Is No-Haggle Car Buying a Good Idea?

No-haggle car buying means agreeing to a price before you enter the dealership, so that you don’t need to negotiate. This way, you avoid arguing over price, which some say is the absolute worst part of buying a car.

However, a “no-haggle price” might not always be the best price, and you may still need to negotiate the loan.

Key takeaways

• No-haggle car buying lets you avoid stressful negotiating by getting a guaranteed price.
• No-haggle buying is convenient, but you might get a better price if you negotiate (and are good at it).
• No-haggle prices might not include taxes and fees.
• Even with no-haggle buying, you may need to negotiate your car loan terms.

What is no-haggle car buying?

Some dealer websites and other car sellers offer a no-haggle price, meaning they’re willing to sell the vehicle at that price on a first-come, first-served basis.

No-haggle options can be found at some dealers, brokers and online buying sites. For example, TrueCar, Costco Auto Program and AAA offer no-haggle prices, and you can also find no-haggle offers for used cars at Carvana and CarMax.

In some cases, you may have to make contact online or over the phone to get a no-haggle price quote.

Can you negotiate a no-haggle price?

By definition, a “no-haggle” price is not negotiated. The dealer or seller makes an offer, and the buyer accepts without any discussion.

No-haggle pricing can apply to new cars, used cars and even trade-ins, where you’re the one “selling” the car to the dealer.

But even if you don’t haggle over the car’s price, you may still have to discuss other costs. Many dealers may try to entice you with extended warranties or other add-ons. Likewise, the no-haggle price won’t include taxes or some dealer fees that you’ll also need to pay.

Pros and cons of no-haggle car buying

Before you decide on no-haggle car buying, consider the upsides and downsides of this method.

Pros

 Convenient: You can save a lot of time and energy by accepting a no-haggle price from a dealer and walking out with your car in a relatively short period of time.

 You may still get a good price: It costs money for a dealer to keep a car on its lot, and some will offer great no-haggle prices to sell vehicles more quickly.

 No surprises: With a no-haggle price, you don’t have to worry about what you’ll end up paying — just keep an eye out for any add-ons and extra fees.

Cons

 You might not get the best price: You might get a better deal from another dealer than you would from a no-haggle dealer if you’re a good negotiator.

 The dealership may still “upsell” you: While the price of the car itself may be no-haggle, the dealer might offer you extra products or services that could boost the total cost.

 You may still have to negotiate for the loan: If you’re financing your car through a dealership, you might still need to negotiate in order to work out the terms of your loan.

5 ways to buy a car without haggling

You have many ways to buy a car without haggling. Here are five of the most common:

No-haggle dealerships

A no-haggle dealership tells you the price at which it will sell particular vehicles. Usually, the prices are listed directly on the dealer’s website, though in some cases you may need to contact the dealership directly.

If you agree to the price, you can go in and pick up the car as early as the same day. But know that you may still need to negotiate your loan terms — unless you get your own auto loan. Also, the listed price probably won’t include taxes and fees.

Online car-buying sites

Online car-buying sites either have their own inventories of cars to sell or, more commonly, work directly with dealers.

You can often enter the details of the car you want at an online site and then get different quotes for the same car from competing dealers. This can be a great way to search for the best possible price instead of relying on a single dealer.

Car brokers

Car brokers aren’t technically a “no-haggle” option, but they can offer you a way to avoid negotiations.

With a car broker, you describe the type of car(s) you want and the price you are willing to pay, and they will look for matching offers. Some car brokers will even negotiate on your behalf, getting you the best price they can.

You’ll pay a fee for this service, generally a few hundred dollars, but in some cases, the savings could make it worthwhile.

Car-buying clubs

Car-buying clubs can use their collective buying power to secure good, no-haggle car prices for their members. These are usually institutions, like AAA or Costco, that use the power of their membership numbers to negotiate car prices directly with dealers or manufacturers.

Some banks or credit unions, such as PenFed, also offer negotiated car-buying services.

Just pay MSRP

If you’re determined not to haggle and aren’t so worried about price, you could always just offer to pay the manufacturer’s suggested retail price (MSRP).

Unless the particular car model is in very high demand, most dealers are willing to sell cars at the MSRP. But be aware that you’re unlikely to get a great deal if you use this method, since the MSRP is usually the starting point for negotiations to lower the price.

Is no-haggle car buying right for me?

No-haggle car buying is a good option for customers who don’t want to spend all day at a car dealership or don’t feel confident that they successfully negotiate a good price.

Car dealers know that buyers, particularly first-time buyers, can agree to a relatively high price, especially if they’re eager to close the deal. If you don’t feel comfortable with a sometimes long negotiating process, no-haggle car buying might be a great alternative.

You can get a good deal with no-haggle buying, so long as you take the time to research what a good price is for the car you want. Once you have a number in mind, you can compare no-haggle prices across different sellers, and even different vehicles, to find the best overall deal.