Why dosnt anyone pay msrp for a car????
- 1 decade agoFavorite Answer
Because the auto industry has to discount pricing to be competitive.
They are marking the cars up an extra 5-10% so that there is room for the consumer to bargain and feel like they got a good deal.
I always buy 1 year old off the used lot and get awesome deals.
- 1 decade ago
There are a few makes and models that will bring in MSRP and sometimes even more. Examples would be when the new Mustang came out, they were over MSRP. The new 2007 Escalade held MSRP for a few months and certain foreign cars also hold firm on MSRP. To answer your question, the economy is what sets the price for new cars, used cars, and trade values, so if a certain dealership is discounting $1,000 off any remaining 2006 model, then the neighboring dealerships would have to match it to compete. From there, it's a domino effect. I hope this helps.Source(s): Lead Programmer for "The Auto Evaluator"
- 1 decade ago
Because most people shop for a good deal rather than a fair price (if you believe the msrp is a fair price). But If a person wants it bad enough, then cost is not a great concern and the item can sell above the msrp. Look at the sony playstation 3, Currently the price is above Sony's msrp. Most new Harley Davidson motorcycles are at msrp or higher!Basically the Manufacturer's Suggested Retail Price is the cost of making the item plus what the manufacturer thinks is a fair profit. the fair profit is usually about 35%!
Kind of reminds me of the newspaper store ads where you "save up to 50%" , OF WHAT, or the grocery store when they tell you at the checkout counter how much you saved , How much you saved from their everyday high price! The current confusion is (10 for 10) or (5 for 3.88), or(12 for 7.50). Old marketing proverb, " if you can't dazzle them with brilliance then baffle them with bullXXXX" , unfortunatly it works!
- italianone70Lv 41 decade ago
thwy sometimes do or over msrp depending on the availibilty and the demand...for example:..a 2007 z06 chevy corvette will bring an average of 10,000 over msrp...