Many have known Kia as a cheap brand, yet they’re not as inexpensive as they might seem. The company is trying to make cars more affordable for those who need them.
But if you dig deep enough, there lies a different story behind their low prices. Here’s what I’m going to bring to light why Kia cars are not as inexpensive as they seem!
Why Are Kia Cars So Cheap?
1. Poor Build Quality
According to Carwale statistics, a user review for model Kia Seltos has low build quality, very light quality doors, and weak construction.
Aside from that, Kia has been involved in a string of fire and engine failure problems over their vehicles, which has plagued the company for the past six years.
On top of that, many consumers who purchase Kia cars have experienced transmission problems, including shifting troubles on clutch and jerking.
As a result, Kia has been known as a car company that is more concerned with saving money than building cars with quality!
2. Reputation Of Being A Disposable Car
In the past, Kia didn’t have a good reputation. They were once viewed as disposable vehicles since they were inexpensive and had a deficient resale value.
Furthermore, with an annual repair cost of about $474—less than the typical vehicle maintenance, Kias tend to be substantially less expensive to maintain than the average car.
Overall, when you purchase a KIA vehicle, you can expect to have a very low rate of repair outlays due to its reputation to last for a limited season only!
3. Manufactured In South Korea
KIA cars are cheap because they are manufactured in South Korea, which has a relatively low labor cost compared to other countries.
In addition, the country has a nominal cost of employment, especially compared to other regions like the U.S. and Mexico.
Assuming, this makes the manufacturing process more affordable while still allowing KIA to make a profit on their products.
By all means, the fact that KIA cars are manufactured in an Asian country means that their prices are not as competitive as those on the global market!
4. Unelevated Labor Cost
South Korea’s labor market is more affordable than the U.S. or Europe, where labor costs are higher.
For that reason, KIA vehicles may be less expensive than those of other automobile manufacturers. In addition, they are exempt from paying taxes when they import goods abroad.
This is why, the absence of standards in a production line may lead to additional problems later on that not only harm the consumer but also the brand’s sales and dependability.
As a direct result, inexpensive quality comes with a poor labor cost!
5. Reduced Resale Value
When a car manufacturer offers incentives for new vehicles, there is a good chance that the vehicles aren’t selling, and the company must reduce the price to get them to sell.
In addition, incentives and discounts may also be blamed for Kia’s low resale value because drivers can choose from cheap financing rates or refunds.
However, despite their appeal in other areas, Kia’s cars are behind with average value retention of 47.7% during five years!
Overall, it makes sense that these cars are less expensive given that a good match resale value cannot be guaranteed!
6. Designed To Last 5-7 Years Only
That’s right, Kia cars are not built to last forever. Instead, they are only designed to withstand only 5-7 years.
As you can see, cars depreciate over the years, with the first year seeing the most outstanding value loss.
As a result, the average Kia car only lasts a limited season before it needs to be replaced with a new model due to mileage and wear and tear!
7. Backorders And Shortages
Due to several causes, including a lack of semiconductors, the Russian invasion of Ukraine, and the COVID-19 epidemic, Kia had accumulated a combined backlog of 1 million vehicle orders.
At this time, Kia has not been able to keep up with the demand for its cars and cannot produce more than a certain number of models at any given time.
Consequently, Kia’s production process is inefficient because shortages are involved in making car parts like engines and transmissions!
8. Incompetent Materials
In order to keep everyone inside the car safe in the event of an accident, Kia’s vehicles are composed of tensile solid steel.
However, unlike luxury manufacturers, their materials fall short of solid and robust construction.
Undoubtedly, because they are constructed with incompetent components that are probably unable to withstand normal wear and tear, KIA cars are considered less expensive!
9. Target Lower Cost Market
According to Mike O’Malley, account director at D&G Group, Kia aims to attract Millennials with limited attention spans.
Besides that, the target market comprises customers in their 30s who depend on multi-screening and cutting-edge technology to succeed.
Therefore, Kia has focused on making its cars affordable to the lower-income generation, which means it can sell them cheaper than more prominent companies like Toyota or Honda!
10. Typical Average Mileage
When you purchase a new Kia today, it will likely outlast more than 250,000 kilometers in terms of durability.
For that reason, this is lower than many other brands, which typically average around 300,000 miles per year. However, it is hard to forecast the performance of any one Kia model during ownership.
Over time, the car will need more maintenance than other vehicles on the road resulting in a cheaper final product!
11. Reliability Overview
Kia’s reliability is better than average.
Today, a Kia model is a reliable and valuable family vehicle. Despite not being known for luxury, the brand has advanced significantly in dependability.
Nevertheless, even though KIAs are less expensive, the brand has several outstanding attributes and features that make them dependable!
With its economical pricing, Kia has solidified its place as the family’s preferred vehicle.
While lower prices may seem more affordable to some people, there are drawbacks, such as poor construction, a bad reputation as disposable cars, and elevated labor costs.
Overall, Kia vehicles are a top choice for many people looking to purchase a low-cost, nominal and reliable car!