Production shutdowns and supply chain issues from the ongoing microchip shortage have drastically lowered new car inventory. As demand continues to exceed the supply of new cars, dealers are pricing new cars above MSRP (Manufacturer’s Suggested Retail Price) and removing new car incentives.
A recent iSeeCars analysis of 1.2 million new car listings found the average new vehicle is priced 9.9 percent above MSRP, and all new vehicles have average prices that are above MSRP. Additionally, some new vehicles are priced well above the 9.9 percent average.
“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,” said iSeeCars Executive Analyst Karl Brauer. “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 top 15 cars with the highest price increases range from 1.9 to 2.7 times above the 9.9 percent average for all vehicles.
| New Cars Priced the Highest Over MSRP - iSeeCars | |||
| Rank | Vehicle | % Above MSRP | $ Above MSRP |
| 1 | Jeep Wrangler | 26.7% | $8,925 |
| 2 | Ford Maverick (Hybrid) | 25.0% | $5,601 |
| 3 | Porsche Macan | 23.3% | $13,254 |
| 4 | Jeep Wrangler Unlimited | 22.9% | $9,534 |
| 5 | Jeep Gladiator | 22.5% | $9,824 |
| 6 | Ford Maverick | 22.2% | $5,368 |
| 7 | Lexus RX 450h | 21.0% | $10,365 |
| 8 | Ford Bronco | 20.6% | $7,783 |
| 9 | Genesis GV70 | 20.0% | $8,611 |
| 10 | Mercedes-Benz GLB | 19.8% | $7,992 |
| 11 | Chevrolet Corvette | 19.3% | $15,218 |
| 12 | Ford Mustang | 19.1% | $6,941 |
| 13 | MINI Countryman | 18.9% | $6,325 |
| 14 | Lexus RX 350L | 18.6% | $9,242 |
| 15 | Mercedes-Benz GLA | 18.6% | $7,142 |
| Overall Average | 9.9% | $3,753 | |
The hybrid version of the Ford Maverick compact pickup truck and its gasoline version, both of which debuted in 2022, also make the list. “The Maverick compact pickup has been in high demand since its debut, which forced dealers to stop taking orders for both versions at the end of January and not resume until summer,” said Brauer. “Heightened gas prices have boosted demand for this already hot seller, with both the hybrid and gasoline versions returning excellent gas mileage, and even these marked-up pickups remain attainable for buyers given their starting prices of around $20,000.”
Joining the Maverick pickups is an additional Ford vehicle, the Bronco rugged off-road compact SUV. “The Ford Bronco has been in high demand since its debut last year, and this demand has exceeded supply as inventory shortages have led to long waitlists for the vehicle,” said Brauer. “Ford has already closed the order books for the Bronco for the remainder of 2022, and market adjustments have become commonplace for dealer inventory.”
Two classic American sports cars also make the list: the Chevrolet Corvette and the Ford Mustang. “Demand for the mid-engine Chevrolet Corvette has exceeded supply since its launch for the 2020 model year, and its high demand contributes to the vehicle consistently selling over MSRP,” said Brauer. “The Ford Mustang Shelby GT500 special edition is Ford’s most powerful production car ever, and the popularity of the high-performance trim contributes to the model’s price increase.”
The Porsche Macan makes the list with a 23.3 percent markup over its MSRP. “The Macan compact SUV is Porsche’s most popular model, and dealers are charging over MSRP as demand exceeds supply,” said Brauer. “Moreover, the Macan is one of the most expensive vehicles in its class, and the buyers it attracts are likely willing to pay above its sticker price.”
Five additional luxury SUVs make the list including the Lexus RX 450h, the Genesis GV70, the Mercedes-Benz GLB, the Lexus RX 350L, and the Mercedes-Benz GLA. “Hybrid vehicles like the Lexus RX 450h have been popular sellers due to the rise in gasoline prices, as well as smaller SUVs like the compact Mercedes-Benz GLB, and the subcompact Mercedes-Benz GLA,” said Brauer. “Markups have also been common for the RX 350L three-row crossover and the new-for-2022 Genesis GV70.”
Rounding out the list is the MINI Countryman subcompact SUV. “The Countryman is MINI’s best-selling model, and the surge in gas prices has likely boosted the fuel-efficient vehicle’s popularity,” said Brauer.
Average Dealer Markups by City
iSeeCars looked at the top 50 most populous metro areas to see which metro areas had the smallest and largest average price increases above MSRP.| Average Price Increases Above MSRP by City - iSeeCars | |||
| Rank | Vehicle | % Above MSRP | $ Above MSRP |
| 1 | Detroit, MI | 6.5% | $2,526 |
| 2 | Louisville, KY | 7.4% | $2,605 |
| 3 | St. Louis, MO | 7.9% | $2,954 |
| 4 | Harrisburg-Lancaster-York, PA | 8.6% | $2,929 |
| 5 | Grand Rapids-Kalamazoo, MI | 8.7% | $3,286 |
| 6 | Las Vegas, NV | 9.0% | $3,296 |
| 7 | Cincinnati, OH | 9.0% | $3,180 |
| 8 | Norfolk-Portsmouth-Newport News,VA | 9.0% | $3,234 |
| 9 | Hartford & New Haven, CT | 9.1% | $3,270 |
| 10 | Pittsburgh, PA | 9.2% | $3,330 |
| 11 | Columbus, OH | 9.2% | $3,347 |
| 12 | Baltimore, MD | 9.3% | $3,445 |
| 13 | Greensboro-Winston Salem, NC | 9.4% | $3,350 |
| 14 | Minneapolis-St. Paul, MN | 9.4% | $3,603 |
| 15 | Kansas City, MO | 9.4% | $3,531 |
| 16 | New York, NY | 9.5% | $3,752 |
| 17 | Salt Lake City, UT | 9.5% | $3,621 |
| 18 | Phoenix, AZ | 9.6% | $3,701 |
| 19 | Tampa-St Petersburg (Sarasota), FL | 9.7% | $3,500 |
| 20 | Raleigh-Durham (Fayetteville), NC | 9.7% | $3,584 |
| 21 | Orlando-Daytona Beach, FL | 9.7% | $3,421 |
| 22 | Charlotte, NC | 9.7% | $3,587 |
| 23 | Seattle-Tacoma, WA | 9.7% | $3,660 |
| 24 | Washington, DC (Hagerstown, MD) | 9.8% | $3,766 |
| 25 | Miami-Ft. Lauderdale, FL | 9.8% | $3,568 |
| 26 | Houston, TX | 9.8% | $3,944 |
| 27 | Portland, OR | 9.8% | $3,741 |
| 28 | Nashville, TN | 9.9% | $3,599 |
| 29 | San Diego, CA | 9.9% | $3,727 |
| 30 | Los Angeles, CA | 9.9% | $3,994 |
| 31 | New Orleans, LA | 9.9% | $3,657 |
| 32 | Jacksonville, FL | 9.9% | $3,529 |
| 33 | Cleveland-Akron (Canton), OH | 9.9% | $3,650 |
| 34 | Indianapolis, IN | 10.0% | $3,738 |
| 35 | West Palm Beach-Ft. Pierce, FL | 10.1% | $3,760 |
| 36 | Chicago, IL | 10.1% | $3,904 |
| 37 | Philadelphia, PA | 10.2% | $3,924 |
| 38 | Boston, MA-Manchester, NH | 10.3% | $3,916 |
| 39 | Oklahoma City, OK | 10.3% | $3,988 |
| 40 | Milwaukee, WI | 10.4% | $3,805 |
| 41 | Greenville-Spartanburg, SC | 10.4% | $3,737 |
| 42 | Dallas-Ft. Worth, TX | 10.5% | $4,163 |
| 43 | Denver, CO | 10.6% | $4,175 |
| 44 | San Antonio, TX | 10.8% | $4,045 |
| 45 | Birmingham, AL | 10.8% | $3,751 |
| 46 | Austin, TX | 10.9% | $4,298 |
| 47 | Albuquerque-Santa Fe, NM | 11.2% | $4,095 |
| 48 | Sacramento-Stockton-Modesto, CA | 11.3% | $4,213 |
| 49 | Atlanta, GA | 11.6% | $4,447 |
| 50 | San Francisco-Oakland-San Jose, CA | 12.0% | $4,992 |
| Overall Average | 9.9% | $3,753 | |
“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,” said Brauer. “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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Methodology:iSeeCars analyzed over 1.2 million new cars listed for sale between February 1 and March 25, 2022, and compared their list price to their MSRP. The average difference was expressed as a percentage from MSRP and used to rank models. Low-volume models and heavy-duty vehicles were excluded from further analysis.
About iSeeCars:
iSeeCars.com is a car search engine that helps shoppers find the best car deals by providing key insights and valuable resources, like the iSeeCars free VIN check reports and Best Cars rankings. iSeeCars.com has saved users over $330 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of new cars and used cars.
