Due to a computer chip shortage, 82% of consumers are paying more than the suggested retail price for a new car.

• Currently, approximately 2.8% of car buyers are paying above the manufacturer's suggested retail price (MSRP).
• New research reveals that Cadillac buyers are paying the highest amount above sticker price, with an average of $4,048 extra.
• If you're looking to purchase a new car and want to save money, consider these tips.

Buying a new car nowadays can feel like giving a substantial tip to the dealership.

New research from Edmunds.com shows that 82% of new vehicle buyers are paying above the sticker price, which is a significant increase from 2.8% a year ago and 0.3% in early 2020.

The ongoing computer chip shortage has resulted in a 12% increase in prices for consumers in the auto industry, as per the latest data from the U.S. Bureau of Labor Statistics.

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According to Edmunds' research, the average amount paid for a new car in January was $728 more than the average manufacturer's suggested retail price, which was $44,989. In comparison, a year ago the average amount paid was $2,152 below MSRP, and two years ago the discount was $2,648.

Edmunds stated that while some of the high prices are due to wealthy consumers' desire to pay more for their preferred car, many individuals are also paying a premium because they require transportation and have no other options.

In January, nearly 53% of vehicles sold within 10 days of arriving at a dealership, with the average number of days for a car to sell once it hits a dealership being 19 days, down from 51 days a year ago.

According to Edmunds' research, Cadillac was the brand that sold the most above MSRP last month, with buyers paying an additional $4,048. Land Rover came in second with buyers paying $2,565 extra, while Kia was third with buyers paying $2,289 extra.

In January, Buick buyers paid an average of $17 above sticker price, while Alfa Romeo had an average discount of $3,421, Volvo $869, and Lincoln $510. Not all brands have commanded as high a premium.

According to published reports, and have instructed their dealers to cease charging customers above the manufacturer's suggested retail price (MSRP).

Edmunds advised car shoppers to wait until the market stabilizes before making a purchase due to the current inventory squeeze. If waiting is not an option, some legwork can help you get a better deal.

According to Ivan Drury, senior manager of insights at Edmunds, it is crucial to conduct additional research if you are aware that you will require a new vehicle in the near future.

Drury advised being flexible and considering alternative vehicle types, brands, colors, and features to find a suitable option.

Drury advised expanding the search radius to obtain a wider range of options and suggested negotiating the upward markup to include additional items such as warranties, service contracts, protection packages, or dealer-installed accessories.

If you have a trade-in, capitalize on that, he said.

Drury stated that the value of your car is a significant negotiating tool in reducing the cost of your next vehicle purchase.

In January, the average trade-in value increased by 88% to $9,852 from $5,241 in the previous year, as reported by J.D. Power.