(iSeeCars) — New-car prices remain well above MSRP, even as the supply chain slowly improves and despite growing economic concerns that typically dampen consumer demand for big-ticket items.
Summary:
- The average new car price is 8.8 percent above MSRP
- The 10 most expensive new models are between 20 and 27 percent above MSRP
- The Genesis GV70, Jeep Wrangler and Mercedes-Benz GLB are the most aggressively priced new cars
- The gap between dealer prices and MSRP is slowly closing
A new study by iSeeCars found that manufacturer prices for new cars increased 7.6 percent over the past year from an average MSRP of $38,707 in February 2022 to $42,608 in February 2023.
Despite this increase, the average new car retail price increased 6.5 percent over the past 12 months, rising from $42,551 to $45,996. That means today’s average new car price is 8.8 percent above MSRP , in addition to higher MSRPs compared to a year ago.
| Average Monthly Dealer Price vs. Average New Car MSRP – iSeeCars Survey | |||
| month | Wed. MSRP | Average price | Price – MSRP % difference |
| February 2022 | 38,707 dollars | $42,551 | 9.9% |
| March 2022 | 38,716 dollars | $42,572 | 10.0% |
| April 2022 | $38,992 | $42,869 | 9.9% |
| May 2022 | 39,336 dollars | $43,297 | 10.1% |
| June 2022 | $39,712 | $43,717 | 10.1% |
| July 2022 | $40,239 | $44,347 | 10.2% |
| August 2022 | 40,352 dollars | $44,375 | 10.0% |
| September 2022 | $40,077 | $44,020 | 9.8% |
| October 2022 | 40,448 dollars | $44,346 | 9.6% |
| November 2022 | 40,434 dollars | $44,263 | 9.5% |
| December 2022 | $41,608 | $45,428 | 9.2% |
| January 2023 | $41,771 | $45,466 | 8.8% |
| February 2023 | 41,637 dollars | $45,296 | 8.8% |
“There’s no arguing that new cars are expensive!” said Carl Brauer, executive analyst at iSeeCars. “Manufacturers keep raising their prices and then dealers raise them again, to the point where the average new car is over $45,000.”
There are two pieces of encouraging news for consumers. First, the average MSRP appears to have either peaked or plateaued in January 2023, falling slightly in February. Second, price increases over MSRP peaked in July 2022, at 10.2 percent above MSRP. Relative pricing has fallen since then, with average new car prices now 8.8 percent above MSRP.
“The gap between dealer prices and MSRP should continue to narrow as the supply chain improves, although a return to MSRP for most models may not happen this year,” Bauer said.
These 10 cars are the highest priced above MSRP
Consumers looking to avoid price gouging will want to avoid these 10 models priced between 20 and 27 percent above MSRP.
“All but two of these high-priced models are luxury vehicles, reflecting the continued confidence and willingness of luxury car buyers to spend what it takes to get the vehicle they want,” Brower said. The two non-luxury vehicles are the Jeep Wrangler and Jeep Wrangler Unlimited, SUVs with consistently high demand and passionate buyers.
| New Cars with Highest Prices Above MSRP, February 2023 – iSeeCars Survey | ||||
| Rank | Model | Wed. MSRP | Average price | Price – MSRP % difference |
| 1 | Genesis GV70 | $44,299 | $56,476 | 27.5% |
| 2 | Jeep Wrangler | 35,827 dollars | $44,396 | 23.9% |
| 3 | Mercedes-Benz GLB | $41,061 | 50,452 dollars | 22.9% |
| 4 | Porsche Taycan | $100,169 | $122,940 | 22.7% |
| 5 | Jeep Wrangler Unlimited | $45,386 | $55,347 | 21.9% |
| 6 | Cadillac CT4-V | $57,737 | $69,904 | 21.1% |
| 7 | Genesis GV80 | $56,388 | $68,240 | 21.0% |
| 8 | Porsche Macan | $61,589 | $74,275 | 20.6% |
| 9 | Cadillac CT5 | $41,870 | 50,383 dollars | 20.3% |
| 10 | Lexus RX 350h | $49,339 | $59,347 | 20.3% |
| Average for the country | 41,637 dollars | $45,296 | 8.8% |
These 10 cars are priced closest to MSRP
While the average new car price remains 8.8 percent above MSRP, these 10 models are priced close to MSRP, with the Chevrolet Silverado 1500 actually priced Below MSRP.
“Chevrolet recently stopped production of the Silverado, suggesting that the supply of this full-size truck is in a unique post-pandemic status of preemptive demand,” Brower said. Other models priced right at MSRP include the Volkswagen Arteon, Cadillac Lyriq, and Infiniti QX80.
“The Lyriq is a brand new electric SUV, so it’s surprising to see it priced right at MSRP. Of course, it was recently affected by the government’s recategorization of which models earn the $7,500 federal tax credit, which likely affected how dealers define it,” Brower said.
| New Cars Priced Below/Closest to MSRP, February 2023 – iSeeCars Survey | ||||
| Rank | Model | Wed. MSRP | Average price | Price – MSRP % difference |
| 1 | Chevrolet Silverado 1500 | 51,103 dollars | $50,116 | -1.9% |
| 2 | Volkswagen Arteon | $45,827 | $45,648 | -0.4% |
| 3 | Cadillac LYRIQ | $61,795 | $61,575 | -0.4% |
| 4 | INFINITI QX80 | 81,656 dollars | 81,666 dollars | 0.0% |
| 5 | GMC Sierra 1500 | 61,644 dollars | $62,175 | 0.9% |
| 6 | Chevrolet Malibu | $27,597 | $27,887 | 1.1% |
| 7 | Ford F-150 (Hybrid) | $84,400 | $85,791 | 1.6% |
| 8 | Chevrolet Traverse | 43,832 dollars | $44,697 | 2.0% |
| 9 | Buick Envision | $38,658 | $39,487 | 2.1% |
| 10 | Mazda CX-9 | 42,288 dollars | 43,248 dollars | 2.3% |
| Average for the country | 41,637 dollars | $45,296 | 8.8% |
Coupes, convertibles and trucks still aggressively priced; Hatchbacks Top
Coupes, convertibles and trucks were the first vehicles to experience significant price increases when the pandemic began. Almost 3 years later, coupes, convertibles and trucks remain the most expensive cars relative to MSRP. This is true for these categories across the board, even with the Chevrolet Silverado, GMC Sierra, and Ford F-150 Hybrid priced close to MSRP (as reflected in the previous table).
A more recent change has occurred in hatchbacks, which have seen much higher prices relative to MSRP in the last month than a year ago.
“Rising gas prices have fueled demand for smaller, fuel-efficient vehicles over the past year, as evidenced by the jump in hatchback prices,” Brauer said. “Every other category is priced closer to MSRP than a year ago, but hatchbacks are 50 percent higher. Sedans, another relatively efficient vehicle category, also rose slightly.”
| Annual Pricing Changes to MSRP by Body Style, February 2022-2023 – iSeeCars Research | ||||
| Body style | Annual change | Price – MSRP % difference, February 2023 | Price – MSRP % difference, February 2022 | Average price February 2023 |
| Hatchback | 3.2% | 9.7% | 6.5% | $31,170 |
| Sedan | 0.2% | 9.7% | 9.5% | $38,137 |
| A minivan | -0.1% | 5.9% | 6.1% | $47,016 |
| Wagon | -1.3% | 9.4% | 10.7% | 25,412 dollars |
| SUV | -1.3% | 8.2% | 9.6% | $45,694 |
| Coupe | -1.9% | 13.1% | 14.9% | $54,519 |
| Truck | -1.9% | 10.2% | 12.0% | $52,753 |
| Cabriolet | -2.0% | 12.4% | 14.4% | $66,931 |
| Average for the country | -1.1% | 8.8% | 9.9% | $45,296 |
“With everything from interest rates to inflation working against demand for cars, it seems inevitable that car prices will fall,” said Karl Brauer. “And we’re clearly off the peak prices from last summer. But overall, consumers are still buying more cars than automakers can produce, which means dealers can still price their new models aggressively and find buyers willing to buy them.”
Highest Priced New Cars Above MSRP by City
iSeeCars also ranked new cars with the highest prices above MSRP in the top 50 most populous metropolitan areas.
| Highest Priced New Vehicles vs. MSRP by City – iSeeCars Survey | |||
| Metro area | Vehicle | % over MSRP | $ Above MSRP |
| San Diego, California | Ford Maverick | 40.0% | 10,054 dollars |
| Sacramento-Stockton-Modesto, CA | Genesis GV70 | 34.1% | 14,637 dollars |
| Indianapolis, IN | Genesis GV70 | 33.6% | 14,403 dollars |
| Tampa-St.Petersburg (Sarasota), Florida | Ford Maverick | 33.4% | $8,740 |
| San Francisco-Oakland-San Jose, CA | Ford Maverick | 33.3% | $9,122 |
| Phoenix, Arizona | Porsche Macan | 32.8% | 18,942 dollars |
| Louisville, Kentucky | Let’s go to Rio | 31.6% | 5411 dollars |
| St. Louis, Missouri | Genesis GV70 | 31.5% | $13,529 |
| Los Angeles, California | Genesis GV70 | 30.4% | $13,272 |
| Portland, Oregon | Ford Maverick | 30.2% | 7472 dollars |
| Oklahoma City, OK | Genesis GV70 | 30.2% | 13,618 dollars |
| Columbus, Ohio | Genesis GV70 | 30.1% | $12,929 |
| Denver, Colorado | Jeep Wrangler | 29.9% | 11,053 dollars |
| Salt Lake City, Utah | Genesis GV70 | 29.4% | 12,603 dollars |
| Albuquerque-Santa Fe, New Mexico | Jeep Wrangler | 29.1% | 9,847 dollars |
| Miami-Ft. Lauderdale, Florida | Porsche Macan | 28.6% | 16,944 dollars |
| Cleveland-Akron (Canton), Ohio | Lexus RX 350h | 28.5% | $13,988 |
| Charlotte, North Carolina | Jeep Wrangler | 28.5% | $9,935 |
| Norfolk-Portsmouth-Newport News, VA | Genesis GV70 | 28.4% | $12,186 |
| Greenville-Spartanburg, South Carolina | Chevrolet Corvette | 28.1% | 23,416 dollars |
| Boston, MA-Manchester, NH | Genesis GV70 | 28.1% | $12,465 |
| Chicago, Illinois | Genesis GV70 | 28.1% | $12,062 |
| Seattle-Tacoma, Washington | Chevrolet Corvette | 28.0% | $23,048 |
| Dallas-Ft. Worth, Texas | Genesis GV70 | 27.9% | $12,730 |
| Pittsburgh, Pennsylvania | Genesis GV70 | 27.7% | $12,409 |
| Grand Rapids-Kalamazoo, Michigan | Jeep Wrangler | 27.6% | 10,133 dollars |
| Houston, Texas | Genesis GV70 | 27.4% | $12,060 |
| Baltimore, MD | Ford Maverick | 27.3% | 7303 dollars |
| Milwaukee, Wisconsin | Jeep Wrangler | 27.2% | $9,508 |
| Hartford and New Haven, Connecticut | Jeep Wrangler Unlimited | 27.1% | 11,434 dollars |
| Minneapolis-St. Paul, MN | Jeep Wrangler | 27.1% | $9,600 |
| Fresno-Visalia, California | Ford Maverick | 27.0% | 6,809 dollars |
| Philadelphia, Pennsylvania | Genesis GV70 | 27.0% | $12,252 |
| Cincinnati, Ohio | Genesis GV70 | 26.9% | 11,551 dollars |
| Austin, Texas | Cadillac CT5 | 26.9% | 11,352 dollars |
| Washington, DC (Hagerstown, Maryland) | Genesis GV70 | 26.8% | $12,053 |
| Raleigh-Durham (Fayetteville), NC | Genesis GV70 | 26.5% | 11,363 dollars |
| Atlanta, Georgia | Mercedes-Benz GLB | 26.4% | 10,914 dollars |
| Nashville, Tennessee | Jeep Wrangler | 26.3% | 9336 dollars |
| West Palm Beach-Ft. Pierce, Florida | Jeep Wrangler | 26.3% | 9,086 dollars |
| Jacksonville, Florida | Genesis GV70 | 26.2% | $11,229 |
| Orlando-Daytona Beach, Florida | Ford Maverick | 26.1% | 6,956 dollars |
The vehicle with the highest price above MSRP in most cities is the Genesis GV70, the top model in 20 cities.
Methodology
iSeeCars.com analyzed more than 12 million new car sales from February 2022 to February 2023. The average list prices of new cars, as well as their average MSRPs, were aggregated by month as well as by body style and model. Heavy-duty vehicles and low-volume models were excluded from further analysis. Differences between average prices and average MSRP were expressed as percentage differences.
About iSeeCars
iSeeCars.com is a data-driven car search and research company that helps shoppers find the best deals on cars by providing key insights and valuable resources like the iSeeCars VIN Check Report and Best Cars Ranking . iSeeCars.com has saved consumers over $372 million to date by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, evaluate and rank millions of new and used cars .