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IPFS News Link • Transportation

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

• https://www.msn.com, 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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