There’s a troubling trend emerging in the auto industry. Automakers are dropping base models from their lineups, effectively increasing the starting price by thousands of dollars. Toyota, Honda, Mazda and Kia have all done this in recent months, and it’s likely to continue in 2023. New car prices are increasing in 2023, but prepared buyers can still negotiate to save money.
Here are 10 models seeing big MSRP increases in 2023, and how you can still negotiate a better deal.
Ford F-150 Lightning
2023 Pricing: From $59,974 to $97,819 (+40% since 2022)
2022 Pricing: From $41,669 to $93,609
When Ford launched the all-electric F-150 Lightning in early 2022, the price seemed too good to be true for many reviewers. Was Ford really going to offer so much value for well under $50,000? It turns out that was indeed too sweet of a deal to last. Ford has since announced multiple price increases for the entry-level F-150 Lightning Pro. In 2023, the starting price of the Lightning Pro is 40% higher than the original price one year prior.
2023 Pricing: From $58,365 to $78,300(+15.6%)
2022 Pricing: From $50,500 to $66,550
2023 Pricing: From $49,795 (+16.6%)
2022 Pricing: From $42,695
The all-new Kia EV6 and it’s sibling the Hyundai IONIQ 5 were welcomed with rave reviews. Up to 310 miles of range, ultra-fast charging and unique looks, what’s not to like? Perhaps the EV6 is too popular, because Kia raised the starting price by $7,100.
2023 Pricing: From $40,025 (+8.4%)
2022 Pricing: From $36,905
Dropping the base model is a troubling trend, and Mazda is jumping onboard. With the elimination of the Mazda CX-9’s base model, the starting price of the CX-9 has jumped 8.4% to $40,025.
2023 Pricing: From $31,110 to $43,308 (+16%)
2022 Pricing: From $26,800 to $39,440
You know new car prices are increasing when Honda bumps prices by 16%. The CR-V is moving further and further away from the budget label it once wore. By percent increase, the CR-V’s 2023 pricing has increased more than almost every other mainstream vehicle on the market. At least it looks sharper with the refreshed design.
2023 Pricing: From $37,865 to $75,245 (+5.2%)
2022 Pricing: From $35,990 to $74,230
Back in 2019, a Tundra could be bought brand-new for under $33,000. Today, your more likely to see starting prices closer to $40,000. The days of full-size trucks under $30,000 are gone.
2023 Pricing: From $29,995 to $38,330 (+10%)
2022 Pricing: From $27,295 to $34,710
It feels like just yesterday that the Compass was available for under $25,000 with incentives. Today, the Compass starts well over $30,000 out-the-door.
Hyundai Palisade XEL
2023 Pricing: From $38,250 (+6.4%)
2022 Pricing: From $35,950
Although the base Palisade gets a more modest $1,600 price bump, the trim level most buyers will be interested in, the Palisade XEL, goes up by $2,300 in 2023.
Chevrolet Silverado 1500 LT
2023 Pricing: From $48,000 (+5%)
2022 Pricing: From $45,700
New year, new pricing for the Silverado 1500 LT. 2023 sees $2,300 added to the starting price tag of the LT. Other trims see similar increases.
2023 Pricing: From $25,745 to (+8%)
2022 Pricing: From $23,845
Honda decided to drop the cheapest base model of the 2023 Civic. After dropping the Civic LX base model, the entry-level price for the Civic climbed by 8%.
Used and New Car Prices in 2023
Used car prices are down 17% at the wholesale level, and retail prices are finally coming down. New car prices remain at all-time highs, reaching a new record average transaction price of $48,681 in November. Will new car prices drop in 2023? It depends if you’re shopping new or used. Expect used car prices to continue a steady decline through at least the first half of 2023. For new cars, it’s a bit more complicated.
With new car prices, most analysts agree that the best we can hope for in 2023 is competitive financing offers (even as rates rise), the return of incentives to an extent, and hopefully the end of dealer markups for most models. With the 2023 model year pricing, automakers have raised sticker prices by 3% to 8% for most models. New car inventory is finally climbing out of the semiconductor-driven shortages of late 2021 and early 2022, but automakers don’t plan to even return lot inventory to normal? Why? They now know that they and their dealer networks can make a lot more money by keeping inventory slim, doing their best to keep the auto market in a perpetual ‘buyer’s market’.
The Power of Negotiation
With the new and used car markets on the verge of lower prices, it’s time to put negotiation skills to work to save money on your car deal. Our team of Car Coaches is made up of industry pros with decades of experience selling cars for dealerships around the United States. Now, they’re sharing industry insights that dealers don’t expect you to know, all with the goal of saving you money, time and hassle.
Here are some 100% free resources our team of Car Coaches has created to help you navigate car buying in 2023.