2012 Kia Soul
That's because after a scandal in which the two brands were found to have reported EPA fuel economy numbers that were up to 6 mpg higher than true test numbers, some of the vehicles that were most affected by the issue (or the have the most mileage-sensitive shoppers) appear to have suffered no blow whatsoever with respect to resale values.
“You would think that there would be an impact, but we didn't see that from the data,” said Eric Ibara, director of residual value consulting for Kelley Blue Book. On our request, Ibara looked at market values for the 2012 Kia Soul, which is the model that saw its highway mileage (with the automatic transmission) cut from 34 mpg all the way down to 28 mpg, and based on auction numbers, resale values were “virtually indistinguishable” before and after November 2012, when the EPA revealed the misstatement.
“When you look at what happened, you would have expected to see a drop in value beginning in November or December 2012,” said Ibara. “And that did not happen.”
Soul sales and value: seemingly unaffected by the issue
In fact, there was a a bit of the opposite—a slight increase in the Soul's auction values last January and February, reflecting a normal seasonal upswing. There's some evidence of the same this year—and values seem unchanged by the brands' decision announced in December to offer a lump-sum payment alternative.
So was there a resale value adjustment for vehicles that shoppers choose more often based on fuel economy, like the Elantra or Accent? Not significantly, if at all. According to KBB's market numbers, the Elantra, which had its EPA numbers adjusted by 1 mpg for the 2012 model year and 2 mpg for 2013, actually rose in value versus its anticipated depreciation—both after November 2012 and again after December 2013.
“It's really hard to say from our data that these announcements hurt their used-car values in any way,” summed Ibara. “It went pretty much unnoticed by dealers that are bidding on those cars at auction,” said Ibara.
“Common sense would say that the value of the vehicle should be lower, as the vehicle performed to a lower standard than advertised,” said Ibara, who explained that this market indifference underscores a point: that both brands are appealing to owners in ways that go far beyond mileage numbers alone—with styling and feature content, for example. If this had affected a hybrid, or a model that sold primarily on the basis of mileage, the outcome might have been different.
Even though the Soul was downgraded by 6 mpg, fuel economy probably wasn't one of the first several reasons for opting for the Soul; and that's what we're seeing.
More careful about mileage claims from now on?
Hyundai Elantra 40 mpg
In response to the issue, Hyundai and Kia initially offered a compensation program for the nearly 1.1 million owners of affected vehicles in the U.S. and Canada. Essentially, that program aimed to reimburse owners for the additional amount they would have spent on gasoline, plus a 15 percent premium.
That program was expanded late last year to allow the possibility of a lump-sum payment ($353 on average for Hyundai models, $667 for Kia models), that could otherwise be cashed in at 150 percent for dealership credit or 200 percent for a new Hyundai or Kia vehicle.
This matter was settled at great expense to Hyundai and Kia; but now, if owners don't face the double whammy of higher fuel costs and lower resale values, it's increasingly looking like those with one of those vehicles in their driveway are emerging with a very sweet deal for the long run.