With the average transaction price for new cars approaching $40,000, a lot of consumers who once considered a new vehicle have wound up looking for a used car.
However, the growing demand for used vehicles also creates an opportunity for company’s willing to price new cars and utility vehicles lower, according to Michael O’Brien, vice president for product, corporate and digital planning for Hyundai Motor America.
“It’s a real opportunity,” O’Brien said during a visit to Michigan this week because probably 25% of used car buyers would prefer a new vehicle if one was available at an affordable price point.
With technology used in cars changing quickly even two-year-old used vehicles are likely not to have driver assistance features such as automatic braking or Apple CarPlay or Android Auto, said O’Brien, who visiting southeast Michigan to show off the 2020 Hyundai Palisade.
Hyundai started an advertising blitz for the Palisade on July 4, and crossover vehicles and SUVs accounted for 51% of its sales during the first half of 2019, O’Brien said.
As it shifts from being a “car-centric” company to utility vehicles, Hyundai isn’t going to leave out customers who have turned to Hyundai for affordable transportation.
The 2020 Hyundai Venue, a small crossover vehicle that debuted at the New York International Auto Show, which will go on sale in the U.S. later this year, will be priced close to the Hyundai Accent, the subcompact sedan long-popular with economy-minded buyer.
“If you’re looking for a small, budgeted-minded sedan that doesn’t make you sacrifice good looks and a great warranty, the 2019 Hyundai Accent should clearly be on your list,” noted Kelley Blue Book recently.
O’Brien said the 2020 Venue will be more expensive than the Accent, with which it shares a basic platform and engine, but not substantially more. But it will have a utility-vehicle silhouette and current technology, he said.
With the aggressive pricing, Hyundai expects to attract buyers who moved have shifted to used vehicles, he said. Meanwhile, Hyundai has released a video to mark the global debut of the Venue.
The nearly three-minute clip on YouTube is aimed at millennials and young consumers with its “urban vibes” concept and highlights Venue’s youthful, attractive appeal and urbane identity that are well suited for the city lifestyle.
All of the SUVs featured in the viral clip – Palisade, Santa Fe, Tucson, NEXO, Kona and Venue – display humanoid characters, expressing motions such as pulsating as in dancing, driving in a motorcade, nodding up and down and blinkering its headlights, all before driving off in a supercharged motorcade toward a city.
“As an entry SUV with a youthful spirit targeting the millennials, the Venue’s blockbuster advert tries to break stereotypes about car advertisement,” said Wonhong Cho, executive vice president and chief marketing officer of Hyundai Motor. “We hope we can all enjoy Venue’s successful arrival through this unique advertising scheme.”