KIA cars are Korean vehicles with petrol and diesel-based engines and have poor resale value. Within three years, the KIA car value decreases by more than half its original cost.
Do Kia Cars Keep Their Value? KIA cars do not keep their value due to no manufacturing competition, low standard prices, depreciation, and problems over time. In addition, it does not hold value due to its poor reputation, lack of design advancement, and minimum demand.
Due to the availability of more compatible models, KIA cars have minimum demand in the USA. According to the number and type of amenities, they do not worth the cost.
No manufacturing competition
Unlike other automobile manufacturing companies, KIA started manufacturing late. As a result, it cannot compete with the manufacturing competition of other automobiles.
Its first car had launched in 1974 and has a reduced demand due to the poor design of early models. However, it comprises all the safety and technologically upgraded features.
But, the manufacturing company launched these cars with basic designs. Moreover, it has a non-distinguished interior and shares the dimensions with other automobiles.
Due to these reasons, several people are unaware of these automobiles in the United States. Furthermore, Americans do not prefer KIA cars due to their poor advertisement and unattractive market.
Low original prices
These cars have minimum resale cost due to their low standard prices. However, these are less costly vehicles due to their low quality and less durable manufacturing material.
Manufacturers utilize plastic for making their frames. Due to this material, they have a short life expectancy. Several people do not consider the used and upgraded automobiles because the new models have a minimum cost difference.
For example, a new KIA forte costs around $17000 to $24000. However, the resellers try to sell the used KIA forte for about $13000 to $15000 with different modifications.
But, the customers never agree on this cost, which leads to its low resale value. Also, it does not keep its value after 4 to 5 years due to wear over time.
Due to this cost gap, they have low resale value. Moreover, people prefer new cars rather than selecting an old and modified automobile at high prices.
The depreciation rate of an automobile is the difference between the original cost and resale prices. Moreover, depreciation indicates the reduction of cost according to use and mileage.
According to different estimations, the KIA cars have a depreciation of about 25% to 40% in the first year. Therefore, it is higher than the depreciation of a standard automobile and affects the resale value.
However, the original cost depreciates by around 45% to 60% within three years. Therefore, these automobiles cannot hold their value over the years due to higher depreciation.
In such circumstances, these cars lose their resale value quickly due to expensive repair and maintenance. Moreover, due to their design, you cannot find their compatible components for replacement.
Moreover, these parts and their installations are expensive, which can increase their depreciation. Their maintenance and frequent rebuilds increase the gap between the original and resale costs.
More problems with time
Over time, the KIA cars undergo several frame and technical problems. Moreover, their engine malfunctions over time due to internal cracks and broken components.
Due to these significant problems, these vehicles undergo more repair and service schedules. In addition, with time, their steering wheel malfunctions and resists turning.
In such conditions, vehicle safety decreases which reduces the resale cost. Moreover, these automobiles undergo excessive frame corrosion, which leads to paint fading.
In such circumstances, it reduces the appearance of an automobile and makes it unattractive to customers.
Also, their door actuators malfunction due to more friction and low-quality build. Finally, it cannot hold its value due to broken electrical cords, malfunctioning headlights, and electronic failures.
Due to these problems, you cannot resell the vehicle at a high cost after 5 to 6 years. Furthermore, it cannot stabilize for this period because the parts undergo various faults.
However, the faults become prominent after a specific time, which reduces their resale prices.
No prominent design advancement
The resale value of the vehicles depends on their upgraded designs and cabin appliances. Due to the standard layout, their manufacturing portals do not add additional advanced amenities to the cabin.
Also, they have specific wheels with optimized compatibility with the tired of similar dimensions. Moreover, you cannot upgrade their built-in and stock features with new and advanced amenities.
Their dashboard lack compatibility with new ports and the installation of new safety features. Also, their electronic control unit is incompatible with new and upgraded software.
Due to these limitations, it works with the stock system and cannot provide better performance with the upgrade. Moreover, its design and cabin remain the same as the original, which reduces the resale cost.
In such circumstances, these automobiles cannot keep their resale value over time.
The KIA cars have a poor reputation due to their low-quality frame and overall design. Due to its low original costs, their earlier models have the worst reputation in the automobile market.
Furthermore, they have significant engine problems, which cause recalls and several complaints. Finally, they have the worst consumer reviews due to malfunctioning chassis and other issues.
Also, these cars have faulty transmission, which undergoes premature damage in the early years. Due to several complaints, American consumers do not consider them a good car with a higher reputation.
Due to these reasons, these automobiles do not hold value in the automotive market. Moreover, several people avoid them due to their low reliability than other automobiles.
They have a poor reputation due to hundreds of recalls and engine failures while driving. Such failures reduce their safety parameters and lead to unsatisfactory driving conditions.
Moreover, these vehicles do not keep the resale cost due to a history of various accidents due to mechanical problems.
Minimum demand for used models
The original and standard KIA cars have more depreciation than other automobiles. In such conditions, its used models lack durability more than the standard vehicle.
Due to this reason, their used variants are not in demand. Therefore, people like the used versions of other reliable and durable automobiles which have moderate depreciation.
Also, their resellers demand high costs for the sub-standard variants. In such circumstances, the consumers do not agree to the higher residual payments for the low-quality and poor build cars.
Due to its market reputation, they have minimum demand.
Even with the upgrade, these engines can fail while driving the automobile, which is dangerous. Also, their low-performance brake system is unappealing to the customers.