Kia to avoid 'dangerous' price cuts to protect residual values | Autocar

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Kia to avoid 'dangerous' price cuts to protect residual values | Autocar
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Last week, Tesla slashed prices by up to £8000 in the UK. Don't expect Kia to follow suit...

, cautioned: “It's a pretty dangerous strategy to reduce prices, and we have a lot of other tools at our disposal that we would employ before we did that.

“So the risk is that you reduce your price but undermine your residual values, and therefore there’s no saving for lease customers. Furthermore, your current lease customers, who likely thought they had some equity built into their terms, may yet come to the end of a lease and find that reduced residuals have undermined that. It will be interesting to see how the fleet buyers respond to it, as I think it presents a complicated situation.

“Residual values are why we have worked really hard at establishing strong used-car propositions. We spend an awful of time trying to keep them strong, because it feeds the whole system.

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