Here's Why Buying a Used Car is So Expensive in the United States

[bucolic_frolic]

4. So generally car prices are inflated because the industries that feed off them

have a vested interest in inflating prices. I can believe that. That's why prices are lower when buying from a private seller. At every point of sale a piece of the action is paid to those involved. Not really surprising, they are professionals who won't participate without being paid for their efforts. Price is everything when you buy anything. How much of your money goes into the product and it's intrinsic value, and how much goes to profit? Learning to narrow that equation in your favor can pay off significantly over your lifetime if it becomes a minor consideration on every item you buy. Lots of products are generic, so you can substitute sale-priced items for those selling at full retail price. You learn after awhile that there is no fixed "price". It's the cost of production, transportation, marketing, carrying, plus return on all the capital involved. Pricing power is when they can push all that on you and show no flexibility. Resist being put in that situation. The greatest power as a consumer is to walk away, not put yourself into a "must-buy" or "must-buy-now" mentality. Always haggle, and always have the ability to walk away. It takes a long time to learn that equation. You can't often wring every last dollar of profit from a deal, but you can get a price that is good for you and fair to all involved.