8 Used Cars Dealerships Almost Always Overprice

Steep price markups at car dealerships can be a big financial sting. Dealerships often use all kinds of excuses to add thousands of dollars to the prices of used cars because of higher overhead costs. In fact, according to CarEdge, markups on used cars are between $1,500 and $3,000 on average.

And whether they're in-demand models noted for their reliability, luxury, or utility, just because dealerships slap on a markup doesn't mean you have to pay it. Consumers who are willing to shop around with private sellers can usually score a much better deal, just like drivers who shop around to find a cheaper auto insurance policy.

Here are 10 used vehicles shoppers should consider passing on at dealerships. Often, you can score a much better deal on them elsewhere.

Editor's note: For the purposes of this analysis, vehicle pricing data was sourced from Kelley Blue Book (KBB) using 2023 model-year vehicles with 50,000 miles, standard equipment, and in good condition.

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Widely recognized for their reliability, dealershipscertain vehicles' reputation for to steeply markup price on these used cars. Honda Civics are one of them. Often, they know buyers will pay more for this perceived reliability.

According to Kelly Blue Book, the national average for the fair purchase price of a used Honda Civic sedan is $21,623. This is the price drivers are currently paying for models in typical condition when purchasing from a dealership.

On the other hand, according to KBB, you can purchase this vehicle from private sellers for an average of $13,894. That means dealerships are overcharging shoppers by an average of $6,891.

Toyota Camrys are another reliable, well-known vehicle that dealerships know they can markup — because consumers are willing to pay for them. According to KBB, the national average for the fair purchase price of a used Toyota Camry base model is $23,776.

However, shoppers can purchase this reliable sedan in good condition from a private seller for an average of $16,480. That means dealerships are charging consumers a whopping $6,565 more for a used Toyota Camry. That's a 44% markup.

Don't be surprised if dealers add thousands of dollars to the price of used pickup trucks. These vehicles are regularly marked up, especially high-demand models that are popular in the marketplace. In fact, according to CarEdge, trucks usually see the highest markups.

Ford F-150s are one example of this. According to KBB, the iconic American pickup truck has a national fair purchase price average of $30,350. Truck shoppers can purchase this same truck from a private seller for an average of $19,373. That's an eye-watering $10,977 markup.

Another pickup truck with massive popularity that dealerships often use as an excuse for outrageous markups is the Chevy Silverado 1500.

Consumers can purchase a used Chevy Silverado 1500 for $32,052 on average. Private sellers, though, value this truck at $23,474 on average. At a 36.5% markup, dealers are charging over a third more than private sellers for the same vehicle.

Along with trucks, CarEdge notes that used luxury vehicles also typically see the highest markups. As such, the BMW X5 is one luxurious SUV that consumers are better off purchasing from private sellers.

When purchasing from a dealership, KBB puts the national fair purchase price average for this luxury SUV at $41,195. But private sellers will offer that same vehicle for an average of $30,019. That $11,176 difference represents a staggering 37% markup.

The Mercedes-Benz C-Class is another luxury vehicle that dealerships love to markup.

A used Mercedes-Benz C-Class sedan is available at dealerships for $36,112 on average, according to KBB's national fair purchase price.

Private sellers offer this same vehicle for an average of only $25,223, which is $10,889 cheaper than the average dealership price.

The Audi Q7 might be a stylish midsize luxury SUV that's easy on the eyes, but its monstrous dealership markup is a financial eyesore.

KBB puts the national fair purchase pricefor a used Audi Q7 at $36,036 That's what dealerships are charging on average, and shoppers are paying it.

Private sellers, though, typically offer this luxury SUV for an average price of $23,050. That means SUV shoppers will pay over 56% more on average for a used Audi Q7 at dealerships.

Many local used car dealerships note that buying a sports car during off season can save you thousands. This is because come spring, prices for these vehicles spike due to seasonal demand.

According to KBB, the national fair purchase price average for a used Ford Mustang is $22,900. However, private sellers will offer this famed pony car for an average of $14,438. That's $8,462 less than the average dealership.

The popular Chevy Camaros are the same. A used Chevy Camaro will sell at dealerships for $26,130. Private sellers, on the other hand, will offer this iconic American pony car for an average of $17,577. That means the average dealership is marking up a used Chevy Camaro by more than 48%.

Families looking to purchase a used Hyundai Palisade from dealerships should think twice if they don't want to overpay for this spacious three-row SUV.

When purchasing from a dealership, KBB reports the average price for this used family-friendly SUVis $26,825. However, private sellers offer used Hyundai Palisades for just $16,902 on average. That means dealerships are charging consumers $9,923 more on average than private sellers.

From iconic American muscle cars and family SUVs to reliable daily drivers and pickup trucks, dealerships will often mark up used vehicle prices. And, as of this month, the average used-car price in the United States is $25,512, which is a substantial amount of money, especially in today's economy.

That means that drivers looking to make smart money moves should definitely consider avoiding dealerships. Purchasing from a private seller instead could save you thousands of dollars.

Consider opting for places like Craigslist or Facebook Marketplace instead, where you'll likely find both auto dealerships and private parties selling vehicles. Website like Cars.com also compile listings for used cars from private sellers.