Given that the dealer already sent us the car’s title, I already have the VIN code, curious me went on and typed it on a VIN decoder...
Shamefully the car isn’t going to reach my underground parking space until Friday, so I can’t post pictures of it yet, but I can continue researching about it.
We paid a little under 39,500 dollars for the car, whose VIN is displayed there. Using a little internet magic (and my favorite ZIP code, 90001) I can find out how much someone would pay for this very car just a few miles away from my dear Mexico...
The same car, optioned to a very similar spec, is 52,425 dollars.
Given this is a post about dollars and sense, I must include a few disclaimers.
Firstly, Stingers aren’t feeling the burn here in Mexico, dealers have a tough time circulating them (at least according to the sales staff over at the dealer) so many have discounts. We just happened to score a 40,000 peso discount on the car, floor models are going for even less, I saw this blue Stinger GT with grey interiors for sale with a discount of 52,000 pesos.
The car mentioned is a black on black GT2, available in Garden Grove and Kia of Irvine for the same price; 52,425 dollars.
The cheapest GT2 stingers are the white and red ones, averaging a 2000 dollar saving compared to the blues and blacks I’ve found.
The car’s MSRP is of 50,100 USD in the US
The car’s MSRP is of 784,900MXN (41,820 USD) in Mexico.
This car is not the same spec as the Kia we shall be receiving this Friday. Because of three things:
1. here in Mexico Sat Nav is disabled because Kia hasn’t gotten our maps(Yet?). Our speedo is also in KM/H, if that isn’t obvious enough...
2. Ours has the red interior, which apparently is not available in any of the top search cars I found.
3. Ours has the European spec interior trim, with a nasty faux carbon fibre interior trim and the covered cup holders that I rather like.
As Wobbles The Mind (someone with excellent opinions on marketing as we know) explained in the post about driving the Stinger, it is absolutely okay for the car to be priced like this in a market like the American. It seems to go hand in hand with the aggressive publicity and comparing the car in their website with much more expensive cars like the BMW 440i, the Porsche Panamera, and the Audi A5. Kia wants to make the Stinger their ticket upmarket.
My B&M teacher back in high school referred to this kind of aggressive publicity and pricing strategy as emotional marketing. Its designed to create an emotional response on a prospective buyer, By seeing the stinger hit the low 50s they already relate the car to more luxurious, more expensive cars, which is good for the brand. Yet because its low 50s, they can feel confident its a good buy because its not outrageous for them if they compare it with the Audis and BMWs of the world.
It might also be a regulatory thing, Here in Mexico markups aren’t really a thing; Kia has a tight squeeze when it comes to franchised dealers over here and seeing anything higher than MSRP is ridiculous if not illegal, as our consumer protection office (PROFECO) is quite strict.
If we go to the argument of cost of living, We pay 18% VAT on new cars, if said car is more than 200,000 pesos it must also pay a luxury car tax called ISAN at about 10%. California has a ~10% VAT on new cars, for instance. reg fees are negligible. Additionally, we don’t have a free trade agreement with South Korea, and ya’ll do. So whatever savings we accumulate in dealer costs (as it is cheaper to work here) get deducted right back by the taxes and FTAs in AmericaLand.
But it seems like Kia de Mexico didn’t get the letter because we’re getting way lower prices, anywhere from 8,270-12,925USD in discounts depending on which number you chose to subtract. This advantage is seen mostly in the higher trim models, as the base model in Mexico costs 30,075 dollars, only 1,900 dollars less than in the US.