It’s been harder for anyone to find a good deal on the new car market. With the continued supply-chain struggles, limited inventory, and booming customer interest, there aren’t many models that dealers are not adding a little extra to these days (beyond specialty sports cars and exotic whips). You’ll even find it challenging to find just any new car for the sticker price these days we continue to find markups on mainstream vehicles too.
In February, data from iSeeCars revealed the extent of this pattern after poring over data for 16 million used and new car transactions during 2022, the analysis reported that buyers of new cars averaged paying 7.2 percent more than manufacturers’ sticker price. That’s down from last year’s average of 8.9 percent, but it shows the market’s ongoing sway when car consumers buy vehicles. It also indicated several vehicles cost way above the sticker price demand outstripping the limited supply.
All this markup shows how consumer appetite, a company’s reputation, outright performance and limited availability can push pricing. Many buyers are happy to spend thousands of dollars more than MSRP for a vehicle, especially if that model is unique in some way or provides a strong emotional attachment. Here are the vehicles that command what are currently among the largest over-MSRP prices.
1. Genesis GV70
The GV70 takes its place at number 10 for making a jump into becoming one of the top over-msrp selling vehicles in the country. The luxury compact crossover has gained significant popularity for what Genesis has given us in terms of features, luxury, technology, and market placement at the premium segment, so as it turns out it just happens to hit this list at 27.5% above MSRP, with an average transaction of around $56,476, whereas the recommended MSRP is as low as $44,299.
Factors Behind High Dealer Markups:
- Strong luxury market demand
- Growing genesis brand recognition
- Premium interior and technology
- Competitive luxury suv positioning
- Limited vehicle availability
The robust demand for the GV70 is a testament to the ever-increasing profile of the Genesis nameplate Hyundai’s premium division has successfully established itself as a credible contender by delivering an elegant suite of vehicles good to look at, and ride in packed with technology, performance, and more than enough style to compete head-to-head with the venerable brands of German-domination.
The popularity of its larger Genesis GV80 sibling has no doubt had a role in building brand awareness. As consumers became acquainted with Genesis vehicles, sales and enthusiasm for the GV70 steadily increased. At once posh, techno-ladden and stylishly sculpted it has defined a segment where some shoppers will happily pay to get in first.
2. Jeep Wrangler
Even with ever-changing trends and consumer priorities, The Jeep Wrangler is one of the most popular vehicles available on the market today. In recent weeks, average prices of this popular vehicle at dealerships have increased by 23.9% over the vehicle’s MSRP and averaged to $44,396 over the Jeep’s starting price of roughly $35,827.
Why The Wrangler Commands Premium Prices:
- Strong brand heritage
- Exceptional off-road capability
- Loyal enthusiast following
- Unique vehicle personality
- Consistent consumer demand
This formula has earned the Wrangler a one-of-a-kind identity and an extraordinarily loyal customer base. Most contemporary SUVs prioritize comfort, technology and urban driving convenience. On the other hand, the Wrangler has held on to its adventurous roots, keeping rugged capability and the open-air experience as a main tenet. There are not many vehicles in existence that can boast as much character, history and sheer, fun capabilities.
This connection helps dealerships push prices above the asking price in another sense. There’s enough of an emotional buy-in to the Wrangler-that is, the buyers connect with the culture surrounding the vehicle on as many levels, if not more, as the actual hardware or how well the doors come off. That means that, even though the supply-to-demand situation, even after increased production, continues to favor dealers, the customer stickiness means the dealers can demand well north of MSRP, no questions asked.
3. Mercedes-Benz GLB
For example, take the Mercedes-Benz GLB. Even a small luxury vehicle like the GLB proves how luxury-driven pricing can add to the price of just a compact SUV. Currently, average markup in the GLB is up to 22.9%. The typical buyer ends up spending on average of $50,542 on a GLB vs its MSRP of $41,061.
Reasons Behind Strong GLB Demand:
- Powerful luxury brand recognition
- Premium engineering reputation
- Practical suv design
- Flexible interior configuration
- Strong buyer interest
Although the GLB might not be the showiest car in the range, the prestige of the Mercedes-Benz badge commands a certain price, particularly amongst luxury vehicle customers. Buyers clearly buy into what Mercedes-Benz represents superior engineering, upmarket materials, technology, and ride comfort.
The GLB benefits from functional strengths as well. The optional third-row seat offers a rare level of passenger versatility for a small luxury SUV, appealing to families seeking the best of both worlds. Coupled with luxury branding, flexibility, and everyday functionality, that broad appeal translates to persistent demand and the ability for dealers to charge significant markups above MSRP.
4. Porsche Taycan
Porsche Taycan is now one of the hottest vehicles in the performance EV space. The first serious ev on this segment prove that electric cars could generate some driving fun and passion, this is why the Porsche Taycan is attracting plenty of people even with the huge price markup that it now gets. The car now gets a markup above MSRP by an average of 22.7%. Its average MSRP is $100,169, but most people end up paying more, around $122,940.
Reasons Behind High Taycan Demand:
- Electric performance leadership
- Porsche brand prestige
- Exceptional driving dynamics
- Advanced ev technology
- Strong enthusiast appeal
With the Taycan, we had the opportunity to inspire some skeptics of electric cars and convince them that an EV could easily deliver performance comparable to that of internal combustion engine sports cars. It was less about pure efficiency and functionality than about creating an emotional sports car experience that includes the performance handling we’re used to.
An interplay of its state-of-the-art electric tech, exhilarating performance, and unadulterated Porsche genes have made it highly desirable with existing owners and also attractive to the growing crowd of EV adopters. Moreover, the Taycan’s work in demonstrating that EVs do not have to be boring for the drivers has allowed the dealerships to sell the car above the sticker price, which is pretty common if dealers have significant demand for.
5. Jeep Wrangler Unlimited
2021 Jeep Wrangler Unlimited. Just like its 2-door counterpart, there is a whole lot of people wanting Jeep Wrangler Unlimited. And with an average of 21.9 percent markup over its retail price, Jeep sold an average of 517 more Wrangler Unlimited in this year alone compared to 2021. A 2021 Jeep Wrangler Unlimited generally goes for around $45,386 from dealers, but in this market, you’d spend about $55,347 in the market.
Why The Wrangler Unlimited Stays In Demand:
- Expanded passenger practicality
- Legendary off-road capability
- Strong lifestyle appeal
- Everyday suv versatility
- Loyal customer following
The Wrangler Unlimited also became quite popular with many non off-roader customers, because it did offer additional rear seating and a higher level of comfort and practicality, making the vehicle more adaptable to day-to-day use for both dedicated adventurers and families who need a well rounded daily SUV.
This greater popularity has ensured constant demand for the Wrangler Unlimited. It retains the character, the off-roading aptitude of the legendary Wrangler, yet adds the usability you’d expect from a mainstream SUV. The interplay of heritage, utility, and lifestyle image has provided dealerships with justification for continually commanding price premiums greatly in excess of MSRP.
6. Cadillac CT-4V
In an impressive show of markups that can be found beyond SUVs and crossover vehicles, the high-performance, luxury Cadillac CT4-V sedan is seeing typical market price increases of an estimated 21.1%, boosting the sticker value up to around $69,904 from a starting MSRP of roughly $57,737.
Reasons Behind CT-4V Demand:
- Performance luxury appeal
- Enthusiast focused engineering
- Distinctive driving experience
- Premium technology features
- Limited market competition
However the CT4-V has successfully cultivated a solid base of enthusiastic drivers attracted to its combination of performance and luxury. And despite straying from the path blazed by classic Cadillacs, the personal charm of the CT4-V has helped find for the distinctive luxury car a loyal market segment.
However, it is important to remember how niche the CT4-V is and what it offers high-performance luxury at its attainable best, or to some, a bit of a bargain where that segment begins before the wildly expensive exotic offerings can even get in. That limited appeal, paired with strong desire from aficionados, can allow the CT4-V to still trade hands much closer to the cars higher window, relative to their sticker prices.
7. Genesis GV80
That’s just the latest instance of how well premium vehicles can do on the higher-margin part of the automotive market. With an average markup price of 21%, Genesis’ largest SUV, theGV80, holds the highest market share on this high-margin type. An original MSRP of about $56,388 for aGV80 works its way to a average price of roughly $68,240.
Factors Behind GV80 Market Demand:
- Flagship luxury suv appeal
- Growing genesis brand recognition
- Premium interior experience
- Advanced safety technology
- Strong consumer interest
This has had a key contribution to position the Gv80 as a very serious player in this segment and for sure helps to continue Genesis’ rise as a competitor in the market beyond the established premium European giants in terms of elegance of exterior styling, materials quality in the interior , and of technological innovation as well as in the experience of driving.
Additional media attention for the model came after the highly publicized crash of golf star Tiger Woods. This provided further validation for how well the vehicle was capable of protecting occupants, particularly when bundled with the premium amenities, unmistakable style, and commanding street presence that can get some shoppers to consider paying above the asking price.
8. Porsche Macan
As expected, the Porsche Macan still stands out as a performance pillar within the luxury SUV space and lists with an average markup of 21 percent among dealers. Average list price comes in near $61,589, though rising consumer interest has pushed the average Porsche Macan transaction price closer to $74,275.
Reasons Behind Macan Demand:
- Porsche performance heritage
- Luxury suv versatility
- Engaging driving experience
- Strong brand recognition
- Everyday practicality
A lot of the Macan’s popularity comes down to where it sits within Porsche’s range, however. The mix of the space, SUV packaging and higher ride height, along with the usual Porsche attributes of sharp handling and high performance, makes it perfectly positioned to snag buyers looking for a bit of everyday functionality that doesn’t completely dilute the excitement.
The reason The Macan is one of Porsche’s most successful models is that it appeals to many different kinds of customers blending luxury, performance, and practicality, The Macan is well-placed to win across an extremely competitive premium SUV range. Demand remains strong, with many dealers to exploit its popularity by imposing serious mark-ups over MSRP.
9. Cadillac CT5
Another performance sedan to mark up drastically is the Cadillac CT5. It holds an average sticker premium of 20.3% of sticker price on average transactions, driving its transaction price from a base list MSRP price range of about $41,870 to $50,383 on average.
Reasons Behind CT5 Demand:
- Performance sedan appeal
- Powerful engine options
- Blackwing performance legacy
- Manual transmission availability
- Enthusiast customer base
Cadillac’s compact CT5, now in its second generation, continues to attract the attention of the enthusiasts segment that is slowly fading out but still has much fondness for traditional performance sedans; after all, while most brands are more invested in SUVs and crossovers, Cadillac insists on maintaining their core focus of building cars that not only offers impressive driving dynamics, potent power plants, but also a sense of opulence.
A key component in ramping up the excitement behind the CT5 is the all-out Blackwing version. Given that the higher performance option of the model offers a stick shift (rare) and a Supercharged V8 powerplant that is integrated with more track focused hardware (hard to find) the product has fostered a niche community that are willing to cough up a higher price to own a more visceral and exciting sedan.
10. Lexus RX350h
Concluding Lexus’ list is the RX350h. Like the others mentioned above, this Lexus luxury SUV has strong buyer interest which translates into added cost from dealers. The Lexus RX350h’s average markup comes in at 20.3%, raising the average transaction price of what you will pay for one an approximated 20.3% on its average of roughly $49,339, bringing the figure into the ballpark of $59,347.
Reasons Behind RX350h Demand:
- Hybrid luxury appeal
- Lexus reliability reputation
- Strong fuel efficiency
- Comfortable driving experience
- Everyday suv practicality
However, within the Lexus SUV range the RX350hoccupies an interesting niche. It’s an RX in that you can expect the usual smooth, silent ride, build quality and comfort that Lexus is known for, while also giving customers some additional fuel savings compared to their petrol-only siblings buyers that don’t need to optimise for ultimate speed or immense off-roading.
“The RX350h confirms that customers want a very well-rounded and balanced vehicle that can serve several needs,” said McCalister. “It’s quiet to drive, the fuel efficiency is good, it has premium amenities and it’s a practical daily driver. It offers enough so that consumers can get everything they need and they seem willing to pay above sticker for a good combination.”
