Although many people enjoy negotiating to get the best car deal, nearly 25 percent of vehicle buyers are finding it less stressful to buy from a “no-haggle” dealership. For careful shoppers, the purchase premium for using the one-price, no-hassle method can be worth it.
At no-haggle dealerships, which were introduced nationally by General Motors’ Saturn Corporation in 1990, each vehicle is marked with a specific, non-negotiable price. In the case of a new car or truck, there may be a discount from the manufacturer’s suggested retail price or window sticker price.
The customer can see exactly what each vehicle costs without the anxiety of having to negotiate with a salesperson. This allows the buyer to concentrate more on the features he or she wants on the car. Individuals can also shop for one-price new and used vehicles over the Internet.
Once heralded as the future in vehicle buying, the movement toward one-price selling has stalled in recent years partly due to the willingness of competing dealers to undercut no-haggle pricing. From 2001 to 2003, the percentage of vehicle buyers who paid the dealer’s asking price has remained constant at 22 percent, down from 27 percent in 1999, according to The Dohring Company, an automotive market research firm. In addition, Dohring found 84 percent of car buyers say they would still shop around after obtaining a price from a no-haggle dealership.
Those who benefit most from buying from a no-haggle dealer include young adults, women and minorities. According to the New Car Insider, a car dealers’ website, those groups are more likely to pay a higher price for a particular car than adult white males.
To find out whether the price offered is good, consumers can check websites such as Autotrader.
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