They're just establishing an (absurdly high) price point for negotiations. There's so much overhead associated with dealers that just makes buying and servicing cars there too expensive. I went to a local dealer earlier this week to have my PCM updated, and the place was immaculate. There were three service writers, a cashier, a guy just cleaning the service area on a regular basis, etc. All I see anymore when I see that much "fat" is a higher service bill, but they are only responding to the expectations of new car buyers.
And for the reply about Lexus being an overpriced Toyota...well, they're amazing cars, Toyota or otherwise. I had one, and it was bulletproof.
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