I was/am concerned that the dealer that I arranged to have my first edition EV shipped to might mark up the vehicle beyond MSRP. I talked to the sales manager and he had the courtesy to at least send me an email promising not to mark it up. Think that will do the trick? I'm all in the the EV6 as long as the dealer doesn't try and rip me off.
Markup of first edition EV6
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we're lucky in the UK as this would be against the law but I know it happens in the USA. I would suggest seeking assurances from Kia. They would hate the publicity if this started to happen.
MadMike,
I'm in the same spot...I don't want to get ripped off with post 1 Sept "we need to market adjust up $2000". My suggestion is to visit dealer with a " I'll sign a msrp -$500 deal right now...and put some $$ down now" if you have multiple KIA dealers...try "I'm bringing you a deal...the car is attached to my reservation....if I leave another dealer gets the $$s" .
My next thought is if we have three or four of us, hit the same dealer at same time...
Best....DKR
My dealer said they could not 100% confirm MSRP with KIA for the moment at least....I think we are stuck with whatever dealer we picked after early September.
Madmike....agree that msrp is a $58500 guess at present. My strategy is approach dealer with a msrp minus $500 or $1000 deal. Even at $57500 dealer still scores a $2500 ( dealer holdback is probably $1200) payday. Or we can focus on one dealer with a 3 or 4 car sale...
Either way....after 1 Sept, absent a written deal, we are open to a later date screw job.
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I’m one of the 1,500 who reserved a Kia EV6 First Edition, and I apologize for the length of my comments and for repeating some concerns previously voiced in this forum ... but I'm a bit annoyed.
I find the First Edition reservation process quite unusual, since we must select a dealership for purchase before knowing whether the pricing will be MSRP or, at least, given the ability to negotiate the price before finalizing our choice of dealership.
I’ve been hoping (naively) that Kia Corporate would hold their dealerships to the MSRP as a “feel good” launch of these First Editions. If Kia allows markups, then the initial reservation process becomes a sham, as our reservations only serve to determine the number of EV6s for delivery to each Dealer. With no pricing restrictions, the dealer will simply have the right to sell to the highest bidder, friend or family member, assuming the Reserving party is unwilling to pay maximum markup.
I left a message with Kia Corporate in Irvine in July asking more about the process and intent, but never received a response. I’ve spoken with the sales managers of 2 different dealerships in Southern California in mid-August (a 3rd did not return 2 calls). Both managers claimed to know nothing about intent Kia’s intent, but said they will likely charge a premium if Kia imposes no restrictions on pricing … and I completely understand their perspective. The point however, is there seems to be no communication between Corporate and the Dealerships on these First Edition models, or more likely, they are being coy.
As previously suggested in this forum, the only leverage we First Edition reservations have is the ability to change the dealership selected to a different or more distant location; explain, to that alternative dealership, if it is willing to settle on a price before September 1, we can select it to receive our EV6; and if not willing, that dealer simply won’t receive that EV6 and won’t make any profit whatsoever. In reality, I think finding another dealer to pre-negotiate a price may be a fool’s errand. In the end, I believe this process will be messy and fraught for disappointment once final pricing is determined.
I find the First Edition reservation process quite unusual, since we must select a dealership for purchase before knowing whether the pricing will be MSRP or, at least, given the ability to negotiate the price before finalizing our choice of dealership.
I’ve been hoping (naively) that Kia Corporate would hold their dealerships to the MSRP as a “feel good” launch of these First Editions. If Kia allows markups, then the initial reservation process becomes a sham, as our reservations only serve to determine the number of EV6s for delivery to each Dealer. With no pricing restrictions, the dealer will simply have the right to sell to the highest bidder, friend or family member, assuming the Reserving party is unwilling to pay maximum markup.
I left a message with Kia Corporate in Irvine in July asking more about the process and intent, but never received a response. I’ve spoken with the sales managers of 2 different dealerships in Southern California in mid-August (a 3rd did not return 2 calls). Both managers claimed to know nothing about intent Kia’s intent, but said they will likely charge a premium if Kia imposes no restrictions on pricing … and I completely understand their perspective. The point however, is there seems to be no communication between Corporate and the Dealerships on these First Edition models, or more likely, they are being coy.
As previously suggested in this forum, the only leverage we First Edition reservations have is the ability to change the dealership selected to a different or more distant location; explain, to that alternative dealership, if it is willing to settle on a price before September 1, we can select it to receive our EV6; and if not willing, that dealer simply won’t receive that EV6 and won’t make any profit whatsoever. In reality, I think finding another dealer to pre-negotiate a price may be a fool’s errand. In the end, I believe this process will be messy and fraught for disappointment once final pricing is determined.
Greetings from the east coast!
The best we can hope for. Is a dealer who is willing to make $2500 (profit + holdback)...if one can't nail a price down (msrp +/-) by 1 Sept, we will arrive at delivery with a large markup over msrp. Anyone have a dealer willing to play ball for several deliveries?
The best we can hope for. Is a dealer who is willing to make $2500 (profit + holdback)...if one can't nail a price down (msrp +/-) by 1 Sept, we will arrive at delivery with a large markup over msrp. Anyone have a dealer willing to play ball for several deliveries?
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I don’t see them (dealers) doing that but I could be wrong. It not like this first edition is the GT version or something close to it. If it was like a mid grade GT with adjustable suspension, maybe. While there is a decent amount of folks looking to go EV, a lot of US folks aren’t as big on KIA or willing to pay that kind of money for a KIA. Dealers will have to discount the cars to get them to move. The Stinger is an awesome car yet still it has trouble moving at the volume KIA wanted. While some will pay to be one of the first, many won’t.
All....I had a chat with Matt Blatt's Kia in Tom's River NJ. Tony Sentore is the General Manager-he advised that they will act on reservations, at MSRP. He also shared that "other dealers should do the same". Tony mentioned that the day before our conversation, he had a visit from Kia explaining that cars will be delivered starting beginning 1st quarter 2022. While I understand that he is a car dealer, I think that I trust him. Card attached...when you contact him ask him for his shoe size...I used that as part of our conversation-he will remember that.
Hope thus helps.
Hope thus helps.
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I'm at Smart Kia in Davenport, IA. I'll lock you in for MSRP -$500 all day. No clue what the markup is going to be, but I've been selling the Telluride at MSRP for the past 4 months while everyone else is marking up. Moline, IL is the closest airport and I'll pick up any of my customers there.
I am in AZ and would love to lock in my FE with a dealer that promises that - so far can't get that solid commit from them but vague statement they will honor MSRP.
I posted this the reservation tracking list discussion yesterday but I figured it belongs in this thread too and I added more details that I remember from my conversation.
Yesterday (Friday, Oct 15) I spoke to someone with Kia corporate (800-333-4542) to ask if the dealer that we selected for the First Edition delivery can markup the price and they started chatting with the person in charge of the First Edition program to get my markup question answered and she confirmed that the dealer has the power to markup the car whatever they want and because they are independent dealers and unfortunately Kia corporate really can't do anything to stop them. I told her that dealers near me in Queens, NY are marking up Tellurides $25k (according to my EV6 delivery dealer on Long Island) and that's a $45k SUV so imagine how much they could markup a $59k electric vehicle that gets a tax credit. She admitted to me that Kia corporation does not like dealers marking up the cars but again they can't stop them. She said customers will remember which dealers tried to price gauge them which will hurt their reputation and I said it's obviously not hurting them if people are willing to pay for the markup. Then I pointed out to her that my First Edition will be in possession of the dealership I selected on the reservation and I won't be able to move it to another dealership that won't mark it up. I'm actually regretting that I didn't think of the potential dealer markup before the Sept 1 deadline to change the reservation so I could get the sales manager of my selected delivery dealer to put something in writing that he won't mark it up otherwise I would have selected a different dealer.
Then I asked, how can Kia corporation stop the dealership from selling the car to someone else if the person who reserved it decides not to get it (because of a huge markup by the dealer) meanwhile it's supposed to go to a person on the First Edition waiting list? And how will Kia get that car to the dealership that the person on the waiting list selected? I told her the dealer's name will be on the window sticker so they could argue that it's in their possession and once the original buyer turns it down then they can sell it to whoever they want at whatever price they want. She didn't have an answer. She kept saying well none of this has happened yet so let's wait and see. I said they'd better have a plan to deal with both potential issues otherwise they could have irate customers who are excited to get their EV6's only to have the dealer jack up the price to an unaffordable level. I said the easy solution is to tell dealers that anyone who attempts to markup reserved First Editions will be de-prioritized to get allocations of the EV6 or any other in demand models.
Yesterday (Friday, Oct 15) I spoke to someone with Kia corporate (800-333-4542) to ask if the dealer that we selected for the First Edition delivery can markup the price and they started chatting with the person in charge of the First Edition program to get my markup question answered and she confirmed that the dealer has the power to markup the car whatever they want and because they are independent dealers and unfortunately Kia corporate really can't do anything to stop them. I told her that dealers near me in Queens, NY are marking up Tellurides $25k (according to my EV6 delivery dealer on Long Island) and that's a $45k SUV so imagine how much they could markup a $59k electric vehicle that gets a tax credit. She admitted to me that Kia corporation does not like dealers marking up the cars but again they can't stop them. She said customers will remember which dealers tried to price gauge them which will hurt their reputation and I said it's obviously not hurting them if people are willing to pay for the markup. Then I pointed out to her that my First Edition will be in possession of the dealership I selected on the reservation and I won't be able to move it to another dealership that won't mark it up. I'm actually regretting that I didn't think of the potential dealer markup before the Sept 1 deadline to change the reservation so I could get the sales manager of my selected delivery dealer to put something in writing that he won't mark it up otherwise I would have selected a different dealer.
Then I asked, how can Kia corporation stop the dealership from selling the car to someone else if the person who reserved it decides not to get it (because of a huge markup by the dealer) meanwhile it's supposed to go to a person on the First Edition waiting list? And how will Kia get that car to the dealership that the person on the waiting list selected? I told her the dealer's name will be on the window sticker so they could argue that it's in their possession and once the original buyer turns it down then they can sell it to whoever they want at whatever price they want. She didn't have an answer. She kept saying well none of this has happened yet so let's wait and see. I said they'd better have a plan to deal with both potential issues otherwise they could have irate customers who are excited to get their EV6's only to have the dealer jack up the price to an unaffordable level. I said the easy solution is to tell dealers that anyone who attempts to markup reserved First Editions will be de-prioritized to get allocations of the EV6 or any other in demand models.
The part about HQ disliking the practice yet throw their hands up because they can’t do anything about is infuriating.
Sure you can. You can disincentivize by reducing allocation of popular models or high margin models. You can reduce their dealer incentives during sales to reward dealers that don’t blatantly gouge their customers. A $25k markup on a Telluride is nearly 50%! On the flip side, consumers should also not reward them by actually purchasing these vehicles lol. But hey, it’s their money.
Sure you can. You can disincentivize by reducing allocation of popular models or high margin models. You can reduce their dealer incentives during sales to reward dealers that don’t blatantly gouge their customers. A $25k markup on a Telluride is nearly 50%! On the flip side, consumers should also not reward them by actually purchasing these vehicles lol. But hey, it’s their money.
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