I had a similar experience while shopping for Wranglers with my wife. Herb Chambers BMW in boston got one on a trade. The price was high but we went to look at it anyway. The hardtop had been installed incorrectly causing paint to scrape off the driver's door every time you opened and closed it. The clutch bearings were loud as hell and even my mother-in-law could tell you it needed a new clutch. I pointed out a few other minor details and tried to negotiate with them but they wouldn't budge on the price. They called us back a week later seeing if we were still interested. By that time, we had purchased one in better condition from a private seller for $3,000 less than what they were asking. it had about 10K miles more but the owner was maticulous about keeping it clean. We've had a few problems with it since the purchase, but nothing unexpected for a car with over 100K. I checked back up with the Herb Chambers site several months after we made our purchase and the Jeep was still on their lot.
Some dealers just don't negotiate. They would rather send a vehicle to auction occasionally than let it be known that you might be able to haggle a deal out of them. They obviously still turn a profit but it can be a waste of consumer's time when the price doesn't match the quality of the vehicle.
Personally, I like what Jordan's furniture does with their overstock and floor models. They put it on the floor with a list of prices. Each week the price drops. You can buy it now at the high price, or hope it is still there in a week or two so you can snatch it at the lower price. Eventually it will go at fair market value.
