The prices of cars are at an all-time high. This is primarily due to the microchip shortage crisis, which causes supply chain issues and production shutdowns. As a result, the demand exceeds the supply for many car models. Dealerships are taking advantage of this by raising the prices of cars over the MSRP (Manufacturer’s Suggested Retail Price). Two popular models with the highest dealer markups are the Jeep Wrangler and Ford Maverick. If you want to buy a Wrangler or Maverick, you’ll likely have to pay much more than the MSRP.
Jeep Wrangler has the highest average dealer markup in the U.S.
iSeeCars conducted a study of new car listings in the United States. It found that the average dealer markup is a price of 9.9% above the MSRP. However, for some models that are in high demand, the markup is significantly higher. This includes the Jeep Wrangler compact off-road SUV. It has an average dealer markup of 26.7%, which is the highest in the country.
Also, the Jeep Wrangler has the highest markup over MSRP in the most number states — with 15. The Wrangler Limited, the four-door version of the Wrangler, has the highest markup in the second-most number of states — with nine. Additionally, for automotive brands, Jeep has the highest marked-up vehicle in 30 states.
Ford Maverick in Pennsylvania has the highest average dealer markup for an individual state
The Ford Maverick compact pickup truck earns the distinction of the highest average dealer markup over the MSRP for an individual state. In Pennsylvania, the average dealer markup for the Maverick is 34.7%. For the entire country, the average markup of the Maverick Hybrid is 25.0%. For the gas-powered Maverick, the average markup is 22.2%. Also, the Maverick is the most marked-up vehicle in six states.
Part of the appeal — and resulting high demand for the Maverick is that it’s an all-new model, so there many automotive shoppers are curious about it. Also, with the best-selling F-Series lineup, Ford has a long history of successfully producing high-quality trucks. Additionally, other than the Hyundai Santa Cruz, the Maverick doesn’t have much competition in the compact pickup truck segment.
Ford Bronco is another vehicle with a high dealer markup
Another popular model with a high dealer markup over the MSRP is the Ford Bronco midsize off-road SUV. Demand for the Bronco is sky high, and many buyers have to wait a long time to get the SUV. The average dealer markup of the Bronco for the entire U.S is 20.6% over the MSRP. In six states, the Bronco is the most marked-up vehicle.
Is it possible to avoid dealer markups?
We’re in a seller’s market, so it’s a challenge to avoid the dealer markups, especially for popular models like the Jeep Wrangler, Ford Maverick, and Ford Bronco. One option is to wait to see if prices come down. However, the production shutdowns and supply chain issues will likely continue for the foreseeable future, so you might have to wait a long time.
Another option is to widen your vehicle search beyond your local area. Different dealers offer a range of prices for the same models, so it’s advantageous to shop around to find your targeted model at a lower price. Also, if you’re not set on a particular model, you can choose one that doesn’t have as much demand to avoid significant dealer markups.