Prices of new cars are no longer what they used to be, as production issues and delays have caused prices to rise and inventory to go down in the United States. Specifically, the price of a new vehicle has gone up 12.4% from February 2021 to February 2022.
A recent study of over 1.2 million new car listings by iSeeCars looked to find which cars are being sold above the Manufacturer’s Suggested Retail Price (MSRP) the most.
Their study found that on average the price of a new car is currently being sold for 9.9% above the MSRP at a dealership.
The vehicle that is being sold the most over MSRP value is the ever popular Jeep Wrangler at 26.7% above MSRP or about $8,925 more. The 2022 Jeep Wrangler MSRP is listed at $29,995, as their more deluxe versions were seen later down the list.
Second on iSeeCars' list was the Ford Maverick (Hybrid) truck for 25% above MSRP, just $5,601 more than the listed value at $19,995.
Unsurprisingly, luxury car prices have gone up just as much, if not more. The Porsche Macan (SUV) was third on the list, going for 23.3% above MSRP or $13,254 more than the listed $54,900 price tag.
Speaking of the upgraded Jeep models, the Jeep Wrangler Unlimited starts at $49,295 but is currently being sold for 22.9% above the MSRP, or $9,534 more. Rounding out the top 5 was another Jeep model, the Gladiator. It has an MSRP value of $36,480, but is being sold for 22.5% more or $9,824 extra.
"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 said. "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."
The other cars that made the list and are all well above the average 9.9% increase on MSRP prices are: Ford Maverick (22.2%), Lexus RX 450h (21%), Ford Bronco (20.6%), Genesis GV70 (20%), Mercedes-Benz GLB (19.8%), Chevrolet Corvette (19.3%), Ford Mustang (19.1%), MINI Countryman (18.9%), Lexus RX 350L (18.6%), and Mercedes-Benz GLA (18.6%).
iSeeCars also took a look at which cities/metro areas have the smallest and largest average for prices above MSRP values. Detroit, MI (6.5%), Louisville, KY (7.4%), St. Louis, MO (7.9%), and Harrisburg-Lancaster-York, PA (8.6%) were the cheaper places to buy a car right now.
While San Francisco-Oakland-San Jose, CA was the highest above MSRP value at 12% or $4,992 more than the listed price. Other expensive places to buy a car were Atlanta, GA (11.6%), Sacramento-Stockton-Modesto, CA (11.3%) and Albuquerque-Santa Fe, NM (11.2%).
Other major cities like Chicago, IL (10.1%), Philadelphia, PA (10.2%), and Dallas-Ft. Worth, TX (10.5%) were all above the average bump on MSRP prices.
"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," Brauer said. "New car shortages are expected to persist due to the backlog of demand, and the Russia-Ukraine conflict has led to factory shutdown and pricing increases on raw materials. The best way to avoid paying over sticker is to broaden your search radius and to consider similar vehicles that may not have the same degree of price hike."
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