Stealerships Strike Again! These 15 Cars Have The Highest Dealership Markups
Dealership markups are nothing new, in fact, over 80 percent of buyers paid over sticker price for their new vehicles in January. A new study sheds light on which vehicles are most likely to be marked up, and by how much.
The folks from iSeeCars.com compiled the top 15 vehicles with the highest dealership markups. 1.2 million new cars listed for sale between February 1 and March 25, 2022, were analyzed and were found to be priced 9.9% (or $3,753) over MSRP on average.
We’re not surprised by the vehicles on the list, but we are surprised by the amount that dealerships are marking them up.
Despite rising gas prices, it seems that there is still a huge demand for offroading vehicles. The Jeep Wrangler takes the number one spot on the list, priced at 26.7% above MSRP. Not far down in 4th place is the Wrangler Unlimited at 22.9%, while the Ford Bronco comes in 8th place at 20.6%.
Here’s the full list with the highest markup over MSRP:
|Rank||Vehicle||% Above MSRP||$ Above MSRP|
|2||Ford Maverick (Hybrid)||25.0%||$5,601|
|4||Jeep Wrangler Unlimited||22.9%||$9,534|
|7||Lexus RX 450h||21.0%||$10,365|
|14||Lexus RX 350L||18.6%||$9,242|
“As demand continues to exceed supply for these popular vehicles, dealers are tacking on market adjustments generally ranging from $2,000 to $10,000 on top of their MSRPs,” said iSeeCars Executive Analyst Karl Brauer.
Small pickups trucks are also in high demand, with the Ford Maverick, Maverick Hybrid, and Jeep Gladiator all priced more than 20% above MSRP.
Luxury SUVs make up a large portion of the list, with the Lexus RX 450h, Lexus RX350L, Porsche Macan, Mercedes-Benz GLA, Mercedes-Benz GLB, and Genesis GV70 all taking part. Sports cars like the Chevrolet Corvette and Ford Mustang also made the top 15, with the former adding a whopping $15,218 to the sticker price.
The reason for the price hike is simple: increased demand, decreased supply. Shutdowns due to the COVID-19 pandemic and microchip shortages mean that inventory is low, but buyers are still very keen to plunk down their hard-earned cash for a brand new car.
“New car buyers will probably have trouble finding available inventory and can expect to pay higher-than-average prices for vehicles that are in high demand,” said Brauer. “New car shortages are expected to persist due to the backlog of demand, and the Russia-Ukraine conflict has led to factory shutdown and pricing increases on raw materials. The best way to avoid paying over sticker is to broaden your search radius and to consider similar vehicles that may not have the same degree of price hike.”
There are exceptions, if you shop around
Just because there’s a tendency to markup anything on wheels these days, doesn’t mean that you absolutely can’t find a deal somewhere. Jalopnik’s Tom McParland noted in his story that he was able to get two offers for a pink Wrangler Unlimited Rubicon discounted by $2,322 and $3,462 respectively. Yes, it’s pink, but still. A couple of months ago, we reported about a woman who discovered a 2021 Ford Bronco sitting at a dealership in Alaska after the original customer’s financing fell through, and which she bought at MSRP. Granted, both cases are the exception to the rule these days (for different reasons), but they do exist if you’re willing to put the legwork in and shop around.