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As motorists are becoming more conscious about the prices of vehicles, automobile companies have started coming out with more affordable models in the past months. Korean carmaker Hyundai Motor Company for one has recently dropped the tag price of its very own small car–Hyundai Accent.

Now available in dealerships across Canada, the Hyundai Accent has a base price of $9, 995 that is actually the original value of the model more than a decade ago. The Korean automaker decided to sell the modern version of the Hyundai Accent but with a very affordable price. With its “new” price, the small car from Hyundai has just reawakened the four-figure cars in Canada.

Since the bold move of Hyundai, other automakers followed. Kia Motors, which is the subsidiary of Hyundai, followed the trend of its parent company. What Kia did was to offer cash incentives to the buyers of its Kia Rio. With the incentive, Rio now has a base price that is way lower than $10, 000. With such cheap cars, customers in Canada went even to the extent of not test driving the vehicles and just pay for them right away.

Motorists in Canada that are so keen about their budgets are now given good options by companies like Hyundai and Kia. According to Chief economist Vic Singh of the Canadian Auto Dealers Association, these budget-conscious customers are now opting for brand new yet affordable cars than the second-hand vehicles.

“Hyundai and Kia are under a lot of pressure at the moment from new entrants in the subcompact segment,’ said Richard Cooper, who is the executive director of J.D. Power & Associates in Canada. “That psychological (four digit) barrier is quite important for consumers, particularly younger consumers and those are probably the people they have in their sights right now.”

The four-figure Hyundai Accent had its first stop in the French province of Quebec and has continued to reach even more dealerships in Canada. Accent, along with other smaller cars in distributed in Canada, has posted decent sales in the past months. Toyota Yaris, Hyundai Accent, Honda Fit, Chevrolet Aveo, and Nissan Versa had combined record sales of 120, 000 units, which is a good 17 percent.

Source: Financial Post.