Kia cars are proving to be hot property at auction with buyers paying well above the guide prices for a wide variety of models. So much so that CAP, one of the leading industry guides for used car prices, has taken the rare step of adjusting their Kia guide prices upwards.
This year Kia and BCA have been holding a series of auctions at the Measham site and large audiences have been there to snap up used Kias such as Picanto, cee’d, Carens and Sportage. Almost without exception the demand has been so strong that prices have not just outperformed basic guide prices but smashed the premium values quoted by organisations such as CAP and Glass’s.
The Kia cee’d made its auction debut in February and whilst the average sale price for all Kias was 101 per cent of CAP cee’d bust the scale at 112 per cent. This was no one off. The success continued in March - every Kia in the auction was sold with the in-demand Picanto reaching 108 per cent whilst cee’d scored a huge 120 per cent of CAP, busting their predicted residual values.
Swayed by these performances, CAP reviewed its prices and increased their guide values for the cee’d family by around five per cent. This means existing cee’d customers are finding the values of cars on the driveways have increased.
The latest auction, held Friday April 4, saw a number of Picantos sell for 102 per cent whilst cee’d continued at 105 per cent. This is the first time cee’d has been to auction since CAP adjusted their values and the guide prices are still being beaten.
These auction prices reinforce the trend that Kia has seen over the last year - low residual values quoted by uncertain guide setters are being consistently left behind in the real world showing how traders, dealers and customers recognise the true value of Kia’s well-designed and solidly built vehicles backed by the best car warranties in Europe - especially cee’d with its bumper-to-bumper seven year warranty.
Kia Motors UK Ltd. Used Car Remarketing Manager, David McCluskey said: ‘The development of the Kia brand and its product has been so dramatic and rapid over the last few years that residual values in guide books, and amongst some of the financial houses, have been unable to keep up. CAP is seeing this development and we are very happy they have increased residual value guide prices by around five per cent. But judging by these auction performances we feel there is still some way to go.
‘In auctions and on forecourts, customers and traders knew all along – Kia cars are worth much more than the guides say because they represent such good value and provide such reliable transport for used car buyers. It is great news that the guides are starting to catch up!’ he added.Published 9 April 2008