Massive Percentage of Americans Paying Above Sticker Price for Dealership Cars: Report

by Madison Miller

Right now, just about everything is more expensive.

For millions of Americans, shopping for very large and important items like cars, houses, and even furniture can cost a pretty penny at the moment.

In fact, there are millions of people that are actually paying thousands of dollars above the sticker price for a car. It shows just how much high demand and limited supplies are impacting the automotive world.

According to ABC News, the manufacturer’s suggested retail price seems to be a thing of the past for some vehicles. The new Kia Telluride car is selling for closer to $48,509, which is $3,700 more than that sticker price. Then there are luxury cars like the Range Rover or the Cadillac Escalade ESV. Both of these cars are selling for about $3,000 to $6,000 above that MSRP rate.

As for sports cars, things are even worse. Vehicles like Mustangs or Corvettes are getting 5% to 8% over the MSRP at dealerships. People are also seemingly just accepting this rise in vehicle prices head-on.

“People are accepting these prices without complaining … they’re going with it and making the plunge. Dealer markups are happening all over the board. Manufacturers don’t really have control over it,” Jessica Caldwell, Edmunds’ executive director of insights, said to the news outlet. Edmunds compiled a list of cars that have large market adjustments.

These markups are impacting about 90% of vehicle buyers. We haven’t seen these kinds of price rises at this level before.

The Washington Post reported that four-fifths of people who bought from a dealership last year paid more than the sticker price. Then, in January 2022, this rose to 82%. There are also certain car brands that are trying to fight back against these above-average sales. Ford and GM said they would actually start withholding popular vehicles from dealerships that are overcharging. Also, Hyundai is urging dealers to match the price advertised online.

This shows a growing tension between these legacy carmakers and dealerships.

Meanwhile, vehicle companies like Tesla and Rivian are selling directly to customers which means there’s no markup possible.

Used Car Prices Nationwide

For those looking to buy a used car right now, it’s also not going to be the greatest experience.

ABC News reports that used cars in January are up 40% compared to the same time last year. The average listing for a used car on Carfax is about $28,000. The dealerships have a low inventory, therefore a high cost.

It seems as though the global microchip shortage is to blame for these higher costs. Car companies are struggling to get these chips to production lines. Not to mention, these cars are off the lots within a week.

You can still negotiate the prices of vehicles, especially if you look closely at the car’s vehicle history.