Increasing Inventory and Shopper Walkouts results In Lower Buyer Costs Of Dealer's Dream Priced Vehicles

Editor's Note: Above MSRP Buyer's Caught In Feeding Frenzy, You Gotta Really Want It To Pay Such Stupid Prices. For the past year The Auto Channel advice to in-market shoppers was to wait until the car and truck market return to normal. Hang in there...no bargains yet.

Detroit MI April 20, 2023; The AIADA newsletter reported that the average price that Americans pay for new vehicles has climbed steadily – and disconcertingly for many consumers.

But last month, something noteworthy happened: A trend was broken when the average amount paid for a new vehicle fell below the sticker price for the first time in 20 months, according to Kelley Blue Book tracking data.

Moreover, the average transaction price of a new vehicle in the U.S. declined in March to $48,008, a month-over-month decrease of 1.1 percent ($550). Even so, transaction prices remained up 3.8 percent ($1,784) compared to year-ago levels, reports Wards. <./p>

Kelley calculates new-vehicle ATPs have been above the average base price for 20 months. That streak ended in March, as the average price consumers paid fell to $171 below the average sticker. In comparison, in March of last year, the average transaction price was nearly $1,000 over sticker price, as consumers faced a seller’s market with thin vehicle inventories because automakers cut production amid a worldwide microchip shortage.

Years ago, dealers bargained for MSRP or above for only the hottest vehicles. Most vehicles sold for thousands of dollars below the sticker price as supply often outpaced demand. Click here for the full story.