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This statement hits the bullseye:

And so does this one:

Not only does that world no longer exist, it also makes our entire industry look kinda silly when we continue to pretend that it does.

I think it depends on your product and your market.  Hondas and Toyotas are practically commodity items; there is little to no difference in the vehicles at our dealerships vs. the Civics and Camrys at our competitors.  Price is what differentiates us, and we aggressively price all of our new vehicles for these brands.