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Columns: Driving for Dollars
Terry Jackson   Expert: Terry Jackson
Driving for Dollars
Supply and demand dictates cost
Driving for Dollars

No conspiracy behind dealer pricing
 

Dear Terry,
Why does the Toyota dealership in Daytona Beach, Fla., deem it good practice to add $3,000 to $6,000 to their Prius manufacturer suggested retail price, while St. Augustine Toyota (45 miles away) quotes an MSRP with no markup? They are both in the Southeastern Toyota district.

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You don't suppose Daytona Beach is taking advantage of people who really want to help reduce gas consumption and planet pollution, do you?
-- Tom

Dear Tom,
There's no conspiracy here -- just supply and demand. One dealer asks more for a vehicle because it thinks someone will pay that amount. Or, the dealer plans to start out that high and then let buyers think they got a deal because they negotiated the dealer down by $3,000 to $6,000 from the revised sticker.

Here are this week's reader questions:
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Bankrate.com's corrections policy -- Posted: Aug. 29, 2008
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