As supply chain issues and production problems linger, new cars continue to roll very slowly off the assembly line. And that fact continues to push prices higher.
The shortage of new vehicles means dealers are pricing their inventory higher — an average of 10% above the manufacturer’s suggested retail price, according to a new iSeeCars analysis.
While some might view such tactics as price gouging, there is actually a reasonable explanation behind the price hikes, says Karl Brauer, iSeeCars executive analyst:
“Dealers have responded to market conditions by pricing cars above MSRP making a higher profit on specific models to help offset lower sales volumes from restricted new car production.”
Although 10% is the average markup, some cars are selling with significantly higher markups. They include:
- Jeep Wrangler: 24.4% above MSRP
- Porsche Macan: 23.1%
- Genesis GV70: 22.4%
- Lexus RX 450h: 21.9%
- Ford Bronco: 21.6%
- Jeep Wrangler Unlimited: 20%
- Cadillac CT5: 19.9%
- Porsche Cayenne: 19.6%
- Chevrolet Corvette: 19.5%
- Mercedes-Benz GLB: 19%
- Mini Hardtop two-door: 18.8%
- Lexus RX 350L: 18.8%
- Jeep Gladiator: 18.5%
- Ford Maverick: 18.4%
- Genesis GV80: 18%
Brauer says the bottom line is that if you are shopping for a new vehicle, you may struggle to find a lot of options and should expect to pay more for cars that are in high demand.
He suggests doing a lot of research and then comparing prices among multiple dealers. He also notes that you might be able to “avoid markups by ordering directly from the manufacturer.”
For more tips on keeping costs reasonable, check out “8 Tips for Buying Your Next Car for Less.”
