Counters on how long loaners have been sitting can be very misleading, as it often includes the time it was being used as a loaner.
Yes, in my opinion they have the upper hand here for this particular car.
If the dealer feels they can sell it for the price they are asking, they won’t negotiate. While in your opinion it needs to be sold after 84+ days, it is just that - your opinion. You have to remember that part of the last 84 days was social isolation period when the dealers were largely closed, it does not count the way typical lot time would. Plus it typically includes time while it was a loaner. The relevant time period is how many days since they listed it for sale again? Sometimes you can figure it out, sometimes you can’t. Since overall inventory remains low, they aren’t going to blow out cars when they aren’t making it up in volume due to low inventory.
Also, to clarify, you are not being taken advantage of. You inquired about a car, they gave you a price. You are free to counteroffer or walk away if it is not a price you’re willing to pay.
My suggestion is to (1) wait a bit until inventory levels return to normal, or (2) shop in an area that has more inventory and thus is willing to discount more.
The thought here is that it’s a popular color, with low miles, and low/limited inventory = dealer can sell this easily.
84+ days on the lot is nothing. Typically is 60-90 days on the lot. Dealers don’t start worrying till 180+ days. Brace yourself… you may have to walk away from this deal
Based on the initial quote that was given from this dealer, walking away should have already happened.