New car transaction prices remain stubbornly high due to continued supply shortages, according to a new report.
The latest survey of sales from iseecars.com found that vehicles sold between July 1 and Sept. 7, 2022 were going for an average of 10% above MSRP. That is basically flat from the 9.9% seen during February and March.
"Dealers have responded to market conditions by pricing cars above MSRP making a higher profit on specific models to help offset lower sales volumes from restricted new car production," iSeeCars Executive Analyst Karl Brauer said.
"In today’s market, consumers are willing to pay well-above sticker price for new cars because inventory is so scarce and because they know that new car pricing is not expected to improve until 2023 at the earliest."
THE 2023 JEEP WRANGLER WILLYS 4XE IS A RETRO HYBRID SUV
The two-door Jeep Wrangler had the highest markups found in the latest iseecars.com study of new car transaction prices. (Jeep)
Some vehicles have been commanding even higher premiums, with the top 15 all above 18%.
Number one on the dubious list is the two-door version of the Jeep Wrangler. It was selling for $8,433 over list, which represents a 24.4% markup. The dollar markup on the more expensive four-door was higher at $8,877, which equates to 20% over MSRP.
The Ford Bronco was also high on the markup list. (Ford)
The Porsche Macan SUV (23.1%/$14,221), Genesis GV70 (22.4%/$10,278) and Lexus RX 450h (21.9%/$10,874) followed the two-door Wrangler while its arch-competitor, the Ford Bronco, bracketed them in fifth place with a 21.6% markup at $8,697 over list.
"Consumers looking to purchase a new car should do their research and compare prices between multiple dealers, and in some cases can avoid markups by ordering directly from the manufacturer," Brauer said.
THESE ARE THE ONLY NEW CARS LEFT FOR UNDER $20,000
The Ford Maverick, which as a starting price of $20,490, was the most affordable model on the list, but carried 18.4% markup worth $4.614. That was not enough to persuade buyers, however, as the Maverick is essentially sold out for 2022 and is so popular that the 2023 reservation book was filled up in less than a week and is already closed.
Here is the full list of the most in demand models right now from iseecars.com and the markups you can expect to pay if you really want one:
CLICK HERE TO GET THE FOX NEWS APP
Jeep Wrangler 24.4%/$8,433
Porsche Macan 23.1%/$14,221
Genesis GV70 22.4%/$10,278
Lexus RX 450h 21.9%/$10,847
Ford Bronco 21.6%/$8,697
Jeep Wrangler Unlimited 20.0%/$8,877
Cadillac CT5 19.9%/$8,335
Porsche Cayenne 19.6%/$16,750
Chevrolet Corvette 19.5%/$14,697
Mercedes-Benz GLB 19.0% /$7,650
MINI Hardtop 2 Door 18.8%/$5,426
Lexus RX 350L 18.8%/$9,423
Jeep Gladiator 18.5%/$8,478
Ford Maverick 18.4%/$4,614
Genesis GV80 18.0%/$10,124
Overall Average 10.0%/$3,946
Gary Gastelu is Fox News Digital's automotive editor.
The Jeep Wrangler JK and Wrangler Unlimited JKU, the latter a great product move for a doomed company, go out of production this week. They represent the bookend of a game-changing, if initially flawed, vehicle that was successful beyond anyone's wildest dreams and completely unmatched by rival automakers.
So how best to mark its passing? I guess we'll find out Friday.
That's when the last two-door Jeep Wrangler JK and four-door Wrangler Unlimited JKU are scheduled to roll down the assembly line in what was initially known as Toledo Supplier Park, ending a production run that began in 2006 and was only interrupted for an extended period by Chrysler's 2009 bankruptcy.
For the Jeep faithful, Friday is the delayed end of an era that's already been actively replaced by the next one. The redesigned -- and much improved -- "JL" Wranglers have been rolling off of the assembly line on the North end of FCA US' massive Toledo assembly complex since November. The south end of the plant, the old Toledo Supplier Park, is set to be retooled starting next week to begin building the Wrangler-based pickup next year.
In some ways, the end of the JK is like the child of a thrice-married woman mourning the death of his first stepdad: He was a great guy who did great things in the day, and he definitely helped get mom back on her feet. He made us all a bunch of money, and we're grateful, but mom's found someone better now, so it's time for him to go.
It may seem an ignominious end for what is easily the greatest single product call of the entire DaimlerChrysler era — the decision to add two more doors to the Wrangler and create the Wrangler Unlimited, enhancing the iconic nameplate's popularity globally — but it comes after what can best be described as a product life well lived.
The story begins with the JKU's miracle birth.
DaimlerChrysler President Tom LaSorda was tasked with building a product with great commercial potential but which wouldn't fit in Jeep's current Toledo factory. Oh, and he had no money to build it. So LaSorda turned to suppliers, who built Chrysler a factory adjacent to the one turning out unibody Jeep Libertys at the time, with Chrysler paying back suppliers with a "wheel tax" funding mechanism.
It's also remarkable to recall that when the 2007 Wrangler Unlimited arrived, its popularity was about half that of the traditional two-door, short-wheelbase Wrangler. Early on, assembly workers here built a pair of two-doors for every four-door produced. Now production of the four-door versions outnumber the two-doors by more than 2-to-1.
Before the arrival of the JK, the Wrangler -- and the CJs before it -- sloshed around in kind of a fixed sales range year to year, not really venturing too far from 70,000 units a year. Though it had the longest pedigree of any Jeep, its heavy off-road niche limited Wrangler's usefulness to a narrow consumer demographic. Adding the two extra doors, as well as other long-overdue product improvements, made the Wrangler a passable daily driver for a whole new range of potential customers, and thrust a plant intended to produce a maximum of 160,000 units a year into overdrive, cranking out 230,000 units a year or more just to keep up with domestic demand and largely without incentives.
All of that new popularity also brought with it problems from people who didn't recognize that the Wrangler wasn't -- and isn't -- a car or truck in the traditional sense, but a toy that you can take on the highway or up a mountain or through a mud pit. The JK and JKU have the aerodynamics of rolling bricks with windows, along with the accompanying wind noise. And all those new customers were shocked to discover that their new Wranglers' drag-link steering — which gives it the ability to climb over boulders like a mountain goat — sometimes didn't track straight and true at 70 mph. All these issues meant that despite its popularity, the Wrangler always landed at or near the bottom of Consumer Reports' and other vehicle quality measurements, whether it deserved to or not.
The Jeep Wrangler JK and especially the JKU Wrangler Unlimited were remarkable vehicles when they were introduced, and remained so even as they grew more and more obsolete over the ensuing decade. When the last one rolls on Friday, Jeep fans everywhere should raise a glass to its passing.
A mudslide seems appropriate.
Cheers.
The article “A farewell toast to the Jeep 'JK' Wrangler” originally appeared on autonews.com
When did jeep stop making 2 door Wranglers?
Jeep Wrangler | |
Production | 1986–present |
Body and chassis | |
Class | Compact SUV (2-door) Mid-size SUV (4-door) |
Layout | Front engine, rear-wheel drive / four-wheel drive |