Extreme contrasts. The polarization of the market is intensifying. As interest rates rise, some car models are seeing customers rapidly turn away, while others require even longer wait times despite the bleak forecasts of high interest rates.
Hyundai’s major models are experiencing a decline in waiting customers. With high interest rates increasing the burden of installment payments, more customers are deciding to forgo purchases.
The new Grandeur, launched last month, initially had a waiting list of 1 year and 6 months for customers. However, within just a month, the waiting time has decreased to a maximum of 11 months. The Grandeur 2.5 gasoline and LPG models require an 11-month wait for delivery, while the 3.5 gasoline model can be received in 8 months.
Popular hybrid models are also seeing a reduction in waiting times. The Santa Fe Hybrid and Avante Hybrid had a waiting time of 24 months last month, which has now decreased by 4 months to 20 months for delivery this month.
If the trend of waiting customers continuing to leave persists, the wait times are expected to shorten further.
Imported cars are seeing similar trends. The Mercedes-Benz C-Class, released this spring, previously required customers to wait up to 1 year for delivery. As of December, that period has reduced to 3-4 months. Some compact SUVs and S-Class models can now be purchased without any waiting time due to adequate inventory.
In a stark contrast, popular models from Genesis, Kia, and Volvo still require customers to wait an extensive period for delivery.
The Genesis GV80 gasoline model still requires over 30 months of waiting, similar to last month. Kia’s Sorento hybrid has an 18-month wait, while the diesel Carnival maintains a 16-month wait, unchanged from last month. The Sportage hybrid’s wait has actually increased from 14 months to 16 months.
Volvo’s cash cow model, the XC60, remains stuck with a waiting time of 1 year and 10 months.
As of December 24, the Bank of Korea’s base interest rate is 3.25%. The exclusive financing rates for Hyundai vehicles, which were in the low 2% range at the start of the year, have now more than doubled to 6.1%. Financing rates from capital companies are exceeding 10%.
Jung Dae-jin daedusj@autodiary.kr