If you’re looking for a new car, you may find that the asking price is a lot higher than you expected. Just how much more? Depending on the make and model, a lot more!
Autotrader recently released a report that shows the cars that are consistently selling above their sticker prices.
Looking for a New Car? These Models May Give You Sticker Shock
In this “ugly” market, as money expert Clark Howard calls it, finding an affordable vehicle may be a challenge. After I list the cars fetching higher prices, I’ll share some of Clark’s favorite tips for saving money on a car.
“Many car shoppers are in for a surprise right now – if they can find the model they are looking for at the dealership, they may have to pay more for it than expected,” said Brian Moody, executive editor for Autotrader, in a news release.
To come up with its list, Autotrader analyzed average transaction prices, which the car site says is a measurement of “the selling price in a deal versus the Manufacturer’s Suggested Retail Price (MSRP).”
In the list below, I’ve included the vehicles, their categories and the percentages of the price increases over MSRP, as reported by Autotrader on August 30, 2021.
These Cars Are Selling for More Than Their Retail Prices
|Vehicle||Vehicle Category||Average Transaction Price|
|Mercedes-Benz G-Class||Luxury SUV||118% of MSRP|
|Kia Telluride||Midsize SUV||108% of MSRP|
|Kia Carnival||Minivan||107% of MSRP|
|Hyundai Palisade||Midsize SUV||105% of MSRP|
|Honda Ridgeline||Midsize Truck||105% of MSRP|
|Land Rover Defender||Luxury SUV||105% of MSRP|
|Honda CR-V||Compact SUV||105% of MSRP|
|Cadillac Escalade||Luxury SUV||104% of MSRP|
|Nissan Versa||Subcompact Car||103% of MSRP|
|Honda Odyssey||Minivan||103% of MSRP|
How To Pay Less for a Car
Let’s say you’re ready to buy a vehicle. Even with prices going up, Clark says there are some ways you can save money when purchasing a car.
1. Compare Prices Between Dealers
Technology has made it easier than ever to compare prices before you buy a vehicle. Clark recommends giving online car marketplace Driveway a spin.
2. Choose the Right Model
You may be able to save money on a car by choosing a model that’s going to be discontinued or has been recently redesigned. In the latter case, you’ll want to stick with the older version.
Dealers will typically be eager to get rid of older models so that they can make room in for the newer (more expensive) versions.
3. Trade in Your Car
One great way to offset some of the cost of a new car is to trade in your used vehicle.
Although Clark feels that car valuation tools on Edmunds and Kelley Blue Book are having trouble keeping up with the distorted used vehicle market right now, he recommends Carvana’s Instant Offer tool as a good starting point to see what you can get for your car.
Once you see what your vehicle is worth, you’ll be ready to name your price.
Want some more money-saving tips? Here’s how to buy a new car.