“No Haggle” When You Buy A Car Online
Car Dealers Tried No Haggle, But it Wasn't Enough
Daily Republic published this article informing consumers about "No-Haggle" policies, and what they actually mean.
You’re walking around the car lot, zeroing in on a model you like, when you notice a “No-Haggle” sign next to the price tag. Initially, you feel a wave of relief because you hate to negotiate. But then you remember the old saw: “Never pay retail.”
Does no-haggle really mean no negotiating – or is it just a way to deflect pushback from buyers? And how do you know if the no-haggle price is a fair price?
The reason 99% of consumers expect buying a car to be a hassle is because only car dealers attempt to charge each customer a different price for the same product. McDonald’s prices products, dealers price people. It was very common 20 years ago, but in today’s transparent world, it is unsustainable. When you look at the confusion created by dealer advertising - $10,000 discounts only a handful of consumers could ever qualify for – it is not hard to see why consumers struggle to trust dealers.
The solution is a transparent, online purchase. Salesmen who share a price scribbled in magic marker on a piece of paper with no context (what others paid) or detail (plus tax, title, license and…other stuff) will send consumers flying out the door. The good news? With far less than 1% of US new and used cars being sold online, the dealers who make the move online will be rewarded in a big, big way.
By Jim Dykstra, Founder of vinadvisor.net