The latest Consumer Price Index (CPI) showed new car prices were flat – not going up or down. But the price you pay all depends on the kind of car you are buying.
Dealers are more flexible on some models than others. Right now, they are ready to make a deal on an electric vehicle.
While industry data show that the average new car is still selling for about 7.2% above the manufacturer's suggested retail price (MSRP), some electric vehicles and hybrids are selling well below the sticker price.
For example, For instance, the Hyundai Ioniq 5 and Kia EV6 are selling at discounts of 1.9% and 2.5% lower than their MSRPs on average, according to AutoSpies.com. The Hyundai Kona Electric is also being sold at a significant discount, with prices 4.6% below MSRP.
However, if you’re looking as a gasoline-powered vehicle, don’t expect much of a discount. Some models like the Toyota Corolla Cross Hybrid and Ford Maverick pickup are selling at nearly 20% over MSRP, according to Torque News.
There may be no better time to buy
The sight of EVs running out of juice while waiting at charging stations in January's subfreezing temperatures in Chicago may have caused some car shoppers to have second thoughts about EVs. However, consumers inclined to purchase an EV may not find a better time than now to do so.
That said, market conditions are dynamic and prices can fluctuate due to factors such as eligibility for federal tax credits, changes in regulations, and the costs of batteries and raw materials. But EV prices may continue to slide as the average price of used cars, both EVs and gasoline-powered, continue to fall.
Cox Automotive reports wholesale used-vehicle prices fell 0.9% from January in the first 15 days of February. The midmonth Manheim Used Vehicle Value Index dropped to 202.1, which was down 13.8% from the full month of February 2023.
As for retail used car prices, the January CPI shows prices plunged 3.4% from December and were down 3.5% year-over-year.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-02-21 11:56:16
