IronMedic

playstation 3: MSRP--$600 (est)
actual street price to stupid people: $2000+

350z2k3

iTrader: (5)

good point

CRAZZD

When the Ford GT came out in 2005 it had a msrp of 154,000.00 and I was at a dealer in Half Moon Bay, CA and they had it marked for 230K. Dealers can sell stuff at what ever price they want if idiots will pay it. If we don'tthen the price takes care of itself. If people are really paying 90K for a GT500 Cobra that is crazy. You might as well as get a Z06 for 15K less and blow their doors off.

Blue Highways

The Dealer markup for ANY new car is generally $2,500-$3,500 above what the manufacturer will sell it to him for.The Monroney sticker merely gives the customer a starting point for negotiations.

I used to sell cars (both new and used)and I was always amazed at the Dealer's chutzpa when it came to setting prices.A Honda dealer I worked for would charge $300 for "Custom Striping" (a $25 job),and he'd tape an extra sticker on his new car's window with the appelation "EDP" printed on it.EDP always tacked on $500-600 above Monroney/MSRP.
What it meant,if anybody asked,was "Extra Dealer Profit".
What *****.Yet,some people,evidently clueless and born without any skills whatsoever,would actually PAY IT !!!
When people started negotiations,the salesman would always dump EDP first,then say--"I can drop our price $600 for you,but that's the best I can do",like it was a gift or something.That generousity put you right back at sticker...

Used cars are a potential treasure for a high-markup dealer.They don't require Monroney stickers,so the actual price is all smoke and mirrors.Many of their customers are credit risks and they drip desperation from every pore.They will take ANY deal,as long as it puts them in a car.Dealers price used stuff any damn way they want to.

You see those questionable cars on the "Buy Here/Pay Here" lots,the ones with "ONLY $500 DOWN" on their windshields?That is about what the dealer paid at auction.He will sell the car for some ridiculous amount--like $3,000--and reap enormous profit on each piece of crap he moves,because his OTHER signs say "WE FINANCE ANYONE !!!",or "NO CREDIT ??? NO PROBLEM !!!"--and his desperate customers,at least those who can't read,never negotiate and will take any deal,even at 30% interest.
The dealer gets his money back at the point of sale,and all the ensuing weekly or monthly payments are pure profit,plus interest.His only expense will be for the Repo Man,somewhere down the line.

The story is similar at the more reputable dealers as well.A new car,no matter what name it goes by,will have depreciated about 30%-40% off it's original selling price by it's third year out.Sharp dealers will get the car at rock bottom at big regional auctions,wash it and put it on their lot with at LEAST a 3 Grand profit built in,sometimes a LOT more.
Many of them are mid-to-high mileage ex-fleet cars or off-lease vehicles,and they can be bought at auction for some surprisingly low prices.Most are bank repos or trade-ins that dealers want to get rid of,some are just last-legs crap.
Sportscars,specialty cars and the occasional Car of Momentary Interest will garner even more profit,their desirability sometimes forcing their prices close to a new one's price (think:Porsche).
Even dubious crap,like 2003 Kias or 100,000-mile Toyota Echoes have a couple thou in their markup.
Whenever I see cars priced in an ad,I unconciously lob $2,500 off the stated price.If I actually go to see the car,that's where my negotiations BEGIN.

Here's something else that most people know nothing about--the new car holdback.It's called other things by different manufacturers,but it is on every new car out there.

If you negotiate like Condoleeza and get the price on your New Car down to rock bottom,the Dealer's Invoice,his cost???--well,he still has a substantial holdback from the manufacturer.The holdback is like a secret commission,and it allows the dealer some profit even in the rare case of his moving a car at cost.
(In the Z's case,holdback is,I believe,$600 plus 2% of invoice.)

The simple lesson is--do some homework if you plan to buy a car,new or used.Find out the actual value and stick to it.Use your negotiating skills to the max and get your deal your way.Remember the $2-3K markup and chip away at it.Give the dealer SOME profit--take away most of it,though.

And as far as a huge,unrealistic markup goes,like 10K on a fcking Mustang??
Unless you are one of the Stupid Rich,like those people who pay $4.50 for a cup of coffee,avoid that Dealer like he has Bird Flu.If you are a serious,informed buyer,someone else will sell you that car for a lot less,you can count on it.
Or you can just wait until it pops up on some Used Car lot somewhere.