Car dealers are advertising near-new vehicles as low-mileage demonstrator models which allows them to jack up the price far beyond the recommended retail value.

The price gouging is rife and is adding $10,000 in some cases to the bill for cars in stock.

CEO of Federal Chamber of Automotive Industries Tony Weber told Jim Wilson a variety of issues has caused the price jump.

“We have an international supply issue at the moment.”

Press PLAY below to hear why the car prices are rising

Image: Getty