Would you buy a car for $19,000 more than the MSRP? Majority say they would

  • Despite still limited supply, car buyers are not slowing down. A new survey of more than 3,300 car owners in the United States found that 35% didn’t drive the car they wanted, and the remaining 65% said they were willing to pay up to 39% more than the MSRP to get the car they coveted.
  • At current prices, that’s a markup of almost $19,000.
  • Car buyers in Idaho are desperate for a specific vehicle, willing to pay up to 71% more than the list price. Buyers in the four states with the lowest rates were only willing to pay an 11% markup.

The internet is full of tips to help car shoppers not overspend on their new purchases, but few people seem to be using them. Or maybe the limited supply of new vehicles during the pandemic and the resulting thousands of dollars in dealer profit margins are causing people to overspend.

Whatever the reason, people are paying higher and higher prices for new cars these days, and it turns out we’re not happy with that. Shocking. For most of 2022, the average price of a new car was around 10% above the list price, with the 15 most popular models all costing between 18 and 24% more than the manufacturer’s suggested retail price. (MSRP), according to iSeeCars.

A new survey commissioned by Quantrell Auto Group of 3,361 car owners has found that more than a third (35%) said they had bought a vehicle they hadn’t planned on when they first started buying. shop. The remaining 65% said they would be willing to spend up to 39% off the MSRP.

Thirty-nine percent.

Bearing in mind that a group of car dealerships are behind the study and may be surveying people who are truly ready to buy, but still: given that the average price of new cars in the United States is now over $48,000, these survey results indicate that a whole lot of buyers may be willing to spend over $19,000 more than the list price to get the vehicle they want. Although the intention to pay is different from actually paying the extra money, vehicle prices are unlikely to drop if everyone continues to shop with this attitude.

Some automakers, including Hyundai, Kia, GM and Ford, have warned their dealers against applying high markups, in some cases threatening to shift the allowance to dealers who don’t overcharge buyers.

In some places cooler heads prevail

The national survey found significant differences between states. The state that’s willing to pay the most on the MSRP is Idaho, which sits at an insane 71% on the sticker. Four states – North Dakota, Rhode Island, South Dakota and West Virginia – are willing to pay just 11% more than the MSRP, which is relatively reasonable. There may be clues in the data that show which vehicles are easier to acquire. The four states with the lowest percentage of car owners driving vehicles they didn’t want were Colorado, New Mexico, Oklahoma and Wisconsin.

This content is imported from the survey. You may be able to find the same content in another format, or you may be able to find more information, on their website.

This content is imported from OpenWeb. You may be able to find the same content in another format, or you may be able to find more information, on their website.

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