9 Overpriced Cars To Stay Away From
With Kelley Blue Book reporting that the average buyer now pays $48,528 for a new car, no one could blame you for feeling like every vehicle on the market is overpriced.
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But some cars don’t offer enough value to justify their MSRPs, even when accounting for inflation.
No matter your budget, every segment of vehicles has a few models that don’t live up to their sticker prices. Some fall short on features, materials, power or tech. Others lose out to close competitors that cost less or perform better.
Either way, it’s more important than ever in 2023 to make sure you don’t drive home from the dealership with a car that costs more than it’s worth. Here’s a look at the models that experts think are overpriced.
2023 Audi Q7
For Michael Dominguez, who holds a master mechanic certification and a degree in automotive technology from the University of Michigan, one luxury car stands out as falling short of its $59,200 starting price.
“One model that immediately comes to mind is the 2023 Audi Q7,” said Dominguez, founder of Car Fixer Guide. “While it boasts luxury, the high cost of maintenance and minimal improvements from the previous year make it difficult to justify the elevated MSRP. It’s outperformed by competitors like the BMW X5 and Lexus RX 350, both offering similar luxury amenities at a better value.”
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2024 Cadillac Escalade
The 2024 Cadillac Escalade starts at $91,898 — more than $10,000 over the 2023 model year without a major refresh. That’s enough to scratch it off Dominguez’s list.
“Though it comes with a lot of bells and whistles, it doesn’t necessarily offer more than the 2023 Chevy Tahoe, a significantly less expensive SUV with a similar engine and features,” he said, in reference to the Tahoe’s $54,200 starting price. “For what you’re paying, you’re essentially splurging on the Cadillac name without receiving substantive improvements in performance or technology.”
2023 Mercedes-Benz C-Class
Liam Lucas, automotive expert and founder of Off Road Genius, doesn’t dislike this year’s Mercedes-Benz C-Class — just its price tag.
“While it’s a luxury vehicle with high-end features, its price has seen a significant increase, outpacing its improvements,” he said. “The base model starts at over $40,000. With added features, the price can easily reach $60,000, which is quite steep considering its competitors like the Audi A4 or BMW 3 Series offer similar or better features for a lower or comparable price.”
2024 Range Rover Sport
Lucas also fails to see the value in the coming year’s Range Rover Sport, which starts at $83,600 and climbs to more than $180,000.
“While it’s a luxury SUV with off-road capabilities, competitors like the Jeep Grand Cherokee offer similar off-road prowess and luxury for a fraction of the cost,” he said.
The Grand Cherokee’s high-end Summit Reserve package starts at $71,535.
2023 Bronco Raptor
Robert Luterzo, an automotive engineer and editor of Automotive Widget, calls the Bronco Raptor “one of the most over-priced 4×4 vehicles out in the market this year.”
The 2023 model starts at $86,580.
“Its focus on off-road performance could result in compromises when it comes to everyday practicality and comfort,” Luterzo said. “The aggressive suspension setup and off-road tires might lead to a less comfortable on-road driving experience. Also, the emphasis on off-road features might mean that specific convenience and luxury amenities found in other SUVs are either absent or offered as expensive optional packages. For buyers who plan to use the vehicle primarily for daily commuting or family transportation, the sacrifices in comfort and practicality might outweigh the benefits.”
2023 Rivian R1T
According to Talha Atta, mechanical engineer and editor of AutoGlobes, “The Rivian R1T is today’s market’s most expensive EV all-wheel drive.”
He thinks they simply don’t make enough of them to get the $73,000 starting price down to where it should be.
“As an electric pickup, the Rivian R1 caters to a relatively niche market, at least in its early stages,” Atta said. “This limited demand can result in higher production costs per unit, which can be passed on to the consumer through a higher price tag.”
2024 BMW iX
Fifteen-year auto industry veteran Nick Robinson, co-founder of Pick and Pull Sell Car, a marketplace for used car parts, does not believe the specs of the BMW iX can justify its price tag, which starts in the high $80,000s. He thinks rivals like the Tesla Model X, Audi e-tron and Mercedes-Benz EQC offer much more bang for the buck.
“The iX has a controversial design, a mediocre range of 300 miles and lackluster performance,” Robinson said. “That’s kind of average when compared to other BMW models. Also, it does not justify its premium price tag or its luxury brand name and is not worth buying when there are better and cheaper alternatives on the market.”
2023 Kia Telluride
Despite the vehicle’s high ratings, veteran mechanic Jacob Carter, owner of Engine Rev Up, thinks that this year’s Kia Telluride is outmatched by similarly priced vehicles in its class.
“While a nice SUV, the 2023 models are overpriced for what you get, with dealers tacking on huge markups,” Carter said. “You can find more value in a comparable Hyundai Palisade or Honda Pilot.”
The Palisade costs a few hundred more and the Pilot starts about $1,000 over the Telluride, which has a starting MSRP of $35,990.
2023 Toyota Sienna
One of the biggest names in minivans recently went all-in on green technology — and it might have sacrificed value during the conversion.
“The Toyota Sienna is overpriced,” said Melanie Musson, automotive industry expert with AutoInsurance.org. “There aren’t many minivan manufacturers, and the Sienna has been one of the most reliable options for years.”
But in 2020, Toyota switched the entire Sienna lineup — which starts at $36,885 — to consist exclusively of hybrid models.
“Not only does this change make them more expensive, but it makes them less suitable for the needs of many minivan drivers,” Musson said. “The small engine may help conserve gas when the van is empty, but if it’s loaded for kids’ sports or a family vacation, drivers are going to notice the extreme lack of power from the four cylinders.”
Photo disclaimer: Please note that photos are for representational purposes only and may not reflect the exact year, make and model of the vehicle listed.
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