The Kia EV6 has quickly become one of Australia’s most in-demand cars, but Kia has fallen victim to its own success, with some buyers now ‘turning’ their cars for huge profits and making it harder for real customers to get behind the wheel. .
Prices for the nimble electric vehicle officially start at $67,990, but would-be entrepreneurs are capitalizing on the insane demand for the car (and new EVs in general) by selling EV6s for insane premiums above their MSRP.
DMARGE flipped through Carsales for EV6 listings and found that the cheapest offer as of publication – a single-engine Moonscape Gray GT-Line RWD model in Sydney with just under 2,500 miles on the odometer – was asking $99,900. That’s about 33% premium over the suggested retail price. Multiple offers can also be found for the same price on Gumtree.
Other entries climbed into the six digits, especially for top-spec GT-Line AWD twin-engine vehicles. It’s a frustrating problem for the South Korean automaker, as well as for real customers who find themselves missing out on the queue or being criticized by the flippers.
“The biggest problem we face at the moment is turning around… That seems to be a much bigger problem in the market than dealer supply,” said Damien Meredith, CEO of Kia Australia.
“We’ve heard stories of people buying a car — on the East Coast, the Sydney metro — and showing up in Western Australia, with an $8,000 to $10,000 bounty on them.”
Our research suggests that the pursuit of profit is even worse than that.
This is the same kind of aggressive speculative purchases that you normally see with luxury goods, such as Rolex watches. Popular stainless steel Rolexes such as the Daytona, Submariner ‘No Date’ or GMT-Master ‘Pepsi’ are so sought after that waiting lists at dealers are literally years long… And aftermarket prices are sometimes 150% or even 200% higher retail.
RELATED: Why Rolex watches are so hard to get
Speculation about Rolex watches has only been exacerbated by COVID and the ensuing global economic slump. Makes sense: people are just trying to make a quick buck and things like this always get worse when the economy is bad.
But (as hard as it is for me personally to admit) you can live without Rolex. Aussies can’t live without a car – and while the EV6 is certainly not the only new car on the market, Australia urgently needs to switch to electric driving to combat rising emissions levels, so people are playing dumb with new EVs like this one is huge disadvantageous.
Fingers crossed that if COVID-induced supply chain problems eventually resolve on their own — and both the state and federal governments in Australia make buying EVs easier, making it easier for brands to justify bringing more EVs Down Under — we will see less flipping happen.