Why can you buy a car at dealer Invoice but audio

If you wanted an SUV w/ AWD that seats seven you'd have a choice between at least a dozen models from six or more manufacturers that all have dealerships within 50 miles of you. How many places can you buy a 300b mono amp within a 50 mile radius of your home? How about a tube D/A with balanced outputs? High end audio doesn't offer the variety of choices or the multiplicity of dealers that autos do. Therefore there is not the same market pressure to force more price competition.

Another factor is the luxury nature of high end audio. You cannot buy a maxed out BMW M series at dealer invoice. The people who want a luxury product are not overly price sensitive and dealers knowing this price their luxury products accordingly.

The auto dealer's business model is a lot different from an audio dealer's. They
can't compete on sale price because of competitive pressures, as Onhwy61
mentioned, so their profit comes from options, accessories and service,
especially service. Ever wonder why the $39 oil change at Jiffy Lube costs $89 at
the dealer?

It is also important to recognizr that dealer invoice is not dealer cost. The manufacturer can and does routinely hold back an amount that is then given back to the dealer provided several key data points are adhered to. These can be satisfaction surveys, sales volumes, captive financing, etc. these amounts can exceed $1,000 per unit. Service and used cars are where the money is made. I have several friends who own multiple car dealerships. As long as you manage your money properly and avoid utilizing too much debt, it is a license to print money. One friends dealerships averages 40 cars per day....run those numbers.

If you only sold 10 cars a year , you'd starve to death.
If you sell 10 prs of speakers a year on which you clear 30k each, you're dining at a nice French eatery. In Paris.

Here in Phoenix, all the most aggressive car dealers will lease or sell you a car at a great rate/price.
And when it comes time to sign the papers, they'll charge you a $395.00 documentation fee.
That equals 4 months of the "unbelievable" $99.00 lease.