Comparing buying cars and buying soap at Walmart is not a fair comparison.

Car dealers advertise "come in and make your best deal". Walmart says "we have the lowest price". Very different marketing.

The real problem as I see it is that "dealing" on cars and "cash back incentives" from the manufacturers is just crazy, and should never have started in the first place. The only dealing should be on the value of the trade in vehicle. But now that they have been done, how do they stop it?

OK, if you take out dealing on the price of a car, then how do you deal with an overstock of inventory. Retail stores run sales to move that stock and hope that you will buy something else while you are there, which will help to offset the sale price. That is not going to happen with a $20K-$40K item that is only purchased once every 3-5 years.

I am also insulted by the sales gimmicks. "Invoice price" is a made up number by an individual dealership. It incorporates the actual cost of the car from the manufacturer, the overhead of running the dealership, and some profit. To say that a car is sold under invoice is a joke. No one can sell their product at less than it costs and remain in business for very long. So why advertise your product that way?

Personally, I prefer to purchase large items locally, from a person I know, so I have some leverage when service is needed. I expect to be treated a bit better for service if I purchased my product there. Yes I may pay a bit more up front, but I think it makes sense to support the local economy, because that is who supports my business. Do I purchase over the internet? Yes, but only if it is an item that is not readily available locally.

And about the salesman - if you are unhappy with that person, ask for another, or complain to the sales manager. You have the final say so in any transaction, because you are the person that is spending the money. You can always vote with your feet.

I guess the question that is being asked is, how much profit is fair? The real question is, how much NET profit is reasonable. Gross profit of $5K per car sounds like a lot, but if the net is only $150.00 after salaries, utiities, insurance, taxes, benefits, interest, etc etc etc, then is it worth it to make the sale? The average person thinks that most businesses make about 30% net profit. Actually, the number is closer to 10% Grocery stores work on 1.5%.

I wish it had a simple answer. It just does not work out that way. Obviously, I own my own business, and have done so for the last 24 years, which may bias my opinion here.

Sorry this got so long...........