Answer: 82%

Questions:

• What do you think are the factors that would lead people to pay MORE than the sticker price for a new car? 
• Most car purchases involve some degree of negotiation. How comfortable are you in situations like this? 
• What sources are available to help you determine a "fair" price for a car? 
• What other items come to mind where you would actually be willing to pay more than the sticker price? 

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (CNBC): 

When you’re purchasing a new car these days, it may feel a lot like you’re giving your dealership a fat tip. To that point, 82% are paying above sticker price for new vehicles, according to new research from Edmunds.com. That compares with 2.8% a year ago and 0.3% in early 2020.

Amid the auto industry’s persisting struggles with limited inventory due to an ongoing computer chip shortage, consumers have largely been forced to deal with prices that are up 12% year over year, according to the most recent data from the U.S. Bureau of Labor Statistics.

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Looking for more resources and activities about cars? Here are the search results from the NGPF website. 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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