How hot are the Hyundai Palisade and Kia Telluride? Apparently, hot enough for dealers to ask significantly more than MSRP. Tom McParland of Jalopnik recently discovered this phenomenon when his clients began telling him about their experiences at Hyundai and Kia dealers. Initially, my attempts to replicate what he found were unsuccessful. Then I went to CarGurus and found exactly what he described. What is going on here?
Dealer markup usually applies to specialty vehicles like the Mustang GT500 or Toyota Supra, and maybe even the Ford Raptor. We’re apparently in a strange new world where three-row crossovers are making people lose their minds and vastly overpay for something that will be worth less than half of the original asking price in about three years. To me, the craziest thing about these markups are where they’re located. These aren’t dealers in small markets. Bohemia, New York is on Long Island. There are probably at least 20 Kia dealers between there and New Jersey. And that’s being conservative. Toledo also baffles me. It’s a well populated metropolitan area. I imagine there are at least several Kia dealers in the region, right?
Everything I’ve read seems to indicate Hyundai grossly underestimated the demand for both crossovers. That doesn’t justify the markups. But perhaps there are actually people out there paying these insane prices? Hard to say. More realistically, these greedy dealers are simply using it as a starting point to get to MSRP.
They’re not the only three-row crossovers with jacked up prices. The Explorer ST is apparently hot too.
By contrast, it seems regular XLT Explorers are selling for far below sticker. Perhaps Hyundai should borrow a page from Ford’s book and start high. If demand for the Koreans remains high, they may do just that.
I wouldnt pay that but if you want a stylish 3 row crossover they really do stand out compared to rows or pilots highlanders and explorers in the pickup line at school theyre the way to go.
The hyundai looks hideous though. I dig the kias styling but as i said it still looks and feels like a range rover knockoff.
Opinions Vary but I think it looks unique and different than a Range Rover from different angles. But Range Rovers are not reliable these days. Yes I purchase a telluride a few weeks ago I’ve gotten a lot of compliments about the car even while waiting for the green light. That says something kia did a fabulous job on this and the ride is comfortable. I did pay over MSRP here in California they are asking 40k for the base model I I got them down to just below 37000. They would not budge any lower because they know they have no promblem finding buyers.
You say the Kia stands out then say it looks like a Range Rover. The reality is the Kia and Hyundai don’t stand out, they are just like all other 2 box SUVs on the market.
I dont know about those particular models but a friend recently paid 37K for a 2019 Kia Sportage, top of the range model and hey its a nice car rides nicely around town is quite well equiped though it has some annoying features she does not like, adaptive cruise and lane assist being the main ones, nice ideas but not helpful in traffic.
Seems like ALL new cars& trucks are gonna have that,= when I say trucks I’m talking about a tractor trailer truck,I drive a 2019 Freightliner and that crap on it,WELCOME TO THE FUTURE
With the soft economy up here and being after Christmas dealerships are doing what they can to move vehicles. There is a glut of pickup trucks and certain SUV models in my part of Canada. I doubt any Kia or Hyundai dealers are marking up Palisades or Tellurides.
Having tested a Palisade for a week late last year I can say depending on what trim level, it seems like good value for the money. Not worth any kind of markup however.
Never. I always look for deals.
I wouldn’t pay $10,000 for a Kia Telluride or Hyundai Palisade. Full stop.
How different are these things to drive and live with from the ever increasing glut of other crossovers anyway? It cannot possibly be the styling, can it? What am I missing that everyone else is seeing? With Hyundai/Kia, value is obviously the logical factor but with massive markup it’s clearly not that. Are buyers so vain that they want to be perceived as buying the best value, yet are willing to spare no expense to attain it?
Good for you. Same with me as I am not so foolish a human being that I would over pay for something like that anymore then stand in a line for three days waiting for the newest iPhone. Not only that but over pay money that you will never see again.
Kia and Hyndai has the worse resail value what will marketing value after two years how much you will be upside down
These SUVs are going to.become this generations PT Cruiser. All the rage upon release, people paying large markups above sticker as production cannot meet demand. Over time they become ho hum and commonplace and values sag to the norms for the brand. A few years later nobody wants them on trade and they fill junkyards. Have at it folks. I’ll stick to a Toyota.
Amen!
Had a dealer just ask for 9k over msrp for a Telluride sx. 59k and may be able to do a LITTLE BIT on the price if I came in today, actually the way he typed it..! Just won’t pay it, they need to learn that they will damage the reputation of Kia and their dealership if they carry on this way. I shall not be using the sales guy or the dealer this is profiteering at its worse, I bet they also bought all the hand sanitizer and toilet rolls to sell on a few months back
Exactly what happened to me in NJ Kia Dealer. Telluride SX. Salesmen came back with insane numbers. I asked what he was basing that on and have gave me some dealer approved addendum ( fancy way of saying Markup) $8000 over sticker!
I literally laughed in his face, this isn’t some limited edition, super car it’s a Kia
C’mon man.
“BE THE FIRST ON YOUR BLOCK!!!!”
A fool and his money are soon parted.
’nuff said.
Amen to that. Wait 2years and it will be $2000 off Msrp . Unless you are spending in the super car market and want to jump a few years on the waiting list why would any sane person pay over the odds for any thing.
Any idiot can pay the ticket price. Cleaver people shop around for the best deals.
AOTD: No. final answer. No.
Okay, we’ll put you down as a “maybe”.
When I was a kid, my parents bought a Suzuki XL-7 for the sole reason that it was the cheapest three-row SUV they could buy new. There was no practical reason for buying it, beyond that it wasn’t a minivan and it would haul a family of five around the state. To this day, my father defends the purchase as “It was all we could afford,” and while he may have been right, it was more expensive than a two-row SUV. He did not see the third row as a luxury. He saw it as a necessity. And I suspect that is why the dealers are price-gouging these cars right now. They’re necessities to their buyers and they’ll sell at those prices.
So I understand why people buy Tellurides. I wouldn’t buy one to begin with, but if I needed a third row, I might go looking for one. But $10,000 over MSRP is unconscionable. I could not pay that on principle. At that point, the extra trouble (if any) of a used vehicle would be covered by the $10,000, and most importantly none of my money would go to that dealership.
Just got one fully loaded 500.00 over msrp
I’m loving it negotiate negotiate walk away they come back to you you drive away happy !
When Chevy Citation first came out it was getting way over sticker. Nuff said?
The Citation? Really?
Yes, I remember. I wondered what the heck they were smoking, but I suspect it was what they were snorting.
The Chevrolet Citation and its X-car brethren debuted in April 1979, which was just in time for the second fuel crunch (caused by the February 1979 revolution in Iran that had deposed the Shah). GM’s timing was perfect on this one. The principal of my high school traded his 1975 Chevrolet Caprice Estate Wagon on the first Citation in town.
The X-cars were roomy, offered decent performance and had received rave reviews from the buff books. Their gas mileage was quite good, particularly in view of the performance and room they offered.
The baked-in reliability issues weren’t immediately apparent. The bloom wasn’t off the rose until the middle of 1981.
“What is going on here?”
A fresh, competent vehicle in a fashionable segment.
(though I agree that 10k over MSRP is way too much)
Simple supply and demand. Just shows how hot the big three-row SUV market is right now and the Telluride and Palisade are the latest new kids on the block. I don’t much like the way they look, but they are distinictive from everyone else, and that’s more than enough for greedy dealers to slap on a $10k ADM.
And, yet, if someone just has to have that third row, you can get an infinitely more practical minivan for thousands less.
And, yet, if someone just has to have that third row, you can get an infinitely more practical minivan for thousands less.
B..b…but my man card my wife let me have might get revoked!
Higher than MSRP? PRNDL don’t play that!
Not for ANYTHING.
Go pound sand!!
Absolutely not (and that goes for any car, not just this one). And on top of that I’d likely strike that dealer from options to purchase anything from as I’d perceive them to be more of a pain to deal with. Life isn’t worth the aggravation, easier to wait six months for the discounts to appear.
Nope
There are too many other vehicles I can buy that I don’t have to resort to spending over MSRP
Looking at the dealer i got my Elantra from, the Palisades they have are under MSRP
https://www.antwerpenhyundaiclarksville.com/searchnew.aspx?Make=Hyundai&Model=Palisade
Of course it is in a auto park with Honda, Toyota, Nissan, Chevy/GMC/Buick and Land Rover/ Jag so there is many places to buy a vehicle
I’m starting to think that the Telluride/Palisade might finally be the Korean 240Z – a car that showed their auto industry can create such a desirable car in a fashionable segment that people will be going to great lengths to get one.
I do not understand the negative comments about the Palisade or the Telluride.. Both vehicles are outstanding especially when you compare them to other vehicles in their class. Telluride seems a bit more sporty while the Palisade seems more luxurious. And as far as the dealerships marking them, they are priced too low to start with..
If they are truly hard to get / hard to find it may be a case of guaranteeing that there is 1 example at the dealership to look at.
I dont want one period. Not at MSRP and certainly not at MSRP + $10,000. That’s just crazy money.
Imagine if we considered it normal to have to horse around like this with the price of frozen peas or cans of paint or any other product.
Both of those items vary in price, sometimes widely, depending on the place one goes to purchase them even when they are the exact same item from the same manufacturer in the same size.
Gasoline is also the same way even when branded identically.
Most items are. The MSRP is just a suggested retail price.
Buyer beware.
Lots of folks do. I do comparison shopping on the web for all kinds of things all the time. It’s been a while since I bought a can of peas, though. But if I’m painting a whole house, I will negotiate with more than one paint store.
As to cars, this has been going on almost forever.
Almost anything is negotiable. Even in department stores.
Comparison shopping and asking for a deal aren’t what I’m talking about. One doesn’t go in a Safeway expecting to spend several hours playing dumb games like “How much is this bag of frozen peas?” “Well, you’re in luck! My boss has authorised me to make killer deals this weekend! Let’s go in my office and see if we can come to terms to get you into this terrific bag of frozen peas today!”, etc.
Yes, it’s been going on almost forever in the motor trade; I still take exception to it.
But nobody has to play dumb games. The asking price is clearly marked on the side window. If you don’t want to pay what they are asking you have to ask for a discount. Conversely if you are willing to pay the marked price they will happily make the sale.
Your bag of frozen peas is similarly clearly marked as to the asking price. You and most others probably just pick them up and pay whatever it is. Some people remember that the same bag is less at a different store and wait until they go to that store. Still others may ask to speak to the manager and attempt to haggle the price down. Yes, less likely on a minor good like a bag of peas but absolutely happens with shoes for example. Or go to Home Depot or Lowe’s, they will bend over backwards to at least match the other’s price on every item they sell. Safeway probably would match someone else’s price in the peas as well. It’s your money in your pocket, every store wants it, you just have to ask.
Or just pay what the price is on the label and move on.
Frozen peas dont come in a can, Paul.😁
Would you throw one hundred 100 dollar bills into a fire to have the opportunity to pay MSRP? It’s the same thing. NO!
+1
This, exactly!
It isn’t no. It’s hell, no. But then this isn’t remotely my kind of vehicle in the first place.
I bought a Palisade Limited on black Friday at $5K over MSRP. Would gladly do it again. Not going to tell you it’s the best, but I will suggest you test drive and see for yourself.
For me the answer is a simple “NO!” That goes for any vehicle. Besides, we’re empty nesters, don’t tow or camp, seldom haul, and have only one grandchild.
We’ve never owned an S/CUV and don’t plan to, ever.
I’ve never heard an ad for any other KIA dealership around Toledo, except for Taylor Kia, who I can see if I open up my blinds. I’m kind of shocked they would ask more than sticker for a car.
Would I pay over sticker for a KIA? Nope, I wouldn’t pay sticker for any car.
I wouldn’t buy them even if they were $10,000 under sticker price!
We looked at a Telluride and while it was nice enough, there was no inventory on the ground besides a few base models full of marked up dealer accessories. While it may be one of the best three rows out there, it certainly isn’t the only one. I’m not going to pay MSRP, let alone go above it, for something that the non-car people in my family are just going to use and abuse. We ended up snagging a CX-9 at a significant discount.
Excellent choice with the CX-9. My sister bought one in late 2018 and they love it. I had a chance to drive it and came away very impressed.
For the correct color combo and options packages I would potentially pay MSRP for a Telluride. But I have yet to see a 2nd row bench in the highest trim that it is available in, painted moss green with tan interior, and towing package. But I wouldn’t pay a penny over MSRP.
Anecdotally I’ve heard that every time that H/K dealers have a vehicle that’s worth a dang they play games with it. Guys showing up that want to test drive a Velocter N (275 hp hot hatch) arriving on the lot in their VW GTI and being told that they can’t drive the car until they buy it.
I might be interested in a Sonata N-line (coming soon) but not with a dealer who is going to act like the customer is privileged to be permitted to be there.
Explorer ST was mentioned and I noticed this week that a parent in my school’s drop off line has an ST. Although in my area the family might be related to the ownership of the local Ford Dealer.
I wouldn’t pay $10,000 UNDER MSRP for anything made by Kia or Hyundai. The Korean car fanboy trend is getting old.
I’ve test driven so many SUVs this year. I never even considered a Kia before. They nailed it on the Telluride. I was able to get the dealer down to 8500 over so I am extremely grateful. I should have my new black on black in a few weeks. Trading in my 2016 landrover lr4 that I paid over 80k for new. This car seems like it’s almost free to me.
No I would never even pay sticker price. I’ll just keep driving my 2010 highlander until the price for the Telluride with skid pads are reasonable.
Nope. I won’t pay over MSRP on anything.
I have test driven the car yesterday, the ride quality is good but the third row bench and leather is subpar. I wouldn’t pay a penny over MSRP, rather I could lease Subaru Ascent with the Markup money for 2yrs and consider another good vehicle then
I don’t think I’d pay even ten bucks’ premium for either or. Gimme a Durango or Grand Cherokee.
My wife, however, is thinking about going the CUV/SUV route for her next car. I have a strange suspicion that she’s interested in the Palisade. Truth be told, I’d rather her have a 4Runner — and yes, I’m not exactly a Toyota fan. She was almost close to buying one until the Subaru dealer wooed her into a 2015 Outback with a deal she couldn’t refuse.
Knowing this about the Hyundai/Kia, I think that she could probably get a loaded 4Runner for less. To me, the 4Runner is more vehicle for the money, more capable, isn’t as ugly, and will probably last longer (though reliability doesn’t matter too much since my wife keeps cars a tinge past the warranty). Since my recommendation of the Mopar SUVs was shot down the last time around, I’ll probably encourage her to go for the Toyota.
There goes the SUV I was going to buy this summer my wife and I have always been Kia. Fans they made a good SUV a t a fair price now there going to price it so high they will sell a few good luck I always thought Kia meant Kick Its Ass. and make it last now I’m going someplace else. Greed don’t make friends bye
Y’all want to call the dealers greedy for doing this, but the reality is since the beginning of time the dealers have made pennies on every car they’ve ever sold. If this makes the dealers greedy then the consumers have been ***holes since day 1.
No. With the positive press the Palisade is getting, I checked it out today at the auto show. It looks very good. The interior gave a solid luxury vibe, the third row looks functional. Without verifying anything she said, the Hyundai girl told me they topped out at about $48,000, had a 10yr / 100,000 mi warranty, and the NA 3.8 V6 could tow 5,000.
The value proposition is there as has been Hyundai Motor Group’s claim to fame for years.
Given HMG’s recent settlement for $760 million over 4.17 million vehicles equipped with the Theta II gasoline direct injection engine, and knowing a couple of victims of this engine, and how they were treated, I’m still not a huge fan of HMG, the value proposition has to be there for me.
Tack on 10 Grand and I may as well shop for any Ford Explorer, or even consider a Buick Enclave or Lincoln Aviator.
As has been HMG’s dealer network reputation, the dealers are doing HMG no favors.
If there are suckers / early adopters who just have to have a particular car the dealers will gladly accommodate them for a price. I seem to remember when the PT Cruiser first came out folks were paying several thousand above MSRP.
I would never pay more than sticker. Wait a while and the price will come down.
Not sure where all these markups are coming from. I did not pay over MSRP for my Telluride EX and its loaded. I also did my homework and took over 3 weeks to decide on this SUV. I’ve owned a Hyundai since 2008. My 2013 Elantra needed a new engine at 65,000. Hyundai replaced it for free. You also can not beat Hyundai/Kia’s warranty. I did not like the Palisade and even though l would have received over 1500 in loyalty bonuses and military discounts, I chose the Telluride because the Palisade does not have a normal gear shift. Ford was way overpriced and not as large inside. Same with the Honda and Toyota. Ive also never had a problem with resale value of a Hyundai so l’m not sure where that comment was comming from. Maybe some just dislike Korea. I love my new Santa Fe and l love my new Telluride. If you dont like it, dont buy it but putting a negative comment about something you don’t own is simply insane. By the way, the Telluride has a rating of 97 by Consumer Reports which is by far the highest of any SUV.
For those interested, I’m taking bids on a bridge in Brooklyn.
I sell Kia’s as well as several other brands of cars. I ALWAYS tell my customers that there’s no way the Telluride can be worth paying 2,000-5,000 above MSRP. Then after another hour of test driving other brands of 3 row vehicles (all top non-luxury brands). We always come back to the Telluride. Then I give them my price, and if they try to negotiate, I politely insist that they go to other Kia dealerships in a 100 mile radius. A couple of days later I always get a call back cause no one can beat our prices, then I have them put a non-refundable deposit on a Telluride that could take up to 3 months to get in. Even though I wouldn’t do it, the Telluride IS the best bang for your buck, at 10k above MSRP. Just compare it to the SUV’s in the 45k-55k range.