Quote:
Originally Posted by Dion
I'd like to know if it's really working in making car buyers think they have smaller payments when in reality they don't. Maybe it's just a way to get the car buyer into the showroom where the sales person has a chance to sell his product.
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http://en.wikipedia.org/wiki/Psychological_pricing
Not the exact same thing but I think it's the same phenomenon.
It's not so much as people thinking they have smaller payments, it's that the psychological impact of $199 bi-weekly is smaller than $431 monthly so when making a decision the $199 hurdle is mentally easier to overcome.
And as you say, all advertised pricing is to get people into the store where the real price is different (if nothing else because GST wasn't included or whatever).