Things look bleak for anyone looking for a deal in today’s hectic auto market. Back in January of this year, we saw reports that 82% of US buyers paid via MSRP for a new carand according to the data provided by EdmundsThe highest median markup of $4,048 was found at Cadillac authorized dealer. What we didn’t know at the time was which model was leading authorized dealer tick. Now, thanks A study indicates that the word iSeeCars, we do. And, … not a single Cadillac made the top.
Let’s take a look at the list. It is numbered from top to bottom and includes the make and model, the percentage listed on the MSRP, and the amount by which it is listed on the MSRP. Remember, these are averages, so your nearest dealer may be higher or lower than what you see here.
- Jeep Wrangler | 26.7% | $8,925
- Ford Maverick Hybrid | 25.0% | $5,601
- Porsche Macan | 23.3% | $13,254
- Unlimited Jeep Wrangler | 22.9% | $9,534
- Jeep Gladiator | 22.5% | $9,824
- Ford Maverick | 22.2% | $5,368
- Lexus RX 450h | 21.0% | $10,365
- Ford Bronco | 20.6% | 7,783 dollars
- Genesis GV70 | 20.0% | $8,611
- Mercedes-Benz GLB | 19.8% | $7,992
- Chevrolet Corvette | 19.3% | $15,218
- Ford Mustang | 19.1% | $6,941
- Mini Countryman | 18.9% | $6,325
- Lexus RX 350L | 18.6% | 9,242 dollars
- Mercedes-Benz GLA | 18.6% | $7,142
Similar reports from iSeeCars shows that on average a new car is currently costing 9.9% more than the MSRP, which is a $3,753 increase over the sticker the car was shipped with.
If you are trying to compare data reported in January by Edmunds and this latest information from iSeeCarsnote that Edmunds are tracking average transaction prices and ranking the results by brand while iSeeCars is tracking the prices at which dealers have listed cars for sale and ranks them by model. These are very different things. For example, some agents may include optional services that may add a markup that a knowledgeable buyer may refuse to pay, resulting in a transaction price below the list price. Some dealers can apply reviews across the entire range, while others can only add reviews for the most popular models. In other words, there can still be a small amount of room and your results will certainly vary between dealers.
However, no matter which way you cut it, The days of expecting big discounts and heavy negotiations may be over, at least for the foreseeable future. Both of these studies show that the majority of buyers are paying something more than a sticker for the vehicle of their choice.
Looking at the actual data above, it is clear that all-terrain riders are currently in demand, despite the fact that Gas prices are higher than ever (i.e. excluding inflation). The Jeep Wrangler tops the list, and the four-door sedan Unlimited Wrangler not far behind. Jeep Gladiator also appeared, a few positions higher than the Ford Bronco. All of that is somewhat surprising, because Bronco is a newer vehicle with pent-up demand from Ford enthusiasts.
Hybrid vehicles are also in demand, This is not surprising given the aforementioned gas prices. The hybrid version of the Ford Maverick and Lexus RX is clearly a hot commodity. The rest of the list is filled in on demand intersect and sports cars, it all makes sense.
What should you do about it? “The shortage of new cars is expected to continue as demand backlogs and the Russia-Ukraine conflict has resulted in factory closures and increased raw material prices.” iSeeCars Executive analyst Karl Brauer. “The best way to avoid overpaying for stickers is to widen your search radius and consider similar vehicles that may not have the same level of price increase.”
That’s not all bad news. If you absolutely do not want to pay stickers or more, There are a number of vehicles on sale at a discountalthough the discount is much smaller than the discount the buyer scored a few years ago.