Supply chain issues are improving, but dealerships continue to price many new cars above the manufacturer’s suggested retail price (MSRP), according to a new iSeeCars analysis.
The average new car is priced at 8.8% more than MSRP as of February 2023. But the 10 most expensive new models are between 20% and 27% more than MSRP.
In a report on the findings, Karl Brauer, iSeeCars executive analyst, lays out the ugly truth:
“There’s no denying it — new cars are expensive! The manufacturers keep raising their prices and then the dealers raise them again, to the point where the average new car is priced above $45,000.”
The 10 new-car models with the highest dealer markups as of February are:
- Genesis GV70: 27.5% more than the MSRP
- Jeep Wrangler: 23.9% more
- Mercedes-Benz GLB: 22.9% more
- Porsche Taycan: 22.7% more
- Jeep Wrangler Unlimited: 21.9% more
- Cadillac CT4-V: 21.1% more
- Genesis GV80: 21% more
- Porsche Macan: 20.6% more
- Cadillac CT5: 20.3% more
- Lexus RX 350h: 20.3% more
There is a bit of good news in the iSeeCars findings.
For now, it looks like the average new-car MSRP might have peaked or at least plateaued in January 2023, as it dipped to $41,637 in February, from $41,771 in January.
In addition, the trend of dealers pricing new cars at more than their MSRP actually peaked back in July. At that time, new-car prices were 10.2% more than MSRP, on average.
Bauer forecasts even better times to come:
“The difference between dealer pricing and MSRP should continue to fall as the supply chain improves, though getting back to MSRP for most models may not happen this year.”
Looking for a more reasonably priced car? According to iSeeCars, three car models are priced below MSRP. They are:
- Chevrolet Silverado 1500: 1.9% less than MSRP
- Volkswagen Arteon: 0.4% less
- Cadillac LYRIQ: 0.4% less
For more tips on keeping auto costs reasonable, check out “8 Tips for Buying Your Next Car for Less.”