31% of new cars sold for above sticker price last month. These 10 models have the biggest premiums

[GON]

31% of new cars sold for above sticker price last month. These 10 models have the biggest premiums​

The average new-car price in February was $45,296, compared with the average manufacturer's suggested retail price of $41,637, a new study shows.

Looking at the 10 models, I was surprised to see two Cadillacs in the list.

31% of new cars sold for above sticker price last month. These 10 models have the biggest premiums

Even though new car buyers are paying less of a premium than a year ago, the average sale is 8.8% above the manufacturer's suggested retail price, or MSRP.

www.cnbc.com

 

[dishdude]

Surprised to see sedans on that list. Some nice vehicles on that list, but I'll never pay over MSRP for anything and certainly not paying for the stupid dealer addons.

 

[BigCahuna]

2 things that would be more important to me if buying a new car would be is, if financed how much is the loan value on a car. And how much will an insurance company pay for a given car. Just because you are willing to overpay for a vehicle, your ins company has a set value it's willing to pay on a claim.,,

 

[RooflessVW]

The average new-car price in February was $45,296

Good god

 

[CharBaby]

I am going to start doing something different in the future when buying cars.
I typically buy new however I have purchased CPO(once). And then I keep the vehicle as long as possible until they're just about junk.
RIGHT NOW, used vehicles in todays market is not the way to buy vehicle. They are just too much money... unless I can find the right vehicle at the right price.

I may in the future, lease but, IDK yet. Even though I get attached to vehicles(like the family pet), I also like the idea of getting a new vehicle every 3 years and not having any repairs during the lease period. I won't put on more miles than the lease agreement allows. I do know the downside(s) of leasing with all of the fine print.

As much as I enjoy(ed) doing my own repairs on vehicles, I am getting older now and finding it more difficult by vehicle design and my own physical abilities to perform repairs(except brakes) and time consuming as I want to do other things.

So, we'll see what the future holds for my new vehicles.

 

[Lubener]

As long as the fish keep biting, this will continue.

 

[John105]

My guess is leasing. One has no choice but to get a new vehicle (well other than get an old car) when the lease expires.

Again my theory is many look at life as you win some, lose some. If they lose on this deal, they make up for it by crushing someone else in their own line of work

 

[skyactiv]

I’m surprised motorcycles haven’t gotten more popular since the vehicle shortage

 

[joekingcorvette]

It's amazing the cult following of the Jeep Wrangler Unlimited. I would like to see how many people paid the entire vehicle in full before driving it off the lot? The vehicle lots in my area are getting more and more vehicles every week and are not empty any longer. In time this will lower the price of vehicles via supply and demand. There is a lot of money to be lost by paying over MSRP and trying to sell the vehicle down the road. Dealers love it though.

 

[Kira]

I’m surprised motorcycles haven’t gotten more popular since the vehicle shortage

My guess on that is that motorcycles, while fun, fun, fun, come nowhere near providing the utility of any car. Weather protection, multiple passengers, the ability to converse, protection from other vehicles, cargo carrying capacity....bumpers on which to place stickers. The list goes on.

In time this will lower the price of vehicles via supply and demand.

It might not pan out as you think. Didn't GM just announce (reported here) that they're closing plants under the guise of line maintenance, to keep the supply down and prices up?

ME?: I just can't wait for the next, "Why all the dealership hate?", thread.

 

[Kurtatron]

My guess on that is that motorcycles, while fun, fun, fun, come nowhere near providing the utility of any car. Weather protection, multiple passengers, the ability to converse, protection from other vehicles, cargo carrying capacity....bumpers on which to place stickers. The list goes on.
It might not pan out as you think. Didn't GM just announce (reported here) that they're closing plants under the guise of line maintenance, to keep the supply down and prices up?

ME?: I just can't wait for the next, "Why all the dealership hate?", thread.

I doubt it’s the utility that keeps most Americans away from motorcycles. It’s the danger. One of the reasons Americans love big vehicles is the impression of safety. Bigger = safer. I’ve been on a motorcycle, and being surrounded by f-150s and texting suburbans is not a comforting experience at all.

 

[mrsilv04]

I’m surprised motorcycles haven’t gotten more popular since the vehicle shortage

Some have. Low mileage ABS equipped examples of late 5th generation models of the Honda Goldwing are at prices that are in the neighborhood of what they sold at when new. On the other hand, some Harley models are literally everywhere you look, and are priced as if there was never a pandemic.

< I had to travel to Indianapolis to fetch this one in the summer of 2020. I got lucky. The PO had just gone though a divorce and had a new Harley on order, and the Harley dealer clearly didn't want the Goldwing on trade. I took cash and helped him out with his problem.

 

[joekingcorvette]

My guess on that is that motorcycles, while fun, fun, fun, come nowhere near providing the utility of any car. Weather protection, multiple passengers, the ability to converse, protection from other vehicles, cargo carrying capacity....bumpers on which to place stickers. The list goes on.
It might not pan out as you think. Didn't GM just announce (reported here) that they're closing plants under the guise of line maintenance, to keep the supply down and prices up?

ME?: I just can't wait for the next, "Why all the dealership hate?", thread.

I cannot fathom how GM could possibly profit from keeping the supply down and prices up? All that does is open the door for all the competition to produce more and have higher profits. I see brand new GM vehicles in my area for sale and all you have to do is walk in the door and buy them. Ford trucks are selling for under MSRP in many dealerships. There is no dealership hate it's called dealership "market adjustment" and it's all about supply and demand. The demand is not there like it was last year and with the continuing high interest rates this crazy demand is slowing down. I can see it when I drive around all the car lots in my area and surrounding towns. I would sell a vehicle or house for way above market value or MSRP if I could and who wouldn't?

 

[tbm5690]

I cannot fathom how GM could possibly profit from keeping the supply down and prices up? All that does is open the door for all the competition to produce more and have higher profits. I see brand new GM vehicles in my area for sale and all you have to do is walk in the door and buy them. Ford trucks are selling for under MSRP in many dealerships. There is no dealership hate it's called dealership "market adjustment" and it's all about supply and demand. The demand is not there like it was last year and with the continuing high interest rates this crazy demand is slowing down. I can see it when I drive around all the car lots in my area and surrounding towns. I would sell a vehicle or house for way above market value or MSRP if I could and who wouldn't?

Trucks have some of the highest brand loyalty...the typical buyer of a new body-on-frame every 3 years type folks will wait for a new Yukon and pay whatever as opposed to cross shopping an Expedition.

 

[supton]

I’m surprised motorcycles haven’t gotten more popular since the vehicle shortage

Motorcycle is great, 'cept I can think of about 6 months of the year that I'd rather not, then add in the rainy days.

 

[Rod Knock]

We're dealing with greedy-glutenous buyers that have to "have it now without delay!" Yes, I said buyers. And yes, I said "instant gratification."

Those who're willing to go to a moldy Hyundai dealer, talk to a washed up sales person, and then pay $12K~$13K "market adjustment" markup on top of an already ridiculous MSRP for a "Genesis" which is just more Hyundai, a vehicle that will be serviced by underqualified Hyundai personnel, well, those buyers should first take a deep look in the mirror and re-evaluate their priorities. No one, and I mean absolutely no one should want a Hyundai Genesis that bad!

We're not dealing only with inflation. The current "current market conditions" are exacerbated by artificially created demand (you guys should check out what Dodge dealers want for a Hellcat Redeye, 'cause they're becoming extinct), and companies and dealers alike trying to push the envelope even further.

Ancient wisdom says that the person asking the price is not to blame, but rather the person willing to pay it.

This situation will not change until consumers will cease being so glutenous.

Just my two cents, and some change...

 

[joekingcorvette]

Trucks have some of the highest brand loyalty...the typical buyer of a new body-on-frame every 3 years type folks will wait for a new Yukon and pay whatever as opposed to cross shopping an Expedition.

That is very true. On the other hand someone looking for a GM sedan or small SUV/Crossover will have no problem jumping the fence to another foreign or american made vehicle if the price is better. It's all about supply and demand. Expeditions have a lower resale for some reason but lot's of truck buyers will go from a GM to a Dodge or Ford. The Expedition is just one little sliver of the pie.

 

[Finklejag]

I was poking around my local Kia dealers websites and they are flooded with Souls. You could pick one up for $2K off these days. The same could be said for the Honda Ridgeline in my area.

 

[MrJayhawk]

On another board I frequent, this has been an ongoing discussion as there were several folks that were dipping their toes in. Here is a sample true life example:

So we also looked at XYZ Toyota (a national chain dealer) earlier this morning at a couple Camrys. Here are some dealer add on cost to buy a car. Sales person said they were not negotiating those fees. These were over the top. Sales person said we now get 50 cars and not the normal 175 to 200. Said dealership has to do something to keep the lights on. As follows for car with a MSRP $38,907.00

199.00. Nitrogen
299.00 Lumar Hood Lip Only
299.00 Lumar Protection Mirrors
299.00 Door Edge Guards
699.00 Tinted Glass 4 Windows
1495.00 LoJack
2595.00 Ceramic Coating
699.00 admin fees

 

[demarpaint]

As long as people are willing to pay it, the nonsense will continue. I'm anxious to see how/if the SVB failure plays into the mix. A lot of people lost a lot of money, that could very well trickle down into the housing and automotive market real soon, making cash the king once again, only a little sooner than I thought.