I read a lot that people have to pay more than the MSRP, while in The Netherlands you always have to bargain for a discount on the MSRP (and you will get it). If I wouldn't have traded in my old car, the dealer offered me 1650 Euro discount, and I could easily squeeze more out of it. Now, I only got a small discount, but got a good price on my old car.
Well, in a nutshell, it is supply and demand over here. Don't you have the same dynamics there? If more people want to buy a car than are available, and are willing to pay MSRP or even more to be the one who gets it, why would a dealer bargain with you? It seem like human nature.
I guess the direct answer is a lot of people get screwed because the simply don't take the time to learn how to bargen with car dealers. A lot of people just accept whatever is offered for their old car because they don't know enough to check first and see what it's worth. Also Americans, I think, tend to be very trusting and open, American car dealers have learned to take full advantage of this fact. But you can get a good price if you learn how to do it and are careful, and many of us do.
I don't know but car buying in Europe seems to be easier. I'm watching Top Gear and the prices and discounts they quote are just ridiculous. £3,000 off a Citroën? £1,500 off a Subaru WRX?
I wonder if it is connected with the fact that petrol (gasoline) is so cheap in the USA? How much does it cost in the Netherlands? Here in the UK it is around 90p litre now (over $6 a US gallon) or 1.31 euros a litre. Incomes are also relevant. I don't know what typical incomes (not average, which is a misleading figure) are in the USA but I suspect they are higher than in most parts of Europe. Consequently more people have more than one car, hence the demand for cars is far greater.
it works the same in the States for every car that is available on the parking lot. It's different a Prius because they are not widely available. If you were about to get a Corolla for example, you can bargain it down.
From the US Census website: Real median household income remained unchanged between 2003 and 2004 at $44,389, according to a report released today by the U.S. Census Bureau.
Europe has a slew of cars that are Prius alternatives, from really good petrol mini-cars to diesels. What does Prius compete against in the US ? Particularly for hatchback afficianados.
