With car prices soaring over the past couple of years, you may have found yourself waiting for the market until wealthy business tycoons, irresponsible banking institutions and multinational monopolies make their way. – hoping beyond hope that it will be a cheap car for where you live when the cheap dust finally settles.
But what if you can’t wait that long and you need something today? While we may not be able to point you in the direction of your life’s deal, we know which vehicles you may want to cross off your list with a study aimed at traditional models with the highest profit margins. However, keep in mind that it’s probably best to drive everything you have today, as the national average still has vehicles listed 10% above the recommended price.
It’s a big chunk of cheddar and will be next to impossible for most people to avoid. But that’s far from the gouging seen by some in-demand model dealers who know they can screw you.
The study, conducted by iSeeCars, analyzed 1.9 million new car listings found between July 1 and September 7, 2022 and determined that the average vehicle price is 10% higher than the manufacturer’s recommended price. While that doesn’t mean it’s impossible to find something that won’t cost several thousand dollars more than it would otherwise, it does mean you’ll have to spend a lot more time shopping before you find one. adventure.
However, there are also vehicles that appear to be extremely expensive no matter how you cut them and the demand usually comes down to asking for them. While iSeeCars has tried to mitigate this problem by excluding “low volume models and heavy vehicles” from its analysis, some of the rumors are newer models that people are rushing to purchase.
“Dealers reacted to market conditions by pricing cars above the recommended price, making a higher profit on specific models to help offset lower sales volumes due to limited new car production,” said Karl Brauer. iSeeCars executive analyst. “In today’s market, consumers are willing to pay well above list prices for new cars because inventory is so limited and because they know new car prices are not expected to improve until 2023. ASAP. “
Number one on the list was the Jeep Wrangler, trading 24.4% above MSRP (which equates to an average premium of $ 8,433). It was joined by the Jeep Gladiator, which was typically listed at 18.5% above the recommended price. While it looks like Jeep’s pickup truck is the best deal, its higher price actually meant you’d be spending $ 8,478 in profit margin. The same was true of the Jeep Wrangler Unlimited, which averaged $ 8,877 more than the 20% RRP.
“As demand continues to outstrip supply for these popular vehicles, dealers are adding market adjustments that typically range from $ 2,000 to $ 10,000 on top of their MSRP, with particularly high markups for the Wrangler Rubicon 392 V8. Brauer. “The Jeep Wrangler and Jeep Wrangler Unlimited are among the cars that hold their value best due to their robustness and enthusiastic fan base, which likely contributes to car buyers paying a premium for them in between. their rarity on many new cars. “
Keep this in mind as vehicles that held their value tended to be a common sight on the list. Number two was the Porsche Macan (23.1% or $ 14,221 above MSRP), number three was the Genesis GV70 (22.4% or $ 10,278), and number four was the Lexus RX 450h (21.9 % or $ 10,847).
Although it became famous for the quality control complaints and production slowdowns that Ford was eager to address, the Bronco came in at number five. Released in June 2021, the SUV has become a popular choice (every upper-middle-class person near me seems to have bought one), meaning dealerships can charge 21.6% more than the recommended price, which represents an additional $ 8,697.
“The Ford Bronco has been in high demand since its debut last year and that demand has outstripped supply as stock shortages have led to long waiting lists and frequent dealer markups for the vehicle,” said Brauer. Ford closed orders for the 2022 Bronco in May and began taking orders for the 2023 version in late August. “
Also on the list was Ford’s Maverick, trading 18.4% above MSRP and following a similar (though less embarrassing) trajectory to the much larger Bronco.
“The Maverick compact pickup has been in high demand since its debut, causing dealers to stop taking orders for both versions in late January and not resume until mid-September,” said Brauer. “Rising gas prices have increased demand for this already hot seller, with the hybrid and gas versions offering excellent gas mileage, and even these higher prices are still within the reach of buyers given the prices they offer. start at $ 25,000. “
Here is the full list:
- Jeep Wrangler (24.4% or $ 8,433 above MSRP)
- Porsche Macan (23.1% or $ 14,221 above MSRP)
- Genesis GV70 (22.4% or $ 10,278 above MSRP)
- Lexus RX450h (21.9% or $ 10,847 above MSRP)
- Ford Bronco (21.6% or $ 8,697 above MSRP)
- Unlimited Jeep Wrangler (20.0% or $ 8,877 above MSRP)
- Cadillac CT5 (19.9% or $ 8,335 above MSRP)
- Porsche Cayenne (19.6% or $ 16,750 above MSRP)
- Chevrolet Corvette (19.5% or $ 14,697 above MSRP)
- Mercedes-Benz GLB (19.0% or $ 7,650 above MSRP)
- MINI Hardtop 2 doors (18.8% or $ 5,426 above MSRP)
- Lexus RX350L (18.8% or $ 9,423 above MSRP)
- gladiator in jeep (18.5% or $ 8,478 above MSRP)
- Ford Maverick (18.4% or $ 4,614 above MSRP)
- Genesis GV80 (18.0% or $ 10,124 above MSRP)
“New car buyers are likely to have a hard time finding available inventory and can expect to pay higher than average prices for high-demand vehicles,” Brauer added. “Consumers looking to buy a new car should do their research and compare prices across multiple dealerships and, in some cases, can avoid top-ups by ordering directly from the manufacturer. “
My advice? Check out the second-hand market if you’re comfortable with private sellers and have enough knowledge to make sure you’re not being sold a lemon. Retailers will continue to do this for as long as they think they can get away with it.
[Images: Gretchen Gunda Enger/Shutterstock]
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