RS6 pricing

[Lee Levitt]

Taka writes:


:: RS6 resale is artifically inflated by greedy dealers- they
:: wholesale way way below what they retail for- dealerships are
:: commonly making $15k profits on the cars.


Um, no. There's no "artificial" about the price inflation. 
Remember, the definition of market price is what a buyer is 
willing to pay to a seller. Without government intervention, 
market price is solely determined by supply and demand.

There's a limited supply of these cars and the few buyers for them 
are willing to pay what the dealers are asking.

If they weren't willing to pay the asking price, or near to it, 
the average selling price would come down to a level where buyers 
would be willing...

To determine why the wholesale price is so low, you have to look 
at where the cars are coming from. If they're coming offlease, 
there's a predetermined price. If they're coming through auction, 
you might see wholesale buyers unwilling to pay a premium for an 
expensive, rare car that only has a few buyers. They're not 
willing to floorplan the car for 3 months before the right buyer 
comes along. A typical wholesale buyer probably wants to turn over 
an auction purchase within 7-14 days, or better.

But it's pure economics -- the law of supply and demand, that is 
setting the price. Nobody is forcing RS6 buyers to pay more than 
the dealer is asking...

Just my .02, arbitraged.

Lee