Cars selling highest above MSRP and lowest below MSRP - Autoblog (2024)

FAQs

Are vehicles selling above MSRP? ›

Some vehicles still sell above MSRP.

Still, on specific models, you'll need to guard against any dealers treating a short supply of cars like a winning lottery ticket. Many continue to tack on thousands of dollars in dealer markups to the manufacturer's suggested retail price (MSRP).

Electric cars are at the opposite end of the pricing spectrum, making up six of the 10 lowest-priced models. The Hyundai Kona Electric is 4.6 percent below MSRP, followed by the Volkswagen ID. 4, Ford F-150 hybrid, Kia EV6, and Hyundai Ioniq 6 rounding out the five models priced the farthest below MSRP.

Average transaction prices remain 21% higher than in April 2021, as the realities of the COVID-19 pandemic seemed never-ending. At that time, average transaction prices for new vehicles were around $40,000. In April, manufacturers reigned in their vehicle incentives to move cars to an average of $3,000 in April.

If the MSRP of a car is above your budget, negotiate the price or consider another model. Setting a budget and researching cars within that budget is essential. Negotiation or alternative models can prevent financial strain.

Dealers often advertise car sales as some amount “below MSRP.” In fact, very few vehicles are sold at MSRP. A price below MSRP isn't necessarily a great deal, though it's a good place to start negotiations. Here are five tips for negotiating a car's price.

Dealers can choose to discount a vehicle off of MSRP, or, for especially in-demand vehicles, they can choose to charge above it. A vehicle sold at or below MSRP typically has a small profit margin, much of which may go directly to the sales person's commission.

Not usually. The final price of a vehicle is affected by its market value and what the dealership wants to charge for it. This means some vehicles will sell for less than MSRP, and at other times, dealers may hold the line at MSRP.

Typically there is a margin of three to eight percent between invoice and MSRP. On your lower-end cars, like a base-model Toyota Corolla, that number will be closer to three or four percent.

During periods of high demand and limited supply, it's not uncommon to find dealerships that charge over the Manufacturer's Suggested Retail Price (MSRP). Contributing factors include production constraints, increased shipping costs, and a global semiconductor shortage that has disrupted the auto industry worldwide.

Is 2024 a bad time to buy a car? ›

Experts say that 2024 will be the best year to purchase a new car since 2019.

The automotive supply chain will likely never look like it did pre-pandemic, but inventory levels generally recovered in 2023 and are expected to continue doing so in 2024 and 2025. Car prices remain elevated in 2024 due to inflation but are showing initial signs of decreasing as inventory stabilizes.

However, you can use the guideline of 2 or 3% on less expensive brands, and 5 to 10% on luxury brands as a rule of thumb. Regardless of if you're buying a Kia or a Mercedes, the reality is there isn't too much room to work with when just looking at the mark up. This is where factory incentives come into play.

Counter the monthly payment conversation: Your dealer may ask what you're hoping to pay for your car each month. Instead, tell your salesperson that you'd prefer discussing the car's out-the-door price and fair market value. If need be, you can always discuss refinancing your car loan down the road.

Negotiate the Final Price

Just make sure to back up your offer with compelling facts. For example, if you want to offer $5,000 less than the vehicle's MSRP, come prepared with information indicating that the vehicle's fair market value is slightly lower than what the seller is charging.

A: The key word is "suggested." A dealer is free to set the retail price of the products it sells. A dealer can set the price at the MSRP or at a different price, as long as the dealer comes to that decision on its own. However, the manufacturer can decide not to use distributors that do not adhere to its MSRP.

A car's MSRP is not the lowest price a dealer can accept, and you can use it as a starting point for negotiations. With that in mind, it's important to do some research to figure out the car's value. You can find this information by visiting industry resources, such as Kelley Blue Book, NADAguides or Edmunds.