It’s no secret that the cost of buying both new and used cars has been rising over the past few years. The average price of a new car in December 2021 was slightly above $47,000, up from about $36,700 in May 2019. While some of this can be attributed to rising manufacturing costs, car dealers are also adding significant mark-ups to their sale prices. You can see an example of the same in the Kia EV6, which sells for $3,000 over the manufacturer’s suggested retail price (MSRP).
However, before we can look into why mark-up prices for the EV6 are so high, here’s an overview of the vehicle.
2022 Kia EV6 overview
The 2022 Kia EV6 is the manufacturer’s first electric SUV. It competes with models like the Ford Mustang Mach-E, and Tesla Model Y. Car and Driver notes that one of the highlights of the EV6 is a stylish and exciting exterior.
The SUV is available either as a rear-wheel or all-wheel drive option with significant changes in power depending on the trim level. Also, it’s built on Hyundai’s Electric Global Modular Platform (E-GMP), which is the first dedicated EV platform for the Hyundai Motor Group.
As for the interior, it may not be as stylish as the exterior, but it’s practical. The passenger and driver space is generous due to a long wheelbase and the flat floor typical of EVs. This is combined with a digital dashboard, a floating center console, and storage solutions for bottles, coffee cups, and more.
The lowest trim outputs 167 hp, while the highest trim is expected to be a 576 hp machine that can accelerate from a standstill to 60 mph in 3.5 seconds. However, the 576 hp Kia EV6 GT is still unavailable, with the current top trim option being the GT-Line AWD which offers 320 hp.
Also notable is that the electric SUV has a maximum estimated range of 310 miles which drops if you opt for the all-wheel drive models. This isn’t anything impressive especially compared to the competition. Additional downsides include the small front trunk space and an infotainment system that could be improved.
The Kia EV6 MSRPs
According to Kia, the manufacturer’s suggested retail price for the Light RWD model, the lowest trim option, is $40,900. Similarly, the recommended starting price for the Wind and GT-Line trim levels are $47,000 and $51,200, respectively. This is in stark contrast to what buyers are paying for the EVs.
Edmunds notes that the Light trim is $44,134, the Wind trim is $50,529, and the GT-Line trim is $54,941. As for why the margins are so high, low inventory and high demand have pushed the market average about $3000 above MSRP.
Additionally, the margins increase with higher trim levels, with the difference between MSRP and actual cost for the GT-Line option being over $3700.
The main reason for the Kia EV6’s low supply
Unfortunately, supply is short not just for the Kia EV6 but for new cars in general due to an ongoing semiconductor shortage that has put a damper on how many cars manufacturers can make. According to Consumer Reports, the semiconductors contain microprocessor chips that are used to control fuel management, infotainment screens, and other high-tech equipment in modern cars.
Some of the reasons for the semiconductor chip shortage include Covid-19 and a recent fire in a Japanese chip factory, straining supply further. More recently, the war in Ukraine disrupted the global neon gas supply, with gas being a crucial component in chip manufacture.
Buying car models like the EV6 and 2022 Kia Telluride should be tricky, even if you’re willing to part with a significant sum above the MSRP. Some experts recommend factory ordering a car as early as six to 12 months before you need it.