Unfortunately, many Dodge dealerships are marking up the 2023 Challenger and Charger, as they have done in past years, and as is always the case, some consumers want to know why Dodge doesn’t do something to prevent the issue of dealership markups over MSRP. Dodge – and every other automaker – can only present the “manufacturer’s suggested retail price” and it is up to the retailer (in this case, the dealership) to decide how much to charge. Dodge can only suggest the price; the company cannot mandate a set price by retailers under federal trade regulations. However, some people still blame Dodge for “not doing anything” about dealer markups, even though there is little that the company can legally do about the situation.
In addition to wanting Dodge to prevent dealer markups, some of these people believe that this is an issue that only plagues Dodge products, but that couldn’t be further from the case. In fact, a recent study that looked at average selling price compared to MSRP for every vehicle sold in the United States, no Dodge products were in the top 10 most marked-up vehicles. Also, the amounts at which those vehicles were marked up exceed what most Dodge buyers are seeing in terms of markups – special edition models notwithstanding.
U.S. Dealer Markups in 2022
A company called ISeeCars conducted a survey that looked at new vehicle pricing data from February 2022 to February 2023. The company, which does many in-depth surveys like this, compared the MSRP of every vehicle sold to the average selling price of each vehicle and that difference is the dealership markup.
In past years (prior to Covid), the vast majority of new vehicles in the United States sold at or below MSRP, with only high-priced, special edition vehicles demanding dealer markup. However, the inventory shortages that have hit every automaker over the past few years have led to many average vehicles being sold for well over MSRP, with the national average selling price across all vehicles sold over the past year being 8.8% over MSRP. In their study, the company found that only three vehicles in the entire U.S. market had an average selling price below MSRP (Chevy Silverado 1500, VW Arteon, Cadillac Lyriq) and one vehicle had an average selling price at MSRP (Infiniti QX80), but other than those four models, every new car, truck, van and SUV sold in America over the past year was marked up by dealerships.
Below is a list of the 10 most marked up vehicles in the U.S. market, led by the Genesis GV70 at 27.5% with an average markup value of more than $12,000. The only Stellantis products on the list are the Jeep Wrangler and Wrangler Unlimited, which are both right around $10,000 over MSRP, with the two-door averaging 23.9% over while the four-door averages 21.9% over MSRP. Most of the vehicles on the list of the most marked up are around $9,000-$12,000 over, with the Porsche Taycan averaging about $22,000 of markup over MSRP.
Many people are running into markups of $5,000-$10,000 when trying to order a 2023 Dodge Challenger or Charger, thinking that those are outrageous figures. If you are paying $5,000 over on a $50,000 Scat Pack or $10,000 over on a $100,000 Redeye, you are paying right around the national average in terms of dealer markups. If you found a Hellcat or Redeye with a $5,000 markup, you are paying less than the average markup and if you find one at or below MSRP, you are getting a better dealer than most people buying average cars that will quickly and continually depreciate while your new Dodge will hold value going forward.
The bottom line here is that dealership markups are a pain for the consumer, but if you are only paying $5,000-$10,000 over on a new Challenger or Charger, you are getting off easier than many people buying new vehicles over the past year.