New Vehicle Prices Decline but Remain ABOVE MSRP in March - KBB
Consumers continued to pay well above MSRP for a new vehicle, marking 10 straight months of an "over sticker" market.
With low inventory and high demand, incentives dropped to a record low in March, averaging only 3.2% of the average transaction price.
In March, new vehicles from Kia, Honda, and Mercedes-Benz were transacting on average between 7.8% and 9.8% over MSRP. On the other side of the spectrum, Volvo, Buick, and Lincoln were selling around 1% below MSRP.
While the average MSRP on a non-luxury vehicle has decreased over the past five months, car shoppers still are paying on average more than $970 above the sticker price. Consumers have paid more than MSRP for each of the last 10 months, whereas one year ago, non-luxury vehicles were selling for more than $1,300under MSRP.
In March 2022, the average luxury buyer paid $65,123 for a new vehicle, up $272 month over month, and still $2,550 above sticker price. For comparison, luxury vehicles were selling for more than $2,400under MSRP one year ago.
To read the full news release, click here.