There are so many sources of info on what dealer cost actually is, and so many people describing how to negotiate, that more and more people are actually doing it. Especially among the more well-educated type of buyer you see going after a Euro car. You and the wife should surf the E46 forum; I do every day. Believe me, there are just as many "how much over invoice should I pay" questions as there are here, if not more.

But the point you raise is valid - there can only be a negotiation if both parties are willing to play. MB supposedly has gone to fixed pricing, but I'm sure that to make a deal they need or with a buyer they want, they have ways to sweeten the offer. As long as BMWs are popular, they will command a premium. Audi is still a bit of an underdog, with a subpar dealer base, so they are used to dealing and will continue to do so at least for a little while longer.

Maybe the lineup that's about to premiere in Audi showrooms will help them finally turn the corner. Imagine a showroom with a new A4 next to a new A6, and beside them an allroad and a TT. Imagine a dealer trying real hard to get MSRP. With that assortment of vehicles, it might happen!