Big Price Increases for 2023?

[zhelder]

We may have to take this with a grain of salt, but someone claiming to work for a Hyundai dealer posted on Reddit today that MSRP for a 2023 Palisade Calligraphy AWD is going to be $52,095. That’s like a $1,500 increase. If true, yikes…

Telluride MSRPs have up until this point been a few hundred less than comparable Palisade trims, but I’m wondering if Kia is going to price the X-Line Pro higher than the Calligraphy.

Any thoughts? My thought is I‘m gonna be keeping Night Ranger for quite a while at this rate, if the pricing info turns out to be true…

 

[zhelder]

Pricing for 2023 Palisade has been released. Big price increases, so they’re definitely coming for the Telluride too. Wonder if other manufacturers are going to follow suit (the 2023 Pilot is due for a redesign, should be interesting to see what Honda prices it at).

 

[slayer72]

Pricing for 2023 Palisade has been released. Big price increases, so they’re definitely coming for the Telluride too. Wonder if other manufacturers are going to follow suit (the 2023 Pilot is due for a redesign, should be interesting to see what Honda prices it at).

I hope they raise the prices through the roof, maybe they can manufacture some windshields with the profits.

 

[byscott]

I hope they raise the prices through the roof, maybe they can manufacture some windshields with the profits.

LOL. I still expect Kia and Hyundai to push their yearly price increases as much as they think the market will bear, in order to realign MSRP with actual selling prices.

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[3Rivers]

We may have to take this with a grain of salt, but someone claiming to work for a Hyundai dealer posted on Reddit today that MSRP for a 2023 Palisade Calligraphy AWD is going to be $52,095. That’s like a $1,500 increase. If true, yikes…

It all depends what you mean by "big." The confirmed Palisade price increases are along the lines of what I've been expecting for the Telluride. But I was recently arguing for that outcome as probable in opposition to another forum member who speculated that Kia might boost prices by $5k-$10k!

 

[byscott]

It all depends what you mean by "big." The confirmed Palisade price increases are along the lines of what I've been expecting for the Telluride. But I was recently arguing for that outcome as probable in opposition to another forum member who speculated that Kia might boost prices by $5k-$10k!

That was me. It can’t have escaped Kia’s attention that their dealers are selling several models — not just Tellurides — far above MSRP. And I doubt they’re happy about it. The question is, what will they do about it? I have to believe they would like to get the vehicle MSRP closer to the actual selling price — but, as you pointed out, there’s only a certain amount of price increase that the public will accept as “reasonable.”

The other aspect of this that I find interesting is that — at least in my area — the Telluride sells at a substantially higher markup than the Palisade. I wonder if consumers would behave differently if the actual MSRP of the Telluride was higher than that of a similarly equipped Palisade.

 

[3Rivers]

The other aspect of this that I find interesting is that — at least in my area — the Telluride sells at a substantially higher markup than the Palisade. I wonder if consumers would behave differently if the actual MSRP of the Telluride was higher than that of a similarly equipped Palisade.

That's an interesting question. I think that even with in-demand vehicles in this post-pandemic market, most prospective buyers still begin their shopping process with the expectation or hope that they can pay only MSRP from someone, somewhere. So if there were a substantial, noticeable difference in the Telluride and Palisade sticker prices, it probably would affect many people's choice of which vehicle to target initially, even if the hope of actually paying sticker eventually turned out to be a forlorn hope. And we all know that the initial targeting has big impact on which vehicle is purchased. Buyers tend to get locked into their original choice, even if the price becomes higher than expected, or the wait becomes ridiculously long.

 

[2020Telly]

That was me. It can’t have escaped Kia’s attention that their dealers are selling several models — not just Tellurides — far above MSRP. And I doubt they’re happy about it. The question is, what will they do about it? I have to believe they would like to get the vehicle MSRP closer to the actual selling price — but, as you pointed out, there’s only a certain amount of price increase that the public will accept as “reasonable.”

The other aspect of this that I find interesting is that — at least in my area — the Telluride sells at a substantially higher markup than the Palisade. I wonder if consumers would behave differently if the actual MSRP of the Telluride was higher than that of a similarly equipped Palisade.

I'm pretty sure that the manufacturer only gets the invoice (including dealer holdback) and freight charges. The MSRP number is just their suggested retail price to the dealers. The dealer will ultimately decide the much higher sticker price or if they want to sell it for just above invoice to determine their profit. MSRP is still just a suggestion. Kia can also probably ask the dealer to be reasonable but the dealer will sell at whatever the market will pay. The markup is all at the dealer level. I think buyers have equated the Manufacturer's Suggested Retail Price to be the Manufacturer's Reasonable Sale Price, but that has never been true.

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[Esp3]

I talked to a dealer today and it does look like msrp is going up about 1500