I honestly believe some dealers have raised their prices due to the motability £750 payment
Motability Pricing is by negotiation between Motability Operations and vehicle manufacturers. Dealers have no say in Motability pricing, so cannot ‘raise the price’ in response to the £750 payment or any other circumstance. Of course, dealers are free to make deals and offers at less than the published Motability price if they so wish.
I suspect that @TheSUVguy meant to say ‘manufacturers’ rather than ‘dealers’ and, in truth, it’s difficult to argue against. Many people have posted that the replacement for their previous car is now substantially more than it was last time (often by several thousand pounds) so the £750, even if added to the odd dealer discount, often doesn’t come even close to bridging that gap.
Even those of us who can afford to pay high APs are struggling with the limited choice, so I really feel for those who need a decent sized car and want a good spec but can’t afford a high AP. I suspect that substantial compromises will have to be made.