Nothing is free, including those alleged 'discounts'... I recently purchased a new car - specially built for me - and took delivery Wednesday. I wrote a check for the majority of it, but financed the balance for 90+ days to "qualify" for a rebate. My guess is that the financiers are betting that once people get used to making a monthly payment that they will continue with the life of the loan. Finance charges for approximately 105 days at 2.89%, and for about $6000 will amount to a whole lot of not much, and at the end of that time, they will deduct $2000 from what I owe them. Sweet deal. An expensive car, but that was what I wanted, and I didn't want anyone trying to convince me of any deals. Just said what I wanted, and expected to pay for it....

must be b/c a lot of gullible people actually think they're getting a big reduction.

I was in the auto business for almost a decade. Yes, they price high, and you feel like you get a good deal when you get 1-2K off (or whatever).

exactly right too make them look good and sell more.

My guess is that it's the same in the US as it is in the UK, vehicles are priced at what the market can afford based around marketing so that certain lines are deemed desirable. So the car companies make a balance between getting as much as they can without losing sales, once this top line is established they have a margin for discount with no loss to them.

More than just cars and trucks, I try to shop at places that treat their employees well and maintain lower margins. People love Costco for a reason, they've got the lowest margins in their industry while paying people 20 bucks an hour. Walmart on the other hand ...

For the record, always negotiate the price of your car. Dealers expect it and mark up accordingly. You know they're not above dirty tricks, so play the same game. Call multiple dealerships, play them off each other. Know what you want and what it's worth.

The dealers get an immediate profit, then at the end of the year the manufacturer gives out another percentage for vehicles sold.

MSRP is a scam.

I've worked in clothing manufacturing, in wholesale, and in retail.
The mark-up for most items is exorbitant.
If anything is sold in a mall, the mark-up is even higher.

The price of EVERYTHING is jacked-up to increase profit-margins.
All corporations should have to release the actual cost of making the items
that they sell.

I often say the same thing about EVERY product that goes on "sale". If a product can be sold at the sale price and a profit is still made, why not sale it at that price to start with?