Car enthusiasts looking for affordable sedans often settle with Hyundai Elantra. Prospective buyers might be skeptical about the performance of this car, considering the low-price tag. It’s natural to think that competitive pricing has something to do with poor quality parts or underperformance! Well, that isn’t the case for the Hyundai Elantra.
A cheap car doesn’t necessarily mean inferior quality or performance. Remember, Hyundai sells more than a million cars globally each year! As a bargain vehicle, Hyundai Elantra comes loaded with modern equipment and offers an impressive fuel economy. Besides, among contemporary automobile manufacturers, Hyundai provides the longest warranty!
Let’s dig deeper into the facts that make the Hyundai Elantra so affordable!
Why is Hyundai Elantra so cheap?
From a little-known Korean car manufacturer in 1967, Hyundai has come a long way down to emerge as one of the leading automobile makers. Ever since its inception, the brand’s motto was to offer budget cars to users. Evidently, the competitive pricing has been Hyundai’s USP, as the brand competes with larger companies like Toyota and GM.
Currently, a Hyundai Elantra would cost you around $19,850. The key to such competitive pricing is mass production of the cars. Hyundai manufacturers its own engines, and tries to capture a greater market share by pricing its models low.
Let’s check out the factors that make Hyundai Elantra so cheap.
Capturing market share
Hyundai entered a competitive automobile market when German and US models were dominating the industry. The brand’s initial objective was to establish its brand recognition and capture a larger market share. Moreover, when Hyundai started manufacturing its first models, most people did not like Asian cars due to their inferior quality. Hyundai has changed this perception, consistently selling quality vehicles at a relatively lower price. Even Honda and Toyota deployed a low pricing policy before they established their brand value in the market.
Hyundai largely focuses on the number of cars sold (which is in millions), which naturally enhances their brand recognition. Once the brand gains a strong grounding, Hyundai Elantra might cost you more!
Hyundai leases its cars in large numbers, with low profits on each. This ensures the affordability of its vehicles while amplifying its brand awareness. Besides, the brand has tied up with several rental companies and sells its cars to their fleet. Rather than lowering the quality of their models, the brand deploys strategic business tactics to beat the competition and keep prices low.
Hyundai Elantra competes with established brands like Toyota and Honda, which car owners value for their legacy. These carmakers hold an intrinsic brand value, given that many people consider Hyundai cars to be of inferior quality. Even though Hyundai Elantra enjoys the same reliability ratings as its competitors, it’s the low perceived value that works to its advantage. Of course, buyers would be ready to settle with a cheaper car when the perceived value is apparently lower. Maybe, it’s a matter of time before Hyundai gets rid of its ‘cheap’ tag.
Cheaper interior materials
Prioritizing its mission of mass production, Hyundai has successfully struck an equilibrium between comfort and price. To keep the manufacturing costs within budget, they use low-priced materials in the car’s interiors. However, the carmakers are prudent enough to make the interiors of Hyundai Elantra better than its competing models.
For instance, the dashboard of the Hyundai Elantra comes leather-wrapped, although the leather isn’t real. Many of the low-budget models use plastic in the interiors. The apparently glossy finish makes car enthusiasts fall in love with the affordable model.
Hyundai makes their own engines
Unlike many other automobile brands, Hyundai makes their own engines. This significantly helps them to keep the cost of Elantra low. Most Korean automobile manufacturers prefer integrating in-house components into their cars. Considering that branded engines cost a lot, Hyundai can capitalize on the opportunity and price Elantra low.
Incentives to buyers
Car buyers on tight budgets habitually lookout for discounts and incentives. This is another instance where Hyundai fares better than many of its competitors. Hyundai dealerships offer lots of incentives on Elantra, besides partnering with financing companies. This works in their favor to a certain extent, marginally reducing the cost of the model.
Mass production of cars
The basic dynamics of manufacturing imply the more vehicles a company produces, the better cost-effectiveness it would enjoy. Hyundai has already sold more than 10 million Elantra cars over the years, which automatically brings down the production cost. In addition, the manufacturer has been consistent in its efforts to enhance the quality and fuel economy of its vehicles. Hyundai has been able to sustain in the competitive market primarily due to its mass production, along with consistent quality.
Is Hyundai Elantra reliable?
With a reliability rating of 4.5/5 (RepairPal), Hyundai Elantra continues to be a highly reliable car. Out of 36 compact cars, it occupies the 8th position. Besides, the annual maintenance and repair costs of the car are around $452, which is lower than many of its competitors.
As a brand, Hyundai has never let its trust fall among the users. JD Power places Hyundai in the fifth position out of 33 automobile brands, considering reliability. In this parameter, Hyundai has already outranked Nissan and Honda, which occupy the 32nd and 38th positions, respectively.
In the mass market segment, only Jia and Toyota enjoy a higher rank.
Is Hyundai Elantra a strong car?
Hyundai Elantra has bagged an impressive reliability rating on most of the major parameters. The car is strong enough, and the ten years of warranty that the manufacturer offers tells a lot of their quality assurance. With proper maintenance and care, a Hyundai Elantra would easily serve you 150,000 to 200,000 miles. Considering the annual mileage to be 15,000 on average, the car would be in perfect operational conditions for 10 to 15 years.
Is Hyundai Elantra worth buying?
Yes, Hyundai Elantra is worth buying, considering its amazing performance, comfort, and safety standards. Particularly, the 2020 model comes with visually appealing interiors with ergonomic controls and alluring designs. The car comes with a perfectly-positioned driver’s seat. This ensures a good connection with the wheels, seat, infotainment system, and pedals. However, adults might find the backseats a little cramped.
Besides, Hyundai offers long warranties for its models, and Elantra owners get to enjoy a share of this benefit. For the first 36,000 kilometers or 3 years, the owners can take advantage of the complimentary maintenance. Besides, the limited warranty on Hyundai Elantra covers 60,000 kilometers for the first five years. You also have the powertrain warranty, assuring protection for your car for 100,000 kilometers or 10 years! This happens to be the longest warranty in the USA, considering any automobile brand.
Of course, buying a Hyundai Elantra would be worth your investment!
A reliability score of around 4.5 speaks volumes about the quality and security features that Elantra owners get to enjoy. The competitive price of Hyundai Elantra does not reflect inferior quality.
Remember, the brand has already sold 10 million+ vehicles of this model. While the term ‘cheap’ naturally downplays the perceived value of a car, Hyundai Elantra has demonstrated what a ‘quality car on budget’ can be!