Anthony,
You seem to be missing a number of key points here. First, a retailer is not ENTITLED to anything, including profit. Whether they make a profit on every item they sell is entirely up to them. As someone pointed out already, some retailers use loss leaders to attract business, so using the argument that Ken shouldn't get the car he bought because the dealer doesn't make a profit is ridiculous.
Second, by your own admission, profit margins at car dealerships are down considerably in the past 10 years. I ask you - what does that tell you about the state of affairs at car dealerships 10+ years ago? To me it SCREAMS: "Hey, we used to be making small fortunes at the expense of the customers". Now that the internet has grown into what it is, the customer finally has the means to PROTECT themselves against such things. Can you honestly sit there and tell me that you yourself, when looking to buy an item that is undoubtedly the second or third most expensive item you will ever buy in your lifetime, wouldn't do everything in your power to ensure you got the most beneficial price for YOU? If you answer anything but "Yes, you're right" to that one, then you're lying. So no, I don't feel bad for the poor car dealership and I certainly don't buy the argument that the consumer is to blame for the whole auto sales unpleasantness. I will grant you one concession, however. That being the fact that, like everything else in this world, there are a wide range of people involved on BOTH sides and, yes, some consumers ARE unreasonable, irrational and rude. My problem is, I'm not one of them, yet almost every car deal I've ever negotiated I've treated the sales staff with nothing but respect and dignity, but have gotten nothing but slimey, underhanded, deceitful treatment in return. If I could walk into a dealership and say, "I'll pay you the current Edmunds TMV for the car, let's sign the papers and I'll drive it home today" I'd be happy as hell! I've tried that and what I got in return was a stonewall and a slew of excuses about why that price was absurd, blah blah blah. Ok, I could ramble on all day about that, but I'll stop....
Third, this sale was NOT a retail transaction at WalMart, it was an AUCTION. Perhaps you've never been to an auction before, but it's a pretty simple concept - I put an item up for sale with a starting price. People then begin bidding, building up from that price. When bidding stops and time runs out, the highest bidder pays whatever he bid. The ONLY caveat is if I decide BEFORE the auction that there's an absolute minimum I'm willing to sell for. Well, the dealer did not do that. They gambled on a bidding war happening and lost. They were SO CONFIDENT in the appeal of the M3 that they left out the reserve and started bidding below MSRP to attract attention. That's entirely on them. Game over.
Finally, I find it comical that you bring up the depreciation of cars as a way of justifying your point. To me, the rapid and severe depreciation of (most) cars only weakens your argument. Again, if YOU were buying an item for tens of thousands of dollars that, in a few short years, will be worth less than half what you paid for it, wouldn't you want to minimize that loss, too? And comparing to a Realtor and buying a house is just as laughable. Any buyer's agent worth his salt is going to tell you exactly what the house you're looking at is truly worth and the seller's agent knows the same thing. So what's the net result? Everyone plays the offer/counter-offer game in a professional manner until a compromise is reached and everyone is happy. There's no manipulation of the numbers, no "I'll check with my manager" games, no "I'll sell it to you for the price you want, but then I can't give you what you want on the trade-in", no "4-square" games, no financing games to get you into a lower, but more costly monthly payment, etc. Plus, at the end of the day, most buyers are willing to give a little more to the profit of the seller because real estate almost always appreciates in value over time.
Anyway, sorry to everyone for the long read, if you've even made it this far. I just felt I had to straighten Anthony's tie on a few points, especially after spending an eternity the last few days reading this entire thread
