These are strange days for car dealers and consumers alike. On the one hand, a punishing economic climate has caused automakers to do away with incentives such as cash back and rock-bottom financing that drove crowds into showrooms for the past few years. On the other, buyers are showing that if a car is on their personal wish list, they’re willing to pay extra; in some cases, thousands of dollars extra.
Those two factors are instrumental in these two groups of five cars: The first of which are less in-demand vehicles priced well above what people are willing to pay, and the second of which have consumers running for their checkbooks even when that means paying more than the manufacturer’s suggested retail price (MSRP).
“The month of May was a perfect example of what’s going on,” says Jesse Toprak, vice president of industry trends at analyst firm TrueCar.com. “It was a very slow month, with (U.S.) sales falling 3.7% to just over a million units. But at the same time, the average transaction price per car was at an all-time high of $29,900. People are still buying, and when they do they tend to go for smaller but highly contented and desirable cars.”
Toprak says that many buyers are downsizing out of large, well-appointed vehicles “but are insisting that the luxury and safety features they were used to in those cars be retained.” That often translates to heavily optioned cars that boost dealer profits, and aptly describes the five Asian-made cars that make up our list of under-priced cars.
But dealers with hot commodities aren’t the only winners in today’s climate. “Anyone who’s in the market for a large truck or SUV that isn’t that great on mileage is going to do very well,” says Toprak, neatly summarizing the following five vehicles — four American and one Japanese — that are overpriced in the face of slow demand:
1. Chevrolet Impala
Currently in its ninth generation, this legendary American nameplate isn’t moving consumers the way it did when it debuted in 1958 — as a two-door coupe with racy Corvette styling cues. These days, the rather bland-looking Impala is, for better or worse, most often seen in its police cruiser livery.
Base MSRP: $24,495
Average market value: $19,224
2. Ford Ranger
Despite decent gas mileage for a truck (22/27 mpg city/highway) pickup shoppers just aren’t willing to pay full sticker for the Ranger. According to Vincentric's raw data, which analyzes vehicles by trim level, five of the 16 vehicles on the list with the worst MSRP-to-market-value ratio are some form of the Ford Ranger.
Base MSRP: $19,075
Average market value: $15,430
3. Chevrolet Colorado
Four doors and interior space rivaling some small sedans (the LT trim is available with six-passenger seating, thanks to an optional front bench) isn’t enough to entice buyers into a large and capable 4WD truck. Part of the problem may be due to the fact that the Colorado rated "Poor" in the Insurance Institute for Highway Safety's side impact crash test in 2010.
Base MSRP: $20,650
Average market value: $16,960
4. Chevrolet HHR
The demise of Chrysler's PT Cruiser certainly didn't hurt Chevy's sales. Although the four-door and vaguely hot-rodded version of the HHR (which stands for Heritage High Roof) still draws a cult-like following, that's not the case for its paneled cousin, which faces stiff competition in the form of the new Ford Transit Connect.
Base MSRP (LS two-door panel model): $19,030
Average market price: $15,624
5. Mitsubishi Endeavor
Although the Endeavor is a capable mid-size SUV, its ho-hum gas mileage (15 mpg in the city) may be part of what's keeping folks away. The other part is the Endeavor's competitive set, which includes the highly acclaimed Honda CR-V and Mazda CX-9, as well as the fun, functional, and downright funky new Nissan Juke.
Base MSRP (LS model): $28,299
Average market price: $23,266
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