Price Gougers: The New Car Brands Being Marked Up the Most
Inventory shortages of key components such as computer chips has the entire automotive industry on skates right now, and limited supply is putting pressure on automakers in the face of huge buyer demand. Some brand dealerships are taking advantage of low vehicle inventory and marking up prices, and automakers are shifting what resources they have to building more profitable—read: more expensive—trim levels and models, driving prices upward and leaving budget shoppers in the lurch. Edmunds has collected car buying data from January on the best and worst offending brands, with Cadillac, Land Rover and Kia—or, more accurately, their dealers—gouging the most.
The Worst Offenders
Cadillac was far and away the worst last month, when it comes to how much customer's actually paid for their new Caddy over its listed MSRP. According to Edmunds, Cadillac buyers spent more than $4,000 over MSRP on average. That severe markup was nearly two grand higher than the next-worst offender, Land Rover, with an average Actual Transaction Price (ATP) coming to over $2,500 over MSRP on average last month. That's not exactly unexpected, but what's surprising is who came in third.
Kias are in high demand, and its dealers are taking full advantage. It was the third automaker on the list of markup offenders, with an average ATP $2,289 higher than average MSRP in January. Genesis was 6th on Edmunds markup list, at $1,600 over MSRP on average, and Hyundai was the eighth-worst listed offender at $1,500 above MSRP on average.
The Korean auto group's expansive lineups, inspired and bold new styling, and its onslaught of new or updated vehicles for this year give it a strong hold over market demand, which it will likely keep until supply chain issues stabilize. So, it may be awhile before you find a good deal on a Kia or Hyundai again.
Who Had The Deals?
Edmunds' list of data also showed the best brands for shoppers underpaying, where the Actual Transaction Price was lower than the car's listed MSRP. The winners from January include Alfa Romeo, which seems to be begging people to buy its aging, small lineup of cars, selling an average $3,421 under MSRP. That's certainly an anomaly, a bad sign for the brand's profitability, and pretty much three grand more severe than any other automaker last month.
The smaller, but very welcome deals came from Volvo, averaging an ATP $869 under MSRP, Lincoln at $510 under MSRP, Ram at $465 under, and BMW and Mini averaging small $200 and $150 under average MSRP, respectively. That's not a lot of money on the hood for the customer, save for Alfa, but it's still quite a significant deal when you compare BMW's numbers to, say, Cadillac's intense markups.
If you're buying luxury, maybe look at BMWs first this month. Ram was also the only brand with a full-size pickup on sale that came in under average MSRP, so look for truck deals there, and Mini has that new SE electric car that also comes with the full government EV tax credits, if you just need a city cruiser. Check out our best car buying tips on understanding MSRP and how to negotiate a good deal. Here's Edmunds full list of data:
MSRP vs ATP by Vehicle Make for January 2022
- Cadillac: $4,048
- Land Rover: $2,565
- Kia: $2,289
- Porsche: $1,721
- Acura: $1,701
- Genesis: $1,603
- Honda: $1,508
- Hyundai: $1,498
- Audi: $1,325
- Jaguar:$1,109
- Toyota: $1,015
- Nissan: $904
- Infiniti: $820
- Dodge: $729
- Mercedes-Benz: $719
- Fiat: $718
- GMC: $677
- Chevrolet: $625
- Subaru: $592
- Chrysler: $460
- Volkswagen: $428
- Jeep: $353
- Mazda: $312
- Lexus: $235
- Mitsubishi: $207
- Ford: $163
- Buick: $17
- Mini: -$151
- BMW: -$199
- Ram: -$465
- Lincoln: -$510
- Volvo: -$869
- Alfa Romeo: -$3,421
The industry average MSRP is now up to a whopping $44,989 according to Edmunds, and industry average ATP is above that, at $45,717. That leaves the industry average markup at $728 over MSRP, which isn't a lot of money compared to the average MSRP, but it's still more than you should be paying.
Take a good look at the list if you're planning on shopping for a new car, and do your best to stick to the lower half. You may or may not like a Volvo better than an Audi, or a Ram better than a Ford, but you probably like saving hundreds of dollars more than anything. And be on the lookout for dealers who are charging thousands above MSRP—if you can wait to buy a new car, or can shop around dealers farther afield, we suggest giving that a shot to avoid overpaying for a new car in the near future.
You may also like
mercedes-benz c-class Full OverviewProsMore refined powertrain, feels expensive, long driving range. ConsTransmission could be smoother, pricey, enormous key fob. Quick, but What About BMW, Audi, and Tesla?Braking and Figure-Eight PerformanceBut Why Is It so Expensive?Looks good! More details?2022 Mercedes-Benz C 300 4Matic Specifications BASE PRICE $46,600 PRICE AS TESTED $62,970 VEHICLE LAYOUT Front-engine, AWD, 5-pass, 4-door sedan ENGINE 2.0L Turbo direct-injected DOHC 16-valve I-4 plus electric motor POWER (SAE NET) 255 hp @ 5,800 rpm (gas), 20 hp (elec), 255 hp (comb) TORQUE (SAE NET) 295 lb-ft @ 2,000 rpm (gas), 148 lb-ft (elec), 295 lb-ft (comb) TRANSMISSION 9-speed automatic CURB WEIGHT (F/R DIST) 4,014 lb (53/47%) WHEELBASE 112.8 in LENGTH x WIDTH x HEIGHT 187.0 x 71.7 x 56.6 in 0-60 MPH 5.5 sec QUARTER MILE 14.2 sec @ 96.8 mph BRAKING, 60-0 MPH 112 ft LATERAL ACCELERATION 0.90 g (avg) MT FIGURE EIGHT 26.3 sec @ 0.67 g (avg) EPA CITY/HWY/COMB FUEL ECON 23/33/27 mpg EPA RANGE, COMB 470 miles ON SALE Now Show All
Last year, Acura's dramatic announcement that the celebrated Integra nameplate would be making a return in 2022 set the automotive world abuzz. Like Kim being asked about Kanye (or vice-versa), the automaker was bombarded with questions about the modern-day version of its entry-level phenom and, as of this month, the details were finally laid out and you can now order a 2023 Acura Integra of your own. Speaking of—a surprise has sprung forth from those reservations that have already begun flowing in... Decisions, DecisionsAs of March 10, Acura's Integra pre-order program has been underway and, according to Emile Korkor, Assistant Vice President of Acura sales, the reception has been exceptional. "We are absolutely thrilled with the pre-launch response to the 2023 Integra. The total number of reservations has far exceeded our expectations and most exciting is that around 70 percent of Integra reservations are for the 6-speed manual. We're confident this new Integra will inspire a new generation of enthusiasts buyers for the Acura brand."Hold up—seventy percent of pre-orders so far are for the stick-shift model? More surprising is that the manual is available only on the top-dog A-Spec trim level. Unlike the mechanically related Honda Civic Si, which is only armed with a six-speed manual, the Integra is offered in both CVT and 3-pedal form, with the CVT being standard on the entry-level model. The Integra one-ups the Honda, somewhat, by combining the Si powertrain with a five-door hatchback body style—a combo you can't get on the Civic, though the upcoming (more powerful) Civic Type R will be hatch-only.Proof Is In The PuddingWe know car enthusiasts hate to hear it, but the masses prefer to avoid needing to select their own gears, hence why there are so few manual transmission options at your local dealerships these days. A 70 percent manual take rate (and, yes, we know, these are pre-orders) is a significant indicator that proves there are still corners of the market to where those of us that prefer to stir our own gears flock. It should be noted that historically, the Integra has enjoyed a 56 percent manual-transmission take rate across its various generations and model types. Even if you're not a fan of the new Integra, this latest news makes a difference, especially if you want to keep seeing manual options put forth by automakers.Had Acura only offered a CVT option, there's little doubt the automotive social media bubble might have consequently imploded. The digital jury is always swift and harsh with any new vehicle debuts, and the modern Integra has not been spared by any means. However, Honda and Acura continue putting forth considerable effort to feed the enthusiast market cars fans can tinker with and hopefully encourage a whole new generation of potential tuners and buyers. Love it or hate it, the new Integra is crucial in helping to nudge the #savethemanuals movement forward.
Safari vs. DakarA Lamborghini Safari, TooMore Special Editions
0 Comments