> However, the issue is that you're probably overpaying for the car
On the contrary. People have options for cars. You don't have to buy a specific brand or a specific model. If every car's price is listed publicly, then consumers can easily shop around for the best price, and it would be difficult for a dealer to get away with overcharging everyone with a publicly listed price. People just won't buy from a dealer with inflated prices.
When there's price negotiation, dealers mostly win at that game, because they usually have far more information than the consumer.
On the contrary. People have options for cars. You don't have to buy a specific brand or a specific model. If every car's price is listed publicly, then consumers can easily shop around for the best price, and it would be difficult for a dealer to get away with overcharging everyone with a publicly listed price. People just won't buy from a dealer with inflated prices.
When there's price negotiation, dealers mostly win at that game, because they usually have far more information than the consumer.