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Car Sales Madness Continues: Dealer Markups Highest for Cadillacs, Land Rovers, Kias

Some Alfa Romeos, Volvos and Lincolns are available under MSRP

Cadillac Picture
  • A jaw-dropping 82% of new–car buyers paid more than MSRP in January 2022.
  • According to an Edmunds sales analysis, Cadillacs, Land Rovers and Kias are the most highly marked-up vehicles on the market.
  • Multiple Alfa Romeo, Volvo and Lincoln products are selling for less than MSRP.

If you've been out of the market for a few years and suddenly need to buy a car now, get ready for sticker shock. As has been the case for months on end, dealers are charging well over MSRP (manufacturer's suggested retail price) for many new vehicles.

The latest Edmunds data shows that markups remain common throughout the industry, with more than 82% of new-car buyers paying above MSRP in January 2022. Here are the brands that had the highest markups, along with a few surprising opportunities to get a pretty good deal relative to MSRP.

You'll probably pay above MSRP for a new car from these automakers

Prepare to pay a premium if you want to get into a new Cadillac. Our data shows that on average, new-car buyers are paying $4,048 over MSRP for a never-sold Caddy. However, these numbers are skewed by one vehicle in particular: the 2022 Cadillac Escalade. 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

Land Rover

Buyers are also paying above-MSRP moolah for Land Rover vehicles. Land Rovers have markups of $2,565 on average, with the Range Rover commanding the most, at $3,526 above MSRP. 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 and it looks to be significantly improved, even offering a third row for the first time in Range Rover history. 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.

Kia

Kia

If you've taken your eye off Kia the last few years, it might come as a surprise that this automaker is No. 3 in terms of highest dealer markups, with customers paying $2,289 above sticker on average. Markups have been the norm for the excellent three-row Telluride since it was introduced for the 2020 model year, but demand for other models is also contributing to the premiums. All three variants of the redesigned-for-2021 Sorento (standard, hybrid and plug-in hybrid), the new Carnival minivan and even the Stinger performance sedan sell for higher than Kia's average markup.

You can still get a discount on these vehicles and brands

While most shoppers are paying more than MSRP to get into a new vehicle, there are still a number of desirable cars and SUVs that sell for a discount.

Alfa Romeo

Alfa Romeo

Even in this supply-constrained market, Alfa Romeo vehicles sell for $3,421 under MSRP on average. Neither the Giulia sedan nor the Stelvio SUV is exceptional in its respective class, but we wouldn't dissuade anyone from buying them either. Both offer powerful turbocharged engines and sleek styling that help these stylish compacts stand out from other luxury vehicles.

Volvo

Volvo

Volvos also sell under MSRP, though not to the degree of the Alfas. On average, Volvo buyers will pay $869 under the manufacturer's suggested retail price. The greatest savings come in the form of the S60 compact sedan, a Giulia competitor that currently sells for $2,364 under MSRP. We like the S60 quite a bit more than its Alfa Romeo counterpart, and even though the supercharged and turbocharged T6 powertrain is no longer available, the standard B5 engine is satisfyingly quick. It's more fuel-efficient than ever, too, thanks to a mild hybrid system introduced for 2022. The Volvo XC60 SUV is another solid buy — it shares a common platform with the S60, though the popularity of compact crossovers means that you'll only see a savings of $861 below MSRP.

Lincoln

Lincoln

Shoppers can score a deal on another luxury brand: Lincoln. Car buyers considering a vehicle from Ford's luxury arm can expect to pay $510 under MSRP on average. The Corsair compact SUV offers the greatest savings at $744 under, with the Aviator and Nautilus also trading hands below MSRP. The Navigator is technically an exception at $3 above MSRP, but considering that the 2022 model is refreshed, we consider this one a pretty good deal, especially if you're cross-shopping against the heavily marked-up Escalade.

Other notable vehicles that are selling below MSRP include the BMW 7 Series ($4,944 under), Ram 1500 Classic ($907 under), Mini Clubman ($904 under) and BMW 5 Series ($861 under).

Average MSRP vs. Average Transaction Price (ATP): January 2022

Cadillac$76,914$80,962$4,048
Land Rover$87,457$90,022$2,565
Kia$32,218$34,507$2,289
Porsche$103,590$105,311$1,721
Acura$49,316$51,017$1,701
Genesis$59,933$61,536$1,603
Honda$32,440$33,948$1,508
Hyundai$33,545$35,043$1,498
Audi$60,965$62,290$1,325
Jaguar$66,828$67,937$1,109
Toyota$37,174$38,189$1,015
Nissan$32,529$33,433$904
Infiniti$53,709$54,529$820
Dodge$48,498$49,227$729
Mercedes-Benz$67,817$68,536$719
Fiat$29,818$30,536$718
GMC$58,749$59,426$677
Chevrolet$47,728$48,353$625
Subaru$34,164$34,756$592
Chrysler$47,779$48,239$460
Volkswagen$35,046$35,474$428
Jeep$49,220$49,573$353
Mazda$32,785$33,097$312
Lexus$53,490$53,725$235
Mitsubishi$29,309$29,516$207
Ford$49,680$49,843$163
Buick$41,716$41,733$17
Mini$36,440$36,289-$151
BMW$63,209$63,010-$199
Ram$60,057$59,592-$465
Lincoln$62,202$61,692-$510
Volvo$57,870$57,001-$869
Alfa Romeo$54,644$51,223-$3,421
Industry Average$44,989$45,717$728

Edmunds says

Shoppers are paying high markups for new Cadillac, Land Rover and Kia models, but there are some alternatives available for under MSRP. Bottom line, it's fierce out there, but there are still deals to be had if you're willing to consider specific brands and models.