Yes! In fact, at the time of this article, selling a vehicle over the MSRP is becoming increasingly common as supply decreases and demand increases.
Computer chip shortages, a spike in demand, a reduction in vehicle supply, and even historically low gas prices all have the potential to elevate the sale price that much higher than the MSRP.
Uneducated car buyers are another way for dealers to sell a car for far more than the MSRP listed. Not doing your homework and new car research online upfront will allow an unscrupulous dealer to take advantage of you.
The bottom line is auto dealership owners and sales professionals are in business to make money. This is precisely why vehicles are often sold above the posted MSRP when a dealer can get away with it. For the most part, most car purchases end up falling somewhere between the MSRP and the dealer invoice price. The old saying in the auto sales industry is, “you can always come down on price… but you can never go up.”
However, if the model is brand new and has a high demand, it has the potential to sell for a price that is several thousand dollars above the MSRP. In particular, larger vehicles and those of the luxury variety tend to sell at a dollar figure that is higher than the posted MSRP as they have comparably high-profit margins.
If the vehicle is comparably small and less expensive, the dealership’s profit margin is likely to be more narrow, meaning there is not much room to negotiate the price between the dealer’s actual cost and MSRP.
When it comes to used vehicles, the final sale price of a vehicle is also shaped by the wholesale cost. If the dealership purchased a large number of the make and model you are attempting to buy, this bulk purchase was likely made at a discount, presenting an opportunity for prospective buyers to negotiate the price down well below the MSRP.
If the group of vehicles was purchased in a smaller quantity through a distributor, there is a good chance the dealer paid a comparably high premium, meaning there will be less flexibility in terms of negotiations.
Edmunds is one of the oldest and best new car research and review sites on the internet. Their huge dealer network allows you to shop, research and compare millions of new cars so you can find the exact vehicle you’re looking for.
