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December 18, 2007

Haggle-free car buying

Bargaining over the price of a car or truck is almost as American as baseball and apple pie. But more and more vehicle dealers are moving away from haggling to a set price. Many people think give and take over a car price is actually kind of fun. Why the change? Listen

Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:

"Well, the issue here is that those people who like to haggle are becoming the minority. Surveys show that the majority of people would actually rather have a haggle-free price, a set price when they go to buy a car. This is even more the case for women, and women now buy over half the vehicles sold. Young buyers, so called gen-x and gen-y buyers, also; surveys showed they don't want to spend their time haggling. They have better things to do with their time. And another final factor is the Internet. The Internet has shifted the negotiating power more to the consumer, and so the consumer can come into a dealership and have a lot more information. So there is not as much haggle room.

"So what this means is that many dealers are going to a haggle-free price. They actually have found they can save money on personnel and on advertising. So if you want to make a deal for a car, you still can, but the number of dealerships that are going to do that is falling."

Posted by Dave at December 18, 2007 08:00 AM