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M.T.,
Do you actually know what the dealer is paying for the vehicle? If so, I think it is absolutely fine to give them a set percentage above and beyond what they pay for it. I wish I knew what the dealer paid for a vehicle before I had to negotiate on it. I was just talking to my fiance about this subject this morning. I hate buying new cars and haggling over the price. Went through the experience 2 years ago with my truck and it wasn't fun.
I wish more manufacturers would take the Saturn approach (i.e., you pay the sticker price on the car). The manufacturers know what they need in mark up, but they allow the dealers to charge different amounts in different areas through the United States because of the different economic conditions in the United States. Dealers in wealthy areas probably don't cut the sticker price nearly as much as dealers in less affluent places.
Car price negotiation truly sucks.
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The pond, waterfowl, and yellow labs...it don't get any better.
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