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Why are car prices different at dealerships?
Auto sale prices also vary because of a dealer’s location. A cost-of-living index can vary from one zip code to another. Dealers in one neighborhood may be able to offer better prices than another lot, even if they are only a few miles away from each other.
Do different dealerships have different prices?
As you know, pricing is very important whether you lease or buy. Different customers can pay widely different prices — for the same car, at the same dealer, on the same day — depending on each customer’s knowledge of how car pricing works. New car dealers expect most customers to negotiate price.
Why are dealerships charging over MSRP?
In the rare case that dealers can’t restock a particular vehicle fast enough, it’s perfectly legal (and a savvy business decision) to charge more than the MSRP. The recent semiconductor chip shortage has led to production delays, causing dealers to receive fewer cars than usual.
Why are used car prices surging?
The increases are due to shortages in the market, as auto manufacturers struggle to keep up with demand for new cars. Consumers don’t have the selection they’re used to, and that’s pushing them to take what they can get, regardless of price.
Can a car dealer change the price?
The truth is the dealer is completely within their rights to change the price of that or any other vehicle they have for sale.
Do car prices fluctuate?
Generally, prices only change occasionally during a production year if at all. However, the incentives on the car, and the price the dealer is willing to accept can, and certainly, do change month to month, and quarter to quarter. As manufacturers chase sales goals, they have to entice dealers to buy more future stock.
Why are used cars so expensive at dealerships?
They are owned by the dealership itself. All that inventory costs money, and the more inventory a dealership carries, the more “inventory risk” they have. Not all car sales are money makers (yes, a dealership can lose money on a deal, though rarely), but that means the dealer has to make up the losses somehow.
What is a good percentage off MSRP New car?
An offer of 3-5\% over a dealer’s true new car cost is a very acceptable offer when purchasing a new car. Although it’s not a huge profit, a dealer will sell a new vehicle for a 3-5\% margin any day of the week.