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Despite the Chip Shortages, New Lincoln Models Sell Below MSRP, Which Is Puzzling

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New Lincoln models sell below the MSRP which is puzzling 76 photos
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The luxury brand in Ford’s portfolio marks a century of automotive prowess with dwindling sales and unclear perspectives. It seems the situation is so bad for Lincoln, that its models are consistently sold below the MSRP in a move to lure more customers. This goes against the industry trends where people are willing to pay more money to secure a new vehicle.
Those who tried to buy a new vehicle in the past year know that you either have to wait for a long time or need to reach deeper inside the coffers for the privilege of bringing home a new vehicle. Dealer markups have become the norm rather than the exception these days, and this trend is here to stay for a long time. And yet, among this vehicle scarcity, some brands are willing to actually pay the customers just to move vehicles off the dealership’s floor.

Lincoln is one of those brands, but it’s not alone, as a report from Edmunds reveals. With an average MSRP of $62,202 and an average transaction price of $61,692, this translates into a $510 difference that goes into the customers’ pockets. Good for them but bad for Lincoln, as this signals just how unattractive the luxury brand has become. A look over the fence at its arch-rival Cadillac shows that GM’s brand tops all other carmakers by selling for $4,048 over the MSRP.

According to Edmunds, more than 82% of new car shoppers had to pay more than the sticker price in January. The main reason is the low inventory levels generated by the chip shortage and other supply chains problems. Buyers pay, on average, $728 above the sticker price to secure a new vehicle. It must be painful for Ford to watch buyers willing to pay more than $4,000 above the MSRP for a Cadillac but not a nickel for a new Lincoln.

Well, Lincoln is not alone in this, as we were saying. It is joined by a small crowd of mostly European brands that sells below the MSRP. Among them, we have Mini (-$151), BMW (-$199), Ram (-$465), Volvo (-$869), and the king of them all, Alfa Romeo (-$3,421).

Lincoln’s willingness to sell below the MSRP shows that buyers still have the power to move the market. Probably holding off on a new vehicle purchase would rattle the dealers enough to stop marking up popular vehicles.
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About the author: Cristian Agatie
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After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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