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Small-Scale Question Sunday for January 29, 2023

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

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Why aren't car manufacturers raising their prices? Prices for used cars have doubled and there is a shortage of new cars because prices are too low, causing ridiculously long waiting periods. Dealerships are reportedly trying to raise prices but manufacturers don't want them to. Why do the manufacturers care and why don't they just raise prices themselves and increase their profits?

Existing price points, product features, industrial design, branding, marketing, etc. are the result of elaborate, long-running efforts by automakers to segment the market in a way that they believe works to their benefit.

Raising prices significantly would cause a misalignment between what the industry has taught different segments of the market to want, and what people within those segments could actually afford. Automakers have probably decided it's not worth risking their carefully cultivated segmentation just to bank some short-term profits.