BMW X3 Forum
BMW X3 Forum
Welcome to the ultimate G45 BMW X3 community.
BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
Post Reply
 
Thread Tools Search this Thread
      02-15-2022, 06:50 PM   #1
stein_325i
Ring Leader of G8X Haters
stein_325i's Avatar
No_Country
25302
Rep
8,764
Posts

Drives: A Car
Join Date: Dec 2017
Location: All-Around

iTrader: (0)

82% of Car Shoppers Paid Above Sticker Price for New Vehicles in January

8 out of 10 of Car Shoppers Paid Above Sticker Price for New Vehicles in January, According to Edmunds
Quote:
Originally Posted by Edmunds
SANTA MONICA, CA — February 15, 2022 — More car shoppers than ever are paying above sticker price amid inventory shortages and elevated consumer demand. According to the car shopping experts at Edmunds, buyers paid above MSRP in a record 82.2% of all new vehicle purchases, compared to 2.8% in January 2021 and 0.3% in January 2020. Edmunds data reveals that the average transaction price for a new vehicle climbed to $728 above MSRP in January 2022, compared to $2,152 below MSRP in January 2021 and $2,648 below MSRP in January 2020.

"The fact that an overwhelming majority of consumers are paying above sticker price would have been unthinkable even just a year ago," said Jessica Caldwell, Edmunds' executive director of insights. "This is in part driven by affluent consumers being willing to shell out more cash to get the vehicles that they want, but there's also a vast population of individuals who are being forced to do so simply because they need transportation and have no other choice."

Edmunds analysts took a look at the difference in new vehicle average transaction prices and compared them to the average MSRP across automakers to identify the brands commanding the largest amounts above sticker price and the brands yielding the greatest discounts. Cadillac topped the list of brands that commanded above-sticker price, with an average markup of $4,048 in January, followed by Land Rover, with an average markup of $2,565, and Kia, with an average markup of $2,289. Alfa Romeo topped the list of brands that brought below-sticker price, with an average discount of $3,421 in January, followed by Volvo with an average discount of $869 and Lincoln with an average discount of $510. The table below is the full list of brands.

"All eyes have been on Ford and GM since they both publicly called for their dealers to stop charging over MSRP for vehicles. Of all automakers, they might be in the most precarious position since they have very high-profile launches in the near future that appeal to a new type of customer. But looking at the numbers, there are clearly some other automakers who might want to follow suit," said Caldwell. "Savvy dealers, though, are conducting business during this wave of inflation in a way that's mindful of the possible adverse reaction of their customers."

Edmunds' experts say that holding off on a new car purchase would be the most pragmatic move for consumers in this market, but they also note that this course of action might be unrealistic for some individuals given that prices aren't expected to normalize for quite some time.

"Consumers might be waiting up to a year or longer if they want to hold off until the market resembles anything close to the pre-pandemic normal, but some buyers simply cannot wait," said Ivan Drury, Edmunds' senior manager of insights. "If you know you need a new vehicle soon — or if you have a vehicle coming off lease and its term can't be extended — doing extra research is critical to get an advantage, and using the list set forth below is a decent starting point if you're looking out for price discrepancies among different brandse."
Name:  ATP.jpg
Views: 1158
Size:  188.6 KB
Appreciate 4
3798j13199.50
BMWGirlFL6859.00
      02-15-2022, 08:51 PM   #2
bvrider1
Captain
364
Rep
809
Posts

Drives: e90 m3 + f80 zcp
Join Date: May 2016
Location: 3rdCoast

iTrader: (4)

Not a surprise. Thanks for sharing.
Appreciate 0
      02-15-2022, 10:12 PM   #3
rjjr1963
New Member
26
Rep
24
Posts

Drives: 2021 BMW 540ix
Join Date: Jan 2022
Location: Nebraska

iTrader: (0)

Local Dodge truck dealer is 5K over MSRP on every single truck.
Appreciate 0
      02-15-2022, 10:58 PM   #4
pikkagtr
Go Spurs Go
pikkagtr's Avatar
3987
Rep
2,917
Posts

Drives: '22 GR Z4 Coup '06 Z4M Rdster
Join Date: Jan 2015
Location: Bay Area

iTrader: (-1)

what's that saying about a fool and his money?
Appreciate 6
ntg442903.50
coonz2441.00
AlexFL7983.00
nicholasn261.00
NickyC19318.50
P111736.50
      02-15-2022, 11:02 PM   #5
gimmethemuumuu
Captain
United_States
86
Rep
946
Posts

Drives: '17 F80 M3, SO/Bk
Join Date: Apr 2009
Location: Indianapolis, IN

iTrader: (15)

…are soon parted.
Appreciate 1
ntg442903.50
      02-16-2022, 09:23 AM   #6
Alfisti
Brigadier General
6976
Rep
3,299
Posts

Drives: 2008 Saab 9-3 Combi
Join Date: Nov 2014
Location: Toronto, Canada

iTrader: (0)

Quote:
Originally Posted by gimmethemuumuu View Post
…are soon parted.
Some people just need a car though and used cars are so expensive that new may still make sense.
Appreciate 0
      02-16-2022, 09:30 AM   #7
heavyD^2
Colonel
heavyD^2's Avatar
Canada
3726
Rep
2,989
Posts

Drives: X3M Competition
Join Date: Apr 2018
Location: Too close to Santa

iTrader: (0)

Hands up if you thought Kia would be top 3. It's one thing to spend $2k over MSRP on a luxury brand but $2k is a lot when you consider the average price of a Kia. I have to give them credit for upping their game as the Koreans are starting to overtake the Japanese in a lot of industries now.
Appreciate 0
      02-16-2022, 09:37 AM   #8
pikkagtr
Go Spurs Go
pikkagtr's Avatar
3987
Rep
2,917
Posts

Drives: '22 GR Z4 Coup '06 Z4M Rdster
Join Date: Jan 2015
Location: Bay Area

iTrader: (-1)

Quote:
Originally Posted by Alfisti View Post
Some people just need a car though and used cars are so expensive that new may still make sense.
Nobody really NEEDS a BRAND new car
You also don't NEED to buy a slightly used car marked up to almost new car standards
What's wrong with a 9 yr old Toyota Camry ?
Still safe, still economical and not $45k for a new one or 40k for one that came off lease and is 3 yrs old
Sure it's not the latest and or greatest , bit it'll get you and your family safely around town
Appreciate 2
      02-16-2022, 11:19 AM   #9
Alfisti
Brigadier General
6976
Rep
3,299
Posts

Drives: 2008 Saab 9-3 Combi
Join Date: Nov 2014
Location: Toronto, Canada

iTrader: (0)

Nothing wrong with it but if the "new" car buyers move to 9 year old camrys the price of said camry will rise sharply, and that is on top of already sharp price rises. At which point it makes no sense.
Appreciate 0
      02-16-2022, 12:57 PM   #10
pikkagtr
Go Spurs Go
pikkagtr's Avatar
3987
Rep
2,917
Posts

Drives: '22 GR Z4 Coup '06 Z4M Rdster
Join Date: Jan 2015
Location: Bay Area

iTrader: (-1)

Quote:
Originally Posted by Alfisti View Post
Nothing wrong with it but if the "new" car buyers move to 9 year old camrys the price of said camry will rise sharply, and that is on top of already sharp price rises. At which point it makes no sense.
Proportionally yes, but that price hike is on an asset that has already depreciated greatly
Still not as bad as spending 45$k on an asset that will lost half in 3-4 yrs

A 2012 Camry is around 12k here in the bay area
Even if it is hiked up 20%, that's only 14.4k
Will it depreciate to 7.5 k in 3 yrs? Probably not
Still a better buy
Appreciate 0
      02-16-2022, 01:03 PM   #11
Alfisti
Brigadier General
6976
Rep
3,299
Posts

Drives: 2008 Saab 9-3 Combi
Join Date: Nov 2014
Location: Toronto, Canada

iTrader: (0)

Right but you're gonna run out of camrys. Nothing happens in isolation. I have never bought a new car in my life but without them, used cars will, eventually, cost more than new cars.
Appreciate 0
      02-16-2022, 01:39 PM   #12
///MPhatic
The Seeker
///MPhatic's Avatar
15448
Rep
3,865
Posts

Drives: OG M2 • Exige
Join Date: Aug 2008
Location: USA

iTrader: (2)

Garage List
2018 BMW M2  [9.00]
We are about to buy a new MDX (possibly RDX) and upon calling our local dealer learned that all out of state order get at least a $1000 market adjustment, and up to $5000. This is because people are buying the cars at MSRP and selling them to Carvana for $2000 over sticker just so Carvana can have the car.

We would pay MSRP, but not a penny more. We don't pay over MSRP.
Appreciate 2
AlexFL7983.00
      02-16-2022, 02:23 PM   #13
pikkagtr
Go Spurs Go
pikkagtr's Avatar
3987
Rep
2,917
Posts

Drives: '22 GR Z4 Coup '06 Z4M Rdster
Join Date: Jan 2015
Location: Bay Area

iTrader: (-1)

Quote:
Originally Posted by Alfisti View Post
Right but you're gonna run out of camrys. Nothing happens in isolation. I have never bought a new car in my life but without them, used cars will, eventually, cost more than new cars.
There are always accords, civics, corollas and altimas
But you get the point
Appreciate 0
      02-16-2022, 04:34 PM   #14
gatorfast
Major General
gatorfast's Avatar
United_States
5081
Rep
6,883
Posts

Drives: 718 Cayman
Join Date: Jan 2008
Location: SoFla

iTrader: (4)

lol Alfa Romeo
Appreciate 1
chris7197604.00
      02-16-2022, 05:30 PM   #15
BMWILUVU
Lieutenant Colonel
837
Rep
1,597
Posts

Drives: 340ix
Join Date: Mar 2017
Location: The Boibs

iTrader: (0)

New 2022 civics are going for 4-5k above MSRP. Sure they will say nothing about their mark-up until you get in the showroom but they are all charging it. The inventory is selling as its still in transit. The sport version is 10k over sticker. I had to laugh.
Appreciate 0
      02-16-2022, 06:08 PM   #16
AlexFL
Brigadier General
7983
Rep
4,628
Posts

Drives: BMW
Join Date: Jun 2019
Location: South Florida

iTrader: (0)

This is one of many reasons why I love BMW.
Appreciate 0
      02-18-2022, 11:06 AM   #17
SteveinArizona
Brigadier General
United_States
3100
Rep
4,210
Posts

Drives: BMW 530e
Join Date: Jul 2016
Location: Greater Phoenix

iTrader: (0)

Quote:
Originally Posted by AlexFL View Post
This is one of many reasons why I love BMW.
+1 BMW is one of the few car companies in the chart in the minus category.

My guess is that on Kia the reason is that so many dealers are selling the Telluride over MSRP; the rest of the company cars are probably not going over.

I wonder if the MSRP differential for BMW is part of the reason that the company is selling so well.

Another thought/question: does this chart take account of items being removed from cars being sold (e.g., if a feature is removed and the company gives a credit for the removal, is the MSRP similarly reduced?)?

Last edited by SteveinArizona; 02-18-2022 at 11:09 AM.. Reason: added thought
Appreciate 1
AlexFL7983.00
      02-18-2022, 01:09 PM   #18
kenr74
New Member
2
Rep
11
Posts

Drives: 2003 Z4, 2020 Z4
Join Date: Jan 2022
Location: Oregon

iTrader: (0)

I just sold my 2020 Mazda back to the dealer for more than I paid for it new. It's on their lot for about $2k over the 2020 MSRP. Crazy times.
Appreciate 1
chris7197604.00
      02-19-2022, 01:50 AM   #19
M3WC
Brigadier General
3850
Rep
3,312
Posts

Drives: BMW
Join Date: Jul 2008
Location: ...location...location

iTrader: (0)

Quote:
Originally Posted by AlexFL View Post
This is one of many reasons why I love BMW.
Why...even in this insane market they can't fetch msrp or above?
Appreciate 0
      02-19-2022, 03:51 AM   #20
eluded
2JZ-GTE
eluded's Avatar
Bulgaria
3170
Rep
4,145
Posts

Drives: 340 6MT, 50e, others
Join Date: Nov 2015
Location: Sofia

iTrader: (0)

Quote:
Originally Posted by M3WC View Post
Quote:
Originally Posted by AlexFL View Post
This is one of many reasons why I love BMW.
Why...even in this insane market they can't fetch msrp or above?
Good luck finding an M model for MSRP
Appreciate 0
      02-19-2022, 08:19 AM   #21
BMWCCA1
BMW Owner Since 1971
2535
Rep
1,526
Posts

Drives: 1964 700 Sport Cabriolet
Join Date: Apr 2014
Location: Central Virginia

iTrader: (2)

Garage List
2013 BMW 128i  [10.00]
Quote:
Originally Posted by eluded View Post
Good luck finding an M model for MSRP
Just yesterday completed the purchase for a customer on his new M5CS—at MSRP. He will take Performance Center Delivery of this car soon, nearly one-year after placing the order.

On the other hand, a customer just told me her sister bought a G-Wagen and paid $50k over sticker.

I can remember when the Porsche 944 came out and we had a waiting list almost two-years long. My first boss (who owned the store) would never charge over MSRP, even with offers from out of our area for way over list. He just felt it was the proper way to do business in our town. May he R.I.P.
Appreciate 2
AlexFL7983.00
eluded3169.50
      02-19-2022, 08:54 AM   #22
stein_325i
Ring Leader of G8X Haters
stein_325i's Avatar
No_Country
25302
Rep
8,764
Posts

Drives: A Car
Join Date: Dec 2017
Location: All-Around

iTrader: (0)

[QUOTE=BMWCCA1;28605393]
Quote:
Originally Posted by eluded View Post
On the other hand, a customer just told me her sister bought a G-Wagen and paid $50k over sticker.
Funny thing is that is now considered a bargain by G-Wagon standards.

This is the new normal
Attached Images
 
Appreciate 1
eluded3169.50
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 10:35 PM.




x3:
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST