Today we want to share with you how a Hyundai dealer in the U.S. is applying a $20,000 markup in the recently released IONIQ 5 N high performance electric vehicle. We would like to thank you @qball1754 who shared with us the picture that confirms the markup and talked about his experience at the Dealer.
When Markups Were Usual
We need to get back to 2021, when the semiconductor shortage hit the automotive industry. The most famous case then talking about Korean carmakers was Kia and its Telluride. With a MSRP of $33,415, Kia’s full size SUV suffered from markups of up to $18,000, what made Telluride in the top trim reach a price level that allowed you to access to other SUVs from premium brands, like the Genesis GV80, Mercedes GLE or Audi Q7, models that can be purchased for $60,000 at that time.
Meanwhile, Telluride was selected as the North American SUV of the Year category and was a very popular and high demand SUV, a vehicle that sold 75,129 units in a single year.
The IONIQ 5 N Case
Hyundai recently announced pricing for its US-spec 2025 IONIQ 5 N with a single, fully equipped trim priced at $66,100, excluding $1,375 freight. IONIQ 5 N represents N brand’s electrification vision and it is the first EV from the Hyundai N brand. Hyundai said it will be available at the U.S. dealers during March.
Our reader @qball1754 from now David, came into a Hyundai dealer in Southern California and was interested in trading its Veloster N and get the All-New IONIQ 5 N. “When I was first greeted by the salesman and I mentioned I was interested in the IONIQ 5 N they became very defensive and wanting to know who told me about the car and why I just showed up for it. I explained everything involving Hyundai and the N brand before working on numbers and a trade in.” said David
“They brought out the I5N for me to inspect and said only test drives allowed are after numbers and credit is pulled.
I gave them a ballpark of numbers I want for the trade in before. Was immediately met with attitude and what the sales manager was talking regarding myself being there and knowing about the allocations.” David continues.
People at the dealer informed our reader he was in front a very exotic car that everyone wants, so he received a value for its Veloster N before having a price for the IONIQ 5 N. They said lease was not available for the IONIQ 5 N.
“They came back and said there is no lease available for the I5N and that it does not qualify for the EV credit of $7500. They immediately came out with numbers of a 20k down payment and $1500 a month. That’s when I talked about my affiliation with to N brand, Hyundai, attending N events and being apart of the SoCal N club. They started to become very rude and condescending.” he added.
After that, David continued making numbers at the dealer and surprisingly his Veloster went down from 23k value to 15k. So he heard how the sales manager said to the salesman “we are not gonna offer a lease to him or give him the EV credit, we’re gonna make him finance the car” said David.
The Dealer Becomes Rude
“We went further back on numbers and I mentioned the markup and dropping it to MSRP. Was told “they don’t care about my affiliation with Hyundai or the N brand or who runs it in the USA, corporate decides the markup and can’t be removed and no one I know in Hyundai or the N brand will have a say on what they do and they could charge more of a markup like the rest of the Dealerships” he added.
After all that, David told the salesman it will leave so they went back to the numbers. After new calculations, the dealer upped my trade-in value to 18k (remember it was originally valued at 23k). That’s when David said “I’m gonna talk to Hyundai about getting an allocation, you guys are not suppose to be marking on the N models and I know other dealer will get theirs soon and I’ll be heading out there”
David and his fiancée left the dealer and while arriving to the car, they were intercepted again by the salesman regarding his Veloster value. “When we got to my car, salesman came back out to talk about the value of my Veloster N. They seemed more focus on me trading the car in than anything else.”
“I’ve never felt that disrespected by a dealership before and hearing them talk about screwing me over just to make a sale It was pretty surprising hearing them speak try to pull a fast one behind my back regarding the EV credit and leasing the car.” David said. “Pushing for my Veloster trade in and then my knowledge being an issue. My fiancée first heard them talk about it before I caught wind of it”. He added.
Did you experienced a similar situation when visiting a Hyundai dealer looking for an IONIQ 5 N? Tell us in the comments.
