The chip shortage has wreaked havoc on used and new car prices. More dealers have been jacking up prices due to the lack of supply. Per a report from Edmunds.com, a staggering 82 percent of new car buyers paid over MSRP last month. The site's report also says Cadillac, Kia, and Land Rover dealers had the highest markups in January.
On average, most customers paid $4,048 on top of the MSRP for a Cadillac. It was $2,565 for a Land Rover and $2,289 for a Kia. That said, the recently redesigned Escalade skewed the data. Edmunds didn't mention how large the markups are for the Caddy SUV, but it's likely well over $4,000 to affect the data by that much.
Moving on to Land Rover, the model with the highest markup is the current full-sized Range Rover. Buyers pay an average of $3,526 above retail for the flagship SUV, which is interesting given that manufacturers typically slash prices for outgoing models. If you're curious, the all-new version carries a base price of $105,350. As for Kia, its markup drivers have been the Telluride, the all-new Sorento, and the new-generation Carnival. The report also mentions the Stinger having markups as well.
Four other brands also have dealers charging over $1,500 on average above retail. These are Porsche, Acura, Genesis, and Honda. Hyundai, Audi, Jaguar, and Toyota dealers also charged an average of over $1,000 over MSRP last month.
But if you think it's impossible to get a price below MSRP these days, Alfa Romeo, Volvo, and Lincoln beg to differ. Alfa Romeo had substantial discounts at $3,421 on average. Volvo and Lincoln's averages are $869 and $510, respectively. Other manufacturers selling below retail include Ram, BMW, and Mini.
Edmunds also noted other models with substantial markdowns. For instance, the BMW 7 Series typically sold for $4,944 below retail last month, while the Volvo S60 was $2,364 under MSRP. Discounts for the Ram 1500 Classic and Mini Clubman hovered around the $900 mark, and even the 5 Series saw price cuts that month.
As long as there is a global chip shortage, the supply chain remains disrupted. The continued demand for vehicles means these markups will be around for some time. But as the data shows, deals are still possible for as long as you're willing to consider less popular models.