New car markups

Most buyers paid above MSRP for new cars in January

The majority of new car buyers paid a markup in January 2022.

VW

It's no secret that new car prices are climbing every year, as new technology and features make their way into even the most basic models. The issue is compounded by massive supply chain issues that have caused vehicle shortages for nearly every major automaker. Some dealers are taking advantage of record low inventory levels by marking up prices, and unfortunately, the problem isn't limited to a handful of bad apples. In analyzing recent sale price data, automotive publication Edmunds found that buyers paid a markup in a whopping 82.2 percent of all new vehicle purchases in January 2022, compared to just 2.8 percent a year before. Overall, the average transaction price rose to $728 above MSRP for new car purchases.


Tesla factoryTesla is looking to expand production in the U.S. beyond the confines of its Fremont factory. Photo courtesy of Tesla Motors

Cadillac buyers saw the largest markups, to the tune of $4,048 on average in January. Land Rover and Kia weren't much better, with average markups of $2,565 and $2,289, respectively. On the other end of the spectrum, Alfa Romeo buyers got discounts that averaged $3,421, while people who bought Volvo or Lincoln vehicles got smaller discounts of $869 and $510, respectively.

Some automakers have taken a stand against dealer markups and the general lack of transparency seen in pricing across the board. Ford and General Motors have been vocal in recent months, threatening to withhold inventory from dealers found to be slapping markups on new vehicles. As Edmunds notes, both automakers have important vehicle launches on the horizon that neither can afford to flub, and inconsistent pricing or markups is a good way to alienate new customers out of the gate.


Cadillac EscaladeCadillac buyers paid the largest markups of any brand. Photo courtesy of Cadillac

If you're thinking of shopping for a new car, the best way to avoid paying a markup is to wait. The pandemic and ongoing supply chain issues have thrown kinks into every automaker's operations that will take time to iron out. That said, it's clear that some brands are committed to having no funny business when it comes to dealerships' pricing and communication. It's possible to get a vehicle at MSRP, or even below in some cases, so if you're in a position that requires you to buy a new car, shop around to get the best deal.

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New midsize sedan

Subaru announces refreshed 2023 Legacy

The new Legacy got a facelift and new lighting elements.

Subaru

Sedans are a dying breed as SUVs and pickup trucks take over, but there are still a few compelling options out there, and Subaru has one of them. The Legacy has been a long-time part of the Subaru lineup, and the all-wheel drive family sedan got a notable update for 2023.

2023 Subaru LegacyTop trims get luxury finishes inside.Subaru

Subaru offers the sedan in five trims: Base, Premium, Sport, Limited, and Touring XD. The automaker updated the Legacy with a facelift that brought a new front fascia, redesigned front bumper and new LED lighting. The car features a low dash and open cabin for great visibility in all directions, and the top Touring XT trim offers high-end accommodations, including Nappa leather and metal trim inside.

Every Legacy comes with the latest version of Subaru Starlink infotainment software. It runs on an 11.6-inch display and offers wireless Apple CarPlay and Android Auto as standard equipment. Higher trim levels get the same display with navigation and a new-for-2023 what3words integration.

2023 Subaru LegacyThe Legacy goes on sale this fall.Subaru

The 2023 Legacy comes standard with a 2.5-liter four-cylinder engine that makes 182 horsepower and 176 pound-feet of torque. The top two trims come with a turbocharged 2.4-liter four-cylinder engine rated at 260 horsepower and 277 pound-feet of torque. Both engines come with a continuously variable transmission that offers an eight-speed manual shift mode.

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Performance luxury SUV

The Cadillac Escalade-V starts at almost $150,000

The Escalade-V gets a $149,990 starting price

Cadillac

Cadillac teased an ultra-powerful Escalade-V a while back, and now we have all the details. The 2023 SUV will feature a supercharged 6.2-liter V8, plenty of luxury, and a stout six-figure price tag.

The 2023 Escalade-V comes with a supercharged 6.2-liter V8 that makes 682 horsepower and 653 pound-feet of torque. It features a hand-built design and shares much of its underlying engineering with the CT5-V Blackwing. It's paired with a ten-speed automatic transmission and full-time active four-wheel drive.

2023 Cadillac Escalade-VUnder the hood, there's a supercharged 6.2-liter V8.Cadillac

Cadillac gives every Escalade-V air ride adaptive suspension and magnetic ride control. The driver can customize the suspension and feel using the SUV's selectable driving modes. The system can also raise or lower the ride height by to .8 inches, and the SUV comes with a launch control system that helps it get off the line with explosive speed.

Inside, the Escalade-V builds on the top trim of the standard SUV with zebra wood accents, massaging front seats, and a heated steering wheel. It's got the same amazing tech, too, with a curved OLED display that runs the length of the dash, navigation, voice commands, wireless Apple Carplay and Android Auto, an augmented reality navigation system, and a 36-speaker AKG Studio stereo. Cadillac Super Cruise is available.

2023 Cadillac Escalade-VAn extended ESV variant is also available. Cadillac

The 2023 Cadillac Escalade-V goes on sale this summer. Starting pricing lands at $149,990, and Cadillac offers an extended-wheelbase ESV version of the high-performance SUV.

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