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and make no mistake, I have a very good grasp on "supply and demand" and know exactly what it means and how it affects the market... but there are some cases where supply and demand should not dictate the price of something... and automobiles is one of those cases.
when GM sets the MSRP for a vehicle, it gives the dealership a guideline of what it should be sold for to get a positive amount of income for the vehicle... as Scott mentioned in another thread, GM (and all auto companies) have a contract with the dealerships to provide them with saleable vehicles that will keep the dealership in business by selling at the MSRP... pricing a vehicle above MSRP does nothing but piss off the consumer and give the brand a bad name... when Jonny Joe Blow goes in to buy a Camaro and sees that the dealer has added $6000 to the Camaro of his dreams, is he going to:
a) jump up for joy and be glad that the dealership is going to make that extra money, or
b) be turned off that the car that he has saved up so long for is now priced outside of his price range
I have a feeling that B is going to be the answer, Bob... and Jonny is going to go and tell his friends that the car is being sold with a $6000 mark up because the dealership told him, "you dont want to pay the extra money? too bad, kid... move along and let the big boys play here"... and then Jonny's friends go and tell their friends, who tell their friends, etc., etc., etc... now tell me how this is good for the brand, folks... just FIND a portion of this that is good for the brand... go ahead, I want to hear your excuse for this being ok.
dealerships are for selling cars at MSRP... Barrett-Jackson is for selling the cars ABOVE MSRP... if the dealership wants to make extra money for the car, put the car in the BJAA and let the cards fall where they may... but quit jacking up the price of automobiles to a level that John and Jane Doe can't afford.
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got tequila?
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