If you’ve been searching for a new car recently, you likely noticed the inflated prices. According to a recent report from car research site iSeeCars.com, the average new vehicle is priced nearly 10% above its manufacturer’s suggested retail price (MSRP).
To arrive at its figures, iSeeCars.com analyzed 1.2 million new car listings between February 1-March 25, 2022, and averaged new vehicle prices. The site found that all new vehicles have average prices that are above MSRP.
Which New Vehicle Has the Largest Price Markup?
Selling at nearly $9,000 above its MSRP, the Jeep Wrangler has the highest price increase according to the report. Jeep also has three models among the top five on iSeeCars.com’s list.
Let’s look at the cars with the highest price tags above automakers’ suggested values:
These Cars Are Selling for the Biggest Markups Over MSRP
|Vehicle||% Above MSRP||$ Above MSRP|
|Ford Maverick (Hybrid)||25.0%||$5,601|
|Jeep Wrangler Unlimited||22.9%||$9,534|
|Lexus RX 450h||21.0%||$10,365|
“Dealers have responded to market conditions by pricing cars above MSRP to make a higher profit on specific models and to help offset lower sales volumes due to restricted new car production,”iSeeCars Executive Analyst Karl Brauer says in the report. “In today’s market, consumers are willing to pay well-above sticker price for the most in-demand vehicles because it’s the only way they can get the vehicle of their choice and avoid a lengthy wait.”
Should You Buy a New Car Right Now?
Because of the high pricing and low availability of many new models, money expert Clark Howard wants you to hold off on buying any vehicle right now if you can.
“If you drive down one of those boulevards that has a whole bunch of new car dealers one after another, slow down and you’ll see that there are no new vehicles at all on those lots — none! And any that are being generated, they’re already spoken for once they leave the factory,” Clark says.
Clark suggests that you repair and maintain your older vehicles so that they can hold you over until the car market improves, which he expects to happen in a matter of months.
“The new car market will be normalized by either the fourth quarter of this year or the first quarter of 2023,” Clark says.