The 2023 Hyundai Ioniq 5 gets a roughly $1,500 price hike for its sophomore model year, but that could prove insignificant next to loss of eligibility for the federal EV tax credit and persistent dealer markups.
The base 2023 Hyundai Ioniq 5 SE Standard Range has a $42,745 starting price with destination, while the range-topping Limited AWD version starts at $57,795 with destination. These prices—and those of most trim levels in between—represent a $1,500 increase over equivalent 2022 models, according to CarsDirect. The only exception is the SEL trim level, which gets a $1,200 increase for 2023.
Hyundai did make some changes for the 2023 model year—and all-wheel-drive models get a range increase. Hyundai estimates 266 miles of range—a 10-mile increase over the 2022 model—with improved efficiency ratings of 98 MPGe combined (110 MPGe city, 87 MPGe highway).
Maximum towing capacity also increase from 1,650 lb to 2,300 lb. Also, a battery heating system and battery preconditioning function are now standard, meaning that peak extreme-weather efficiency might be improved and peak fast-charge rates might be more accessible.
The effective cost of a 2023 Ioniq 5 has also gone up because it no longer qualifies for the $7,500 federal EV tax credit. Under new rules laid out in the Inflation Reduction Act (IRA) passed in August, qualifying EVs must be assembled in the United States and have a substantial amount of North American parts and raw materials content—which isn’t the case for the South Korea-assembled Ioniq 5.
On top of that, dealerships are still marking up the popular EV. A quick survey of listings found a number of markups for pending 2023s of $5,000 or more, including one demanding a $10,000 markup on all Ioniq 5s, raising the price of a high-end model to $68,375. While test drives of the Ioniq 5 have been uniformly positive, and while it’s already earned some great crash-test ratings, such a premium is very hard to justify.
With the loss of the $7,500 EV tax credit, the timeline for U.S.-built EVs might be accelerated for Hyundai. Although with $10,000 surcharges apparently still the going rate, it’s looking like this might just all continue on arrival of the upcoming Ioniq 6 sedan.
There is an alternative right now, though. The Kia EV6 is a sibling model to the Ioniq 5, and if you like the look it’s been somewhat easier to get, based on Hyundai’s different rules for dealers qualifying to sell EVs.
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