SANTA MONICA, Calif. – Amid inventory shortages and higher demand, more car shoppers than ever are paying above sticker price, according to the car-shopping guide Edmunds.
Buyers paid more than the manufacturer’s suggested retail price in a record 82.2% of all new vehicle purchases in January, compared to 2.8% one year ago and 0.3% two years ago, Edmunds announced. The average transaction price for a new vehicle rose to $726 above the manufacturer’s suggested retail price in January of this year, compared to $2,152 below the suggested retail price in January 2021 and $2,648 below the suggested retail price two years ago.
“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, 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.”