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.
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Facepalm! Imagine you're eagerly awaiting your new 1,020-hp, $131,190 high-performance electric SUV, and it finally arrives straight out from the factory with ... dangerously mismatched tires? According to twitter user @EZebroni (Ethan Joseph), that really happened. He ordered a Tesla Model X Plaid back in August 2021. After a few estimated delivery date changes, Tesla had finally assigned a vehicle for Ethan to take delivery of in March 2022.Upon the new Tesla's arrival, Ethan did a once-over on his new $131,190 Tesla Model X Plaid and noticed something very odd about the tires. Naturally, he immediately tweeted about it, asking the internet "is it normal for the Plaid X to have two different brands of tires at delivery? Front set are Michelins. Back set are Continentals." Somehow, no one at Tesla caught the mistake before the buyer went to pick up his new vehicle (again, after waiting months for it).Upon looking up the tires on tirerack.com, Ethan noticed the front two are the correct Michelin Latitude Sports 3 UTQG 220 (treadwear) AA (traction) A (temperature) sport summer tires. The rears? An incorrect set of Continental CrossContact LX Sport UTQG 480 A A touring all-season tires. Those are two very different types of tire compounds with drastic differences in grip ability that will vary even more greatly in colder weather, as the summer-spec front tires will harden and deliver less traction than the rears. That's a safety concern, given the potential impact on the vehicle's handling. In warmer weather, the traction issues are inverse, with the less grippy all-seasons in back liable to give up well before the front tires—again, potentially skewing the handling balance.A quick vehicle dynamics lesson: When the rear wheels experience significantly less traction than the fronts, it would be easier to introduce oversteer in a hard corner, even without lifting off the accelerator or suddenly braking (which shifts the vehicle's weight more onto the front tires, unloading the rears). The opposite is the case in cold weather, when the harder front tires will deliver less grip and thus unexpected understeer. Sure, on a skid pad or similar closed course, a little tail-out action is a gas; it's probably less so on public roads and when the driver isn't anticipating it (and, you know, neighboring vehicles, trees, or other objects might be around).Of course, we're talking about limit handling here; this owner's mismatched tires wouldn't exactly be an immediate crash sentence in typical driving, but unexpected transition maneuvers or swerving to avoid a collision, animal in the road, etc. would bring the unusual tire arrangement to the fore. This is why cars are delivered with four matching tires.Some might say "it's not a big deal on an AWD vehicle" to have funky tires, but remember, all-wheel drive can compensate to a certain degree, but only if you're actively accelerating. Under braking and off-throttle cornering, all-wheel drive is simply extra mass to contend with.So, How Did This Tire Snafu Come About?In the era of supply chain constraint, understandably manufacturers may need to use part substitutes to keep producing cars. Given how this change could impact safety, we hope the odd tire fitment was a mistake and not an intentional decision to get a car to a customer with whichever tires were sitting around.Unfortunately for Ethan, the customer-satisfaction issue was not limited to the dangerously mismatched tires. He also discovered some scratches, uneven panels, and black marks on the white seats of his "supposedly directly from Fremont factory new Model X Plaid" as he puts it. Ethan tells MotorTrend that he thinks the car might be a reject from another buyer and was assigned to him afterwards. But a Tesla representative insisted to him the car was shipped directly from the factory after the other buyer failed to schedule delivery three times. Tesla did offer to install the correct Michelin tires on the rear wheels at a later date, since they were out of stock at the time. Ethan stated he's a huge Tesla fanboy. But even his enthusiasm couldn't help him ignore the defects, and so he decided to reject the delivery. Tesla promises it will expedite finding him another one.We wish Ethan the best of luck for his next high performance electric SUV, though his experience does raise questions (many of which have been raised before) about Tesla's quality control efforts. Because after all, new vehicles from all manufacturers occasionally show up at dealerships with odd problems or get damaged during transit. These defects are usually caught by dealerships or service centers, and usually are remedied before the buyer can see the vehicles, or are acknowledged and the car is sold at a lower price. So next time you buy a new car, regardless of which automaker you purchase from, remember to perform a careful inspection before taking delivery. If the dealer or manufacturer agrees to send parts to fix certain problems at a later date, you might consider moving forward anyway, though who knows when the parts will show up in the times of supply constraint.As for the last question lingering on your mind, what will happen to the troubled Model X Ethan didn't accept? Will Tesla fix the issues first or might it simply push the SUV to the next buyer in line? Whatever happens, let's hope it eventually gets a correct set of tires.Photos courtesy of Ethan Joseph
There are likely tons of enthusiasts who think this comparison test would never be a fair fight. Conventional wisdom suggests all-wheel-drive sport compacts like the 2022 Subaru WRX are inherently better than front-drive cars like the 2022 Honda Civic Si, thanks to their four-corner traction. They offer stability and performance you supposedly can't get with only two driven wheels.Additionally, since the 1990s, Subaru has unlocked impressive grunt from its turbocharged flat-four engines—something Honda only figured out for its inline-fours in the past decade. In the important area (to hardcore fans, anyway) of racetrack worthiness, the Subaru always seemed to have so much more to offer than the Honda: more power, a better chassis, and traction for days. So where do we get off having an entry-level performance car like the 2022 Honda Civic Si challenging a rally-bred motorsports titan like the 2022 Subaru WRX?In fact, the Civic is positioned better than you might think. Certainly, Honda building more turbocharged cars of late is part of the 2022 Civic's current position of strength. Honda's powertrain engineers have had success with not just the model's 1.5-liter turbo inline-four engine but also the 2.0-liter forced-induction inline-four workhorse in the previous Civic Type R, as well as turbo-hybrid systems like the one in the Acura NSX.This explains why we rounded up a 2022 Civic Si with the grippier summer tires option and a 2022 Subaru WRX Limited for a little comparison test. The WRX Limited is presently the highest-trim model in the lineup that's available with a standard manual transmission. So both sedans are affordable sport compact standouts, but which makes the smarter all-around choice?SpecificationsHonda equips every 2022 Civic Si with the same 1.5-liter turbo-four engine as in the previous generation. It makes 5 fewer peak horsepower than the old Si, for a total of 200 hp, but its peak torque of 192 lb-ft of torque arrives sooner at 1,800 rpm. The engine also maintains more output when wound out to its 6,500-rpm redline.The 2022 Subaru WRX's new and larger 2.4-liter turbo-four seems huge by comparison. It develops a peak of 271 hp and 258 lb-ft of torque, which is 3 more hp and no more torque than the outgoing WRX's 2.0-liter boxer. Here, too, Subaru indicates the new unit's torque curve is broader than before.Both cars get a standard six-speed manual transmission, but only Subaru WRX Limited shoppers have the option of a CVT. Our judging panel agreed the shift action for both manuals was satisfyingly short and notchy.Both drivetrains are equipped with a limited-slip differential, and the WRX's continuous all-wheel-drive system also includes torque vectoring. MacPherson struts up front and a multilink rear suspension return on the Civic; the WRX is outfitted as always with MacPherson struts in front and a rear double A-arm and toe-link arrangement, plus electronically adjustable dampers. Curb weight for the 2022 Honda Civic Si with manual transmission is 2,981 pounds, and the shift-it-yourself 2022 Subaru WRX Limited checks in at 3,412.All 2022 Honda Civic Si models ride on 18-inch wheels, whether they be wrapped in the base grade's all-season tires or the sticker summer rubber. The WRX has a slight performance edge because its base configuration features summer tires on 17s, but the upgrade for the Limited is a wider summer tire on 18s—245 width compared to the Si's 235. That said, both sets of tires never seemed to quit.The Nitty GrittyNot unexpectedly, the more powerful all-wheel-drive 2022 Subaru WRX is quicker than the 2022 Honda Civic Si. When we tested it, our WRX Limited sprinted from 0 to 60 mph in 6.1 seconds and covered the quarter mile in 14.3 seconds at 97.8 mph. Most of our comparison drivers loved the Subie's grunt but lamented its narrow powerband and early redline. Features editor Scott Evans said, "All the action is between 4,000 and 6,000 rpm; we know boxer engines can rev higher. Make it happen, Subaru."The Civic Si needed an additional second—7.1 seconds in the sprint to 60 mph, 15.3 seconds in the quarter mile—in each test, and it finished the quarter mile traveling 5 mph slower. This highlights the Si's biggest drawback: It seems like there's barely any power on tap in comparison to the WRX. But although it's tame, the Honda's engine now pulls until redline, a bit of tuning that was absent in the last Si. "Makes the car feel quicker, even if it isn't," Evans said. "It's more rewarding to drive fast."Although the Subaru is swifter than the Honda, it's worth mentioning both cars are slower than the versions they replace. Every WRX we've tested since the 2013 model year has been slower than the one before it (an outlier 2018 model was marginally slower than the 2022). The Civic Si is slower than the turbo Si we tested as a 2017 model, and it's slower than every 2.0- and 2.4-liter naturally aspirated Si we've tested since the seventh-gen model (2000 to 2005).Handling BusinessBeyond the test track, there's never a shortage of grip in the WRX. In fact, the car still feels like the homologation Impreza model first issued decades ago so Subaru could compete with it in the World Rally Championship. There was a rawness to the old WRX that made the Subaru a fitting sparring partner for its former nemesis, the Mitsubishi Lancer Evolution, itself an AWD rally car for the streets. Some of that spirit—papered over by years of development—is still alive in the WRX today.Our judges were split on the WRX's handling feel at the limit, though. They either thought it was firm and forgiving or bumpy and choppy. Evans' take is probably the most succinct. "There's a lot of compliance in the suspension; it feels like it has a lot of wheel travel. But as much as it moves vertically, it's glued to the road. You quickly learn to stop worrying about the body movements because the tires are not letting go."We appreciated the modern WRX's power and grip during spirited canyon runs, but its ride was less likable in day-to-day driving. At modest speeds, road imperfections transmit into the car. This is an area where the Civic shines, striking a better handling balance between sport and comfort."It seems if Honda engineers had to make a choice between civility and agility, they chose civility, but only by the slightest of margins," summed up senior editor Aaron Gold. "I think that was the right decision. I doubt they could keep the body strapped down any better without making the ride unacceptably hard for day-to-day driving, and that's best left to the Civic Type R."Steering in each car felt direct, though there was a bit more heft to the Civic Si's tiller. This was another area of split opinions among our judging panel. Some, like executive editor Mac Morrison, gave the Honda steering a thumbs-up for "its weight and the size of the steering wheel, the way it feels, [and] how it fits my hands."But the WRX's lighter steering also had fans among our jurists, like features editor Christian Seabaugh. "I could see some ham-handed drivers being turned off by how quick and aggressive the steering is, but if you drive with your fingertips, it's so communicative and enjoyable."The 2022 Honda Civic Si's greatest performance metric in this fight might not be power, or quickness, or driving dynamics. You could say it's efficiency. Its engine produces 133 hp per liter compared to the WRX's 113 hp per liter. (Remember when Honda nerds made a big deal about the 1.6-liter naturally aspirated B16 inline-four's 100 hp-per-liter ratio back in the late 1990s?) And the Honda is rated at an impressive 27/37/31 mpg city/highway/combined compared to the Subaru's 19/26/22 mpg. With way better fuel economy, the Si offers almost 20 miles more range on a full tank of gas (384 miles) despite that reservoir being 4.2 gallons smaller than the WRX's.Both cars are equipped with disc brakes at all four corners, but the WRX comes with standard rear ventilated rotors (the Si's are solid). It took the Subaru 113 feet to bring the car to a stop from 60 mph in our testing; the lighter Honda needed 110 feet. Our panel was generally on the same page about brake feel for each. The WRX has soft initial bite, but the pedals in both cars were progressive, and the stopping power was easy to modulate.Equipment and SpaceYou'll find a bit more head- and legroom in the front row of the Subaru, but the Honda is more spacious in the back seat. The Civic Si's trunk can hold more, as well, 14.1 cubic feet compared to the WRX's 12.5 cubic feet. Both cars are designed with 60/40-split folding rear seat backs.Each also comes with standard automatic headlights, keyless entry, moonroof, trunklid spoiler, dual-exhaust finishers, and remote trunk release. Additional standard equipment includes push-button start, leather-wrapped steering wheel, rear center armrest with cupholders, sun visors with illuminated vanity mirrors, and sport pedals.Standard equipment the 2022 Subaru WRX Limited boasts beyond the Civic Si includes foglights, steering-responsive headlights, dual rear USB charge ports, and heated front seats. Where the Civic's seats are trimmed in cloth, WRX's feature faux suede. Meanwhile, Gold pointed out how the WRX's seating position "is very tall compared to other cars—feels like you're driving an SUV." Seabaugh was bummed by the lack of lumbar support in the Si's front seats.In fact, the Si's seats are fully manual when it comes to adjustments. The WRX, on the other hand, gets a 10-way power-adjustable driver's seat. Other WRX advantages include dual- versus the Si's single-zone climate control, and an 11.6-inch central touchscreen compared to the Si's 9.0-inch screen (though we preferred the Honda's smaller display for its conventional horizontal orientation).We also liked the Si's aluminum shift knob more than the leather-wrapped item in the WRX. Further Civic Si strengths include a 7.0-inch gauge cluster screen (only 4.2 inches in the WRX), wireless Apple CarPlay and Android Auto compatibility (both are wired in the WRX), and 12 speakers (the upgraded premium system in the WRX Limited gets only 11 speakers).Overall, there's a lingering familiarity to the 2022 WRX's interior. Materials and build quality are high, but the overall dash and center console designs haven't evolved much over the years. This is in sharp contrast to the 2022 Civic's redesigned cabin, which is clean and modern. Honda's choices in cabin textures—like the hexagonal honeycomb grille that extends across the dash, textured plastic trim pieces on the doors and center console, and ridged center-stack knobs—help the Civic look premium for its class.PricingThe base 2022 Honda Civic Si starts at $28,595, with summer tires adding just $200, which is a steal. Our test car also carried premium Blazing Orange paint for an additional $395, which took its final retail price to $29,190.That's more than $1,000 less than the 2022 WRX's base price of $30,600. And when you move up to the WRX Limited, which sits just below the GT top trim, the price jumps by almost $7,000 to $37,490. But the Subaru also gets features the Honda lacks, such as all-wheel drive, enhanced exterior lighting, nicer front seats, a bigger touchscreen, and rear USB ports.VerdictIf track sessions are in your future, the 2022 Subaru WRX isn't a bad choice. We might even argue it's the cooler car from a historical context. But the modern WRX is also frenetic to drive. Our judges were unanimous when it came to how much easier it was to pilot the Civic quickly. And with the way gas prices are, we'd be less inclined to take the Subaru out for fun days considering how thirsty it gets.The 2022 Honda Civic Si is a better choice for both its affordability and all-around excellence. Honda took a great foundation into the 11th-generation Civic and built a fun little machine that also comes through with plenty of practicality. It's not a "numbers" car by any stretch, but it does inspire confidence behind the wheel—enough so that we could repeatedly take it to its limits, and it simply kept chugging along. It also delivered refinement levels we've frankly never seen in an Si, and it might just be the most fun version yet.2nd Place: 2022 Subaru WRXProsQuicker and more powerfulStandard AWDLarger infotainment touchscreen ConsSlower than the previous WRXLackluster fuel economyNot a performance valueVerdict: The WRX is the same beast as always, but it's more sport than compact and lacks a small car's price or efficiency.1st Place: 2022 Honda Civic SiProsBetter suspension-tuning balanceGreat priceMore room ConsSlowNo power driver's seatFewer standard featuresVerdict: Just as the Civic has aged into a great all-arounder, the Si has matured into an entertaining sport sedan. 2022 Honda Civic Si Specifications 2022 Subaru WRX Specifications DRIVETRAIN LAYOUT Front-engine, FWD Front-engine, AWD ENGINE TYPE Turbo direct-injected DOHC 16-valve I-4, alum block/head Turbo direct-injected DOHC 16-valve flat-4, alum block/heads DISPLACEMENT 1,498 cc/91.4 cu in 2,387 cc/145.7 cu in COMPRESSION RATIO 10.3:1 10.6:1 POWER (SAE NET) 200 hp @ 6,000 rpm 271 hp @ 5,600 rpm TORQUE (SAE NET) 192 lb-ft @ 1,800 rpm 258 lb-ft @ 2,000 rpm REDLINE 6,500 rpm 6,000 rpm WEIGHT TO POWER 14.9 lb/hp 12.6 lb/hp TRANSMISSION 6-speed manual 6-speed manual AXLE/FINAL-DRIVE RATIO 4.35:1/2.98:1 4.11:1/2.74:1 SUSPENSION, FRONT; REAR Struts, coil springs, anti-roll bar; multilink, coil springs, anti-roll bar Struts, coil springs, anti-roll bar; multilink, coil springs, anti-roll bar STEERING RATIO 11.5:1 13.5:1 TURNS LOCK-TO-LOCK 2.2 2.6 BRAKES, F; R 12.3-in vented disc; 11.1-in disc 12.4-in vented disc; 11.4-in vented disc WHEELS 8.0 x 18-in cast aluminum 8.5 x 18-in cast aluminum TIRES 235/40R18 95Y Goodyear Eagle F1 Asymmetric 2 245/40R18 97Y Dunlop SP Sport Maxx 600A DIMENSIONS WHEELBASE 107.7 in 105.2 in TRACK, F/R 60.5/61.7 in 61.4/61.8 in LENGTH x WIDTH x HEIGHT 184.0 x 70.9 x 55.5 in 183.8 x 71.9 x 57.8 in TURNING CIRCLE 38.1 ft 36.7 ft CURB WEIGHT (DIST F/R) 2,981 lb (59/41%) 3,412 lb (60/40%) SEATING CAPACITY 5 5 HEADROOM, F/R 37.6/37.1 in 38.8/36.7 in LEGROOM, F/R 42.3/37.4 in 43.1/36.5 in SHOULDER ROOM, F/R 57.0/56.0 in 56.7/55.6 in CARGO VOLUME 14.1 cu ft 12.5 cu ft ACCELERATION TO MPH 0-30 2.3 sec 1.7 sec 0-40 3.8 3.2 0-50 5.1 4.3 0-60 7.1 6.1 0-70 9.0 7.6 0-80 11.7 9.5 0-90 14.5 12.3 0-100 17.6 14.9 0-100-0 21.8 19.3 PASSING, 45-65 MPH 3.7 3.1 QUARTER MILE 15.3 sec @ 92.8 mph 14.3 sec @ 97.8 mph BRAKING, 60-0 MPH 110 ft 113 ft LATERAL ACCELERATION 0.93 g (avg) 0.94 g (avg) MT FIGURE EIGHT 26.3 sec @ 0.67 g (avg) 25.0 sec @ 0.74 g (avg) TOP-GEAR REVS @ 60 MPH 2,500 rpm 2,200 rpm CONSUMER INFO BASE PRICE $28,595 $30,600 PRICE AS TESTED $29,190 $37,490 AIRBAGS 10: Dual front, f/r side, f/r curtain, front knee 7: Dual front, front side, f/r curtain, driver knee BASIC WARRANTY 3 yrs/36,000 miles 3 yrs/36,000 miles POWERTRAIN WARRANTY 5 yrs/60,000 miles 5 yrs/60,000 miles ROADSIDE ASSISTANCE 3 yrs/36,000 miles 3 yrs/36,000 miles FUEL CAPACITY 12.4 gal 16.6 gal EPA CITY/HWY/COMB ECON 27/37/31 mpg 19/26/22 mpg EPA RANGE, COMB 384 miles 365 miles RECOMMENDED FUEL Unleaded regular Unleaded premium ON SALE Now Now Show All
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