Car prices have risen rapidly over the past two years. Supply chain problems undermined the delivery of key parts. Production lines were idled. Dealers ran short of inventory. Whereas, they had to give incentives in the past, since then they often can charge more than the manufacturer’s suggested retail price (MSRP). This has angered some manufacturers, but they can do little about it. Consumers were being cheated. (Click here for the best and worst built cars in America.)
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The car with the largest price over MSRP is the Genesis GV70 by Hyundai. The overcharge is 27.5%, which takes its price to $56,476. The MSRP for new cars across the industry was up 7.6%. Dealers are charging 8.8% above that.
The GV70 is the South Korean manufacturer’s compact SUV. It has gotten good reviews from car experts. Hyundai and Kia also have risen to the top of many car brand quality surveys.
Overcharging is a way that dealers cheat consumers. Car companies are not aggressive enough to stop the problem, although they have the leverage of cutting the inventory they send to each dealer. So, the consumer certainly can point the finger at manufacturers as well.
iSeeCars did the analysis. “There’s no denying it – new cars are expensive! The manufacturers keep raising their prices and then the dealers raise them again, to the point where the average new car is priced above $45,000,” the firm commented.
As car borrowing rates rise with Federal Reserve rate increases, the consumer is hit twice. Rising interest rates, added to rising car prices, put new cars out of reach of many Americans. Some buyers have turned to used cars, which has caused their prices to rise as well.
| Model | Avg MSRP | Overcharge |
|---|---|---|
| Genesis GV70 | $44,299 | 27.5% |
| Jeep Wrangler | $35,827 | 23.9% |
| Mercedes-Benz GLB | $41,061 | 22.9% |
| Porsche Taycan | $100,169 | 22.7% |
| Jeep Wrangler Unlimited | $45,386 | 21.9% |
| Cadillac CT4-V | $57,737 | 21.1% |
| Genesis GV80 | $56,388 | 21.0% |
| Porsche Macan | $61,589 | 20.6% |
| Cadillac CT5 | $41,870 | 20.3% |
| Lexus RX 350h | $49,339 | 20.3% |
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