I’m talking about value to the salesman, not the buyer. People with a bankruptcy or other problems in their credit histories have difficulty getting financing through traditional banks/credit unions. A good finance manager can often find financing through institutions that are willing to accept higher risk for a higher return.
Wouldn’t the internet change things? People can shop around more easily; Call 5 places selling the car you want, go to the dealership and refuse anything above what they told you over the phone. Not happy with the price? Go to the next one.
I don’t get the hate for the whole haggling aspect. Figure out the price you want, and stick with it. Use the word ”no” liberally. I’ve known people who bought the same model car at the same dealership. One spent six hours, the other spent 90 minutes. The difference was one was a pushover and one knew how to put her foot down.
I think ideally this is the best way to do it these days, but the only problem is that most dealers are very reluctant to give you a straightforward out-the-door price over the phone or e-mail. It’s also easy to say “I’m walking out the door if you charge anything more than you told me” but once you’re in the door it’s hard to say you’re going to start the whole process over for a few bucks here and there, especially if the next dealer might be 10’s to 100’s of miles away.
Let’s suppose I am “a pushover” or simply don’t like hostile and uncomfortable social situations. Why should I have to pay hundreds to thousands of dollars more for a car? I get dickering over a used car where there’s all sorts of variables and you’re making a somewhat subjective assertion of value, but a new car is a 100% known commodity. The sole purpose of haggling in that situation is to soak more money out of people who don’t like haggling.
True, but many Americans have no option but car ownership. Paying cash for a car is an option available to few, and public transportation is often an unavailable alternative.
Some of the power of the internet would be the customers communicating, though. I’m pretty sure I’ve heard about sites out there that are beginning to compile lists of what people are paying for cars.
Previously, I had no idea what other people were paying for cars, but if I know that a particular car/option package is going for about $27K in my area, my negotiating ability becomes somewhat less important.
I have bought in and out of the US and much prefer the model where you pick cars to try based on size and price, go to the different dealerships and get one.
I got 3 Honda dealerships to bid against each other by traveling to all 3, getting their bids, and then getting the one closest to me honor the lowest price of the 3.