Kia’s only remaining plug-in hybrid now costs more before government charges – but buyers will find a $50 note in their pocket, once they drive the car out of the showroom.
Kia Australia has increased the list price of the 2022 Kia Sorento Plug-in Hybrid (PHEV) for the new month – but tax cuts mean that by the time it’s registered and delivered, it’s cheaper.
In effect from July 1, the recommended retail price (RRP) of the Kia Sorento PHEV has risen by $750 – from $80,330 to $81,080 plus on-road costs, attributed by a Kia spokesperson to an increase in the cost to build the car’s battery pack.
However, the RRP rise coincides with an increase in the Luxury Car Tax (LCT) threshold for “fuel-efficient vehicles” – defined by claimed fuel use of less than 7.0L/100km – from $79,659 to $84,916, inclusive of dealer delivery charges.
Whereas a Sorento PHEV buyer last month would have been required to pay about closer to $850 in LCT – based on an estimated dealer delivery charge of $1995 – the vehicle is now exempt from LCT, effectively wiping that charge off.
Once all on-road costs are included, Kia Australia data suggests the Sorento PHEV costs an average of $40 less than before, with the car up to $53 cheaper in some states – despite $750 being added to its RRP.
The latest increases to the Luxury Car Tax thresholds will deliver reductions of close to $1600 for buyers of “fuel-efficient” vehicles, or over $800 for other vehicles – all before stamp duty reductions are included.
Standard specifications are unchanged from the Sorento PHEV’s local launch in September last year. Click here for Drive’s pricing and specifications story published at the time.
The latest before on-road price rise for Kia’s sole remaining plug-in hybrid is the second in six months, following a $1000 increase from $79,330 on January 1.
However, the elimination of standard nationwide drive-away pricing in recent months means real-world, on-road prices have increased by as much as $6300 ($81,990 drive-away in September 2021, to $89,301 in Western Australia in July 2022).
Alex Misoyannis has been writing about cars since 2017, when he started his own website, Redline. He contributed for Drive in 2018, before joining CarAdvice in 2019, becoming a regular contributing journalist within the news team in 2020. Cars have played a central role throughout Alex’s life, from flicking through car magazines as a young age, to growing up around performance vehicles in a car-loving family.