Buying a new car typically means paying a premium, but that doesn’t mean you should pay over MSRP. MSRP, or manufacturer’s suggested retail price, is the value of which a manufacturer believes the car is worth. So, it goes without saying that if the creator who designed and produced the vehicles sets a price, that’s typically what it’s worth from the get-go. This becomes less true as cars become more desirable, and this year in car buying, more than one vehicle is being consistently sold for over MSRP.
The 2021 Kia K5 is selling for 18% over MSRP
- 2021 Kia K5 GT FWD DCT
- Original MSRP: $31,090
- Average percentage paid over MSRP: 18%
- Average amount paid over MSRP: $5,527
- Average purchase price: $36,617
The 2021 Kia K5 is a newer addition to the brand’s lineup, giving the newly rebranded Kia a shot at the entry-level luxury sedan market. It comes recommended by Consumer Reports with high scores all around, an overall rating of 73/100, ranking the K5 as #8 out of 11 tested midsized cars. On average, the Kia K5 is being sold at around 18% over its actual MSRP, leaving buyers debating if it’s worth it to pay more for the car they’re craving or wait to see if prices will eventually return to normal.
The 2021 Hyundai Veloster is one of the worst new car deals right now
- 2021 Hyundai Veloster
- Original MSRP: $32,500
- Average percentage paid over MSRP: 16%
- Average amount paid over MSRP: $5,172
- Average purchase price: $37,672
The 2021 Hyundai Veloster is a fun and sporty ride that makes for a surprisingly great daily driver. It’s popular for new drivers, commuters, and even car enthusiasts looking for a reliable and sporty platform to customize and show off. Besides that, it’s highly rated by Consumer Reports with an overall score of 79/100, making it #2 on the list of 12 tested sporty cars. There is a lot to love about the Veloster, from its hot hatch appearances to its agility and handling for the price, but they are currently being sold at an average of 16% over MSRP. That makes it slightly less of a great deal than this originally affordable and budget-friendly sports hatch began.
Should you pay over MSRP for a new car?
Should you pay over MSRP for a new car? The simple answer is: no. There really is no reason to buy something for more than it’s worth. This is especially true as you’re already going to get hit hard by the depreciation a new car faces in the first year of ownership already. With the chip shortage seemingly far off from being resolved, it could be quite some time before the production of vehicles bounces back to a place where all vehicles are being sold for their advertised MSRP. Until then, consumers must stay vigilant about watching prices, though some buyers may be willing to pay over sticker price to ensure they are getting the car that they want when they want it.