Topic: 2023 Hyundai Palisade Review and Video

[AutoTrader.ca]

Without a true entry-level trim, the Palisade’s starting price is a surprise.
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[Jaeger]

I really have no idea about this segment, but do buyers of giant SUV / CUVs really purchase stripped down base models with steelies and hubcaps in any great numbers?  Seems to me that even the cheapest of these are relatively costly vehicles - are buyers in this category really looking to economize?  Reducing the number of trim levels and streamlining production makes a lot of sense, so long as it isn't more than offset by lost sales.

[tortoise]

I would think if you're willing to pay the fuel costs you're also willing to get a few options.

[Jaeger]

I would think if you're willing to pay the fuel costs you're also willing to get a few options.

Indeed.

[valuator]

I think it's such a big segment that even if your take-up rate on lower trim models is low, the total sales would likely still justify them.  As a kid hauler, I prefer to maximize utility per $, so these appeal to me.  But no way I'd buy the top trim....then you're getting into luxury truck CUV territory.  In my mind, these ONLY make sense in low to mid trim.  But pretty sure I'm weird 

[Patrick_D1]

I really have no idea about this segment, but do buyers of giant SUV / CUVs really purchase stripped down base models with steelies and hubcaps in any great numbers?

No, they do not. Atlas Trendline runs <3% mix. The vast majority of transactions in this segment are >$50K. Typically, over 75% of Atlases transact above $55K, with over half cracking the $60K barrier considering D&D and fees. Hyundai transacts similarly high mixes on Palisade.

[valuator]

I really have no idea about this segment, but do buyers of giant SUV / CUVs really purchase stripped down base models with steelies and hubcaps in any great numbers?

No, they do not. Atlas Trendline runs <3% mix. The vast majority of transactions in this segment are >$50K. Typically, over 75% of Atlases transact above $55K, with over half cracking the $60K barrier considering D&D and fees. Hyundai transacts similarly high mixes on Palisade.

That's really interesting.  Not sure about this segment in particular, but I bet in Canada the availability of AWD on upper trims likely contributes to this?

[Great_Big_Abyss]

I really have no idea about this segment, but do buyers of giant SUV / CUVs really purchase stripped down base models with steelies and hubcaps in any great numbers?

No, they do not. Atlas Trendline runs <3% mix. The vast majority of transactions in this segment are >$50K. Typically, over 75% of Atlases transact above $55K, with over half cracking the $60K barrier considering D&D and fees. Hyundai transacts similarly high mixes on Palisade.

That's really interesting.  Not sure about this segment in particular, but I bet in Canada the availability of AWD on upper trims likely contributes to this?

That's a good point.

I think you would have to look at Subaru, or any other manufacturer where AWD is standard on the base model to get a good idea of take rates minus the impact AWD has on sales.  Too bad Subaru's Ascent isn't really competitive with the others. 

[valuator]

I really have no idea about this segment, but do buyers of giant SUV / CUVs really purchase stripped down base models with steelies and hubcaps in any great numbers?

No, they do not. Atlas Trendline runs <3% mix. The vast majority of transactions in this segment are >$50K. Typically, over 75% of Atlases transact above $55K, with over half cracking the $60K barrier considering D&D and fees. Hyundai transacts similarly high mixes on Palisade.

That's really interesting.  Not sure about this segment in particular, but I bet in Canada the availability of AWD on upper trims likely contributes to this?

That's a good point.

I think you would have to look at Subaru, or any other manufacturer where AWD is standard on the base model to get a good idea of take rates minus the impact AWD has on sales.  Too bad Subaru's Ascent isn't really competitive with the others.

I see a lot of base and lower trim Ascents around these parts....obvious from the small wheels...but we are a high volume Subaru province, so this might not hold true elsewhere.  I bet the Ascent outsells all the other 3-row SUV other than the Pilot around here.  Hardly see any Tellurides or current gen Highlanders. 

[PJungnitsch]

I really have no idea about this segment, but do buyers of giant SUV / CUVs really purchase stripped down base models with steelies and hubcaps in any great numbers?

No, they do not. Atlas Trendline runs <3% mix. The vast majority of transactions in this segment are >$50K. Typically, over 75% of Atlases transact above $55K, with over half cracking the $60K barrier considering D&D and fees. Hyundai transacts similarly high mixes on Palisade.

That's really interesting.  Not sure about this segment in particular, but I bet in Canada the availability of AWD on upper trims likely contributes to this?

Doesn't seem to be a lot of lower end trims of anything on the lots at the moment, might be part of it

On the other hand living standard expectations have really seemed to go up the last few years, along with the long payment plans that low interest rates made fairly painless

[Patrick_D1]

I really have no idea about this segment, but do buyers of giant SUV / CUVs really purchase stripped down base models with steelies and hubcaps in any great numbers?

No, they do not. Atlas Trendline runs <3% mix. The vast majority of transactions in this segment are >$50K. Typically, over 75% of Atlases transact above $55K, with over half cracking the $60K barrier considering D&D and fees. Hyundai transacts similarly high mixes on Palisade.

That's really interesting.  Not sure about this segment in particular, but I bet in Canada the availability of AWD on upper trims likely contributes to this?

That's a good point.

I think you would have to look at Subaru, or any other manufacturer where AWD is standard on the base model to get a good idea of take rates minus the impact AWD has on sales.  Too bad Subaru's Ascent isn't really competitive with the others.

I see a lot of base and lower trim Ascents around these parts....obvious from the small wheels...but we are a high volume Subaru province, so this might not hold true elsewhere.  I bet the Ascent outsells all the other 3-row SUV other than the Pilot around here.  Hardly see any Tellurides or current gen Highlanders.

Ascent is the exception, but not super applicable as it sells in pretty small volumes compared to the segment leaders (Highlander, domestics, Atlas, Pilot, and the Korean brands - more or less in that order).

Re: AWD, bit of a red herring - there are virtually no FWD intermediate SUVs sold. Like, 1% mix or less. Most brands, us included, don't even offer FWD anymore even in the Compact segment. In its last year with FWD, Tiguan sold a blistering 0.6% mix of FWD. Not a typo.

Simple fact is that when people stretch into this segment, by and large, they tend to buy mid-trim or up.

[Jaeger]

I really have no idea about this segment, but do buyers of giant SUV / CUVs really purchase stripped down base models with steelies and hubcaps in any great numbers?

No, they do not. Atlas Trendline runs <3% mix. The vast majority of transactions in this segment are >$50K. Typically, over 75% of Atlases transact above $55K, with over half cracking the $60K barrier considering D&D and fees. Hyundai transacts similarly high mixes on Palisade.

That's really interesting.  Not sure about this segment in particular, but I bet in Canada the availability of AWD on upper trims likely contributes to this?

That's a good point.

I think you would have to look at Subaru, or any other manufacturer where AWD is standard on the base model to get a good idea of take rates minus the impact AWD has on sales.  Too bad Subaru's Ascent isn't really competitive with the others.

I see a lot of base and lower trim Ascents around these parts....obvious from the small wheels...but we are a high volume Subaru province, so this might not hold true elsewhere.  I bet the Ascent outsells all the other 3-row SUV other than the Pilot around here.  Hardly see any Tellurides or current gen Highlanders.

Ascent is the exception, but not super applicable as it sells in pretty small volumes compared to the segment leaders (Highlander, domestics, Atlas, Pilot, and the Korean brands - more or less in that order).

Re: AWD, bit of a red herring - there are virtually no FWD intermediate SUVs sold. Like, 1% mix or less. Most brands, us included, don't even offer FWD anymore even in the Compact segment. In its last year with FWD, Tiguan sold a blistering 0.6% mix of FWD. Not a typo.

Simple fact is that when people stretch into this segment, by and large, they tend to buy mid-trim or up.

As I suspected. 

[valuator]

I really have no idea about this segment, but do buyers of giant SUV / CUVs really purchase stripped down base models with steelies and hubcaps in any great numbers?

No, they do not. Atlas Trendline runs <3% mix. The vast majority of transactions in this segment are >$50K. Typically, over 75% of Atlases transact above $55K, with over half cracking the $60K barrier considering D&D and fees. Hyundai transacts similarly high mixes on Palisade.

That's really interesting.  Not sure about this segment in particular, but I bet in Canada the availability of AWD on upper trims likely contributes to this?

That's a good point.

I think you would have to look at Subaru, or any other manufacturer where AWD is standard on the base model to get a good idea of take rates minus the impact AWD has on sales.  Too bad Subaru's Ascent isn't really competitive with the others.

I see a lot of base and lower trim Ascents around these parts....obvious from the small wheels...but we are a high volume Subaru province, so this might not hold true elsewhere.  I bet the Ascent outsells all the other 3-row SUV other than the Pilot around here.  Hardly see any Tellurides or current gen Highlanders.

Ascent is the exception, but not super applicable as it sells in pretty small volumes compared to the segment leaders (Highlander, domestics, Atlas, Pilot, and the Korean brands - more or less in that order).

Re: AWD, bit of a red herring - there are virtually no FWD intermediate SUVs sold. Like, 1% mix or less. Most brands, us included, don't even offer FWD anymore even in the Compact segment. In its last year with FWD, Tiguan sold a blistering 0.6% mix of FWD. Not a typo.

Simple fact is that when people stretch into this segment, by and large, they tend to buy mid-trim or up.

Thanks Patrick, really appreciate your insight. 

Just goes to show that I am, in fact, a cheapskate at heart 

[Patrick_D1]

One of the better parts of my job is having fingertip access to reams of cool market intelligence.

For fun, I pulled AWD penetration in the intermediate SUV segment at the end of October, year-to-date... non-AWD is 0.7%. Not a typo  . We're talking <100 cars in total, and about half of these were RWD Explorers. FWD has effectively ceased to exist in that segment. Industry-wide, AWD or 4WD is ~92% in SUVs, with the remaining 8% mostly going to super-small FWD-only subcompact SUVs and RWD BEVs.

[Jaeger]

One of the better parts of my job is having fingertip access to reams of cool market intelligence.

For fun, I pulled AWD penetration in the intermediate SUV segment at the end of October, year-to-date... non-AWD is 0.7%. Not a typo  . We're talking <100 cars in total, and about half of these were RWD Explorers. FWD has effectively ceased to exist in that segment. Industry-wide, AWD or 4WD is ~92% in SUVs, with the remaining 8% mostly going to super-small FWD-only subcompact SUVs and RWD BEVs.

Not surprised by that overall trend but a bit surprised at the degree to which AWD absolutely dominates.

[rrocket]

One of the better parts of my job is having fingertip access to reams of cool market intelligence.

For fun, I pulled AWD penetration in the intermediate SUV segment at the end of October, year-to-date... non-AWD is 0.7%. Not a typo  . We're talking <100 cars in total, and about half of these were RWD Explorers. FWD has effectively ceased to exist in that segment. Industry-wide, AWD or 4WD is ~92% in SUVs, with the remaining 8% mostly going to super-small FWD-only subcompact SUVs and RWD BEVs.

Is this Canada only?

Curious what the numbers are in the hot regions of the USA (down south).

[Patrick_D1]

One of the better parts of my job is having fingertip access to reams of cool market intelligence.

For fun, I pulled AWD penetration in the intermediate SUV segment at the end of October, year-to-date... non-AWD is 0.7%. Not a typo  . We're talking <100 cars in total, and about half of these were RWD Explorers. FWD has effectively ceased to exist in that segment. Industry-wide, AWD or 4WD is ~92% in SUVs, with the remaining 8% mostly going to super-small FWD-only subcompact SUVs and RWD BEVs.

Is this Canada only?

Curious what the numbers are in the hot regions of the USA (down south).

Yes, Canada-only. USA has become majority AWD, but nowhere near to the degree we see here.

[DriverJeff]

I really have no idea about this segment, but do buyers of giant SUV / CUVs really purchase stripped down base models with steelies and hubcaps in any great numbers?

No, they do not. Atlas Trendline runs <3% mix. The vast majority of transactions in this segment are >$50K. Typically, over 75% of Atlases transact above $55K, with over half cracking the $60K barrier considering D&D and fees. Hyundai transacts similarly high mixes on Palisade.

Are budget-constrained large families simply buying used then? 

[Fobroader]

I really have no idea about this segment, but do buyers of giant SUV / CUVs really purchase stripped down base models with steelies and hubcaps in any great numbers?

No, they do not. Atlas Trendline runs <3% mix. The vast majority of transactions in this segment are >$50K. Typically, over 75% of Atlases transact above $55K, with over half cracking the $60K barrier considering D&D and fees. Hyundai transacts similarly high mixes on Palisade.

Are budget-constrained large families simply buying used then?

Just going by what I see on my commute every day, I have no idea, the bus. I see more and more expensive CUVs everyday, whatever model it may be, its in top trim. Everything I see is Limited/Platinum/etc.

[Jaeger]

I really have no idea about this segment, but do buyers of giant SUV / CUVs really purchase stripped down base models with steelies and hubcaps in any great numbers?

No, they do not. Atlas Trendline runs <3% mix. The vast majority of transactions in this segment are >$50K. Typically, over 75% of Atlases transact above $55K, with over half cracking the $60K barrier considering D&D and fees. Hyundai transacts similarly high mixes on Palisade.

Are budget-constrained large families simply buying used then?

Just going by what I see on my commute every day, I have no idea, the bus. I see more and more expensive CUVs everyday, whatever model it may be, its in top trim. Everything I see is Limited/Platinum/etc.

Same as I'm seeing.