(iSeeCars) — New cars continue to be priced well above MSRP, even as the supply chain slowly improves, and despite rising economic concerns that typically dampen consumer demand for large ticket items.
- The average new car is priced 8.8 percent above MSRP
- The 10 most-expensive new models are between 20 and 27 percent over MSRP
- The Genesis GV70, Jeep Wrangler, and Mercedes-Benz GLB are the most aggressively priced new vehicles
- The gap between dealer pricing and MSRP is slowly narrowing
A new iSeeCars study found manufacturer pricing for new cars has increased 7.6 percent in the past year from an average MSRP of $38,707 in February 2022 to $42,608 in February 2023.
Despite this increase, the average dealer listing price for new cars has increased 6.5 percent in the past 12 months, rising from $42,551 to $45,996. This means today’s average new car price is 8.8 percent over MSRP, on top of the higher MSRPs compared to a year ago.
|Monthly Average Dealer Price versus Average MSRP of New Cars – iSeeCars Study|
|Month||Avg MSRP||Avg Price||Price – MSRP % Difference|
“There’s no denying it – new cars are expensive!” said Karl Brauer, executive analyst at iSeeCars. “The manufacturers keep raising their prices and then the dealers raise them again, to the point where the average new car is priced above $45,000.”
There are two pieces of encouraging news for consumers. First, average MSRP seems to have either peaked or plateaued in January 2023, coming down slightly in February. Second, the pricing increase over MSRP peaked back in July of 2022, at 10.2 percent over MSRP. Relative pricing has fallen ever since, with average new car prices now 8.8 percent above MSRP.
“The difference between dealer pricing and MSRP should continue to fall as the supply chain improves, though getting back to MSRP for most models may not happen this year,” said Bauer.
These 10 Cars Are Priced the Highest Above MSRP
Consumers looking to avoid price hikes will want to steer clear of these 10 models, which are priced between 20 and 27 percent above MSRP.
“All but two of these high-priced models are luxury vehicles, reflecting the ongoing confidence and willingness of luxury buyers to spend whatever it takes to get the vehicle they want,” said Brauer. The two non-luxury vehicles are the Jeep Wrangler and Jeep Wrangler Unlimited, SUVs with consistently high demand and passionate buyers.
|New Cars Priced Highest Over MSRP, February 2023 – iSeeCars Study|
|Rank||Model||Avg MSRP||Avg Price||Price – MSRP % Difference|
|5||Jeep Wrangler Unlimited||$45,386||$55,347||21.9%|
|10||Lexus RX 350h||$49,339||$59,347||20.3%|
These 10 Cars Are Priced the Closest to MSRP
While the average new car price remains 8.8 percent above MSRP, these 10 models are priced close to MSRP, with the Chevrolet Silverado 1500 actually priced below MSRP.
“Chevrolet recently halted production of the Silverado, suggesting supply for this full-size truck is in the unique post-pandemic status of outstripping demand,” said Brauer. Other models priced right at MSRP include the Volkswagen Arteon, Cadillac Lyriq, and the Infiniti QX80.
“The Lyriq is a brand new electric SUV, so it’s surprising to see it priced right at MSRP. Of course, it was recently caught up in the government’s recategorization of which models earn the $7,500 federal tax credit, which likely impacted how dealers priced it,” said Brauer.
|New Cars Priced Below/Closest to MSRP, February 2023 – iSeeCars Study|
|Rank||Model||Avg MSRP||Avg Price||Price – MSRP % Difference|
|1||Chevrolet Silverado 1500||$51,103||$50,116||-1.9%|
|5||GMC Sierra 1500||$61,644||$62,175||0.9%|
|7||Ford F-150 (hybrid)||$84,400||$85,791||1.6%|
Coupes, Convertibles, and Trucks Still Aggressively Priced; Hatchbacks Way Up
Coupes, convertibles, and trucks were the first vehicles to see large price hikes when the pandemic began. Almost 3 years later, coupes, convertibles, and trucks remain the most expensive vehicles relative to MSRP. This is true for these categories overall, even with the Chevrolet Silverado, GMC Sierra, and Ford F-150 Hybrid priced close to MSRP (as reflected in the previous table).
A more recent shift has occurred with hatchbacks, which are seeing much higher prices relative to MSRP this past month versus a year ago.
“The rise in gas prices has driven demand for smaller, fuel-efficient vehicles over the past year, as seen in the bump in hatchback pricing,” said Brauer. “Every other category is priced closer to MSRP compared to a year ago, but hatchbacks are 50 percent higher. Sedans, another relatively fuel efficient vehicle category, are also up slightly.”
|Year-over-Year Changes in Pricing vs. MSRP by Body Style, February 2022 – 2023 – iSeeCars Study|
|Body Style||Year-over-Year Change||Price – MSRP % Diff, Feb 2023||Price – MSRP % Diff, Feb 2022||Avg Price Feb 2023|
“With everything from interest rates to inflation working against vehicle demand it seems inevitable that car prices will drop,” said Karl Brauer. “And we’re clearly off last summer’s peak pricing. But, overall, consumers are still buying more cars than automakers can produce, which means dealers can still aggressively price their new models and find buyers willing to snap them up.”
New Cars Priced the Highest Above MSRP by City
iSeeCars also determined the new cars priced the highest above MSRP in the top 50 most populous metropolitan areas.
|New Vehicles Priced the Highest Over MSRP by City – iSeeCars Study|
|Metro Area||Vehicle||% Above MSRP||$ Above MSRP|
|San Diego, CA||Ford Maverick||40.0%||$10,054|
|Sacramento-Stockton-Modesto, CA||Genesis GV70||34.1%||$14,637|
|Indianapolis, IN||Genesis GV70||33.6%||$14,403|
|Tampa-St Petersburg (Sarasota), FL||Ford Maverick||33.4%||$8,740|
|San Francisco-Oakland-San Jose, CA||Ford Maverick||33.3%||$9,122|
|Phoenix, AZ||Porsche Macan||32.8%||$18,942|
|Louisville, KY||Kia Rio||31.6%||$5,411|
|St. Louis, MO||Genesis GV70||31.5%||$13,529|
|Los Angeles, CA||Genesis GV70||30.4%||$13,272|
|Portland, OR||Ford Maverick||30.2%||$7,472|
|Oklahoma City, OK||Genesis GV70||30.2%||$13,618|
|Columbus, OH||Genesis GV70||30.1%||$12,929|
|Denver, CO||Jeep Wrangler||29.9%||$11,053|
|Salt Lake City, UT||Genesis GV70||29.4%||$12,603|
|Albuquerque-Santa Fe, NM||Jeep Wrangler||29.1%||$9,847|
|Miami-Ft. Lauderdale, FL||Porsche Macan||28.6%||$16,944|
|Cleveland-Akron (Canton), OH||Lexus RX 350h||28.5%||$13,988|
|Charlotte, NC||Jeep Wrangler||28.5%||$9,935|
|Norfolk-Portsmouth-Newport News,VA||Genesis GV70||28.4%||$12,186|
|Greenville-Spartanburg, SC||Chevrolet Corvette||28.1%||$23,416|
|Boston, MA-Manchester, NH||Genesis GV70||28.1%||$12,465|
|Chicago, IL||Genesis GV70||28.1%||$12,062|
|Seattle-Tacoma, WA||Chevrolet Corvette||28.0%||$23,048|
|Dallas-Ft. Worth, TX||Genesis GV70||27.9%||$12,730|
|Pittsburgh, PA||Genesis GV70||27.7%||$12,409|
|Grand Rapids-Kalamazoo, MI||Jeep Wrangler||27.6%||$10,133|
|Houston, TX||Genesis GV70||27.4%||$12,060|
|Baltimore, MD||Ford Maverick||27.3%||$7,303|
|Milwaukee, WI||Jeep Wrangler||27.2%||$9,508|
|Hartford & New Haven, CT||Jeep Wrangler Unlimited||27.1%||$11,434|
|Minneapolis-St. Paul, MN||Jeep Wrangler||27.1%||$9,600|
|Fresno-Visalia, CA||Ford Maverick||27.0%||$6,809|
|Philadelphia, PA||Genesis GV70||27.0%||$12,252|
|Cincinnati, OH||Genesis GV70||26.9%||$11,551|
|Austin, TX||Cadillac CT5||26.9%||$11,352|
|Washington, DC (Hagerstown, MD)||Genesis GV70||26.8%||$12,053|
|Raleigh-Durham (Fayetteville), NC||Genesis GV70||26.5%||$11,363|
|Atlanta, GA||Mercedes-Benz GLB||26.4%||$10,914|
|Nashville, TN||Jeep Wrangler||26.3%||$9,336|
|West Palm Beach-Ft. Pierce, FL||Jeep Wrangler||26.3%||$9,086|
|Jacksonville, FL||Genesis GV70||26.2%||$11,229|
|Orlando-Daytona Beach, FL||Ford Maverick||26.1%||$6,956|
The vehicle priced the highest above MSRP in the most cities is the Genesis GV70, the top model in 20 cities.
iSeeCars.com analyzed over 12 million new car sales from February 2022 through February 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 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.
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, like the iSeeCars VIN check report and Best Cars rankings. iSeeCars.com has saved users over $372 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.