If you’ve ventured out to buy a car lately, you have no doubt noticed that cars have become expensive — shockingly expensive. Demand is exceedingly high, because inventory — due to the chip shortage and other supply chain issues — is low. The result is one of the most extreme sellers’ markets for new and used vehicles we’ve ever seen.
Edmunds crunched some numbers from January 2022, and they make for grim reading. A record 82.2% of buyers paid over the Manufacturers’ Suggested Retail Price for their new car. The average buyer paid $728 above MSRP — compared to $2,152 below MSRP in January 2021.
Some manufacturers — notably Ford — have tried to reign in their dealers. However, brands like Cadillac ($4,408 above MSRP), Land Rover ($2,565 above MSRP) and Kia ($2,289 above MSRP) have still seen outrageous markups.
Fortunately, the price bloating has not been uniform. Six car brands still had dealers selling vehicles for less than MSRP on average in January. These companies are not considered value brands per se. But, in the present market, there’s some value in heading to the dealer knowing you’re not going to be upcharged.
Check out the car brands still offering the best deals here.
Mini
MiniAverage MSRP: $36,440
