Dealers Exploit Psychological Pricing Tactics in Used Car Sales

Researchers found that used car dealers in Texas earn significantly more by selling vehicles with mileage just below round numbers, capitalizing on buyer psychology. The study revealed that dealers earn between $46 to $168 extra for cars with mileage thresholds like 49,999 miles versus 50,000 miles. This phenomenon, known as left-digit bias, highlights how consumers disproportionately focus on the first digit of a number, often leading to overpaying for used cars.

Sources

• Times of India