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This is price discovery in action. From the dealer’s point of view it’s worth jacking up the price that they are willing to take because some consumers will jus
by johnnylambada 5y ago
This is price discovery in action. From the dealer’s point of view it’s worth jacking up the price that they are willing to take because some consumers will just pay it. Other consumers will try to bargain and they’ll find a (slightly) lower price. When someone just pays the first price the dealer says, the dealer makes a few thousand more than they otherwise works have. This is the same reason there are food coupons. Very price sensitive people will go out of their way to use them but others will pay full price.