New car inventory continues to decline and new vehicle prices, including pickup truck options, continue to rise via supply chain issues.
A new analysis by iseecars.com details the dilemma, with the average new vehicle priced at nearly 10 percent above the Manufacturer’s Suggest Retail Price (MSRP).
A recent iSeeCars analysis of 1.2 million new cars found the average new vehicle price 9.9 percent above MSRP. All new vehicles have average prices above the MSRP.
The top-10 highest MSRP averages include the Ford Maverick, Ford Maverick Hybrid and Jeep Gladiator.
Production shutdowns and supply chain issues from the ongoing microchip shortage have drastically lowered the new car inventory.
The 2022 Jeep Wrangler has suffered the highest price increase, 26.7 percent, or $8,925 above the MSRP.
The Ford Maverick (Hybrid) is second on the list of the top-10 highest percentage increases. Jeep Gladiator pickup truck is fifth on the list and the Ford Maverick is sixth on the list.
“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 and pickup truck options with the highest price increases range from 1.9 to 2.7 times above the 9.9 percent average for all vehicles.
The analysis included vehicles listed for sale between February 1 and March 25.
“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.”
Here’s the list, with the name of each vehicle, car or pickup truck price percentage increase and the dollar amount above the MSRP the percentage represents:
1. Jeep Wrangler, 26.7 percent, $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 averages: 9.9 percent, $3,753)
The full survey is available via the website iseecars.com.
James Raia, a syndicated columnist in Sacramento, California, publishes a free weekly automotive podcast and electronic newsletter. Sign-ups are available on his website, www.theweeklydriver.com. He can be reached via email: james@jamesraia.com.
##RVT1046b
If you consider that people were starting to negotiate at around 70% of MSRP before the supply chain issues, 25% above MSRP is a heck of an increase. That makes it more like 44-45% increase! Why/ (WHO) in the world is thinking it’s cool to spend that kind of money on a new vehicle?