Hyperdrive

Car MSRPs Soar Over $41,000 and Then Dealers Mark Up Prices More

  • Automakers have pivoted to selling higher-priced models
  • Dealers add their own hikes on top of manufacturer increases

Customers at a Ford dealership in Richmond, California.

Photographer: David Paul Morris/Bloomberg

For decades, transactions in U.S. car dealerships went something like this: A couple walks into a showroom, expresses interest in buying a sedan, the sales rep says, great, our MSRP is $26,000, and the two sides sit down to negotiate the price lower until they settle on a level both can accept.

The MSRP, or sticker price, typically set the ceiling.