Car buyers pay 10% above the sticker price, on average — or more if you want a Jeep or Porsche (2024)

FAQs

Do car buyers pay 10 above the sticker price on average or more if you want a jeep or porsche? ›

Even in the current climate, you should never pay above the Manufacturer's Suggested Retail Price (MSRP) for a new car. Read on to discover why many dealerships are asking for more than MSRP for new cars, why you should never pay over MSRP, and what you can do to avoid paying over MSRP for a new car, truck, or SUV.

Once you find a vehicle that fits your budget and your lifestyle, calculate a profit margin that's both within your price range and fair to the dealership. Putting in an offer that's 3 to 5 percent higher than the invoice price is typically fair.

It shows the Boxster at average 20% over MSRP and Cayman at 19% over (ranked #7 and #11 highest, respectively).

When considering all the money you'll need to invest in a new car, try to keep your total transportation costs to 10% of your monthly income or less. This way, you can afford to keep up with payments and still cover any unexpected costs. To estimate your payments, try using our auto loan calculator.

The Cayenne, Macan, Taycan Sport Turismo, and the 718 Boxster/Cayman make the cut, all fetching around 20 percent over MSRP. In fact, Porsche and Mini vehicles comprise half of this top-20 list. Here's a breakdown of the 20 new cars that have the highest average selling price over MSRP, as of January 2024 per iSeeCars.

A dealer tacks these arbitrary amounts onto the MSRP to increase profit on high-demand models. Sometimes, such markups appear as a second window sticker separate from the MSRP. Historically, you would find them primarily for highly anticipated all-new or redesigned models.

Point that out, and be clear and direct. This is not the time to beat around the bush. It might even have a declination box where you can sign that you reject the product offered. Remember, you can get most dealer add-ons for hundreds of dollars less elsewhere.

The dealer would like you to negotiate using the MSRP as the starting point. But the pro move is to use the dealer's asking price as the starting point because the dealership may have already discounted the vehicle from MSRP. Use the market value as your price target in the negotiations. If you can beat it, great!

How much can you talk a dealer down on a new car? ›

However, you can use the guideline of 2 or 3% on less expensive brands, and 5 to 10% on luxury brands as a rule of thumb. Regardless of if you're buying a Kia or a Mercedes, the reality is there isn't too much room to work with when just looking at the mark up. This is where factory incentives come into play.

Brian Moody, executive editor for Kelley Blue Book, said that while any prospective new car buyer should continue to be comfortable with paying at least MSRP, consumers worried about sticker shock at the auto dealership should consider the following steps to find some potential savings.

You don't have to pay MSRP.

Dealers often advertise car sales as some amount “below MSRP.” In fact, very few vehicles are sold at MSRP. A price below MSRP isn't necessarily a great deal, though it's a good place to start negotiations.

They found that the average new car is priced 8.5% above MSRP, and only six models averaged below sticker price—and not much below. Four of the six models priced below MSRP are hybrids or electric.

Small Number of Vehicles Still Sell at Markup Prices

The days of paying more than MSRP are mostly behind us. Most carmakers and dealers now offer ample inventory and provide incentives that lower car prices below MSRP. Still, a few vehicles remain in short supply, and dealerships continue to mark up their prices.

The short answer is yes. However, for many, even the thought of negotiating new car prices can seem intimidating. Treat this experience like any negotiation and go in with a plan.

The MSRP is set by the manufacturer, so you can't negotiate the MSRP — but you can negotiate how much you'll pay. Shop around for a car and compare prices. One strategy is to tell the dealer you could get a similar car for less money from another dealership and ask them to beat that price to gain your business.