iSeeCars Study Reveals Rare Discounts on Electric and Hybrid Vehicles
Car shopping has become a source of frustration for many consumers in recent years, as limited new car inventories have led to inflated prices and markups across the board. However, a recent study by iSeeCars brings some relief, highlighting a handful of models that are actually selling below the manufacturer’s suggested retail price (MSRP). While these discounts may not be substantial, they offer a glimmer of hope for buyers seeking more affordable options in today’s challenging market.
Electric and Hybrid Vehicles Lead the Way
In October, iSeeCars’ study found that most of the vehicles selling below MSRP were electric models, with the Nissan Armada and Infiniti QX80 being the exceptions. While the discounts were not significant, the Kia EV6 topped the list with a 3.1% markdown. Other models on the list included:
1. Tesla Model 3
2. Ford Mustang Mach-E
3. Chevrolet Bolt EV
4. Hyundai Ioniq 5
5. Audi e-tron
6. Porsche Taycan
These findings suggest a shift in the market for electric and hybrid vehicles, which have historically commanded higher prices due to strong demand and production challenges. While it is too early to draw definitive conclusions, the fact that these models are now selling at a discount may indicate a potential change in buyer demand.
Industry Average Still on the Rise
Although some models are experiencing price reductions, the overall trend in the industry is still heading in the opposite direction. The average MSRP of new cars sold in October was $42,510, while the average sales price stood at $46,077 – an overage of 8.4%. This discrepancy is surprising, considering that many months have passed since the worst of the pandemic. However, Karl Brauer, iSeeCars’ executive analyst, offers words of encouragement, stating, “There are still very few ‘deals’ in the new car market. Shoppers looking to pay below MSRP for a new car will have to do their research, but a small number of models can be bought below sticker price.”
The Impact of Limited Inventory
One of the main factors contributing to the current car shopping challenges is the limited inventory of new vehicles. The global chip shortage, combined with production disruptions caused by the pandemic, has created a supply chain bottleneck. As a result, dealerships have been struggling to meet the demand, leading to higher prices and reduced negotiating power for buyers.
Furthermore, the popularity of certain models, such as electric and hybrid vehicles, has exacerbated the supply shortage. These vehicles have seen increased demand due to environmental concerns and government incentives. However, their limited availability has driven up prices, making it even more difficult for buyers to find affordable options.
Research and Patience Key for Buyers
Given the current state of the market, car shoppers are advised to conduct thorough research and exercise patience. While discounts may be scarce, there are still opportunities to find models selling below MSRP. Online resources, such as iSeeCars, provide valuable insights into pricing trends and discounts, helping buyers make informed decisions.
Conclusion:
Car shopping in recent years has been a frustrating endeavor, with limited inventory leading to elevated prices and markups. However, a recent study by iSeeCars reveals a glimmer of hope, as some models are selling below MSRP. While the discounts may not be significant, they indicate a potential shift in buyer demand for electric and hybrid vehicles. Despite this positive development, the industry average still shows an overage in prices, highlighting the ongoing challenges faced by car buyers. As the market continues to evolve, thorough research and patience remain essential for finding the best deals in a highly competitive landscape.
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