Production shutdowns and supply chain issues from the ongoing microchip shortage have drastically lowered new car inventory. As demand continues to outpace the supply of new cars, dealers have reacted to market conditions and are pricing certain new cars well above MSRP (Manufacturer’s Suggested Retail Price) to make a higher profit on specific models, even as their total sales volume falters due to restricted new-car production.
A recent iSeeCars.com analysis of 650,000 new car listings found the average new vehicle is priced 10.5 percent above MSRP, but some vehicles are more overpriced than others.
Here are the cars that are currently priced the most above their sticker price:
|New Cars Priced the Highest Over MSRP – iSeeCars|
|Rank||Vehicle||% Above MSRP||$ Above MSRP|
|4||Jeep Wrangler Unlimited||25.6%||$11,323|
|8||Lexus RX 450h||20.2%||$9,876|
The vehicle with the highest increase is the Jeep Wrangler, which is 31.6 percent or $10,621 over MSRP. It’s joined by its pickup variant, the Jeep Gladiator and its four-door version, the Jeep Wrangler Unlimited. The Jeep Wrangler and the Jeep Wrangler Unlimited are among the cars that hold their value best due to their ruggedness and enduring popularity, which is likely why car buyers will pay a premium for the new versions that are scarce on new car lots.
Two classic American sports cars also make the list: the Ford Mustang and the Chevrolet Corvette. 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. 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. The Corvette has also consistently been among the fastest-selling new cars throughout 2021.
Two Porsche models make the list: the Macan compact SUV and the Cayenne midsize crossover. The Macan is Porsche’s most popular model, and it’s followed closely by the Cayenne. Demand for both of these models is exceeding their limited inventory.
The Lexus RX 450h hybrid and the Mercedes-Benz GLB luxury SUVs also make the list. Hybrid vehicles have been popular sellers due to the rise in gas prices, and the Mercedes-Benz GLB compact SUV was brand new for 2020 and has been steadily increasing in sales since its introduction.
Rounding out the list is the Ford Maverick compact pickup truck, which is new for the 2022 model year. Ford has struggled to keep up with demand since its debut, and has over 100,000 reservations for the vehicle.
If you’re in the market for a new car, you may have trouble finding available inventory. You can also expect to pay higher-than-average prices for vehicles that are in high demand. If you want to find the best deal possible, you should be willing to broaden your search radius, as the vehicle you want might be available at a dealership further away than you would typically look. If the car you are interested in is priced well above its MSRP, you might also consider similar vehicles that may not have the same degree of price hike.
More from iSeeCars:
iSeeCars analyzed over 650,000 new cars listed for sale on October 6th, 2021 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.
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 the Best Cars rankings. iSeeCars.com has saved users over $311 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.
This article, These New Cars Have the Greatest Price Hikes, originally appeared on iSeeCars.com.