2 March 2024
(iSeeCars) –
The average new car is priced 7.2 percent above MSRP, a drop from 8.9 percent above MSRP a year ago
The MINI Hardtop and four Porsche models (Taycan sedan, Cayenne, Macan, Taycan wagon) are the top five cars priced highest above MSRP
Four electric cars (Hyundai Kona, Volkswagen ID.4, Kia EV6, and Hyundai Ioniq 6) and the Ford F-150 hybrid are priced the lowest below MSRP
The gap between dealer pricing and MSRP is slowly narrowing, with EVs averaging the smallest premium at 6.1 percent over MSRP.
New car pricing continues to fall relative to MSRP. A year ago, the average new car was priced at $45,597, or 8.9 percent above MSRP, but today the average new car is priced at $45,880, or 7.2 percent above MSRP. iSeeCars analyzed the pricing of over 16 million new cars between January 2023 and January 2024, and confirmed the average new car MSRP has increased by $904 in the past year, but average dealer pricing increased by less than $300, thus the closing gap.
Premium and performance cars remain the most expensive models, with the MINI Hardtop and four Porsche models all priced more than 20 percent above 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.
Weakening demand for EVs is confirmed when looking at pricing by vehicle type. Among major segments, sedans and trucks have the strongest pricing, at 8.0 percent and 7.5 percent above MSRP, respectively. EVs are the weakest, at 6.5 percent above MSRP.
Average New Car Price vs. MSRP for Major Segments: January 2023 vs. 2024 – iSeeCars StudySegmentPrice vs. MSRP Jan. 2024Price vs. MSRP Jan. 2023Average Price Jan. 2024Average Price Jan. 2023Average MSRP Jan. 2024Average MSRP Jan. 2023Overall Average7.2%8.9%$45,880$45,597$42,789$41,885Gas Cars7.3%8.9%$44,492$44,774$41,453$41,102Hybrid Cars7.1%8.5%$47,571$48,324$44,400$44,554EVs*6.1%8.3%$65,413$61,529$61,641$56,810SUVs7.0%8.4%$46,650$46,176$43,616$42,603Trucks7.5%10.1%$53,774$52,030$50,016$47,243Sedans8.0%9.5%$38,586$38,906$35,724$35,526
* Excludes Tesla
“Supply is gradually catching up with demand, which means even as new car MSRP rises the ability for dealers to charge over MSRP falls,” said Karl Brauer, iSeeCars Executive Analyst. “At some point we’ll get back to pre-COVID new car pricing. But we’re not there yet, and at this rate it’s still at least a few years out.”
Performance and luxury cars still command a premium
While the average new car is priced 7.2 percent above MSRP, the MINI Cooper Hardtop is almost four times that premium at 25.5 percent. Four MINI models make the top 20 list of cars priced above MSRP, but Porsche has MINI beat, with six models in the top 20 and five models in the top 10. Premium brands make up 18 of the top 20 vehicles, with only the Toyota Corolla Cross Hybrid crossover and Ford Maverick compact pickup representing mainstream brands.
Top 20 New Cars Priced Highest Above MSRP: January 2024 – iSeeCars StudyRankModelPrice vs. MSRPAverage PriceAverage MSRP1MINI Hardtop25.5%$37,473$29,8582Porsche Taycan (sedan)23.1%$137,729$111,8933Porsche Cayenne21.9%$105,574$86,5934Porsche Macan21.3%$80,421$66,3105Porsche Taycan (wagon)20.9%$146,594$121,2486Cadillac CT5-V20.0%$67,254$56,0437Porsche 718 Boxster19.9%$99,848$83,3018Toyota Corolla Cross Hybrid19.4%$33,719$28,2489BMW X3 M19.4%$90,057$75,44810Cadillac CT4-V19.3%$66,633$55,87311Porsche 718 Cayman18.9%$105,910$89,09212Genesis GV7018.8%$58,646$49,35113MINI Countryman18.7%$40,757$34,33714MINI Clubman18.7%$43,238$36,43515Lexus LS 50018.6%$94,962$80,07216Mercedes-Benz GLE18.6%$82,399$69,50017Ford Maverick18.2%$33,098$27,99618MINI Hardtop 2 Door (electric)17.8%$36,434$30,91819Genesis GV8017.4%$70,080$59,67720Audi RS 6 Avant17.4%$147,482$125,609Overall Average7.2%$45,880$42,789
“It’s interesting to see one MINI and two Porsche EVs in the top 20 list when EVs make up a majority of the top 10 lowest-priced list,” noted Brauer. “Clearly MINI and Porsche are modulating their EV production to better align with demand. Hybrids like the Toyota Corolla Cross and Ford Maverick are also in high demand and, apparently, short supply.”
Electric vehicles, large trucks and SUVs fall below MSRP
Electric vehicles and large trucks and SUVs make up the bulk of vehicles priced at or below MSRP. The loss of the federal tax incentive for Hyundai and Kia EVs over the past year is undoubtedly forcing dealers to price these models more competitively. Large trucks and SUVs due for a redesign are also not seeing the demand they enjoyed during COVID.
Top 20 New Cars Priced Below (or Close To) MSRP: January 2024 – iSeeCars StudyRankModelPrice vs. MSRPAvg PriceAvg MSRP1Hyundai Kona Electric-4.6%$36,211$37,9642Volkswagen ID.4-3.6%$48,740$50,5473Ford F-150 (hybrid)-3.3%$82,132$84,9104Kia EV6-2.5%$52,004$53,3155Hyundai Ioniq 6-2.4%$47,691$48,8616Nissan Maxima-2.2%$42,234$43,1637Chrysler Pacifica Plug-In Hybrid-2.0%$53,263$54,3298Nissan Ariya-1.9%$50,751$51,7349Hyundai Ioniq 5-1.9%$50,477$51,45510Volkswagen Arteon-1.8%$47,852$48,73411Buick Envision-1.2%$40,386$40,87612Infiniti QX80-1.0%$83,876$84,73413Ram 1500 Classic-0.6%$41,693$41,96614Jeep Renegade-0.5%$29,537$29,67915Nissan Armada-0.3%$63,300$63,47016Maserati Levante0.1%$102,899$102,81817Maserati GranTurismo0.1%$185,777$185,52918Jeep Grand Wagoneer0.3%$102,743$102,39119Chevrolet Silverado 15000.4%$52,210$52,00820GMC Sierra 15000.4%$63,006$62,725Overall Average7.2%$45,880$42,789
“While finding a discount on a new vehicle remains a challenge, it’s much easier for EV, large truck and SUV shoppers,” said Brauer. “The market appears to have reached a saturation point for electric vehicles, with both prices and sales struggling compared to a year ago. The high cost of full-size trucks and SUVs, along with the cost of fueling them in the face of inflation and reduced consumer spending power, has dampened demand for these notoriously pricey vehicles.”
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Methodology
iSeeCars analyzed over 16 million new car sales from June 2022 to June 2023. The average list prices of new cars, as well as the average of their MSRPs, were aggregated by month, as well as by body style, fuel type, and model. Heavy-duty vehicles and low-volume models were excluded from further analysis. The differences between average prices and average MSRP were expressed as percentage differences.
About iSeeCars.com
iSeeCars.com is a data-driven car search and research company that helps shoppers find the best car deals by providing key insights and valuable resources, including the iSeeCars VIN Check report and Best Cars Rankings. iSeeCars has saved users over $410 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of new cars and used cars.
This article, 20 Cars Priced the Highest Over MSRP and 15 Priced Below MSRP, originally appeared on iSeeCars.com.