Soaring car prices have set off a battle between automakers and independent dealers, with consumers routinely paying hundreds, often thousands, more than the listed price amid a protracted vehicle shortage.
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.
www.msn.com/en-us/money/companies/car-dealers-are-raising-prices-due-to-low-supplies-automakers-are-retaliating-consumers-are-stuck-in-between/ar-AATLANL