"No Haggle" Dealers
Also known as "One Price" or "no negotiation"
dealerships, "No Haggle" dealers have sprung up nationwide in the last five years or so. They are designed
to play on the consumer's dislike of negotiation when buying a car, promising the same price for any given vehicle
to all buyers. Generally, the price will be marked right on the car, saving the consumer the hassle of asking for,
or, in some cases, needing to demand a price. The most obvious example of this is Saturn, where all dealers are
"no haggle," but in most major metropolitan areas you will generally be able to find several "one
In a Saturn dealership, there not only does everyone pay the same price, there is no price concession. Everyone
pays the same price, which just happens to be full sticker. If you insist on some sort of price negotiation when
you buy a car, there is no sense even visiting a Saturn dealership.
In a "normal" dealership (whatever that may be!) gross profit goals (the selling price of the car less
dealer cost) are established for the new car department. For example the goal may be an average gross profit of
$1200 per new vehicle sold. The key word here is average, meaning that to achieve the $1200 goal, it is likely
that some cars will be sold at, say, a $400 profit and some will be sold at a $2000 profit. (Note: the educated
and informed buyer generally pays the $400 profit and the "unaware" buyer pays the $2000 profit.) In
this fictional 2 car example, the total gross profit would be $2400 ($400 + $2000) and with 2 cars sold, the average
gross profit would be the $1200 goal ($2400 divided by 2 cars sold).
In a "No Haggle" dealership the same type of gross profit goal is established. Using the $1200 per car
example, all vehicles of a certain type would carry a $1200 profit. Instead of negotiating prices one at a time,
all cars would be priced at the same "no haggle" price--a $1200 profit to the dealer. Buyer A (educated)
and Buyer B (unaware) would both pay the same price for the car. Obviously, this is a big boost to Buyer B (they
get the car for $800 less than they might at a "normal" dealership), but not good for Buyer A (they would
have to pay $800 more).
Is this type of dealership right for you? It depends. If you shudder at the idea of any form of negotiation, or
if you do not want to secure price quotes for yourself, it is a relatively simple way of doing business. If you
feel that you can do better by getting price quotes and doing comparisons (you can use the form to the left), "no
haggle" dealerships will probably not meet your needs.
If you want to simplify the process even further, you can consider a source such as CarsDirect,
where you can compare cars, get a discounted price and buy the vehicle, all online. Click here for more information.