Price hikes are a common frustration for drivers and automakers, with no signs of disappearing soon. Fresh statistics from iSeeCars indicate that, on average, new vehicles sell 10 percent above the MSRP. In the case of popular models like the Jeep Wrangler, the average selling price is marked up by 24.4 percent. This might all be sounding familiar by now.
The top list of vehicles with the highest markups is largely filled with historically popular models from manufacturers that have been heavily impacted by supply chain disruptions. Following the Wrangler is the Porsche Macan with a markup of 23 percent, resulting in buyers paying an average of $14,000 over the sticker price. This figure was only surpassed by the Chevy Corvette at $14,671 above the MSRP, although the percentage markup for the Chevy is a bit lower at 19.1 percent over the retail price.
Genesis, Lexus, Ford, Porsche, and Jeep are all featured multiple times in the top 15, with Jeep having three separate models: the Wrangler, Wrangler Unlimited, and Gladiator, the latter also making an appearance on the list in March of this year. While the Gladiator has somewhat decreased in ranking after initial exorbitant price hikes of over $20,000 were observed shortly after its 2019 debut, the presence of Ford’s Maverick and Bronco, and Genesis’ GV70 and GV80 in the top 15 suggests that manufacturers have struggled to control dealers as anticipated. Although both manufacturers have taken a firm stance against markups, it appears to have had little effect.
This issue is unlikely to subside in the near future, possibly lasting for months or even years. The demand for new cars remains high, and vehicle shortages persist due to ongoing supply chain challenges, resulting in lower-than-expected production levels for automakers. iSeeCars states that a significant improvement in supply is not anticipated until at least 2023. Therefore, unless the FTC intervenes and penalizes dealers for markups as promised, it seems that elevated markups are here to stay.