My local California Honda dealership is charging customers $2,000 over MSRP for the Civic Hybrid. Hybrids cost more to begin with so if they want people to make the switch to Hybrid power then they shouldn't allow dealerships to over charge customers like that. Supple and demand is one thing, but gouging is another. I don't see them marking up their non hybrid vehicles like this during these high gas price times. A lot of people won't buy a Hybrid because they are more expensive, but with this dealership markup thing it's out of reach for many.
Seems to me if there really was an oil shortage and air quality issues, they would lower prices to get everyone into a hybrid.
Here is the funny part, my local dealership told me "well you do get a tax credit, so the markup gets offset by it". I'm like, "the tax credit is for the customer, not the dealership!"