In recent times, dealers have boosted prices on a high-demand vehicle. Many dealers say they should be able to get what the market brings for a new hot product with a low supply.

Under most dealer franchise agreements and state laws, manufacturers cannot control the selling price of a vehicle. Dealers can and do modify vehicle prices, either higher or lower than sticker, based on market conditions and customer demands.

Parallel to the Smart launch was the Mini Cooper's U.S. launch several years back. Only 70 BMW dealerships of its 345 U.S. dealers got to sell the Mini. Their first year's allocations were all pre-sold.

But you could purchase one if you had a connection or were willing to pay the price. Many Mini dealers were marking up cars to the tune of $5,000 plus. Dealers that didn't charge over sticker their clients had a 9 to 12 month wait and some even longer.

It's reported all Smarts sold through smart USA's dealer network will not be pack or be charging over sticker!

However, with their limited supply there's a possibility a dealer may not be selling all the smarts to the waiting list clients?

You may know people who over the years have spent millions of dollars with their dealership. So, if a whale walks into a high end store and wants a Smart car the dealer may make special arrangements.

After all, the dealers did put up a lot of money for the privilege of selling the smart car and may be forced to make a business decision.

Another thing to keep in mind, a dealer makes the majority of their money off trade-ins, used cars and their service department.

Profit margins on new cars are thin. Used cars always have a higher profit margin. Some used car trade-ins can bring the dealer huge profits.

This is why so many dealers try to sell you on gap insurance, extended warranties, and service plans. Those items are pure profit for the dealer.

So you should be prepared to know what your trade-in is worth and perhaps think about alternatives to trading your car in for your Smart?

The 2008 Smart comes with a meager 24 month 24,000 mile warranty.

Remember, there's no substitute for due diligence and being prepared.