Additional Coverage:
- 8 Used Car Models With the Biggest Dealer Markups (financebuzz.com)
Don’t Get Taken for a Ride: 10 Used Cars Where Dealership Markups Are Out of Control
Local News Desk – Buying a used car can feel like navigating a minefield, especially when dealerships tack on thousands of dollars in “overhead costs” and other excuses. While the average markup on used cars typically hovers between $1,500 and $3,000, some popular models see significantly higher price bumps. Savvy shoppers, however, can often find a much better deal by exploring options from private sellers – much like how you’d shop around for the best auto insurance rates.
We’ve crunched the numbers, using data from Kelley Blue Book (KBB) for 2023 model-year vehicles with 100,000 miles, standard equipment, and in good condition, to highlight 10 used vehicles where you’re likely to pay a hefty premium at a dealership compared to a private sale.
1. Honda Civic: The Reliability Tax
Honda Civics are practically synonymous with reliability, and dealerships know it. They often capitalize on this reputation by steeply marking up prices, counting on buyers to pay more for perceived dependability.
While KBB puts the national average fair purchase price for a used Honda Civic sedan at a dealership at $20,860, private sellers are offering the same vehicle for an average of $18,457. That’s a staggering $2,403 difference – money that could stay in your pocket!
2. Toyota Camry: Another Reliable Rip-Off
Much like the Civic, the Toyota Camry’s reputation for unwavering reliability makes it a prime target for dealership markups. The national average fair purchase price for a used Toyota Camry base model at a dealership is $22,212.
However, if you turn to a private seller, you could snag this dependable sedan for an average of $16,336. That’s a whopping $5,876 markup, or a 36% premium, just for buying from a dealer!
3. Pickup Trucks: Hauling in Huge Markups
If you’re in the market for a pickup truck, brace yourself. These workhorses are consistently subjected to some of the highest markups, especially popular models.
Take the iconic Ford F-150, for example. Dealerships list it at a national fair purchase price average of $33,597.
But a private seller could offer you the same truck for around $23,728. That’s an eye-watering **$9,869 difference!
**
The Chevy Silverado 1500 also sees similar treatment. While dealerships average $28,145, private sellers value it closer to $20,620. That’s a 36% markup, meaning dealers are charging over a third more for the exact same vehicle.
4. BMW X5: The Luxury Leap in Price
Luxury vehicles, much like trucks, are notorious for sky-high markups. The BMW X5, a popular luxury SUV, is a prime example.
A dealership might quote you a national fair purchase price average of $39,767 for a used X5. Yet, private sellers are listing that same opulent ride for an average of $24,754. That $15,013 difference translates to a staggering 60% markup!
5. Mercedes-Benz C-Class: Premium Price, Premium Markup
Another luxury sedan that dealerships love to inflate the price on is the Mercedes-Benz C-Class.
You can expect to see a used Mercedes-Benz C-Class sedan at dealerships for an average of $32,525. But if you shop around with private sellers, you’ll find it for an average of just $23,047 – a cool $9,478 cheaper!
6. Audi Q7: A Stylish Ride with a Stiff Dealer Price
The Audi Q7 is undeniably a stylish midsize luxury SUV, but its dealership markup is anything but elegant.
Dealerships are charging an average of $31,653 for a used Audi Q7. Compare that to the average private seller price of $21,862, and you’re looking at paying over 44% more for the same luxury SUV at a dealership.
7. Sports Cars: The Seasonal Surcharge
Planning to unleash your inner speed demon? Be warned: sports cars often see significant markups, especially as spring approaches and demand spikes.
A used Ford Mustang, for instance, has a national fair purchase price average of $23,927 at dealerships. However, private sellers are offering this iconic pony car for an average of $14,999 – that’s $8,928 less!
The popular Chevy Camaro tells a similar story. Dealers are selling used Camaros for $22,671, while private sellers average $14,589. That’s a markup of over 55% at your local dealership.
8. Hyundai Palisade: Don’t Overpay for Family Fun
Families eyeing a used Hyundai Palisade for its spacious three-row comfort should be cautious of dealership pricing.
While dealerships list this family-friendly SUV for an average of $25,902, private sellers are offering used Hyundai Palisades for just $18,267 on average. That means dealerships are charging consumers an extra $7,635!
The Bottom Line: Shop Smart, Save Thousands
From reliable daily drivers to powerful pickup trucks and luxurious SUVs, dealerships frequently inflate used vehicle prices. With the average used-car price in the United States currently sitting at $27,353, making smart financial decisions is more important than ever.
Savvy drivers looking to save thousands should seriously consider bypassing dealerships and exploring options from private sellers. Websites like Craigslist, Facebook Marketplace, and Cars.com often feature listings from both private parties and dealerships, giving you a wider range of choices and potentially significant savings.
Money Tips That Can Work for Everyone:
No matter your financial situation, there’s always room to improve and boost your wealth. Here’s a quick guide to get you started:
- Increase your income: If bills are tight, explore side hustles that fit your schedule or look into other legitimate ways to supplement your income.
- Grow what you have: Time and compound interest are powerful allies.
Understand your current financial standing to create a solid plan. Consider working with a financial professional, especially if you’re planning for retirement.
- Take advantage of opportunities: Maximize savings by exploring deals, discounts, and money-saving opportunities. Make sure you’re getting the best price on car insurance – it could save you hundreds.
Conversely, be vigilant about avoiding money-wasting traps that can silently drain your bank account.
Read More About This Story:
- 8 Used Car Models With the Biggest Dealer Markups (financebuzz.com)