Kia Telluride Costs 11.3 Million Won More... More Expensive Than Toyota

Highest-Priced Model Sold in the US $10,000 Above List Price
Phenomenon Caused by Increased Demand and Supply Shortage

Kia Telluride

[Asia Economy New York=Correspondent Baek Jong-min] Recently, A, an expatriate working in New Jersey, USA, was surprised while looking into Kia's Telluride new car as a company vehicle. The dealer demanded an additional $10,000 on top of the Manufacturer's Suggested Retail Price (MSRP) for the top-tier model. Lower-grade vehicles had premiums several thousand dollars less.

Due to the semiconductor shortage, fully equipped top-grade vehicles have become scarce, resulting in higher premiums on expensive cars.

A said, "With no cars available, the price was whatever they asked," expressing astonishment at the recent rise in vehicle sale prices. Ultimately, A lowered the vehicle grade and paid a premium less than $10,000 to receive the car.

Although A paid several thousand dollars extra, the dealer who sold the car reportedly received harsh criticism from the manager for selling the car cheaply.

This phenomenon is not limited to New Jersey. US media also reported on the premium attached to the Telluride.

The Wall Street Journal introduced a consumer story on the 29th who gave up purchasing a Telluride due to a $10,000 premium.

Ken Baird, a resident of Florida, offered the dealer $3,000 more than the MSRP of $45,000 to buy a Telluride but was rejected.

Baird said, "I was shocked when the dealer said they would sell to someone willing to pay $10,000 more than the vehicle price."

Baird eventually purchased the Telluride's competitor, the Highlander, at a nearby Toyota dealership at the list price without a premium. The new high-end Highlander costs about $42,000 to $45,000.

According to Baird's experience, the top-tier Telluride became more expensive than the Highlander, and even the cheaper models rose to at least a similar level as the Highlander.

The Telluride is produced at Kia's Georgia plant in the US and sold only locally. Its sibling model, the Hyundai Palisade, is produced in Korea and exported to the US.

The WSJ reported that a Kia spokesperson explained that dealers are independent businesses and not affiliated with Kia, responding according to market conditions.

In the US, laws restrict direct sales by vehicle manufacturers. Because of this, dealers have enormous influence. Dealers can sell vehicles at discounts or premiums.

Recently, it generally requires paying a premium of $1,000 to $2,000 per new car to receive the keys. Since dealers choose consumers, those willing to pay more become the vehicle owners.

Compared to before COVID-19, when buyers could typically receive discounts ranging from hundreds to thousands of dollars depending on the model, grade, and vehicle type, the consumer burden appears much greater.

Expatriate B said, "When looking into corporate vehicle purchases, prices had risen, and there was no choice except for the cheapest 'base' model or the top-tier model."

According to research firm JD Power, as of mid-June, about 75% of all vehicles sold in the US are sold above the MSRP. This is significantly higher than the 36% before the COVID-19 pandemic.

This content was produced with the assistance of AI translation services.