Supply chain crisis pushes new car buyers to look to backup options
Mr Korum believes a renewed full lineup from Nissan has helped sales, but a shortage of competing models is drawing even more people to his showroom, he said.
“It’s not just about mics,” he said. “People who can’t find the RAV4, CR-V and Civic find the redesigned Rogue and Sentra to be a pleasant surprise. Sales are increasing. We could sell a lot more if we could get them.
Edgar Zurita, 43, of Fairfax, Va., Has strayed from his original choice. “We needed a lot of space and seriously considered a new Kia Telluride SUV, but the markup of $ 18,000 for one on the lot was too high,” said Zurita.
“So we switched to buying minivans,” he added. “Still, the Kia Carnival and Toyota Sienna won $ 12,000. I don’t like getting ripped off, so we ended up buying a used, 2019 Kia Sedona SXL van with 20,000 miles. It was a lot cheaper and the vans are more useful. Also, I won’t lose as much on resale.
Kia was running out of Tellurides before the pandemic, thanks to strong sales. He recently presented the Carnival minivan (the successor to Sedona) with an SUV look. “Carnival has been a great turn off for those who can’t find or don’t want to wait for a Telluride,” said James Bell, of Kia’s global media relations office.
“We are seeing a market reset,” he added. “People understand that vans exist for a reason: they are exceptional for transporting people. We’re also seeing buyers who are much more flexible, downsizing at Sportage when Sorento isn’t available, or upgrading to higher trim levels when they previously wouldn’t.
Used cars may be more affordable than new ones, but their prices have also skyrocketed. Carvana, which sells and delivers used vehicles online, offers some telling numbers. According to its second quarter results, it sold 96% more cars than a year earlier; revenue increased 198% to $ 3.3 billion; and gross profit was $ 552 million, up 268 percent.