The used car market is seeing quite a hike in sales lately, while new cars struggle to make it off the production lines. Honda is no stranger to this phenomenon with the Type R model. While used sales are up, some new cars are seeing some pretty crazy markups due to the popularity of some models, like the Civic Si.
What could drive up the price of the Honda Civic?
With the pandemic, production lines of all types slowed down. The ones producing chips came to a near stop. Because of that, electronic devices of all kinds had to be put aside, which included various parts of vehicles. Many cars, trucks, and SUVs couldn’t be produced at the rate they usually would without chip inventory.
Automakers chose to produce the vehicles that we’re more likely to sell, while others went to a more on-demand setup, using the little inventory they had. New cars are in high demand now, and manufacturers are still having difficulty meeting them.
Eager buyers are looking for those brand-new cars, but there aren’t many to choose from. So, dealers are marking up the prices of the ones they get. Unfortunately, there are very few, if any, incentives to help with the increase. However, some vehicles, like the Honda Civic Si, may contain a more insane markup than most.
How bad is the increased price on the Honda Civic Si?
According to a Jalopnik author, the MSRP on the Honda website was $28,710. With destination fees and Pearl White body paint, the starting price would be around $30,000. A dealer the Jalopnik author contacted, quoted a price of $36,629. The $6,000 difference isn’t all the much when you think about it.
However, another dealer that caught Jalopnik’s attention quoted a much higher price than that. They had advertised $49,532. When that dealer was contacted, the salesman laughed it off as just a mistake, but the author felt it wasn’t likely a mishap in listing a price with a bit of digging.
According to CarBuzz, they also found a listing with a markup of about 50 percent. They stumbled across one in California, and the dealer’s price was $42,694. The MSRP, quoted by CarBuzz, was $27,300. The markup is almost $15,000, which is outrageous since no special amenities are being offered to justify such a price.
What other vehicles are seeing the insane mark-up?
Another example of high vehicle markups is the new Ford F-150 Lightning electric truck. With at least three years’ worth of reservations placed already, dealers take advantage of the popularity and ask for quite a bit more than the MSRP.
Buyers wanting to get their hands on the new vehicle face an added price of upwards of $30,000. Others have what’s being termed as a “market adjustment” of around $10,000 to hold a place in line to receive the newest F-150 Lightning as it’s delivered to the lot.
Other Ford vehicles facing the same price increase are the Ford Bronco, Mustang Mach-E electric, and the Bronco Sport. All are popular vehicles, to begin with, so it makes it easy to raise the price of each of them to make a more significant profit.
With the shortage of chips comes the lack of vehicles. The more popular cars, trucks, and SUVs are in high demand, which means many buyers will be happy to pay the extra added costs to get their hands on one of them. If you can wait until the prices go down, it would be wise.