The dealership buys cars from the manufacturer.
The manufacturer "Suggests" a retail price.
The dealership is in business to make a profit.
Overhead is a function of location.
The more expensive areas cost more to do business in. As in, buying or leasing land in Mahnattan, or San Diego or Scottsdale is a lot more expensive than operating in Iowa or Idaho or some other area where land is cheaper and per capita income is lower.
That is why a car costs more, as does a house, a gallon of gas, a steak etc... in those areas.
If YOU want to save some money, go get your car somewhere cheaper. My friend Cbutler32 flew to Michigan to buy his '06 300C SRT-8 and drove it home to San Diego rather than paying 20k over sticker in San Diego. That was his choice. He could have shipped it but driving it is so much fun!
I paid 3k over sticker for my '06 300C SRT-8 from a local dealer and that was my choice.
The manufacturer dictating the allowable price to the dealerships could never work. Here is what would have to happen: The dealerships would no longer be able to operate and and make a profit in expensive areas. We would all wind up having to drive to BFE to buy our cars AND to get them serviced. Or, the dealers would have to raise prices on parts and service to recoup the loss and stay in business.
The practice of charging over MSRP is not Price Gouging. It is simple economics: Supply and Demand. It is the exact same principal that allows you and me to go negotiate a price BELOW MSRP on a car at a dealership. When the dealer has too many cars (excess supply) we can go in and demand to pay less than MSRP. Why is this not Gouging on our part?
The long and the short of it is: It is perfectly legal and moral and ethical for a car dealer to sell his or her inventory to the person willing to pay the most money. That is how profit is made.
If you do some research on these forums you will see who gets the most allocations for DCX's Higher end vehicles: California (huge state), Florida (lots of retirees and money) and Michigan. Michigan is startegic for car manufacturers. DCX wants their employees and executives AND the other car manufacturers (Ford & GM) employees and executives to see these BAD ASS cars on the road.
For thos of you waiting for Challengers who cannot or will not pay over MSRP you are going to have to wait until there are a bunch on the road and/or travel to get one. If that offends you then, well, too bad. It is NOT bad business. It IS business. Wanting DCX or the government or anyone else to start Price Fixing is DEFINITELY NOT the answer.
And, in case you were wondering: No,I do not own a car dealership. I don't work for a dealership. I am a business owner (Real Estate) and do have an understanding of how businesses succeed or fail.
I am not knocking any or all of you who think it sucks to have to pay over sticker to get the car you want. I didn't enjoy paying over sticker for my car but, after 5 1/2 months of driving my BAD ASS "Sedan" I can tell you, honestly. I would have paid MORE. Please dont tell DCX though
