(iSeeCars) – Production shutdowns and supply chain issues from the ongoing microchip shortage have drastically lowered new car inventory. As the demand continues to exceed the supply of new cars, dealers across the country are pricing new cars above MSRP (Manufacturer’s Suggested Retail Price) and removing new car incentives.
The newest iSeeCars study of 1.9 million new car listings found the average new vehicle is priced 10.0 percent above MSRP, but some vehicles are priced well above this average. Here are the new cars that are priced the highest above MSRP in each state.
|The New Car Priced the Highest Over MSRP in Each State- iSeeCars|
|State||Vehicle||% Above MSRP||$ Above MSRP|
|Florida||Lexus RX 450h||23.1%||$11,535|
|Illinois||Lexus RX 450h||29.6%||$14,623|
|Indiana||Lexus RX 450h||30.7%||$15,061|
|Iowa||Lexus RX 450h||35.0%||$17,040|
|Kansas||Lexus RX 450h||32.1%||$15,760|
|Kentucky||Lexus RX 450h||31.4%||$15,429|
|Michigan||Lexus RX 450h||27.3%||$13,511|
|Minnesota||Lexus RX 450h||30.2%||$14,831|
|Mississippi||Jeep Wrangler Unlimited||28.7%||$12,186|
|Missouri||Lexus RX 450h||31.0%||$15,210|
|Nebraska||Lexus RX 450h||26.6%||$13,184|
|New Hampshire||Porsche Macan||24.8%||$14,918|
|New Jersey||Jeep Wrangler||24.9%||$8,982|
|New Mexico||Jeep Wrangler||26.6%||$8,934|
|New York||Jeep Wrangler||25.2%||$8,816|
|North Carolina||Jeep Wrangler||25.0%||$8,503|
|North Dakota||Jeep Wrangler||28.2%||$9,635|
|Ohio||Lexus RX 450h||29.4%||$14,493|
|Rhode Island||Ford Maverick||29.9%||$6,811|
|South Carolina||Porsche Cayenne||32.5%||$25,528|
|South Dakota||Lincoln Aviator||21.8%||$12,814|
|Vermont||MINI Hardtop 2 Door||30.1%||$8,110|
|West Virginia||Jeep Wrangler||24.1%||$8,293|
|Wisconsin||Lexus RX 450h||31.2%||$15,278|
- The Jeep Wrangler compact off-road SUV and the Lexus RX 350h luxury midsize hybrid SUV tie as the vehicles with the highest markup over MSRP in most states with 12.
- The vehicle with the highest markup across all states is the Lexus RX 350h, which is priced 35.0 percent above MSRP in Iowa.
- Luxury SUVs are the most represented vehicle type, accounting for the highest marked-up vehicles in 26 states.
What Does This Mean for Consumers?
New car buyers will likely have trouble finding available inventory and can expect to pay higher-than-average prices for vehicles that are in high demand. New car shortages are expected to persist due to the backlog of demand, and the Russia-Ukraine conflict has led to factory shutdowns and pricing increases on raw materials. Moreover, the lack of inventory for new cars has led to used car price increases as well. The best way to avoid paying over sticker price or to find used cars that aren’t drastically overpriced is to broaden your search radius and consider similar vehicles that may not be as overpriced. Additionally, consumers in some cases can avoid markups by ordering directly from the manufacturer.
More from iSeeCars:
iSeeCars analyzed over 1.9 million new cars sold between July 1 and September 7, 2022, and compared their list price to their MSRP. The average difference was expressed as a percentage from MSRP and used to rank the vehicle models. Low-volume models and heavy-duty vehicles were excluded from further analysis.
iSeeCars.com is a car search engine that helps shoppers find the best car deals by providing key insights and valuable resources, like the iSeeCars free VIN check reports and Best Cars rankings. iSeeCars.com has saved users over $350 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of new cars and used cars.
This article, The Cars With the Highest Dealer Markups by State, originally appeared on iSeeCars.com.