Have you been shopping for a new SUV or truck lately? Forget haggling over that sticker price. Right now, many buyers are paying over the price on the window sticker.
The new car shortage shows no signs of letting up, leaving car buyers like Aurelia Gilliam finding nearly barren dealer lots. And when you do find a hot vehicle, they can be thousands above MSRP.
“When I asked about the price, they showed me what the sticker was, and I saw that they added another $10,000 over the sticker,” Paul Johnson said. He was stunned by a $10,000 “market adjustment” over his new Escalade’s MSRP. “They told me that was what they were able to get for the car because it is in such high demand.”
Johnson doesn’t want to name the dealer to avoid ruining his relationship. He finally negotiated, but till paid well over sticker. “It’s insane really, you pay sticker, no negotiation, if you don’t like it they will sell it to the next person,” Johnson said.
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The best way to avoid running into this situation right now? Try not to buy one of the most in-demand vehicles right now, such as full-size, four-row SUVs. “Smaller vehicles, economy cars, traditional sedans, they haven’t been hot for years. So that’s where you want to go if you want to save some money,” Karl Brauer said. Brauer is an analyst at Iseecars.com and he says vehicles with the highest average markups include:
- Jeep Wrangler: $9,000 over sticker
- GMC Yukon: $7,000 over sticker
- Kia Telluride: $5,000 over sticker
- Hyundai Palisade: $4,000 over sticker
It’s not price gouging because the sticker is only a suggested price.
Dealers expect supplies to new vehicles to improve a bit this winter when fewer people shop for cars, but the parts shortages are expected to continue into next year. As always, don’t waste your money.