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The Number Of Car Buyers Paying Over MSRP Has Plummeted

Summary:
A new study from J.D. Power reveals that car buyers are becoming slightly less frustrated with dealerships, thanks to lower prices and increased inventory. Overall customer satisfaction with the car-buying process improved in 2024, rising from a score of 793 last year to 801, based on a 1,000-point scale.The key factors behind this improvement are reduced vehicle prices and fewer markups after the pandemic-related shortages. This shift has given consumers more leverage, leading to a drop in the number of people paying above the Manufacturer’s Suggested Retail Price (MSRP). In 2024, only 8% of mass-market buyers paid over sticker price, down from 15% the previous year. For premium buyers, the percentage decreased from 10% to 6%.

While prices have come down, the buying experience still has room for improvement, particularly in areas like customer service, paperwork, and delivery. The study also found that electric vehicle (EV) buyers report lower satisfaction compared to traditional internal combustion engine (ICE) buyers. The satisfaction score for mass-market ICE vehicles was 857, compared to just 822 for EVs. A lack of knowledgeable dealership staff on electric vehicles contributes to this gap.

Porsche topped the list for premium brand sales satisfaction, while brands like Genesis and Alfa Romeo received low marks. For mainstream brands, Mini, Buick, and Subaru scored highest, while Chrysler, Mitsubishi, and Toyota lagged behind. Overall, while the car-buying experience is improving, dealerships still have significant work to do in ensuring a better experience for all buyers.
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