing orders - as the black Friday deal that was hinted at but never came...

Not happening. We can't eat the increased pricing from KIA. Out of our control. Especially since we are already discounting below MSRP. Now these guys who have them marked way up.... Not a problem!

 

[TheNip73]

I’m really f*#%*?g annoyed that the price has gone up, regardless of how little or much. I ordered this damn thing four months ago. What makes them think they can charge more when they can’t get their shit together and deliver cars on time! I mean WTF, honestly.

Costs have likely gone up due to all of the new tariffs imposed in 2019. I’m not thrilled either, but price increases are a fact of life. Not their problem your in a long line of people waiting. The government didn’t cut anybody and slack on open orders when tariffs went into effect. They gave a few days notice and costs went up then and there. This is no different.

 

[NDSweetpea]

We have already been asked to discount even further or honor

Not happening. We can't eat the increased pricing from KIA. Out of our control. Especially since we are already discounting below MSRP. Now these guys who have them marked way up.... Not a problem!

No, I know you can't - I was kidding (mostly). Even with the increase you're the best deal in town. I appreciate all you and Lucas are doing... just hoping my 10/16 SX (non-P) gets accepted soon.

 

[zhelder]

While a price increase was not unexpected, I’m a bit surprised Kia is putting them into effect in the middle of a model year.

Are we going to be looking at another comparable price increase for the 2021 models, or will Kia dial it back a bit with this mid-year price increase?

Also, there have been a few rumors that Kia might introduce a model above the SX-P for 2021. Any inside word on this yet?

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[Lucas & Craig]

No, I know you can't - I was kidding (mostly). Even with the increase you're the best deal in town. I appreciate all you and Lucas are doing... just hoping my 10/16 SX (non-P) gets accepted soon.

I

While a price increase was not unexpected, I’m a bit surprised Kia is putting them into effect in the middle of a model year.

Are we going to be looking at another comparable price increase for the 2021 models, or will Kia dial it back a bit with this mid-year price increase?

Also, there have been a few rumors that Kia might introduce a model above the SX-P for 2021. Any inside word on this yet?

I have heard nothing in regard to the above mentioned.

 

[PB65stang]

We have already been asked to discount even further or honor

Not happening. We can't eat the increased pricing from KIA. Out of our control. Especially since we are already discounting below MSRP. Now these guys who have them marked way up.... Not a problem!

Yeah, that’s a Kia decision, not a dealer one. Can’t expect you to eat $600+ when you already have shrunk your margins with your volume sales model. No worries on my end with how you’ve handled it.

 

[alexdrums]

Costs have likely gone up due to all of the new tariffs imposed in 2019. I’m not thrilled either, but price increases are a fact of life. Not their problem your in a long line of people waiting. The government didn’t cut anybody and slack on open orders when tariffs went into effect. They gave a few days notice and costs went up then and there. This is no different.

Unless I am mistaken, there are no tariffs on auto parts coming from Korea.

 

[TheNip73]

Unless I am mistaken, there are no tariffs on auto parts coming from Korea.

I don’t know the suppy chain of all parts of this vehicle, but the parts in f this car are very likely globally sourced. Seats made in the USA may be made of Chinese or Brazilian steel. I believe the trade deal with Korea had an agreement to limit imports of steel from Korea into the USA at 70% of previous quantities - this could indirectly hit Hyundai’s profits as they are a steel manufacturer and maybe they choose to spread out how to recoup the lost profits in raw materials price. Lots of possible ways the tariffs will impact things - it has nothing to do with just auto parts from Korea...

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[alexdrums]

I know the supply chain. It’s right on the sticker. 51% of the parts are from the USA, 49% are from Korea.

 

[LVP]

Jason, I respectfully request that my order be grandfathered in for pricing purposes or it may begin to interfere with my adding of all those accessories and options while I wait for mine to be built ...or I could just do what Lucas suggested and stay off of the forums Silly Lucas

 

[TheNip73]

For everyone uptight. I can’t find a final 2019 inflation rate, but it looks to be about 1.8 % The price increase is 1.5% or so for an SXP w/ upgraded paint, which I suspect is a large percentage of users here from what I see. You’re actually getting a deal...

Be careful what you ask for...

Edit - updated inflation rate to 1.8 based on newer data I found.

 

[markjenn]

Most cars are “ordered” informally where the buyer may back out for any reason, any deposit is refundable, and a final price has not been agreed upon in a sales contract. (There's often a trade involved whose value may change during the order period as well.) MSRP is often assumed in these deals but it’s usually the MSRP at delivery. Since the buyer can walk anytime and get their deposit back, they have a no-penalty “out” if any price increase is not acceptable.

Some dealers are willing to negotiate a fixed final price at ordering time that is binding in a formal sales contract, but then they usually want a non-refundable deposit. In this case, the dealer in contractually required to “eat” any price increases. Often dealers don’t want to do this as it entails risk to them and keeping deposits after customers balk is usually something that generates disputes and results in bad blood no matter what the contract says.

It seems a bit unreasonable to me for a customer to expect a dealer to honor a fixed price, absorbing price increases, on a not-final, non-binding deal.

- Mark

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[HairyMilkshakes]

Will be interesting to see what happens post-Feb. when they restock (?). I've made it a mantra to never buy first-gen cars but this one is very tempting...

 

[raydog9379]

I read my contract, and section 2 covers changes in price by the manufacturer. It basically states that the manufacturer can change the price at any time.

For those worried about dealers and their margins, these are the same dealers that in many cases haven't been the most honest with you all along or have been jacking up prices above MSRP and then not reporting that amount when financing through Kia (with exception of a few good ones that we've seen on here). If this car wasn't so popular, all of us and I mean all of us would be expecting to get 8-10% off MSRP at the start of negotiations if not more. Figure that dealer margins are still making them money at those discounts.

So for the ones charging $2-5k or worse above MSRP. You're prob. looking at a really nice margin per vehicle. The ones that they're selling w/ Costco pricing or at MSRP are still getting a decent margin, but not what they could get if they were selling above MSRP like some dealers are.

 

[MarcinTexas]

Costs have likely gone up due to all of the new tariffs imposed in 2019. I’m not thrilled either, but price increases are a fact of life. Not their problem your in a long line of people waiting. The government didn’t cut anybody and slack on open orders when tariffs went into effect. They gave a few days notice and costs went up then and there. This is no different.

The US and South Korea have a free trade agreement. China is the primary focus of the tariffs..

 

[MarcinTexas]

I do think in a perfect world, the right thing to do is honor the prices for all existing orders (even those without a VIN), because customers agreed to those prices. That being said, I’m not going to overreact and let $600 ruin a deal on a car that I still think is, at a minimum, several thousand dollars in value better than the closest competitor.

Supply and demand. I don't blame KIA at all. What we don't want to happen is for them to cut content or quality to make up the inflation in their costs they are seeing on the hottest SUV in the market right now. Honesty - I would take a price jump on the SX-P by more than $1K if they offset it with the full digital dash that the Palisade Limited has.