Avoid the 2023 Hyundai Ioniq 5 if You Want a Good Deal on a New Car Right Now

Every year, there is always a list of vehicles you want to avoid if you want to get a good deal on a new car. Typically new vehicles that cause a lot of noise and commotion in the news and online with content creators naturally have more demand and receive a markup on dealer lots through natural supply and demand.

However, this past year we have seen availability issues and supply chain shortages that have put a strain on nearly every aspect of the automotive industry. This effect has been magnified on dealer lots where consumers are willing to pay way over sticker price to get behind the wheel of a new car right away. With this in mind, here are some cars you should avoid if you want to find a good car deal.

A 2023 Hyundai Ioniq 5 sitting in a parking lot.
The 2023 Hyundai Ioniq 5 | Hyundai

Which cars have the highest dealer markups?

According to Consumer Reports, some of the highest markups on dealer lots today consist of vehicles produced by Hyundai and Kia, two brands that typically have lower prices and better fuel economy than the competition. Some of these models include the Carnival minivan, Sorento Hybrid, Sportage Hybrid, Telluride, Seltos, Rio, K5, and Soul.

In recent years, Hyundai and Kia have been producing some truly quality cars, and with most of them being either incredibly fuel efficient or equipped with hybrid technology. With this in mind, it is no surprise that these two brands have been demanding some of the highest markups in the industry.

The 2023 Hyundai Ioniq 5 has a huge markup

One of the highest markups in the automotive marketplace today is on the 2023 Hyundai Ioniq 5. The Ioniq 5 is the company’s first big foray into the EV marketplace. The Ioniq 5 has a truly radical design that sets it apart from the competition in many ways. As far as EVs go, the Ioniq 5 is not all that expensive when compared to the competition, with a base model MSRP of around $45,500.

The Hyundai Ioniq 5 comes standard with a 303-mile all-electric range on the rear-wheel drive model, with an all-wheel drivetrain option that offers a 266-mile range. While the Ioniq 5 is extremely attractive and capable at its price point, it is currently being sold at dealers for a 17% markup on average, pricing out many potential buyers.

Alternatives to the 2023 Hyundai Ioniq 5

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If you are not set on a Hyundai Ioniq 5, relief can be found in similar options that are currently on sale. The Ford Mustang Mach-E has been a hot EV ever since its release, but it is also affordable starting at around $46,895. The Tesla Model Y also gives you the same performance and range as the Ioniq 5, and at a starting MSRP of around $46,990. Both can be viable substitutes for Hyundai’s EV.

If you do want to stay in the Hyundai and Kia family, you do have one other option to circumvent some dealer markup. The Kia EV6 is similar to the Ioniq 5, but with a bigger emphasis on handling over ride comfort, but this model also carries a lower price tag at around $42,115. With a lower MSRP and a lower dealer markup, the perfect substitute for a Hyundai Ioniq 5 may be in-house with the Ioniq 5’s cousin, the Kia EV6.