Who would have guessed that?
One of the worst consequences of the supply chain shortage has been that the supply of vehicles has dwindled, and this has allowed greedy dealers to enforce ludicrous markups. It's become so bad that automakers have had to step in to try to curb the practice, but it continues to happen, even with helpful tools that can steer you away from the most cash-hungry dealers.
Seeing all the recent stories surrounding $100k Corvette Z06 markups and Nissan dealers doubling the price of the new Z, you'd be forgiven for thinking that a sports car of some sort, an all-new enthusiast vehicle like the Bronco Raptor, or an innovative EV would be the most marked-up vehicle on sale, but according to a new study from iSeeCars, it's the venerable Jeep Wrangler that takes the cake.
The analysis conducted was comprehensive and looked at 1.9 million new cars sold between July 1 and September 7, finding that the average new vehicle was priced at 10% above MSRP. In dollars, that translates to an average markup of $3,946 for every new car listed for sale.
The Jeep Wrangler is the worst offender, particularly in V8 Rubicon 392 guise. According to iSeeCars executive analyst Karl Brauer, "dealers are adding market adjustments generally ranging from $2,000 to $10,000 on top of their MSRP." He also notes that the Wrangler range tends to hold value well due to the vehicle's ruggedness and massive fan base.
On average, the Wrangler carries a 24.4% markup above MSRP, which translates to $8,433.
In second place is the Porsche Macan, with 23.1% ($14,221). The Genesis GV70 took third, with 23.1% ($10,278). The Lexus RX 450h, Ford Bronco, Jeep Wrangler Unlimited (that's the four-door), Cadillac CT5, Porsche Cayenne, Chevrolet Corvette, and Mercedes-Benz GLB round out the top 10. The Cayenne, with a 19.6% average increase, represented the highest dollar-figure increase on the list of 15 cars, with an average of $16,750 added to the MSRP.
The Mini Hardtop 2-Door, Lexus RX 350L, Jeep Gladiator, Ford Maverick, and Genesis GV80 also made the list.
The report notes that low inventory, high demand, and buyers' willingness to pay these markups have contributed to the extreme pricing we're seeing.
Brauer says that heightened gas prices have likely contributed to the Maverick's popularity, which is also the cause attributed to the success of smaller luxury SUVs like the Merc GLB and Porsche Macan. Gas prices are also the given reason for the small Mini Cooper Hardtop's surge in popularity among buyers, regardless of cost. The Ford Bronco has suffered continual inventory shortages, which has allowed dealers to charge what they want, while the Cadillac CT5 and Chevrolet Corvette have been lusted after thanks to the likelihood that opportunities for buying a brand new combustion-powered sports car appear to be dwindling.
We sincerely hope that production can increase and dealers can be forced to sell cars at reasonable prices, but the current situation seems to be set to continue for the foreseeable future.