20 New Cars Priced the Highest Over MSRP and 15 Priced Below MSRP

Summary:

• The average new car is priced 7.2 percent above MSRP, a drop from 8.9 percent above MSRP a year ago

• The MINI Hardtop and four Porsche models (Taycan sedan, Cayenne, Macan, Taycan wagon) are the top five cars priced highest above MSRP

• Four electric cars (Hyundai Kona, Volkswagen ID.4, Kia EV6, and Hyundai Ioniq 6) and the Ford F-150 hybrid are priced the lowest below MSRP 

• The gap between dealer pricing and MSRP is slowly narrowing, with EVs averaging the smallest premium at 6.1 percent over MSRP.

New car pricing continues to fall relative to MSRP. A year ago, the average new car was priced at $45,597, or 8.9 percent above MSRP, but today the average new car is priced at $45,880, or 7.2 percent above MSRP. iSeeCars analyzed the pricing of over 16 million new car sales between January 2023 and January 2024, and confirmed the average new car MSRP has increased by $904 in the past year, but average dealer pricing increased by less than $300, thus the closing gap. 

Premium and performance cars remain the most expensive models, with the MINI Hardtop and four Porsche models all priced more than 20 percent above MSRP. Electric cars are at the opposite end of the pricing spectrum, making up six of the 10 lowest-priced models. The Hyundai Kona Electric is 4.6 percent below MSRP, followed by the Volkswagen ID.4, Ford F-150 hybrid, Kia EV6, and Hyundai Ioniq 6 rounding out the five models priced the farthest below MSRP. 

Weakening demand for EVs is confirmed when looking at pricing by vehicle type. Among major segments, sedans and trucks have the strongest pricing, at 8.0 percent and 7.5 percent above MSRP, respectively. EVs are the weakest, at 6.5 percent above MSRP. 

* Excludes Tesla

“Supply is gradually catching up with demand, which means even as new car MSRP rises the ability for dealers to charge over MSRP falls,” said Karl Brauer, iSeeCars Executive Analyst. “At some point we’ll get back to pre-COVID new car pricing. But we’re not there yet, and at this rate it’s still at least a few years out.”

Performance and luxury cars still command a premium

While the average new car is priced 7.2 percent above MSRP, the MINI Cooper Hardtop is almost four times that premium at 25.5 percent. Four MINI models make the top 20 list of cars priced above MSRP, but Porsche has MINI beat, with six models in the top 20 and five models in the top 10. Premium brands make up 18 of the top 20 vehicles, with only the Toyota Corolla Cross Hybrid crossover and Ford Maverick compact pickup representing mainstream brands.

“It’s interesting to see one MINI and two Porsche EVs in the top 20 list when EVs make up a majority of the top 10 lowest-priced list,” noted Brauer. “Clearly MINI and Porsche are modulating their EV production to better align with demand. Hybrids like the Toyota Corolla Cross and Ford Maverick are also in high demand and, apparently, short supply.”

Electric vehicles, large trucks and SUVs fall below MSRP

Electric vehicles and large trucks and SUVs make up the bulk of vehicles priced at or below MSRP. The loss of the federal tax incentive for Hyundai and Kia EVs over the past year is undoubtedly forcing dealers to price these models more competitively. Large trucks and SUVs due for a redesign are also not seeing the demand they enjoyed during COVID. 

“While finding a discount on a new vehicle remains a challenge, it’s much easier for EV, large truck and SUV shoppers,” said Brauer. “The market appears to have reached a saturation point for electric vehicles, with both prices and sales struggling compared to a year ago. The high cost of full-size trucks and SUVs, along with the cost of fueling them in the face of inflation and reduced consumer spending power, has dampened demand for these notoriously pricey vehicles.”