Summary:

The average new car is priced 8.5 percent above MSRP 20 Models are priced within 2 percent of MSRP – with these six priced below MSRP: Chrysler Pacifica Hybrid, Infiniti QX80, Ford F-150 Hybrid, Hyundai Ioniq 5, Chevrolet Silverado 1500 and Hyundai Ioniq 6 Four of the six models priced below MSRP are hybrids or electric, suggesting a reduced demand for “green” cars 20 Models are priced 18 percent or more above MSRP, including the Jeep Wrangler Unlimited, Mini Hardtop and Genesis GV70

Macroeconomic factors, including inflation, interest rates and employment concerns, have had little impact on new car demand, with the average new vehicle priced between 8.4 and 8.7 percent above MSRP for the last five months.

After analyzing over 13 million new cars, the latest iSeeCars.com study found manufacturer pricing for new cars has increased 7.4 percent in the past year, from an average MSRP of $39,712 in June 2022 to $42,645 in June 2023. Beyond this, the average dealer listing price – now $46,265, or $4,000 above MSRP – increased an additional 8.5 percent.

“New car prices are holding up surprisingly well given the overriding economic factors impacting consumers today,” said iSeeCars Executive Analyst Karl Brauer. “We’re seeing some slight moderation, but the average new car asking price is still more than 8 percent above MSRP, confirming strong ongoing demand for new vehicles.”

Top 20 New Cars Priced Below or Near MSRP

In February this year there were three new models priced below MSRP: the Chevrolet Silverado, Volkswagen Arteon, and Cadillac Lyriq. In June there were six, with the Chrysler Pacifica Hybrid, Infiniti QX80, Ford F-150 Hybrid, Hyundai Ioniq 5, and Hyundai Ioniq 6 joining the Silverado.

“It’s telling that four of the six vehicles priced below MSRP are hybrids or electrics,” said Brauer. “We know the Inflation Reduction Act removed the $7,500 credit for the Ioniq 5 and Ioniq 6 because they aren’t built in the US. This dramatically impacted their sales and, apparently, forced dealers to price them aggressively. And relatively stable gas prices over the past several months has reduced interest and demand for hybrids like the Pacifica and F-150. We’ve seen similar pricing shifts on the used side, with our last used car pricing study showing electric vehicles dropping by 30 percent in value.”

*The Limited trim is the only trim represented in the study’s sample of hybrid Ford F-150s. The sample data came from dealers in 48 states, and includes the average prices and MSRPs of all hybrid Ford F-150 trims represented. Updated: July 26, 2023.

Top 20 New Cars Priced Above MSRP

The 20 models priced highest above MSRP are primarily luxury or lifestyle models, with the Jeep Wrangler holding its near-perpetual status of high demand, with market pricing to match. Models like the Genesis GV70, Cadillac CT4-V and Porsche Taycan are all premium vehicles with relatively limited production. Some high value mainstream models, including the Ford Maverick and Toyota Corolla Cross, also ranked on the list.

“It’s clear demand is still outstripping supply for premium and performance models,” said Brauer. “Buyers looking to get their dream vehicle, whether it’s a Jeep Wrangler, Cadillac CT4-V, or Porsche 718 Cayman, have money to spend and are willing to spend it.”

The Highest and Lowest Priced New Cars in the Top 50 US Cities

The vehicles priced the highest above and lowest below (or in one case closest to) MSRP in the 50 largest metro areas are listed in the table below. The Ford Maverick is the vehicle most commonly priced above MSRP, appearing in 17 cities. The Infiniti QX80 is the vehicle most commonly priced below MSRP in nine metro areas. Both models are priced similarly at the national level.

“New car demand remains strong, with market pricing remaining above 8 percent and no expectation it will drop in the near term,” said Brauer. “New car shoppers willing to research their next purchase may find a deal on some models, but don’t expect fire sale prices, even with today’s macroeconomic pressures.”

Methodology

iSeeCars analyzed over 13 million new cars from June 2022 to June 2023. The average list prices of new cars, as well as the average of their MSRPs, were aggregated by month, as well as by body style, fuel type, and model. Heavy-duty vehicles and low-volume models were excluded from further analysis. The differences between average prices and average MSRP were expressed as percentage differences.

About iSeeCars.com

iSeeCars.com is a data-driven car search and research company that helps shoppers find the best car deals by providing key insights and valuable resources, including the iSeeCars VIN Check report and Best Cars Rankings. iSeeCars has saved users over $406 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of new cars and used cars.