2012 Kia Sorento Shows Huge Spike in Residual Value
The 2012 Kia Sorento is rated at 58 percent of the original MSRP after 36 months of ownership, according to Automotive Leasing Guide, the industry leader in setting residual values. The standard is closer to 50 percent, which means good things for Sorento owners but could mean higher lease rates for the compact crossover utility vehicle. It is Kia's first vehicle to surpass 100,000 units in a single year.
Kia is saying the almost 20 percent jump in residual value is attributable to the Sorento’s class-leading horsepower and fuel economy with the newly available 2.4-liter engine featuring Gasoline Direct Injection (GDI). In addition, consumer demand for Sorento has outpaced expectations. Demand (at least perceived demand) goes a long ways toward setting a vehicle's predicted residual value. Of course, residual values are not set in stone but are instead an indicator of likely value. True market trade-in values and auction purchases ultimately determine a three-year old vehicle's value.
“With gas prices above $4 per gallon in many parts of the country, fuel economy has become an even more important element in consumers’ decision-making process when considering a new car, and the Kia Sorento’s all-new GDI engine delivers increased horsepower, lower emissions and outstanding fuel efficiency by achieving up to 32 miles per gallon on the highway,” said Tom Loveless, vice president, sales, Kia Motors America (KMA). “Kia’s value proposition has never been stronger, and with Sorento’s high residual value rating by ALG, buyers can benefit from higher resale values and excellent leasing options.”
The 2012 Kia now offers class-leading power (191 hp) and fuel economy along with cutting-edge technologies, including an available gasoline direct injection (GDI) engine and Kia’s new UVO powered by Microsoft® hands-free infotainment and communications system based on the Windows Embedded Automotive platform. Also new for the 2012 model year are power-folding mirrors, memory seat/power passenger seat, ventilated driver’s seat and heated and wood trim steering wheel.
“The new generation 2011 Kia Sorento was launched early in 2010 with the right balance of low pricing and generous content, said Eric Lyman, director, Residual Value Solutions for ALG. “Based on ALG residual value forecasts and information from our transaction database, demand has clearly outpaced initial expectations for the Sorento. While overall incentive spending and fleet sales are down, retail sales have shown significant growth spurred on by robust consumer demand. As a result, ALG has reflected this positive momentum in its residual forecast for the 2012 Kia Sorento.”
Pricing for the 2012 CUV begins at $21,2506 for the base trim, offering such standard convenience features as air conditioning, power windows, door locks and mirrors, SiriusXM™ Satellite Radio capability with three months complimentary service7, Bluetooth® wireless technology and MP3 connectivity. The Sorento was named a 2010 “Top Safety Pick” by the Insurance Institute for Highway Safety (IIHS).