As New Car Prices Rise, These 5 Brands Are Actually Selling Below MSRP

NOTNew car prices are rising again, and the average buyer is spending almost $900 more than the list price this spring. But if you know where to look, there are a few auto brands whose vehicles still sell for below MSRP.

The average selling price of new car buyers rose to $46,526 in April, according to Data published Tuesday by Kelley Blue Book (KBB). That’s an increase of $304 from the previous month and a peak of $5,354 from last April.

The highest average price for a new vehicle ever recorded by KBB was $47,064, recorded last December – a time of year when expensive luxury vehicles dominate sales and tend to drive up the average. Prices started to fall at the start of the first quarter of 2022, but are on the rise again, approaching the all-time high.

Supply chain issues continue to rock the auto industry, and dealers hardly accept rebates these days. To combat supply issues, they sold more luxury models than usual, which contributed to the price spike.

Dealers also simply asked people to pay higher prices for new cars, and desperate buyers had no choice but to oblige. Until 2021, new vehicles typically sold for hundreds or even thousands of dollars below list price. Compare that to February, when automotive research firm Edmunds said a record 82.2% buyers of new cars paid above the MSRP.

Unfortunately, paying above the list price is now the norm.

In April, the average buyer spent $862 more than the MSRP on a new vehicle, according to KBB. Many popular vehicles have even higher margins. For example, the average Nissan sold for $1,191 above asking price, while Hondas released lots for an average of $2,730 above MSRP.

“For nearly a year now, we’ve seen new vehicles trading above suggested retail prices,” said Rebecca Rydzewski, economics researcher for Cox Automotive, in a statement. statement. Cox Automotive is the parent company of KBB.

For months, out-of-control auto prices have contributed to a four-decade high inflation rate. On Wednesday, the Labor Department said the price of a new vehicle rose 13.2% in April from a year earlier, while prices rose 22.7% for used vehicles. .

New cars sell above (and below) list price

According to KBB data shared with Money, how much you pay on the sticker price largely depends on the brand of vehicle. In a few cases, you may still be able to make a deal below the MSRP.

Here are the brands selling well above list price, by percentage:

  1. Average Honda price: $35,132 — 8.4% above MSRP
  2. Average Land Rover price: $92,311 — 8.1% above MSRP
  3. Average Kia price: $34,908 — 7.9% above MSRP
  4. Mercedes average price: $76,086 — 5.8% above MSRP
  5. Average Hyundai price: $35,657 — 5.4% above MSRP

At the other end of the spectrum, a few brands actually sell below the suggested retail price:

  1. Alfa Romeo average price: $53,330 — 3.2% below MSRP
  2. Average Fiat price: $29,220 — 1.5% below MSRP
  3. Average Lincoln price: $61,702 — 1.2% below MSRP
  4. Average Ram Price: $60,245 — 0.9% below MSRP
  5. Average Buick price: $38,967 — 0.9% below MSRP

Of all makes and models, buyers who purchased Alfa Romeo’s Stelvio SUV received the biggest discount in April, taking 4% off MSRP for an average price of $53,787.

The biggest foodies? People who bought the boxy Mercedes-Benz G-Class. They paid $225,314 on average. This is around 31% above the already high price of $172,249.

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