Dealerships in America have an almost total monopoly on selling new cars to customers. As a result, they are charging pretty much whatever they want for the models that are in high demand, particularly in the case of luxury SUVs aimed at customers with deep pockets.
A recent market analysis conducted by iSeeCars looked at millions of transactions recently occurring in the United States to find which makes and models of SUVs are selling way over their manufacturer-suggested retail price (MSRP).
These are all high-end SUVs, mostly from legacy luxury automakers who have built a solid reputation. Limited availability plays a factor, as do interest rates and dealers selling fewer vehicles. But we believe these 10 new SUVs are also priced based on dealer greed.
In tenth place, we have the Genesis GV80. Genesis is a very young luxury brand, which split from Hyundai in 2015. By comparison, BMW and Mercedes are about a century older. However, the GV80 is a very real luxury SUV that competes with the X5 and GLE.
The GV80 has a very attractive entry price of $59,000, but buyers have been paying an average of $10,000, 17% above MSRP. The most popular version was, surprisingly, the most expensive 3.5T Prestige retailing from $79,000.
The Mercedes brand is synonymous with luxury. And with a lineage dating back to the 1997 M-Class, the current Mercedes GLE-Class is among the most reputable luxury SUVs on the market. Recent updates include the introduction of the GLE 450e plug-in hybrid which costs the same as the regular GLE ($69,500) but brings more power and better fuel economy.
These versions are not common and demand for plug-in SUVs is very high, as proven by the RAV4 Prime. As such, dealers are asking an average of $12,756 over the sticker price.
There’s a Porsche Cayenne on the list. Surprised? The Cayenne’s reputation is arguably even better than the Mercedes GLE, being viewed as the go-to large SUV for fine handling. In the case of any Porsche, tight supply is always going to be an issue which results in markups.
On average, Cayenne buyers spent an extra $16,833 on top of an average MSRP of over $90,000. That’s not bad for a Porsche, but it essentially means dealers are marking Cayennes by 18.7%.
In the 7th spot we have another Mercedes-Benz. This time, it’s the GLA-Class, the smallest and cheapest crossover offered by the German manufacturer. It’s a gateway car that brings more new customers to the MB brand than any other. The GLA is all about status, one of the few advantages it has over non-premium SUVs of the same size.
iSeeCars suggests people paid $7,637 more for a GLA which doesn’t sound bad until you consider the average MSRP was around $40,658. So, that’s an 18.8% markup for a tiny crossover with a 221-horsepower 2-liter turbo. Crazy!
Worry not Lexus fans, because Japanese luxury is also overpriced. Specifically, people paid huge money for the Lexus RX 350h which is an all-new 2024 model with a 2.4-liter turbocharged hybrid powertrain. Buyers were willing to pay $9,683 or 19% more just to have a crossover that can do 37 mpg in the city and comes with a Lexus warranty.
Another Porsche! The Macan has been available since 2014, but it’s still in high demand. It dominates parking lots at country clubs, so demand remains strong even with an EV replacement poised to debut. On average, dealers are asking $13,100 over MSRP for the average Macan.
It’s a Toyota, it’s a Corolla, it’s a hybrid. The Toyota Corolla Hybrid has all the ingredients for a reliable, efficient, practical family SUV. As a result, owners paid $5,686 over MSRP in dealer markups or 20.3%. This shows demand for hybrids is still not being met by supply.
The Mercedes-Benz GLB 250 made it onto the podium with markups averaging $9,027 or 21.7% over MSRP. The GLA’s bigger brother is more practical, less car-like, and frankly better designed. As a result, people are paying over $50,600 on average for this crossover.
The Genesis GV70 is our runner-up. The baby Genesis SUV is a bargain compared to the BMW X3 and has nearly all the sporty ingredients: looks, red leather seats, and a turbocharged 375 horsepower V6. Buyers are being charged $10,895 or nearly 24% extra by greedy Genesis dealers.
The “winner”, with the most shocking markup of $13,825 or 34.7% is the Jeep Wrangler Unlimited. Special editions and special trim packages undoubtedly contributed to the desirability of what is a pretty old Jeep model. So there you have it, folks, Chrysler/Dodge dealers are still the most greedy in America. Big surprise.