An estimated 31% of new vehicles were sold above sticker price in February, according to J.D. Power. How much more? An average 8.8%, amid strong demand for new vehicles despite inflation, and significant improvements in supply chain issues that propped up new vehicle prices last year.
Dealerships are under no obligation to sell vehicles for the manufacturer’s suggested retail price, or MSRP.
“The ‘S’ in MSRP is suggested retail price, and dealers buy these cars from the manufacturers and technically own them, and have full rights to do whatever they want and price them however they want,” said Karl Brauer, executive analyst at iSeeCars.com.
When dealerships do mark up the price on a new vehicle, they generally make no attempt to disguise it.
“Sometimes, they are not very creative and they just x-out the MSRP and write something with a marker that says something like ‘market adjustment,'” Braur said. “Then they charge $300, $500, or maybe $10,000 or more extra. It just depends on the model.”
In the D.C. metro, iSeeCars.com February sales data shows new vehicles that sold above MSRP sold for an average 8.2% above — or an average $3,427 more.
A Jeep Wrangler sold for an average 22.9% above MSR, or $8,146. Topping the list in the D.C. market, is the Genesis GV70, selling for an average 26.8% above sticker, or $12.053.
Other vehicles commanding over-list prices of at least 22% are the Ford Maverick, Cadillac CT5, and BMW X1.
iSeeCars.com’s lists of vehicle selling for most and least over MSRP, and vehicles with the largest year-over-year MSRP increase by manufacturers is available online.
