If you’ve been shopping for a new car recently, you likely noticed the inflated prices. According to the latest report from car research site iSeeCars.com, the average new vehicle is priced 10% above its manufacturer’s suggested retail price (MSRP) — and some well above that!
To arrive at its figures, iSeeCars.com analyzed more than 1.9 million new vehicles sold between July 1 and September 7, 2022.
Which New Vehicle Has the Largest Price Markup?
Selling at nearly $8,500 or 24.4% above its MSRP, the Jeep Wrangler tops the list. In fact, it’s one of three Jeeps in the top 15.
Let’s look at the cars priced at the highest percentages above automakers’ suggested values.
|Vehicle||% Above MSRP||$ Above MSRP|
|1. Jeep Wrangler||24.4%||$8,433|
|2. Porsche Macan||23.1%||$14,221|
|3. Genesis GV70||22.4%||$10,278|
|4. Lexus RX 450h||21.9%||$10,847|
|5. Ford Bronco||21.6%||$8,697|
|6. Jeep Wrangler Unlimited||20.0%||$8,877|
|7. Cadillac CT5||19.9%||$8,335|
|8. Porsche Cayenne||19.6%||$16,750|
|9. Chevrolet Corvette||19.5%||$14,697|
|10. Mercedes-Benz GLB||19.0%||$7,650
|11. MINI Hardtop 2 Door||18.8%||$5,426|
|12. Lexus RX 350L||18.8%||$9,423|
|13. Jeep Gladiator||18.5%||$8,478|
|14. Ford Maverick||18.4%||$4,614|
|15. Genesis GV80||18.0%||$10,124|
“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,” iSeeCars Executive Analyst Karl Brauer says in the report.
Should You Buy a Car Right Now?
When it comes to your vehicle needs, you may want to know whether you should buy a new car, purchase a used vehicle or lease one. Here’s money expert Clark Howard’s advice on the matter:
“I would say none of the above, even if you’re in a position where you have to repair the vehicle you have, and you’re tired of that vehicle,” he says. “Strangely enough, unless it’s a catastrophic repair, at this point, it makes more sense to keep driving what you have for a while longer.”
Because of the high prices and low availability of many new models, Clark wants you to hold off on buying any vehicle right now if you can.
He suggests that you repair and maintain your vehicle so that it can hold you over until the car market improves, which he expects to happen over the next several months.“The car market is gradually healing, but it’s a gradual process because the hole they got in was pretty great. They’ve been making far fewer vehicles than the marketplaces wanted,” he says. “It takes a while to recover from that.”