Car dealers are still marking up new models over the sticker price, but not all models. There are six cars that are selling for below the manufacturer’s suggested retail price (MSRP) and according to iSeeCars.com, four of those models are either electric vehicles (EV) or hybrids.
But the average new vehicle sale price is still well above the sticker price – 8.5% over MSRP. The six cars priced below sticker are:
Chrysler Pacifica Hybrid
Infiniti QX80
Ford F-150 Hybrid
Hyundai Ioniq 5
Chevrolet Silverado 1500
Hyundai Ioniq 6
“It’s telling that four of the six vehicles priced below MSRP are hybrids or electrics,” said iSeeCars Executive Analyst Karl Brauer. “We know the Inflation Reduction Act removed the $7,500 credit for the Ioniq 5 and Ioniq 6 because they aren’t built in the US. This dramatically impacted their sales and, apparently, forced dealers to price them aggressively.”
Brauer also says relatively stable gas prices over the past several months have reduced interest and demand for hybrids like the Pacifica and F-150.
“We’ve seen similar pricing shifts on the used side, with our last used car pricing study showing electric vehicles dropping by 30% in value,” Brauer said.
Some models get top dollar
While EVs are gathering dust on car lots, dealers continue to demand top dollar for gasoline-powered cars and trucks. In June the average MSRP for all vehicles was $42,645. The average sale price was $46,265.
The Jeep Wrangler Unlimited continues to be the most aggressively priced vehicle on the lot. The MSRP is $41,966 but last month the average sale price was $54,970 – 31% higher. In fact, there are 20 models that sold last month for at least 17% more than the sticker price.
New car prices leveled off in late spring, leading some industry analysts to predict price declines before the end of the year. Brauer says he sees no signs of that yet, however.
“New car demand remains strong, with market pricing remaining above 8% and no expectation it will drop in the near term,” said Brauer. “New car shoppers willing to research their next purchase may find a deal on some models, but don’t expect fire sale prices, even with today’s macroeconomic pressures.”