#Pricing

You knew this was going to happen, right? After the crew at Tesla significantly cut its prices, talking heads began wondering how long it would take for others to follow suit. Answer: Not long.

Mr. Guy wrote this morning about Tesla and how it appears that the company's cars are being sold to rental fleets. As most of you know, large fleet sales are often seen as a negative mark on the health of a company and can also tank resale values.

Wholesale used-vehicle prices continued to climb during the last weeks of 2022, though the overall trend actually had secondhand valuations down by 15 percent for the entire year. That’s due largely to auction prices cooling off after the summer ended and the situation has many speculating that 2023 could be the first year we see massively inflated car prices begin to return to normal.

If you’re thinking that an ever-climbing percentage of the average household income is being allocated toward car debt – you’re exactly right. According to third-party industry watchers, the number of notes with a monthly payment of $1,000 or more has risen to record heights.

Happy holidays! Happy new year! Welcome to 2023! Now fork over more for that BMW you want.

BMW Chief Executive Oliver Zipse has said that despite the automaker’s status as a luxury carmaker it would not be abandoning lower-priced segments while it swaps over to electric vehicles. Though the general trajectory for the Bavarian marquee – and the automotive industry in general – over the last several years has been to chase higher margins by focusing on pricier, often larger, vehicles and clever packaging.

With vehicle prices surging over the last two years, the age of negotiating a price below sticker seems to have ended. Manufacturers are raising their rates to cope with inflation. But they’ve also noticed how much abuse they’ve been willing to endure via dealer markups. You rarely hear someone talking about how much they saved on their new car anymore. Now, the topic of interest is how much financial abuse you managed to avoid before driving it off the lot. 

With automotive prices skyrocketing these last two years, you may have found yourself waiting out the market until wealthy business magnates, unaccountable banking institutions, and multinational monopolies have had their way with it – hoping beyond hope that they’ll be a modestly priced car for you to live in when the economic dust finally settles.

But what if you can’t wait that long and need something today? While may not be able to steer you toward the deal of a lifetime, we do know which vehicles you might want to cross off your list thanks to a study targeting mainstream models seeing the highest dealer markups. Though, be warned, you’re still probably better off driving whatever you have today because the national average still has vehicles listed 10 percent above MSRP.

Genesis made a name for itself with value-forward vehicles that bring enough tech, luxury, and performance to beat rivals from Europe and North America. Once part of Hyundai, the automaker has begun electrifying its lineup, so we’re starting to see that brand-building power with a wave of new cars and SUVs. Genesis just announced pricing for its latest EV, the 2023 Electrified G80, which will start at $80,290 after a $1,095 freight and destination charge.

A common knock on dealers these days is the propensity for some of them to slap an asking price over MSRP on what few cars they do actually have in stock or on allocation. We’ll leave discussion of free market practices to the B&B for now but, in the wake of several announcements this summer ahead of the 2023 model year, it seems manufacturers are upping the table stakes before dealers can even ante.

A few years ago, the industry narrative was that all-electric vehicles would reach financial parity with their combustion-driven counterparts in 2025. The assumption was that this would gradually occur by way of ramping up battery production and leveraging economies of scale. However, reality had a different take, as the world is now confronting record-setting prices across the board. Manufacturer and dealer hikes have resulted in the average invoice of EVs rising to $54,000 — roughly 10 grand higher than the typical transaction price of gasoline-powered vehicles, according to J.D. Power.

With economic pressures spiking the value of all automobiles, hardly anything is leaving the lot for less than it could have been had for in 2020. But the increases seen on all-electric models are actually outpacing the models we’ve been told they’re supposed to replace.

The 2023 Toyota Sequoia is going to remain atop the brand’s SUV ladder, with a planned sticker price based at $58,300.

The TRD Pro version, which is top-of-the-line and off-road-oriented, will start at $76,900.

Whatever you think about Acura’s usage of the vaunted Integra nameplate, I think most of us can agree it’s leagues better than the alphabet soup to which we’ve been subjected over the past 25 years. All they need to do is trot out the Legend and Vigor names once again and we’ll be in business.

Now the model’s made the rounds after its official launch, Acura is ready to put a price tag on the thing. If you seek a copy of this turbocharged five-door liftback, it’ll set you back no less than $31,895 including destination.

With window stickers of Ford’s all-electric Lightning pickup having leaked late last week, there were a lot of people interested in having their “Fuel Economy and Environment” estimates verified. Ford CEO Jim Farley has obliged by confirming the figures, adding that the vehicle’s maximum range should ballpark around 300 miles (or better) unless you snub the extended-range models.

The executive confirmed the F-150 Lightning XLT, Lariat, and Pro trims at 320 miles with the bigger battery. Though those running with the standard battery pack only yield 230 miles between charging. Meanwhile, the Lightning Platinum tops out at 300 miles even due to it having gnarly tires and being less aerodynamic than its siblings.

No one reading this should be surprised by the news it’s more expensive than ever to find one’s way into a new car. All kinds of external forces have driven average purchase prices through the roof, and strife halfway around the world is currently playing a role in driving up the cost of fuel.

CEOs of the world’s automotive companies have taken note, of course. Late last week, during a virtual roundtable discussion with industry wonks, Stellantis boss Carlos Tavares expressed his opinions on the matter – and spoke of his concerns.