Sticker shock: 80% of car buyers now paying above suggested retail price

[Zorro]

Only a year ago almost no one paid the full sticker price when buying a new car. Now you're lucky if you can.

In perhaps the most striking sign of the change in new car pricing, 80% of new car buyers in January paid more than manufacturer's suggested retail price, or MSRP, according to data from Edmunds, the online site that tracks car rankings and prices. That's what's commonly known as sticker price.

It's the latest manifestation of the fact that a shortage of parts, especially computer chips, has caused automakers to temporarily halt production at various plants. That has left dealers with fewer vehicles than they need to meet customer demand.

That has resulted the average transaction price hitting $45,717 in January, or $728 above MSRP.

It's up nearly $6,000, or 15%, from January a year ago, and about $7,500 higher than the average price paid in January 2020, just before the pandemic started roiling the auto industry.

https://www.cnn.com/2022/02/19/business/car-buyers-sticker-shock/index.html

[packman]

1. "The average transaction price hitting $45,717"

Christ, I remember paying 46K for a new NEW- I tell you- house back in 75'. I think that same house is now in the $350+ area. This really must be good news for the used car people.

[NutmegYankee]

3. Even used cars are insane.

While I have no intent to sell my 2019 VW Alltrack that I purchased new for $25,500, the blue book value for trade-in is now $26,300. That's insane! It actually appreciated in value!

[Trailrider1951]

11. Holy cow, you're not kidding

in 2017, I bought a 2012 Toyota Sienna minivan for $22,000. Here's one very similar to it:

https://www.carvana.com/vehicle/2146282

except mine is silver and has about 4000 more miles on it. The link shows a minivan with 91,577 miles for $24,990. Today, I still have the car. It has around 95,500 miles on it and I owe approximately $750 on the loan (2 more payments). I think I'll keep it!

[shrike3]

12. I bought a gently used car from a woman who literally drove it to church and back.

(No foolin')

She's now legally blind and can't drive. She told me, with a wink, that she knew she could have gotten triple what I paid for it, but thought that as a Christian she couldn't do that. Great car.

[Sherman A1]

2. I'll just hang onto what I have

They can sell the new ones to someone else.

[spanone]

4. Price Gouging.

I was looking at a used car two years ago....since then prices have risen two to three thousand dollars for that same car that's now two years older.
Ridiculous.

[dchill]

5. AND they're buying them sight unseen, in many cases.

[DetroitLegalBeagle]

6. I'm guilty of this in the worst way

I paid to reserve my spot in line to put in a order for a car 10 months before it was even officially announced and revealed. Don't even have official pricing on it yet.

[ananda]

7. Last August I had to pay just about full sticker.

They wouldn't negotiate either.

And I considered myself lucky to get that car when I did.

They were completely out by then, but I had ordered
mine in mid June.

[subterranean]

13. Same here.

I didn't want to shop for a car last summer, but had to because my vehicle was in an accident and the insurance company totaled it. Dealers had very few cars available on the lot, and there was a months-long waiting list for popular models. After shopping around a little, I found a dealer where I only had to wait a few weeks.

[bucolic_frolic]

8. Mechanics are busy too

Every old vehicle being pressed into service.

[galapagos]

9. Electric Car

I tried purchasing a Nissan Leaf in December. We were $1600 off in meeting my target, so I thought maybe if I would agree to increase my offer by $800 they would do the same. The dealership refused to budge on price (kept it at MSRP), so I walked away from it. I am really hoping BBB can get passed so the electric car credits can be fully applied. Right now, I can only get about $6400 instead of the full $7500.

[leftieNanner]

10. Good Luck with the car

And welcome to DU!

[SoCalNative]

14. COSTCO Auto Program

the only way to go.

[brooklynite]

16. Yeah, but buying cars by the dozen is a pain...

[brooklynite]

15. I have never paid MSRP or above and have never spent more that 20 min buying a car

Dealer have always quoted a price below what I wanted to pay.

[roamer65]

17. I have three well taken care of older vehicles now.

2 are mine I bought new. 1 was inherited.

I plan to drive them for next 8-10 years.

It is now way cheaper to keep them running, than replace them.

[Johnny2X2X]

18. Used is worse than new right now

I’ve been WFH for two years now, so I’ve put maybe 3,000 miles on my car in that time. Basically getting a couple extra years out of it. Perfect.