With limited inventory due to a computer chip shortage, 82% of consumers are paying above sticker price for a new car.
The average amount paid for a new car is $45,717, which is $728 more than the average manufacturer's suggested retail price of $44,989, according to Edmunds' research, which is based on transactions in January. A year ago, the average amount paid was $2,152 below MSRP — and two years ago that discount was $2,648.
While part of the reason for the inflated prices is wealthy consumers' willingness to pay extra for the car they want, there are plenty of individuals paying a premium because they need transportation and don't have another choice, Edmunds said. Additionally, automakers aren't offering much in the way of incentives because they generally don't need to. In January, nearly 53% of vehicles were sold within 10 days of arriving at a dealership , according to an estimate from J.D. Power and LMC Automotive. The average number of days for a car to sell once it hits a dealership is 19 days, down from 51 days a year ago.
Based on Edmunds' research, Cadillac topped the list of brands selling the most above MSRP last month, with buyers paying $4,048 extra. That was followed by Land Rover at $2,565 and Kia at $2,289. Not all brands have commanded as high a premium. For instance, Buick buyers paid an average of $17 above sticker price in January, according to Edmunds. And Alfa Romeo had an average discount of $3,421; Volvo, $869; and Lincoln, $510.