iSeeCars Study Reveals Electric and Hybrid Vehicles Among the Few with Discounts
Car shopping has become a frustrating endeavor in recent years, with strained new car inventories leading to markups and elevated prices. However, a recent study by iSeeCars brings a glimmer of hope, revealing a handful of models that are actually selling below the manufacturer’s suggested retail price (MSRP). While the discounts may not be substantial, it is a rare occurrence in today’s market, especially considering the high demand for certain models.
Electric and Hybrid Vehicles Buck the Trend
Most of the vehicles selling below MSRP in October were electric or hybrid models. While the Nissan Armada and Infiniti QX80 also made the list, the majority of discounted vehicles were in the electric category. Notably, the Kia EV6 topped the list with a discount of 3.1%. Other models that made the list include:
1. Tesla Model 3
2. Ford Mustang Mach-E
3. Audi e-tron
4. Kia Niro EV
5. Chevrolet Bolt EV
These electric and hybrid vehicles have typically commanded a premium due to strong demand and initial production challenges. The fact that they are now selling at a discount could indicate a shift in buyer demand. However, it is important to note that it is still too early to draw any definitive conclusions.
Industry Average Still on the Rise
While a select few models are experiencing discounts, the overall industry average is still heading in the wrong direction. The average MSRP of new cars sold last month was $42,510, while the average sales price was $46,077, representing an 8.4% overage. This discrepancy is surprising, considering that we are several months past 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.”
Factors Influencing Pricing
Several factors contribute to the current pricing trends in the new car market. The ongoing global semiconductor shortage has severely impacted the automotive industry, leading to reduced production and limited inventory. This scarcity has created a seller’s market, with dealerships capitalizing on the high demand by charging premiums. Additionally, the increased popularity of electric and hybrid vehicles has further driven up prices, as manufacturers struggle to meet the growing demand.
Consumer Advice: Do Your Research
For consumers hoping to find a new car below MSRP, thorough research is essential. While the iSeeCars study highlights a few models with discounts, the majority of vehicles still command premium prices. Prospective buyers should explore various dealerships, compare prices, and consider alternative models or trims that may offer better value. Patience and persistence will be key in navigating the current market conditions.
Conclusion:
Car shopping has been a frustrating experience for many in recent years, with elevated prices and limited inventory plaguing the market. However, a recent study by iSeeCars brings some relief, revealing a handful of models that are selling below MSRP. While electric and hybrid vehicles dominate the list of discounted models, the industry average continues to rise. The ongoing semiconductor shortage and high demand for certain models contribute to the current pricing trends. Despite the limited number of discounts, prospective buyers can still find deals by conducting thorough research and exploring alternative options. The car shopping landscape may be challenging, but with careful consideration, consumers can navigate the market and find the best value for their money.
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