Cadillac customers on average paid well above MSRP last month for new-vehicle purchases, per a recent report.
According to an analysis by automotive research Edmunds, Cadillac was at the top of the list with regard to above-sticker pricing, with an average MSRP of $76,914 and an Average Transaction Price (ATP) of $80,962, a difference of $4,048. By comparison, the next biggest difference was for Land Rover, which had an average MSRP of $87,457 and an ATP of $90,022, a difference of $2,565. Kia was the third automotive brand in the list, with an average MSRP of $32,218 and an ATP of $34,507, a difference of $2,289.
The industry average was an MSRP of $44,989 and an ATP of $45,717, a difference of $728. According to the Edmunds report, car buyers paid over MSRP in 82.2 percent of all new vehicle purchases last month, as compared to just 2.8 percent in January of 2021 and 0.3 percent in January of 2020.
According to Edmunds executive director of insights Jessica Caldwell, the massive uptick in customers paying above MSRP is down to affluent customers paying more for new-vehicle purchases, as well as a large section of buyers that are being “forced” to pay higher prices out of necessity of transportation.
The most recent development arrives on the heels of General Motors warning dealers for charging customers above MSRP for popular products like the new 2023 Chevy Corvette Z06 and 2024 Chevy Silverado EV, threatening to redirect vehicle allocation for those dealers that are caught leveraging “any unethical sales practices or brokering activities that undermine the integrity” of GM’s brands.
Edmunds advises new vehicle buyers to wait a year or longer before purchasing if possible, while also acknowledging that some customers simply can’t afford to wait. For those latter buyers, extra research is advised, as is greater flexibility in the vehicle type and options. Edmunds also advises leveraging a currently owned vehicle in the negotiation process to offset the cost of a new vehicle.
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Comments
Suckers……
The level of dumba$$ in this country is mind boggling. 46,000 people have bought Chinese built Envasions. Tokyo Rose and her spewing of how great Japan is has been around since WW2. Now people paying over sticker for a vehicle.
I believe it was the sage philosopher Ron White that said “ you can’t fix stupid “.
I think the comedian George Carlin said something like “The average American is stupid….the bad news is that half are more stupid than that”.
That’s why we need interest rates to rise quickly.
Start inflicting serious financial agony to these foolish consumers.
Not a good time to buy.
I ordered my XT5 back in August for $4,500 below MSRP in Canada and for that, ….. I still do not have a target build week set.
I’ve seen others who have ordered their XT5’s in October, November and December at MSRP have either already received theirs or at least gotten a TBW assigned by GM. So what gives? GM building “Max Profit” vehicles first! Whereas discounted sales are pushed back. They say that isn’t the case, but I’m really beginning to wonder at this point.
Mark up = Greed
People paying the mark up = Stupidity
Agreed. And barring buyer stupidity, I don’t even know how dealers can get away with mark-ups. There is thing called the internet with vehicle purchasing websites that have search parameters that allow you to specify for what you are looking and how far away you are willing travel to go get it. And then once you have the list for your accepted travel range you can sort the list in lowest-price order. From there you can then review the vehicles and/or dealerships, and pick what you feel is best.
Seriously, you have to be all kinds of stupid to pay over MSRP.
What I mean by buyer stupidity, is in regards to Cadillac buyers. Most Cadillac buyers aren’t in desperate need to buy a car. They could demand to pay MSRP or don’t buy at all. It’s the people who are in desperate need to buy an affordable car or truck for getting to work and back are the ones I feel bad for. That’s where the greed comes in. The manufacturers need to step up and pull these dealerships rights of selling their vehicles, but they won’t. They would rather virtue signal is some stupid commercial or tweet.
I believe it, a dealer near me had a CT4 V Blackwing for 130k (Canadian) and it sold! I selected every option on the configurator and i could not get it to cost even 100k.
who is the bigger fool? the one who buys the vehicle over msrp or the person who gave them the loan?
Another fool is the dealer. He sees a short-term benefit. When the customer is “upside down” on the loan when they want to trade in three or four years, no vehicle gets sold, and the customer – even the one that didn’t think ahead – now realizes they got stung.
High end Vettes, Escalades, CT4/CT5 V Blackwings, etc, are in demand by people with $$ to burn,
so they should not be lumped into what people are paying for common cars.
Buying a lease end car usually wasn’t a good deal, when the residual was $25k and trade value $20k.
But these days it might be a good move to do that, if the residual is IE $25k and it’s worth $30k or so.
You can drive it for a year or two then trade it if sales get back to normal.
Or just in demand normal cars too are going nuts. I traded my brand new CT5 for a Tesla model 3 because I was unhappy with the ct5. Then I was more unhappy with the Model 3 so I traded it for a ’17 CT6 and now I’m over the moon, because awesome car and because the trade in was more than MSRP so I actually profited lol
Lolol what a gullible consumer.
It’s called,Price Gouging
It should be called a criminal felony by District Attorney in his indictment.
Bunch of Chomps!
I’ll WAIT!!!!! Only chumps pay above MSRP.
Joffa ask goggle how many parts on a Toyota Highlander are made in China
Jofa, you get upset because 46000 bought chink built buicks… what about the tens of thousands of Kia and Hyundai that are bought?
At least Hyundai puts Americans to work in American factories.
And GM doesn’t have any factories in the US? Your comment makes no sense…
Because they were stupid ! Suburban is the same and less money, oh wait, can’t impress anyone with a Chevy. LOL
” let’s go Brandon”
The only way the pricing structure is beneficial to the client is if they have a trade in.
At that point it’s all relative and may be swayed in the clients favor because dealers are way overpaying for used cars in a very inflated market.
In most cases the increased amount of the trade will exceed any increase in the new vehicle price with the exception of a specialty vehicle that you would have paid over MSRP for anyway.
Supply and Demand dictates the pricing