(iSeeCars) – Production shutdowns and supply chain issues from the ongoing microchip shortage have continued to drastically lower new car inventory. As demand continues to exceed the supply of new cars, dealers are pricing new cars above MSRP (Manufacturer’s Suggested Retail Price) while removing new car incentives.
A recent iSeeCars analysis of 1.9 million new car listings found the average new vehicle is priced 10.0 percent above MSRP. Additionally, some new vehicles are priced well above the 10.0 percent average.
“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,” said iSeeCars Executive Analyst Karl Brauer. “In today’s market, consumers are willing to pay well-above sticker price for new cars because inventory is so scarce and because they know that new car pricing is not expected to improve until 2023 at the earliest.”
The top 15 cars with the greatest markups range from 1.8 to 2.4 times above the 10.0 percent average for all vehicles.
|New Cars Priced the Highest Over MSRP – iSeeCars|
|Rank||Vehicle||% Above MSRP||$ Above MSRP|
|4||Lexus RX 450h||21.9%||$10,847|
|6||Jeep Wrangler Unlimited||20.0%||$8,877|
|11||MINI Hardtop 2 Door||18.8%||$5,426|
|12||Lexus RX 350L||18.8%||$9,423|
The vehicle with the greatest markup is the Jeep Wrangler, which is priced 24.4 percent or $8,433 over MSRP. It’s joined by its four-door version, the Jeep Wrangler Unlimited, and its pickup variant, the Jeep Gladiator. “As demand continues to exceed supply for these popular vehicles, dealers are adding market adjustments generally ranging from $2,000 to $10,000 on top of their MSRP, with markups being especially high for the V-8 Wrangler Rubicon 392,” said Brauer. “The Jeep Wrangler and the Jeep Wrangler Unlimited are among the cars that hold their value best due to their ruggedness and enthusiastic fan base, which likely contributes to car buyers paying a premium for them amid their scarcity on new car lots.”
The Ford Maverick, a compact pickup truck introduced for the 2022 model year and available with either a hybrid or a gasoline engine, also makes the list. “The Maverick compact pickup has been in high demand since its debut, which forced dealers to stop taking orders for both versions at the end of January, resuming only in mid-September,” said Brauer. “Heightened gas prices have boosted demand for this already-hot seller, with both the hybrid and gasoline versions returning excellent gas mileage, and even these marked-up prices remain attainable for buyers given the starting prices of under $25,000.”
Joining the Maverick pickup is an additional Ford vehicle, the rugged Bronco off-road compact SUV. “The Ford Bronco has been in high demand since its debut last year, and this demand has exceeded supply as inventory shortages have led to long waitlists and frequent dealer markups for the vehicle,” said Brauer. “Ford closed the order books for the 2022 Bronco in May and began taking orders for the 2023 version in late August.”
Seven luxury SUVs make the list, including the Porsche Macan, the Genesis GV70, the Lexus RX 450h, the Porsche Cayenne, the Mercedes-Benz GLB, the Lexus RX 350L, and the Genesis GV80 “Hybrid vehicles like the Lexus RX 450h have been popular sellers due to the rise in gasoline prices, as well as smaller SUVs like the compact Mercedes-Benz GLB, and the Porsche Macan,” said Brauer. “Markups have also been common for the RX 350L three-row crossover and the new-for-2022 Genesis GV70 and GV80.”
Two American sports cars also make the list: the Chevrolet Corvette and the Cadillac CT5. “Demand for the mid-engine Chevrolet Corvette has exceeded supply since its launch for the 2020 model year, and its high demand contributes to the vehicle consistently selling over MSRP,” said Brauer. “The Cadillac CT5-V Blackwing trim, which debuted for 2022, has a supercharged V8, and the low availability of the high-performance trim led to significant markups.”
Rounding out the list is the MINI Hardtop 2 Door subcompact car. “The surge in gas prices has likely boosted the fuel-efficient vehicle’s popularity,” said Brauer.
“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. “Consumers looking to purchase a new car should do their research and compare prices between multiple dealers, and in some cases can avoid markups by ordering directly from the manufacturer.”
iSeeCars analyzed over 1.9 million new cars sold between July 1 and September 7, 2022, and compared their list price to their MSRP. The average difference was expressed as a percentage from MSRP and used to rank the vehicle models. Low-volume models and heavy-duty vehicles were excluded from further analysis.
iSeeCars.com is a car search engine that helps shoppers find the best car deals by providing key insights and valuable resources, like the iSeeCars free VIN check reports and Best Cars rankings. iSeeCars.com has saved users over $350 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of new cars and used cars.
This article, Which Cars are Priced the Highest Over MSRP in Today’s Market?, originally appeared on iSeeCars.com.