New Hybrids and EVs Fall Below MSRP, Despite Ongoing New-Car Demand

Summary:

• The average new car is priced 8.5 percent above MSRP

• 20 Models are priced within 2 percent of MSRP – with these six priced below MSRP: Chrysler Pacifica Hybrid, Infiniti QX80, Ford F-150 Hybrid, Hyundai Ioniq 5, Chevrolet Silverado 1500 and Hyundai Ioniq 6

• Four of the six models priced below MSRP are hybrids or electric, suggesting a reduced demand for “green” cars 

• 20 Models are priced 18 percent or more above MSRP, including the Jeep Wrangler Unlimited, Mini Hardtop and Genesis GV70

Macroeconomic factors, including inflation, interest rates and employment concerns, have had little impact on new car demand, with the average new vehicle priced between 8.4 and 8.7 percent above MSRP for the last five months.

After analyzing over 13 million new cars, the latest iSeeCars.com study found manufacturer pricing for new cars has increased 7.4 percent in the past year, from an average MSRP of $39,712 in June 2022 to $42,645 in June 2023. Beyond this, the average dealer listing price – now $46,265, or $4,000 above MSRP – increased an additional 8.5 percent.

“New car prices are holding up surprisingly well given the overriding economic factors impacting consumers today,” said iSeeCars Executive Analyst Karl Brauer. “We’re seeing some slight moderation, but the average new car asking price is still more than 8 percent above MSRP, confirming strong ongoing demand for new vehicles.”

Top 20 New Cars Priced Below or Near MSRP

In February this year there were three new models priced below MSRP: the Chevrolet Silverado, Volkswagen Arteon, and Cadillac Lyriq. In June there were six, with the Chrysler Pacifica Hybrid, Infiniti QX80, Ford F-150 Hybrid, Hyundai Ioniq 5, and Hyundai Ioniq 6 joining the Silverado.

“It’s telling that four of the six vehicles priced below MSRP are hybrids or electrics,” said Brauer. “We know the Inflation Reduction Act removed the $7,500 credit for the Ioniq 5 and Ioniq 6 because they aren’t built in the US. This dramatically impacted their sales and, apparently, forced dealers to price them aggressively. And relatively stable gas prices over the past several months has reduced interest and demand for hybrids like the Pacifica and F-150. We’ve seen similar pricing shifts on the used side, with our last used car pricing study showing electric vehicles dropping by 30 percent in value.”

*The Limited trim is the only trim represented in the study’s sample of hybrid Ford F-150s. The sample data came from dealers in 48 states, and includes the average prices and MSRPs of all hybrid Ford F-150 trims represented. Updated: July 26, 2023.

Top 20 New Cars Priced Above MSRP