[Veloist]

There’s way too many factors. This discussion can be whole college course.

Car dealerships can get away with ADM’s and sale prices variation from customer to customer mainly due to cars being big-ticket items and the fact that every individual has a different value when it comes to a numerical amount of money.

In my 7 years of car sales and clients, there is absolutely no correlation between someone’s income, gender, age, etc…for the price over/under MSRP they are comfortable paying for a car.

If they need it or want it:
They will buy it IF they know they can afford it OR if they think they can afford it.
They will not buy it IF they know they cannot afford OR if they think they cannot afford it.

It’s one of many flaws of humanity but it’s inevitable that currency and value of money is different for every one. THIS is what the current car dealership model, that many lobbyists fought years for, exploits.

Dig deeper and theres the whole topic of high pressure from Manufacturer-to-dealer volume quotas—and how it results in low-profit deals— as well as how high-profit deals (from exploiting the human flaw of variations in the value of certain amount of money) need to make up for the low-profit deals. Also how the need for low-profit deals results in competition among dealerships as a result of the high pressure from volume quotas.

In a nutshell,

-Manufacturer wants to hit a goal. Hitting goal makes them lots of $$$.
- they give every dealer a sky-high quota.
- dealers need to sell cars at a low profit to hit sky-high Quotas
- dealers may even need to fight for business against competing dealers by selling at super low profits
- dealers need to make up for low profit sales with high profit sales
- high profit sales come from exploiting human flaw regarding value of money (described above)