If you do not agree to a $15k-18k markup, there will be no test drive.
The automotive industry is facing huge manufacturing challenges which are causing a sharp rise in vehicle prices as less inventory becomes available. Keen readers will be aware of this fact. Recently, we spotted a Kia dealership selling a Telluride at $78,995.
The window displays a poorly written message about the dealership’s dire situation. It includes many typos. The dealer will not allow buyers to test drive the Telluride because of its limited availability and popularity. They also require a $15,000-18,000 markup. Although we are aware of the popularity of this SUV, we aren’t sure why. We also don’t like the high price and markup.
If you can’t see the image, the message in the window says: “CONGRATULATIONS!” This is the most desired vehicle in the world. This is the 2021 Kia Telluride Mid SUV, which has the highest rating on the market. You already know this. That’s why you are here today. Because of its popularity and limited availability, Telluride is sold at a market-adjusted price of $15,000-18,000 above the MSRP.
We cannot order one for you, nor can we trade for one. You can purchase the colors and options we have currently in stock today. We would be glad to take you for a test drive if you feel that the stock we have is something you could own at the market adjusted price. We will not be offering a test ride if the conditions above are not acceptable. Keep an eye on [redacted] to see the most recent inventory. [sic]
With all-wheel drive, the 2021 Kia Telluride XX starts at $44,390 We could only get the price to $52,980 by adding every option on the configurator. A dealer markup of $20,000 would bring the Telluride to luxury-SUV level.
There are many great SUVs available at a fraction of the price. You could get the latest Genesis GV80 and Mercedes-Benz GTLE. $80,000 would buy you a BMW X7 with a few options. This is not the first time that we have seen crazy markups by Kia dealers. However, it’s still mind-blowing.
We would wager that customers will not be tempted to buy Telluride if they are asked for too much. Although details are scarce, it is clear that the impact of the shortage of automotive parts is widespread. We’d love to know if you would spend the money or look elsewhere.