PhilipMSPT

iTrader: (5)

Ahhh...

The joys of negotiations.

We've all experienced some of it: the trouble of e-mailing and calling various salesmen, internet sleuthing on regional prices and allocations, back-and-forth "Let me check with my Manager" tug-o-war pricing, walking away to see if the salesman tries to run after you, and general banter for your business. It's like playing Poker with your salesman: the price I have in hand is better than what you have. Who's going to fold?

Since most consumers are now aware of the car buying process and pricing, it seems that the negotiation process is slowly becoming arcane and ineffective. Can't a business be more profitable if they are more direct and honest about pricing, and make sales quicker and more streamlined? Can't we stop penalizing "suckers" by letting them pay full retail price on a car that isn't in demand?

When it comes down to it, shouldn't people pay for cars based on the car's worth, not a person's negotiation skills?


DISCUSS.


P.S. This does not pertain to negotiating financing or trade-in. This discussion is purely about the car's sale price.

Hoovey689

iTrader: (16)

While our dealers New Car department will negotiate. Our Used Car department is a "one price" store. We take a look at the market and price just below the lowest.

Joeb427

iTrader: (1)

Well the invoice number is a lot closer to the list price now because people want to buy at invoice.
Auto manufacturer to dealer discounts are hidden now.So invoice isn't really invoice.

pbm317

"One Price" is coming to the automotive sales world, there are a growing number of dealerships across the country that are doing this for new cars as well. I've also seen some dealers where the "salesperson" also takes you all the way through Finance/Insurance, eliminating the feeling of a hand-off and having to deal with a brand new person halfway through the sales process.

Progressive dealers will move to this faster in the name of customer service and possibly better forecasting of business results. There will always be laggards, especially in the independent franchise business model that exists today.

doge

I'll stop negotiating once they stop marking up prices. e.g the new RRS

Joeb427

iTrader: (1)

Saturn didn't have haggling but if trading in a vehicle,you could put up one Saturn dealer to another on trade in number.

whoster

Going through this process right now....and I'm not sure where I stand.

On one hand; the idea of a quick, easy transaction is quite appealing.
But, if there are better deals to be had by doing the dance, why not give it a shot?

I think to some extent it's because I'm a "car guy" and actively participate on forums like this where the results of pricing negotiations are readily available. Even for non-"car people", Edmunds, TrueCar, Costco (insert car-purchase service here), make it easier to research prices the other consumers are paying.

I'm in the midst of helping out a non-car-person friend replace an aging car, and I know for a fact that my friend would rather go through something like an Edmunds/Costco/TrueCar program and get a decent deal through a relatively painless process rather than doing the New-Car-Purchase Tango.

I'd say for a large proportion of consumers, it absolutely makes more sense for dealers to have more transparent pricing. It's not like we're NOT going to buy cars, why not make the process a whole lot easier and increase customer satisfaction?

LexFather

Part of my Lexus tour was to the first dealer in Japan and to the L-select studio. I was shocked to see there wasn't any inventory there, just one of each car to view in what seems more like an art gallery than a dealership. It was TINY compared to the ones here in the states.

The guys at Lexus told me to ask him about inventory so I did…and the Manager there replied "we don't keep inventory, we don't' negotiate price, people come in, we help them with their order and the price we have is the price paid". Well clearly this is COMPLETELY different than here. Its part of the culture there and making a person's life easier, more luxurious, more welcoming.

Even with my relationships with Lexus and a few dealers in recently helping purchase a 2014 RX for the folks it was not very pleasurable to me. I kept feeling like I was being talked to like it was my first car and I didm' know anything. Sadly I actually got a little cross with one salesman who just didn't get it and it was frustrating and I'll never deal with them again (I specifically TOLD them NOT to go to this dealership in the first place). On the other hand dealing with Hennessy Lexus of Gwinnett is usually a pretty relaxed, care-free awesome purchase experience.

That said anything like Japan would mean a loss of what hundreds of thousands of jobs here and I'd rather be pissed off every couple of years than to see more people lose their jobs.

I question the purpose of a salesperson if there is no room to haggle. What do they do exactly then? If I can't haggle then let me fill out my own paperwork and get my car. So a more streamlined process will mean to me less sales jobs and maybe more to the technology side and other areas.

Its happening to service, the cars are getting so trouble free it means less hours for service guys, less money, less jobs. The cars are too good!

grabber2

I hate the part that we have to negotiate. Just tell me the MSRP, available discount and give me a final price!!

Now I go to one of the leasing dealer and ask them to negotiate a price for me. It wasn't the lowest, but surely lower than the dealership where you spent 3~4 hour on negotiation.

The negotiation factor created many dishonest and liar to the society. Sales lost their dignity just because they want to make a sale for the $$.

stlgrym3

iTrader: (4)

it all depend on supplies and demand. if you're not in rush, then you should take sweet 'ol time, treat dealers like hangout places during your convenient time, don't stress out by stay in the same place. if you're in rush, then i would go through Edmund.com, email internet sales team of the dealers you select and communicate with whoever reply via email, this was how i negotiated for my current Lexus, from the time i submitted the request to signing the deal, only took 3 days.

Hoovey689

iTrader: (16)

Part of buying a Luxury product; getting what you want, individualism and customization. Once again US market gets the shaft in this regard

tmf2004

iTrader: (15)

If only this were true in the states. It would make car buying much more pleasant.. Unfortunately us Americans are always looking for the better "deal" and its not just cars i'm talking about.. Its everything around us. Seems like we were programmed from day one to not pay full price for anything... I don't know about you but everything i buy i feel like i'm being ripped off.

SW17LS

I'm helping a friend lease a new X5...I don't have a problem negotiating...it's people being just straight crooked that bugs me. She's forwarding my email breakdowns to the salesman and his responses are UNBELIEVABLE.

tex2670

I think this is a LONG way away. I was in the market for a cross over in 2012, and looked at the Toyota Highlander. I contacted 9 or 10 different dealers, including one in Easton PA. The internet sales person told me that the dealer had recently gone to a no-haggle policy. Then she quoted me the "no haggle" price--it was the highest quote of any of the dealers I contacted. But it must have been working for them, right?

Now--maybe they can get away with it because the next closest dealer is 15 miles away from Easton, whereas, here in the Philly area, I have 3 Toyota dealers in a 10 mile radius of my house, and at least twice that if I go out another 10 miles.

And I also have spoken with highly-educated acquaintances, including some in the field of finance, who still shop for cars the old-fashioned way--physically going into the dealer. And when I told them I request internet price quotes, they were amazed you can do that.

So, in my mind, I don't see there being a major shift in the way car dealers do business. Saturn got away with the no-haggle policy because it was company wide. You could not go to another dealer and get a better deal. So, maybe it works in small markets where there is not significant competition--but, in my limited experience, the customer gets the shaft on the "no-haggle" pricing. I think there are still too many people out there that hate the process so much that if they walk into the closest dealer to them, and are made to "feel" like they got a good deal, they will sign on the dotted line any day of the week, and the "no-haggle" price policy is just the kind of gimmick to accomplish that.

tex2670

Again, the Costco and AAA prices are usually good, but when I went through this 2 years ago, those prices still have room to come down. But if Costco customers "feel" that their membership is getting them a good deal, I'll bet most of them don't even shop that number around or try and bring it down further, other than shooting for floor mats to be "thrown in".