Not all dealerships engage in this pricing strategy, but many do it aggressively, often with snake oil-style salesmanship, deceptive marketing tactics, hidden fees, and overpriced add-ons, like floor mats, alarm systems, or anti-rust undercoating.
finds that older people tend to be charged higher prices than younger people, and that older women tend to be charged the highest price of all.found that dealerships tend to treat a buyer's decision to trade in their used car like a neon sign on their foreheads, flashing,"Charge me more!" That's because trading in your used car, while easier than selling it directly, also fetches less money.
Michelle Krebs is a longtime automotive researcher who serves as the executive analyst of Cox Automotive, which owns brands like Kelley Blue Book and Autotrader."This is the first time in my career — and it's a long career — that I've seen most dealerships charging at list price or over," she says."And it's simply because there's high demand, low inventory, and they can do it.
However, there are state franchise laws across the country that protect independent dealerships — and these laws have made it difficult to disrupt the dealership system and offer consumers potentially a better way of buying a vehicle.To be fair to dealerships, they do provide important services. They offer a distribution and service network, which is vital to both manufacturers and car buyers.
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