Who sets the msrp of a car? For example the msrp of the toyota corrolla hatchback 2022 is 20k, but for some reason 2020, and 2021's, u.e the used ones are priced at almost 30k with about 40k miles on them.
Why will someone buy a used version more expensively than a new one? If the used ones are way more expensive.
Or am I understanding it wrong. Please help clarify.
Thank you for your responses.
there is probably a wait for new ones.
Oh okay. The world is Crazy.
Who sets the msrp of a car, the dealership or the manufacturer?
The manufacturer. The dealer is free to add their own addendum to the sticker for useful items like $500 pinstripes and $800 floor mats, and of course...
https://www.youtube.com/watch?v=B2LLB9CGfLs
^^ is that real?
dealer wants to buy our Rav4 back, everytime they make an *offer, i bump our price by $5000
real, and common
A friend bought a 2022 civic sport sedan at MSRP of $24500 but had to wait two and half months from when they put down a deposit and when the car arrived (note it was not a special order, it was purchasing the car allocated to the dealer before it arrived on the lot). But this same car from 2020 and with about 30k miles was priced at $29k in our area if purchasing from a third party. It's just that if someone needs a car right away there aren't that many new ones available to purchase instantly so they have to go to the used market which is one reason used car prices have skyrocketed.
Thank you for the replies.
The manufacturer sets it and the dealer adds what they want, if anything.
The wait for new cars is long, so used prices are through the roof as even the used market is squeezed right now.
The manufacturer sets MSRP.
The dealer adds the markup, aka market adjustment.
The negotiation between you and the dealer sets the sale price.
Thank you for your replies.