Why Some Car Dealers are Firm on Their Prices?
A lot of people expect to haggle when they’re car shopping, especially with used car dealers. There was a time when it was just the way things were done. For some people, the idea of negotiating the price of a used car makes them feel tense, nervous, even stressed out. They may feel they don’t know enough about the process, or it just might not be part of their personality to haggle. Other people might relish the idea of going head-to-head with a used car salesperson to get the best deal possible. Whatever your personal preference may be when it comes to price negotiation, it’s important to understand how nowadays more and more used car dealers are adopting the newer model of “firm prices,” which means there will be no negotiation process. Why is this newer way of selling used cars becoming increasingly widespread?
One reason is that going with firm prices or a haggle-free approach to pricing is simply more user friendly. First, there’s that whole group of car-buyers mentioned above who really don’t like the negotiation process. It makes them feel uncomfortable. Sure, there are those people who actually like to haggle, but there’s probably many more who don’t like it. So why sell cars in a way that automatically turns off a huge group of potential customers?
Some used car dealers have realized that it doesn’t make sense to sell cars in a way that pits consumers against salespeople. Doing it that way makes the whole process feel greedy, negative, and competitive, which is why so many car shoppers find it distasteful. Wouldn’t it be better to sell cars in a way that gets customers and salespeople working together to find the right car? When a salesperson doesn’t have to worry about the whole negotiation process, it takes away a lot of the pressure, giving them the headspace they need to really hone in on customer needs. And shouldn’t that be the focus of the car shopping experience? After all, this is one of the most important purchases anyone makes, so the process should be one that works well for both parties as opposed to one that causes a lot of stress and wastes a lot of time.
Speaking of time, another reason firm pricing works so well is that it forces the dealership to give each car on their lot a really competitive price up-front so they can get the car sold quicker. Rather than spending a lot of time trying to negotiate the highest price possible on each vehicle with every potential buyer, dealers price the vehicles to move quickly, thereby increasing the volume of vehicles sold rather than maximizing the price of each vehicle. This makes the entire process much more of a win-win for both customers and dealers.
A firm pricing model also makes the entire process much fairer, when you think about it. Because the price is not up for grabs, dealers can focus in on treating all customers with same level of respect everyone deserves. Haggling can bring out the worst in people, and it’s just better not to go there at all.
Yet another reason has to do with life in the age of the Internet. Most people start their car search online, and it’s really easy for them to see which dealers have competitive prices and which ones are higher than they should be. Smart dealers use firm pricing that’s low to begin with and post those great prices online for the whole world to see.
And for the people who think you have to haggle in order to get a great deal, it’s time to realize how a firm pricing approach that assigns vehicles a competitive price up-front means you are getting a great deal – and with fewer headaches and less stress for everyone!
If you are on the market for a used car in El Cajon or greater San Diego area and appreciate the “no haggle” approach, consider Auto City as a place to start. Here is how we price our cars: Auto City Advantage of Perfect Pricing.