How Can Dealerships Raising Prices from One Consumer to the Next Be Justified?

Answered by

Rodney Wagner
Rodney WagnerCar Insurance Expert

Posted on Feb 11, 2023


There can be a number of reasons why a dealership might choose to raise prices from one consumer to the next. One possibility is that the dealership is trying to cover the costs of doing business. This can include things like the cost of the vehicle itself, the cost of maintaining the dealership's facility, and the cost of employee wages.


Another possibility is that the dealership is trying to make a profit. In order to turn a profit, a business needs to make more money than it spends. This can be done in a number of ways, including by charging more for goods and services.


Finally, it's also possible that the dealership is trying to match the prices of other dealerships in the area. This is known as price matching, and it's a common practice among businesses. By matching the prices of their competitors, businesses can ensure that they don't lose customers to rivals.

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