Any non-socialist market price is based on supply and demand, and production imput costs of new cars.

For used cars, it is supply and demand. But it leaves out one important factor...

The price the buyer is willing to pay is based on supply, demand, and the thickness of his/her wallet

Didn't Adam Smith say that?

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"Life is too short to drive a car the color of pavement!"

2012 LP 560-4 e-gear coupe
2004 LP-140 (sold)
Other toys too!

Actual transaction numbers affect the market big time. Say someone needed to move a car quickly, and drops their car below current asking prices. If buyers become aware of these prices, or these prices are advertised, you now have new market values.

Look at the MP4-12C coupes. Market was retail for a low mile pre-owned, then someone drops 1 to 259k, then another Dealer starts advertising at 60k off MSRP. New market value has changed again.

You can also leverage a Dealer who is asking too much for their car based on these recent transaction numbers. Works almost every time.

What you say is true. This is how supply and demand interact to produce the market price.

It is what it is. Personally, I think all of these high end cars are over priced...lol. I stopped trying to figure out how they come up with the pricing a long time ago and just look at purchasing cars within my budget because saying anything about it won't change anything.

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2004 Silver Bentley GT
2006 Verde Ithaca Murcielago Roadster

I agree, and I go with the saying "Buy what you can afford". But it makes me wonder, say a dealer has a 550-2 selling for $199K, what would be the "At Cost" price to the manufacturer, in other words, how much did it cost the company to make one of these 550-2 and what is the retail mark-up? The profit margins has to huge obviously. Maybe it costs closer to $100K, someone who has a better guess chime in.

First, when considering the profit made, the total cost must be taken into account. Not only the cost of the materials and labor to make the car, but also the advertising, brand development, insurance, taxes, and all other overhead. must also be taken into account.

Second, a company will not, and cannot, sell a good at cost. With no profit, a company will not stay in business.

Finally, a business will sell its product for whatever buyers will pay. If that is not enough to cover cost, then they will operate at a loss and will go out of business. If buyers will pay an amount that is much greater than cost, then the business will make a big profit.

I don't see what is wrong with making a big profit, if that is what happens. Evidently, the company is doing something right, making a product that buyers are willing to pay significantly over cost for.