Subscribe Sign In

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.

https://www.wsj.com/articles/car-dealer-markups-helped-drive-inflation-study-finds-7c1d5a2d

Car Dealer Markups Helped Drive Inflation, Study Finds

The money dealers charged over makers’ suggested prices factored into a nearly 16% rise in the consumer-price index in recent years

April 23, 2023 5:30 am ET

During the height of the pandemic, the supply-demand imbalance for new vehicles meant dealerships could suddenly charge more for each one. Photo: etienne laurent/EPA/Shutterstock

Markups on new cars were a key force behind the current bout of inflation, according to new research published this month.

Those extra dealer profits contributed between 0.3 and 0.7 percentage point of the nearly 16% rise in the consumer-price index between the end of 2019 and the end of 2022, a study published in a U.S. Bureau of Labor Statistics journal found.

What's News

Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Continue reading your article with
a WSJ subscription

Already a subscriber? Sign In

Sponsored Offers

TurboTax:
Save up to $15 with TurboTax coupon May 2023
The Motley Fool:
Epic Bundle - 3x Expert Stock Recommendations
H&R Block Tax:
15% Off DIY Online Tax Filing Services | H&R Block Coupon Code
Top Resume:
10% TopResume Discount Code for expert resume-writing services
eBay:
30% off eBay coupon
Groupon:
Groupon Promo Code - 30% Off Activities, Dining, More