Talk of The Villages Florida - View Single Post - Current vehicle economics and prices - ripping off is a bit harsh
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Old 10-25-2021, 04:27 PM
ProfessorDave ProfessorDave is offline
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Quote:
Originally Posted by retiredguy123 View Post
My only point is that, when you go into most retail stores, customers expect to see a price that everyone pays. Americans tend to like and accept that pricing system. They don't want to argue with the Best Buy salesperson about the price for a television or the Publix cashier about the price of tomatoes. The advertised price is the price. I think that a similar pricing system for vehicles would be well received, if it were implemented fairly by the car manufacturers. If the current vehicle market has a shortage, why haven't the manufacturers adjusted the MSRP to account for it? They know how many fewer cars they are making. I suspect the reason is that they want the dealers to be better able to take advantage of customers who have no way to determine a fair price in a difficult market. Many people think that car dealers are dishonest, and they often feel intimidated and cheated by them.

Correct. The complexity of Finance Guy is fascinating - but the brilliance is in the simplicity. Auto pricing is mostly "blind" - similar to healthcare. Which is why they are both so messed up. If Finance Guy read Adam Smith (the "father" of capitalism) - the truth might blossom on the falsehood in his well stated but inaccurate argument. I teach over 1,000 MBA students each year; Finance Guy pontification is impressive - but would get a B- based on lack of critical thinking.