Wait for used EX or buy new

[southpaw9984]

Was pricing for used EX models this crazy before the chip shortage? Was it ever “normal” (you’d normally expect 20-30% depreciation at 20k miles) or has it always been near new pricing for basically any car for sale?

Here’s why I ask:
I’m looking at buying an EX. I’m fine buying a used one with 20k miles - I’ve only bought used cars in my life.

I can also wait 3-4 months if it means that I’ll save 5-10k. I just don’t think pricing is coming down on used ones anytime soon. The best indicator is used car pricing 6-9 months ago but I can’t find reliable data anywhere.

 

[MG535]

I can also wait 3-4 months

Then order and wait. It’s a no-brainer.

 

[southpaw9984]

Then order and wait. It’s a no-brainer.

Was the price of used EX models ever much lower than MSRP? I’m willing to wait 3-4 months for a USED one if their pricing gets more in line with typical cars.

 

[southpaw9984]

A used EX with 20k miles is selling for +40k. I’d expect them to be around 30k. I’m wondering if they were ever at that level. Is the inflated price temporary caused by the chip shortage or was it always that high?

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[Incarnate]

A used EX with 20k miles is selling for +40k. I’d expect them to be around 30k. I’m wondering if they were ever at that level. Is the inflated price temporary caused by the chip shortage or was it always that high?

Its primarily due to the chip shortage, and supply and demand. If you want to get one in 3-4 months, I certainly don't think used ones are going to drop $10k in 3-4 months. If you really want one, then I would recommend trying to find a dealer selling at MSRP.

Other option is to wait about 2 years. The chip shortage isn't going away anytime soon.

 

[arattle]

A used EX with 20k miles is selling for +40k. I’d expect them to be around 30k. I’m wondering if they were ever at that level. Is the inflated price temporary caused by the chip shortage or was it always that high?

It's been high on the Telluride since before the chip shortage due to low inventory and high demand. Nobody is selling them used, and there aren't enough new ones being made to even sit on dealer lots. With new ones routinely selling for 10k over MSRP, used values reflect that, if you're lucky enough to even find one. Your best bet might be to order at MSRP, whether it's S or EX.

 

[MG535]

I’m willing to wait 3-4 months for a USED one if their pricing gets more in line with typical cars.

Not gonna happen.

 

[southpaw9984]

Its primarily due to the chip shortage, and supply and demand. If you want to get one in 3-4 months, I certainly don't think used ones are going to drop $10k in 3-4 months. If you really want one, then I would recommend trying to find a dealer selling at MSRP.

Other option is to wait about 2 years. The chip shortage isn't going away anytime sooNew it is!

Thank you!

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[southpaw9984]

Thanks everyone. New it is! I generally agree - just looking for confirmation

 

[beato1]

I paid 39k for EX-Premium from wheel drive (not looking for AWD), captain's chair which was our priority, LED headlights, 20 inch tires--brand new sitting on the lot with two other Tellurides--one was an SX AWD and one with EX with Towing package. WE found what we were looking for and knew the market at the time (June 2021) having called around and searched the internet for brand new as well as used (Carmax, Carvana, among several--they were asking as much as new car!). We paid 5k over MSRP (we paid 44k). We didn't have time to wait because we just gave our 10 year old Honda Accord to our daughter in-law who was having problems with her 18 year old car and they were in the market for a house. Everyone was happy--son, daughter in-law, my wife, the dealer, lol.

 

[MG535]

A used EX with 20k miles is selling for +40k. I’d expect them to be around 30k. I’m wondering if they were ever at that level.

I’d guess they most certainly were not, but I’m not invested enough to look for any data to back that up.

Does it matter? We all know that, broadly speaking, it’s the worst time in history to buy a used car. There’s nothing unique about the Telluride that changes that.

“Normally” there’s a big fat discount based on depreciation that compensates for:

1. Not being the first owner
2. Not being brand new
3. Full warranty 5yr/60k
4. Powertrain 10/100k only for first owner
5. Any loss of lemon law protection depending on state law
6. New car loan APR generally < used APR

Since you’re not getting a big fat discount there’s no reason to give up any of these things.

So why would you?

 

[NoVanDad!]

I'm with MG535. My wife and I just received delivery of our ordered EX after sort of being in your same boat - normally a used car buyer. In the end, we researched it and it just didn't make sense to purchase used in the market we're in right now. So I'd find a dealer selling it without a ton of markup or good warranty extension incentives and fire away! - Happy with our decision so far. Plus, you'll get a 2022 model-year which may help you some when it's time to re-sell

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[NCBill]

A used EX with 20k miles is selling for +40k. I’d expect them to be around 30k. I’m wondering if they were ever at that level. Is the inflated price temporary caused by the chip shortage or was it always that high?

Yes, they were always high. Just read the various postings where others have sold to Carvana, Carmax, or whatever, and got offers at or above MSRP. These companies then turn around and sell them USED for well over MSRP. The KIA dealer in my area buys every used Telluride they can get their hands on, and charges well over original MSRP for the used ones. And buyers are paying it!

Its a very popular car, with relatively low production. All of that was prior to Covid and the chip shortage. KIA built their production capacity to meet a predetermined demand. Turned out they grossly underestimated it. So these cars have always been in short supply. Used prices were very high from Day 1. I don't expect Telluride used car pricing to become "normal" until some other car company comes out with a better mid sized SUV and the hoards go chasing that model.

You need to get a new one on order. You are not going to see used prices crater.

 

[beato1]

"Its a very popular car, with relatively low production. All of that was prior to Covid and the chip shortage. KIA built their production capacity to meet a predetermined demand. Turned out they grossly underestimated it. So these cars have always been in short supply. Used prices were very high from Day 1. I don't expect Telluride used car pricing to become "normal" until some other car company comes out with a better mid sized SUV and the hoards go chasing that model.". I agree! 50k Tellys were produced in 2020 (Car of the Year and Motor Trend's SUV of the year) and 75k in 2021! Then shortage of chips exacerbated the low production! The question now is--will you buy it if it shows up in your neighboring Kia dealer? At what cost? Would you rather have it now or wait? It depends on your situation. Waiting is like a promise--there is no guarantee! While buying it now is guaranteed (our case) if you found one next door or next state. It's really what the market dictates (greatly affected by supply and demand--that is, competition as found in the free market), just as in any other commodities! What else is new? Thanks.

 

[southpaw9984]

Yes, they were always high. Just read the various postings where others have sold to Carvana, Carmax, or whatever, and got offers at or above MSRP. These companies then turn around and sell them USED for well over MSRP. The KIA dealer in my area buys every used Telluride they can get their hands on, and charges well over original MSRP for the used ones. And buyers are paying it!

Its a very popular car, with relatively low production. All of that was prior to Covid and the chip shortage. KIA built their production capacity to meet a predetermined demand. Turned out they grossly underestimated it. So these cars have always been in short supply. Used prices were very high from Day 1. I don't expect Telluride used car pricing to become "normal" until some other car company comes out with a better mid sized SUV and the hoards go chasing that model.

You need to get a new one on order. You are not going to see used prices crater.

What's amazing about the other car companies is that Kia's primary competitors (Hyundai, Toyota, Nissan, Honda) are all coming out with new versions and none can keep up. We'll have to wait for the NEXT redesign for a potential real competitor which may not be for another 3-4 years still. Kia really knocked it out of the park.

 

[arattle]

What's amazing about the other car companies is that Kia's primary competitors (Hyundai, Toyota, Nissan, Honda) are all coming out with new versions and none can keep up. We'll have to wait for the NEXT redesign for a potential real competitor which may not be for another 3-4 years still. Kia really knocked it out of the park.

I think the next Mazda CX-9 may be nicely updated and should compete...but Mazda is always a niche player and won't come close in volume. Agree that the new Pilot and Highlander were lazy updates and didn't really change the conversation like the Telluride did.

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[MG535]

What's amazing about the other car companies is that Kia's primary competitors (Hyundai, Toyota, Nissan, Honda) are all coming out with new versions and none can keep up. We'll have to wait for the NEXT redesign for a potential real competitor which may not be for another 3-4 years still. Kia really knocked it out of the park.

Bizarre to throw the Hyundai (Palisade) in there since it’s virtually identical to the Telluride except badge and sheet metal.