I totally agree, my sister paid £6500 for her brand new Ford Fiesta Mk3 Popular Plus in 1989, she still has it! and in 2008 my Mum got a Peugeot 107 new for less than my sister paid and the 107 has airbags, power steering, CD player, leccy windows, remote locking, ABS, etc etc.

When I thought about it I was amazed how they do it, OK we got good discount, but sure the car makers/dealers still making a profit.