Vehicle markups don’t look as if they’re going anywhere anytime soon. Inventory-starved dealers are in an “I know what I have so I’m not budging”-mode when it comes to new car pricing. While markups are widespread, a few brands are priced a bit higher than most, with Edmunds reporting that nine auto brands have the highest markups in the industry.
Some of these brands may come as a surprise. Take the brand with the highest markups right now: Cadillac. Buyers are paying an average markup of $4,048. One vehicle is both carrying the brand and driving the markups: the Escalade. From Edmunds:
It’s not hard to see why buyers are flocking to the Escalade — redesigned just last year, the Escalade has a terrifically roomy cabin, loads of in-car tech, and an imposing design that clears traffic as it charges ahead. Other Cadillacs also carry a premium, but one that is measured in hundreds of dollars rather than thousands.
Land Rover is number two on the list. The British off-road luxury brand has buyers paying an average markup of $2,565, and that markup isn’t on the recently introduced Defender. It’s the Range Rover getting all the markups. With a new generation of Range Rover on its way, they’re only going to get higher.
This one is harder to justify than the Escalade since the current Range Rover is pretty poorly regarded (Edmunds rated it 6.9 out of 10, making it one of the lowest-ranked luxury SUVs on the market) and hasn’t been redesigned since 2013. The new, next-generation Range Rover is coming in the next few months. But in the meantime, we can’t explain why people are paying such a high premium for an old SUV that performs poorly next to its competitors.
Surprisingly, Kia rounds out the top three brands commanding the largest markups, with the Korean brand averaging markups of $2,289. While the Telluride is still hot, a slew of new vehicle introductions the last couple of years have been driving the markups as well, hitting everything from the Carnival minivan (I don’t care what Kia says, it’s a van, not an MPV), to the Stinger and Forte.
The rest of the brands with large average markups are:
- Porsche: $1,721.
- Acura: $1,701.
- Genesis: $1,603.
- Honda: $1,508.
- Hyundai: $1,498.
- Audi: $1,325.
Is there any way to get a deal right now? Edmunds says there are brands giving discounts. But it’s mostly brands no one really pays attention to, mainly Alfa Romeo, Volvo, and Lincoln where buyers are averaging over $500 off sticker price. Other individual models are seeing discounts as well.
It’s not impossible to find a deal right now, but it might be good to just consider waiting things out.