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IPFS News Link • Transportation

Car dealers are raising prices. Automakers are pushing back. Consumers are stuck in between.

•, Jacob Bogage, Aaron Gregg

Ford and General Motors recently upbraided dealers for ignoring the manufacturer's suggested retail price, or MSRP, a practice that was practically unheard of a year ago and GM calls "unethical." They've threatened to withhold deliveries of their most popular offerings, including Ford's buzz-generating F-150 Lightning pickup, and other forthcoming electric vehicle models.

But data shows such markups are pervasive across the industry: More than 80 percent of U.S. car buyers paid above MSRP in January, according to auto market research firm Edmunds. That compares with 2.8 percent the same month a year ago and 0.3 percent in 2020.

The premium set consumers back $728 on average, though industry experts say four-figure markups are common on popular sedans and compacts, including Hyundai and Honda. Some car shoppers reported that the extra cost can run $10,000 or more for sought-after electric vehicles and hybrids.

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