Question
What do automobile tire sizes mean?
Answer
In July 2004, Edmunds.com published a report stating that the average sticker price on a vehicle sold in the United States was $29,746. In the US passenger vehicles are, however, commonly sold at considerable discounts and customers rarely ever pay the sticker price or MSRP (Manufacturer's Suggested Retail Price). The discount is commonly determined by the company's marketing strategies and tends to be larger the slower selling a vehicle is. Due to what many American consumers have perceived as a declining quality among the automobiles manufactured by the "Big Three" throughout the 1980s and early 1990s, discounts tend to be larger on domestic vehicles. In 2003 the average discount on a domestic vehicle was 20.6% below MSRP. For Japanese and Korean vehicles the average discount was 10% and 12.8%. The lowest discounts were given on vehicles from European manufacturers, where the average discount was 7.7% below MSRP. Overall the average discount in July 2004 was $4,982 (16.8%), meaning that while the average MSRP was almost $30,000, the average buyer of a new car paid only $24,764. Dr. Jane Liu, the Vice President of Data Analysis for Edmunds.com further stated that, "New models are being introduced at higher price points, but the competitiveness of the market is dramatically pushing down net prices, resulting in a record average discount." The lowest discounts among all car segments were given on luxury SUVs, where buyers received an average 10% discount, resulting in a $43,725 net price, versus the sticker price of $48,586.
— Source: Wikipedia (www.wikipedia.org)