Amidst the conclusion of the global semiconductor shortage and the rise in interest rates, the demand for new cars is experiencing a decline, prompting dealers to adopt new strategies. A recent study conducted by iSeeCars has shed light on the current state of new car prices in relation to their Manufacturer’s Suggested Retail Price (MSRP). While the study reveals that the average price of a new car is now 8.5 percent above MSRP, a noticeable drop from 10.2 percent in July 2022, it also uncovers an interesting trend in the electric vehicle market.
Surprisingly, many highly desirable electric models are now available for purchase at or even below their MSRP. This significant shift represents a stark contrast to the market conditions of the previous year. A prime example of this change can be seen in the new Hyundai Ioniq 5, whose average selling price currently stands at $51,289, slightly below the $51,551 MSRP. However, the real allure lies in dealerships offering the Ioniq 5 for thousands of dollars under MSRP, something that was unimaginable just a year before. A Californian dealer, for instance, is currently advertising a new Ioniq 5 SEL AWD at the remarkable price of $40,785, resulting in a staggering savings of $11,500 compared to its MSRP of $52,285.
The positive trend is not confined to just the Hyundai Ioniq 5. Its chassis-sharing twin, the Kia EV6, is also experiencing a similar surge in attractive deals for new units. Additionally, prospective buyers can also find the Ioniq 6 offered at several thousand dollars under MSRP, as evidenced by a new Ioniq 6 SEL RWD listed in Los Angeles at $6,000 below MSRP.
The study also highlights other electric models that are either selling around MSRP or even below it. The Volvo C40 Recharge, Volkswagen ID.4, and Cadillac Lyriq are mentioned as examples. Nevertheless, the key to unlocking these deals seems to be diligent shopping and exploring various dealerships.
However, not all electric models enjoy such price reductions. The Porsche Taycan, for instance, emerges as the electric vehicle with the heaviest dealership markups. According to the study, the average selling price of a new Taycan is an astonishing $22,607 above the average MSRP.
As the automotive industry navigates through fluctuating market conditions, it is evident that the electric vehicle segment is experiencing a shift in pricing dynamics. With many electric models now available at or below MSRP, savvy buyers stand to make substantial savings on their purchases. However, it remains essential for consumers to conduct thorough research and compare offers from various dealerships to secure the most advantageous deals.