One Kia Will Keep Its Value Which Could Help Leasing
ALG, a leading provider of data and consulting services to the automotive industry, has accorded top honors in the subcompact utility segment to the Kia Soul for its "its premium feel and competitive pricing." After three years, according to ALG, the Soul is going to retain a projected 57 percent of its value. That would surpass the industry average of about 50 percent.
It's important to note before going further that predicted residual values, while based on some hard facts, could go up in smoke if major flaws (like acceleration problems) are found in a vehicle. I'm not saying that is going to happen with the Soul but in my opinion one can never say never.
Leasing prices are set based on residual value. The more expensive a car is after three years the lower a lease price can be set. At 57 percent of its value, the lease price will be based on 43 percent of the Soul's value. That makes for lower monthly payments for the car to be profitable to Kia.
ALG determines Residual Value Award winners based on a variety of factors including careful analysis of the automotive industry, the vehicle’s performance, quality and the overall price.
“The redesigned Kia Soul offers the economy of a small hatchback with increased utility and premium feel for the price,” said Eric Lyman, vice president of editorial for ALG. “Kia is a brand on the rise, and the Soul combines personality and value to deliver a product poised to retain its value over time.”
“Kia vehicles are well known for their value, and the Soul’s mix of personality, utility and affordability has made it a huge hit,” said Michael Sprague, executive vice president, marketing & communications, KMA, in a statement. “Adding the ALG Residual Value Award to the Soul’s trophy case is a testament to the vehicle’s quality and appeal that stands up over time.”
With its iconic design, the all-new 2014 Soul offers markedly improved ride and handling, significantly reduced NVH, a suite of standard features and options – and now – the Soul is forecasted to retain its value better than any other vehicle in its class.
The all-new 2014 Soul rides on a new chassis that is stiffer, longer and wider. The Soul’s new dimensions allow for more passenger and cargo room while NVH levels have been reduced dramatically. Increased torque and significant suspension upgrades make the 2014 Soul a nimble and agile companion and inside there is a long list of standard comfort and convenience features, including Bluetooth®2 wireless technology and steering wheel-mounted controls.
Kia Motors America is one of only three auto brands to increase U.S. sales in each of the past four years, and in 2012 the company surpassed the 500,000 unit mark for the first time, it said in announcing the Soul award. Kia recently moved up in the exclusive ranking of Interbrand’s “Top 100 Best Global Brands” after joining the list for the first time last year, and is poised to continue its momentum with seven all-new or significantly redesigned vehicles scheduled to arrive in showrooms in 2013.
Over the past decade Kia Motors has invested more than $1.4 billion in the U.S., including Kia's first U.S. assembly plant in West Point, Georgia – Kia Motors Manufacturing Georgia – which is responsible for the creation of more than 14,000 plant and supplier jobs.