Dealerships aren't the only guilty party.
A study commissioned by the Quantrell Auto Group has found that a considerable percentage of consumers are willing to overpay for popular models like the Ford Bronco, Toyota RAV4, and basically every new car out there. Thanks to supply chain issues, the average price of a new vehicle has jumped to $46k.
The study sampled 3,361 respondents in August this year and offers tips on purchasing and selling vehicles in the current market.
The survey says that 35% of car owners say they bought a car they hadn't intended to when they started shopping. Part of this could perhaps be a symptom of supply shortages and pricing over the last two years. Another 65% said they are willing to spend up to 39% over MSRP for a car they want.
There is, however, a massive conflict of interest issue. Quantrell is a dealership chain that sells Cadillacs, Subarus, and Volvos. The group's website also says it keeps a used car lot. Used cars and desirable new models are both changing hands at inflated rates, and dealerships are responsible for the vast majority of markups.
Heading to the group's listings indicates that its vehicles are priced roughly at MSRP.
We found a Volvo S60 listed for just $2,000 above Volvo's own suggested pricing for the car. Still, a dealer chain putting out a study showing consumers are willing to pay more for vehicles raises some questions.
We attempted to contact personnel at the dealership and will update this article with feedback once we have it.
A look at the average cost of a used car shows that people are willing to spend more on a used car they can get now rather than a brand-new car they have to wait for.
We should note that the average price of a car has skyrocketed over the last year due to the circumstances mentioned earlier. This figure could come down over the coming year as various parts shortages ease up.
At CarBuzz, we talk to people trying to buy cars daily, and the overwhelming majority of those we've spoken with blame dealers for the current circumstances. They are, after all, the last stop between a new car and its first owner.
Brands like Ford have taken harsh stances on markups with varying success, but this latest study shows that the consumer is also at least partly to blame.
Quantrell's study found that some are willing to pay an absurd 71% over sticker in Idaho. We're unsure how these results were measured or how many people in Idaho were sampled. We reached out to Quantrell for answers and will update you accordingly.
Residents in four states- North Dakota, Rhode Island, South Dakota, and West Virginia- were willing to pay the lowest percentage over MSRP, at 11%. In four other states- Colorado, Oklahoma, New Mexico, and Wisconsin- most owners drive what they set out to buy.
For now, the automotive market continues to run hot, though an economic downturn could see the market collapse soon. Our primary concern is the loans consumers have taken on these marked-up cars, but that's a whole other opinion piece all on its own.