Bored at the dealership, Dealers going no haggle pricing????

Kinja'd!!! "Der Käfer" (Rhy)
06/22/2015 at 16:58 • Filed to: None

Kinja'd!!!1 Kinja'd!!! 21

In my area my dealer group is one of the last NEW car dealer that hasn’t gone the CarMax “No haggle price” route.. I try and understand that it makes the buying process “easy and quick” but how I see it is that it makes customers irritated and run to the next dealer to haggle themselves a deal.

We get a lot of customers saying “the other guys wouldn’t move a penny!”

IMO I love working deals with customers, it’s like a new challenge everytime... can I get Mr.Customer his Passat in his $400 budget...

Do you guys agree that its smarter that way?


DISCUSSION (21)


Kinja'd!!! Slant6 > Der Käfer
06/22/2015 at 17:01

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I like haggling. That’s the only reason I buy cars.


Kinja'd!!! KusabiSensei - Captain of the Toronto Maple Leafs > Der Käfer
06/22/2015 at 17:01

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It’s a better idea because otherwise you get cartel style pricing, which means less competition, and ultimately prices will continue to increase.


Kinja'd!!! nermal > Der Käfer
06/22/2015 at 17:03

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Give me a price and let me make a decision. Don’t play the walking back and forth to the manager game.

If you want to get your steps in on your FitBit, do it on your own time.


Kinja'd!!! mattc993 > Der Käfer
06/22/2015 at 17:04

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I have bought two new cars in the past three years.

Both were at “no-haggle” dealers. I paid well under the “no-haggle” price for both of them.

Maybe there are exceptions, but I feel like mostly it’s just a lead generation tactic, similar to the mailers you get that read “We have a very high demand for used 2009 Corollas! Someone has requested one with the exact spec of the one you own now! Trade it in for a great deal!”. It’s mostly just to get you in the door.

There is nearly *always* room for negotiation when you’re spending that much on something.


Kinja'd!!! Der Käfer > nermal
06/22/2015 at 17:05

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I am laughing so hard, so many guys here wear those hahahaha


Kinja'd!!! HammerheadFistpunch > Der Käfer
06/22/2015 at 17:07

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I don’t think haggling is the part consumers hate, its the “dealership vs me” stuff. I.e. If I could just talk to ONE person, who had the authority to deal with me from start to finish I think carbuying would’t be bad at all. No manager approval stuff, no Document guys. Just bob...the guy who took us out to see the car for the first time.


Kinja'd!!! Patrick Nichols > Slant6
06/22/2015 at 17:07

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How else would you get cars? steal them?


Kinja'd!!! Der Käfer > HammerheadFistpunch
06/22/2015 at 17:12

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Trust me I wish I could just start to finish my customers................


Kinja'd!!! HammerheadFistpunch > Der Käfer
06/22/2015 at 17:14

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I know it. Its part of what dissuaded me from doing car sales earlier in life. I don’t like the idea of tossing around a customer from one person to the next. Its systemic and not personal of course.


Kinja'd!!! TheVancen- In Pursuit of a Greater Payday and Car Parts > Der Käfer
06/22/2015 at 17:18

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Private sales are good enough for me. Can still haggle there and I’m mechanically competent enough to know what I’m getting into.

My father says when his Silverado buys the farm he’s getting an old completely mechanical pickup and refurbishing it to the point he can use it as his daily driver.


Kinja'd!!! Highlander-Datsuns are Forever > Der Käfer
06/22/2015 at 17:29

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1. I like to haggle, but I also like the Carmax format for USED cars. Our local toyota dealer went no haggle and I was willing to buy a used car there but it was about $2k high and they really are serious when they say no haggle (a guy has to try right?) so I walked and bought the same car new at a diferent dealer for about $3k more than the used one at the Toyota dealer that had 30k miles and was 3 years old.

2. I got a screaming deal on my Mazda 3 at carmax. It was way under priced, they must have totally low balled the person who sold it to them.


Kinja'd!!! BoxerFanatic, troublesome iconoclast. > Der Käfer
06/22/2015 at 17:34

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I have haggled in the past, and although it is do-able, it isn’t exactly fun, and it is prone to hyperbole and deception on the part of sales staff to try to take advantage.

I bought my most recent car at no-haggle, and it was comparatively painless, and the salesman was actually helpful, and there wasn’t an advantage for him to be confrontational, or less than forthcoming.

And frankly, I spent $5K less, right off the bat, than another identical car had as a price in the window, in the next city, that was sitting on a ‘traditional’ lot.

I am sure they probably over-estimate to be able to offer a small percentage of a discount, but they still try to work over the customer to get as much as possible.

I was condescended to, and subtly ridiculed by a Lexus dealer, when negotiating for a higher mileage used Subaru with visible body damage, when I produced documentation of the price I wanted to pay, and the value of my trade. It was not a blatant-language insult, but the sly insult was very real, and quite clear, and I walked away from that dealership PERMANENTLY. I won’t go back there again, no matter what they have on the lot. They felt the need to treat me like an idiot with unrealistic expectations, despite my preparation and research, on a vehicle that they should have been happy to see someone having interest in.

As a customer, I don’t like being worked over, and almost everything I buy, I am just fine with “here’s the price, buy or not buy, or go find a better deal, if you think you can.”

Frankly, customers are almost always at a dis-advantage in a negotiation, because most car buyers only buy a car every couple of years or so, and salesmen are paid to make sales, and make margins EVERY DAY. They are better at working you, than you are at working them.

No-haggle doesn’t mean no-compete, though. Non-haggle dealerships have to compete among other dealerships, especially in the age where information and data analytics like TrueCar, Edmunds, and other services are brought in to the negotiations on customers’ smart phones.

Those dealers have to compete on ways to shave expenses to keep profit margins, in order to keep customers full stop, rather than competing against the customer for the profit margin above their expenses.

I don’t negotiate for groceries, clothing, gasoline, or other finished goods... and I am fine not negotiating for cars, and cross-shopping instead.


Kinja'd!!! Der Käfer > Highlander-Datsuns are Forever
06/22/2015 at 17:38

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I’ve noticed that CarMax is hit or miss. Sometimes they have cars priced so right and other times theyre smoking the good shit, because the prices are nearly 5-6-7k over book.


Kinja'd!!! BoxerFanatic, troublesome iconoclast. > HammerheadFistpunch
06/22/2015 at 17:42

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I understand that the sales staff, especially the “greener” members, are not really the ones to be managing credit approvals and financing decisions.

I don’t mind dealing with a salesman to agree on the deal, and then a loan officer if necessary to arrange the financing, if necessary.

But yes, the “ask the manager” game is ridiculous.


Kinja'd!!! Tohru > Der Käfer
06/22/2015 at 17:45

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can I get Mr.Customer his Passat in his $400 budget...

“Okay, Mr. Customer, I talked to the finance guys and we were able to get approval and get in your budget for the Passat. It’s $349.52 a month for 96 months.”


Kinja'd!!! Steve in Manhattan > Der Käfer
06/22/2015 at 18:32

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A buddy of mine buys a few commercial vans a year. He decides what he wants (Chevys or Nissans) and emails all the dealerships that sell them - say 3 vans, same color, these options. He asks for their best price, tax and tags included. Most play the game, and he gets a decent deal.


Kinja'd!!! TheOnelectronic > Der Käfer
06/23/2015 at 01:01

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Not for me. I can’t stand confrontation of any kind, so no-haggle dealerships are wonderful. Also I'm terrible at it.


Kinja'd!!! Der Käfer > TheOnelectronic
06/23/2015 at 11:35

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I guess to each their own, I can see that.


Kinja'd!!! Der Käfer > Steve in Manhattan
06/23/2015 at 11:37

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I actually like those customer, we have a medical transport team that does that with our TDI wagons, they are all the exact same cars and specs and they just email us, we email back and they throw us a deposit until all the cars arrive. easy.


Kinja'd!!! Der Käfer > Tohru
06/23/2015 at 11:38

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hahahaha we don’t go out that far, currently 72 months is the max, but if the customer comes to us with their credit union that will allow that we will gladly do it! :)


Kinja'd!!! Tohru > Der Käfer
06/23/2015 at 12:53

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I would probably have to. Last time I checked my credit score, it was 7.