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To Haggle or Not to Haggle? That is the Question for Car Dealers Today

Published Oct 26th 2007, 9:04pm by Jody DeVere in Featured Articles

Women_with_keys One Price - No Haggle may be coming to a showroom near you as the Web makes prices more transparent and dealers try to cater to women and Gen Y drivers Business Week magazine writes in its current issue, . It's one of the enduring oddities of American retailing: car dealers haggling over price with their customers.

A major car dealer chain of stores headquartered in Oregon has announced a major change in how they will sell cars. They plan to turn all of their 108 stores over the next three years to 'One Price - No Haggle' on all vehicles. This has caused quite a bit of controversy in the car dealer world as most dealers still consider fixed prices heresy. Competition is stiff and one price car dealers have often changed back after stiff competition from dealers across town. Consumers often take this 'one price' and ask the dealership across town to beat it, and many car salespersons will do it to get the sale. On average, no-haggle dealers are getting more money for cars than dealers that allow price negotiation. How much more? Usually $500 to $600, sometimes as much as $1,000.

Super Stores CarMax, Auto Nation, Scion dealers and a smattering of other dealerships across the U.S. have adopted this strategy with mixed results. Will other follow suit with negotiation-free selling? Did you know that the average car sale consumes 4 1/2 hours of haggling? Who has time for that?

One-price shopping does save time but will it save you money? Is one price no haggle pricing what women want from dealerships?

The fall is one of the best times of year to get the best deal on 2007 makes and models in stock at dealerships as the 2008 models move onto dealer showrooms. If you are planning to shop soon for a new car or truck does your homework before you go to the dealership one price or not!

A new car is second only to a home as the most expensive purchase many consumers make. According to the National Automobile Dealers Association, the average price of a new car sold in the United States as of June 2006 was $28451. That's why it's important to have all your ducks in order before you shop.

Here are three tips to help you get started on getting the best deal on your new car:

1. Know your credit score and get prequalified for your car financing before you go to the dealership, the dealer may offer a better interest rate once you’re ready to buy, but you need to know this in advance to negotiate the best financing deal along with the price of your new car and your trade-in. Often you hear about dealers offering zero % financing deals, you will need to have excellent credit to qualify so it is always best to know in advance what your credit rating is.

2. Get the value of your trade-in in advance by visiting NADA Guides:

3. Research for the best price on the internet on one of the many car shopping sites that show dealer invoice and MSRP. Use this as starting points as at the end of the month dealerships need to move inventory and will sharpen their pencils to give you even a better deal. Know what incentives the factory may be offering on that car.

These tips will help you to save you time AND money!







Jody DeVere




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