Interestingly I bought one new car once at below dealer invoice. I did all my research and then their starting offer was low.
Story turned out to be that they didn't control the mix of cars that they got, but they could sell every Prius with all options for top dollar. So internally they marked other cars down to sell fast so that they could get more Priuses.
It goes to show how dealer incentives don't always align with the manufacturer's.
There are definitely quirks to the way car dealerships are run. I imagine there are similar 'weaknesses' in just about every industry if you put in the due diligence to find them. I always find it somewhat comical when incentives backfire in interesting ways. There are a bazillion tales from HR/Recruitment/Salespeople out there about spectacularly stupid incentives, and I can't help but read every single one of them.
If you end up with a similar situation in your next vehicle purchase it might be worth writing up a blog. I know I'd read it!
Story turned out to be that they didn't control the mix of cars that they got, but they could sell every Prius with all options for top dollar. So internally they marked other cars down to sell fast so that they could get more Priuses.
It goes to show how dealer incentives don't always align with the manufacturer's.
(This was in Santa Monica in 2005.)