The price hike has already affected one of the most anticipated new electric vehicles of the year: the 2024 Kia EV9.
According to CarsDirect, inventory data from national dealerships currently show profit margins on the EV9 of up to $7,000 above the MSRP. One dealership confirmed to the website that indeed, each EV9 on their lot had a $7,000 profit margin. Another advertised what was actually a $4,995 profit margin, attempting to mix things up with a cash rebate offer for Kia customers of $3,750 (coming from Kia, not the dealership).
Green Car Reports also quickly noticed this in a brief survey of dealerships. For instance, Kia Downtown Los Angeles seems to maintain the $3,750 cash offer for the customer while adding $5,000 to the price. If so, that’s a total profit margin of $8,750.
These margins are not unusual for new models in demand, but this is happening despite Kia’s efforts to prevent price gouging. According to CarsDirect, the automaker previously sent a letter to dealerships asking them not to add margins above the MSRP and “even offered to pay dealerships $2,000 for each EV9 delivery made without issues.”
Kia had previously stated that it was taking special measures with its dealerships regarding EV9 reservations and sales to avoid a repeat of what happened with the EV6 launch, but apparently the dealerships didn’t get the memo. When the EV6 and related Hyundai Ioniq 5 first appeared, it was easier to get an EV6. This wasn’t due to lower price speculation, but rather a broader implementation plan.
We have reached out to Kia to learn the status of that agreement and to understand the context of what types of margins are considered acceptable.
Hopefully, Kia can ramp up EV9 production quickly enough to not disappoint customers with what would otherwise be one of the best new electric vehicles of the year.
