iSeeCars Study Reveals a Handful of Models Selling Below MSRP in October
Car shopping has become an increasingly frustrating experience for consumers in recent years, with strained new car inventories leading to markups and elevated prices across the board. However, a recent study conducted by iSeeCars has shed light on a glimmer of hope for buyers, uncovering a select few models that are actually selling at a discount. While the majority of these vehicles are electric, there are a couple of surprises in the mix. While the discounts may not be substantial, they offer a rare reprieve in today’s challenging market.
Electric and Hybrid Vehicles Lead the Way
Electric and hybrid vehicles have long been in high demand, resulting in higher prices and limited availability. However, the iSeeCars study revealed that these models are now selling at a slight discount. The Kia EV6, for example, boasted the largest discount of 3.1%. Other electric and hybrid models on the list include the Ford Mustang Mach-E and the Toyota RAV4 Hybrid. This shift in pricing could potentially indicate a slight dip in buyer demand, although it is too early to draw any definitive conclusions.
Unexpected Entries: Nissan Armada and Infiniti QX80
While electric and hybrid vehicles dominated the list of models selling below MSRP, there were a couple of unexpected entries. The Nissan Armada and Infiniti QX80, both large SUVs, made the top eight. This is surprising given that SUVs have been in high demand and often sell at a premium. The inclusion of these models suggests that even in popular segments, there are opportunities for buyers to find discounts.
Industry Average Still on the Rise
Although some models are experiencing price reductions, the overall trend in the industry is still heading in the wrong direction. According to the iSeeCars study, the average MSRP of new cars sold in October was $42,510, while the average sales price was $46,077. This represents an overage of 8.4%, which is unexpected considering that the worst of the pandemic is behind us. However, Karl Brauer, iSeeCars’ executive analyst, offers a glimmer of hope, 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 Trends
Several factors contribute to the current pricing trends in the new car market. The ongoing global chip shortage has severely impacted production, leading to reduced inventory levels and increased prices. Additionally, the strong demand for electric and hybrid vehicles, coupled with production challenges during their initial runs, has resulted in higher prices. The recent price reductions could be attributed to a combination of factors, including increased supply and potential fluctuations in buyer demand.
Implications for Car Buyers
For car buyers, the study’s findings highlight the importance of thorough research and patience in navigating the current market. While discounts may be scarce, they do exist for those willing to search for them. It is crucial for buyers to consider their priorities, whether it be a specific model or a more flexible approach, and be prepared to adapt their expectations accordingly. With the industry average still on the rise, it is essential to approach car shopping with a realistic understanding of the current market dynamics.
Conclusion:
Car shopping has been a frustrating endeavor for many consumers in recent years, with rising prices and limited inventory plaguing the market. However, the iSeeCars study offers a glimmer of hope, revealing a handful of models that are selling at a discount. While the majority of these discounted vehicles are electric and hybrid, there are also surprises in the mix, such as the Nissan Armada and Infiniti QX80. Despite this positive development, the industry average continues to rise, indicating that discounts are still a rarity. As car buyers navigate the current market, thorough research and realistic expectations are essential to finding the best possible deal.
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