Are the days of negotiating new car prices coming to a end?
10-28-14, 07:23 AM
#46
Lexus Test Driver
What do you guys think about the idea, where on the dealers website you could do a 100% negotiation/purchase a car.
You submit your information: age/job/credit score/ etc based on the criteria you get the Price/Payments good only for this time. If you ready to proceed, you submit a credit app, and if any different from what you submitted during the negotiation, the Price/payments will change.
The app basically allows customers buy/lease 100%online. The application would be designed for people who already looked at multiple vehicles, went home to do research and when they ready to buy instead of wasting hours at the dealership negotiating, they are doing it online at home. Not a substitution to the dealership but an additional tool.
Based on some criteria's: credit history, down payment, salary, age etc... the program will negotiate a price/payments.
IMO it would be great.
You submit your information: age/job/credit score/ etc based on the criteria you get the Price/Payments good only for this time. If you ready to proceed, you submit a credit app, and if any different from what you submitted during the negotiation, the Price/payments will change.
The app basically allows customers buy/lease 100%online. The application would be designed for people who already looked at multiple vehicles, went home to do research and when they ready to buy instead of wasting hours at the dealership negotiating, they are doing it online at home. Not a substitution to the dealership but an additional tool.
Based on some criteria's: credit history, down payment, salary, age etc... the program will negotiate a price/payments.
IMO it would be great.
10-28-14, 08:08 AM
#48
Part of my Lexus tour was to the first dealer in Japan and to the L-select studio. I was shocked to see there wasn't any inventory there, just one of each car to view in what seems more like an art gallery than a dealership. It was TINY compared to the ones here in the states.
The guys at Lexus told me to ask him about inventory so I did…and the Manager there replied "we don't keep inventory, we don't' negotiate price, people come in, we help them with their order and the price we have is the price paid". Well clearly this is COMPLETELY different than here. Its part of the culture there and making a person's life easier, more luxurious, more welcoming.
Even with my relationships with Lexus and a few dealers in recently helping purchase a 2014 RX for the folks it was not very pleasurable to me. I kept feeling like I was being talked to like it was my first car and I didm' know anything. Sadly I actually got a little cross with one salesman who just didn't get it and it was frustrating and I'll never deal with them again (I specifically TOLD them NOT to go to this dealership in the first place). On the other hand dealing with Hennessy Lexus of Gwinnett is usually a pretty relaxed, care-free awesome purchase experience.
That said anything like Japan would mean a loss of what hundreds of thousands of jobs here and I'd rather be pissed off every couple of years than to see more people lose their jobs.
I question the purpose of a salesperson if there is no room to haggle. What do they do exactly then? If I can't haggle then let me fill out my own paperwork and get my car. So a more streamlined process will mean to me less sales jobs and maybe more to the technology side and other areas.
Its happening to service, the cars are getting so trouble free it means less hours for service guys, less money, less jobs. The cars are too good!
The guys at Lexus told me to ask him about inventory so I did…and the Manager there replied "we don't keep inventory, we don't' negotiate price, people come in, we help them with their order and the price we have is the price paid". Well clearly this is COMPLETELY different than here. Its part of the culture there and making a person's life easier, more luxurious, more welcoming.
Even with my relationships with Lexus and a few dealers in recently helping purchase a 2014 RX for the folks it was not very pleasurable to me. I kept feeling like I was being talked to like it was my first car and I didm' know anything. Sadly I actually got a little cross with one salesman who just didn't get it and it was frustrating and I'll never deal with them again (I specifically TOLD them NOT to go to this dealership in the first place). On the other hand dealing with Hennessy Lexus of Gwinnett is usually a pretty relaxed, care-free awesome purchase experience.
That said anything like Japan would mean a loss of what hundreds of thousands of jobs here and I'd rather be pissed off every couple of years than to see more people lose their jobs.
I question the purpose of a salesperson if there is no room to haggle. What do they do exactly then? If I can't haggle then let me fill out my own paperwork and get my car. So a more streamlined process will mean to me less sales jobs and maybe more to the technology side and other areas.
Its happening to service, the cars are getting so trouble free it means less hours for service guys, less money, less jobs. The cars are too good!
10-28-14, 08:10 AM
#49
What do you guys think about the idea, where on the dealers website you could do a 100% negotiation/purchase a car.
You submit your information: age/job/credit score/ etc based on the criteria you get the Price/Payments good only for this time. If you ready to proceed, you submit a credit app, and if any different from what you submitted during the negotiation, the Price/payments will change.
The app basically allows customers buy/lease 100%online. The application would be designed for people who already looked at multiple vehicles, went home to do research and when they ready to buy instead of wasting hours at the dealership negotiating, they are doing it online at home. Not a substitution to the dealership but an additional tool.
Based on some criteria's: credit history, down payment, salary, age etc... the program will negotiate a price/payments.
IMO it would be great.
You submit your information: age/job/credit score/ etc based on the criteria you get the Price/Payments good only for this time. If you ready to proceed, you submit a credit app, and if any different from what you submitted during the negotiation, the Price/payments will change.
The app basically allows customers buy/lease 100%online. The application would be designed for people who already looked at multiple vehicles, went home to do research and when they ready to buy instead of wasting hours at the dealership negotiating, they are doing it online at home. Not a substitution to the dealership but an additional tool.
Based on some criteria's: credit history, down payment, salary, age etc... the program will negotiate a price/payments.
IMO it would be great.
10-28-14, 08:20 AM
#51
Lexus Test Driver
You still have the option not to buy online and go to the dealership and spend 6 hours negotiating.
The point I was trying to make, its not necessary that the program bases the payments/price based on the customer criteria it also randomly gives out deals based on the dealer criteria, specific car, how many sales etc.. One person may get a good deal just because.
If you think about one does gets better price than the other based on their negotiation skills, UNFAIR too?
Last edited by FastTags; 10-28-14 at 08:33 AM.
10-28-14, 08:22 AM
#52
Lexus Test Driver
Its an option, so you could still go to the dealer and have fun if you like. Some of us do not enjoy this, I am very good at negotiating but I hate killing my time at the dealer
10-28-14, 08:30 AM
#53
Lexus Champion
+1, these days I usually end up haggling thru email which is a lot less stressful and time saving for both parties (altho I did actually go into a dealer recently just to test drive and did negotiate a little...but it was a 'casual' negotiation...I wasn't too serious).
10-28-14, 08:53 AM
#54
Lexus Fanatic
At many dealerships, those days came to an end some time ago. That's why more and more shops now have no-haggle Internet discounts...plus maybe a choice between that and a slightly higher price for some service and benefits included.
10-28-14, 10:36 AM
#55
Lexus Champion
Why not? Since it less chance of Repo, the bank rewards those. Seems only fair to me. Also, even with a worse credit you can still get a better pricing with a larger down payment.
You still have the option not to buy online and go to the dealership and spend 6 hours negotiating.
The point I was trying to make, its not necessary that the program bases the payments/price based on the customer criteria it also randomly gives out deals based on the dealer criteria, specific car, how many sales etc.. One person may get a good deal just because.
If you think about one does gets better price than the other based on their negotiation skills, UNFAIR too?
You still have the option not to buy online and go to the dealership and spend 6 hours negotiating.
The point I was trying to make, its not necessary that the program bases the payments/price based on the customer criteria it also randomly gives out deals based on the dealer criteria, specific car, how many sales etc.. One person may get a good deal just because.
If you think about one does gets better price than the other based on their negotiation skills, UNFAIR too?
You can't say, on the one hand, that it's unfair to reward the negotiator, who has worked hard to get a better price; and yet, on the other hand, it's totally fair to give a price break to someone who can't afford it. Either everyone pays the same price, or they don't. If they don't, someone has to be rewarded.
10-28-14, 10:41 AM
#56
But then if you are like a certain friend of mine, you will make buddies with the ones you actually negotiate the most with.
10-28-14, 10:42 AM
#57
Lexus Champion
I do think there's a value in the "no-haggle" pricing model, but unless it's done at the brand level, like Saturn, I don't see it working--at least not in a major metro area where there are multiple dealers to choose from.
10-28-14, 10:45 AM
#58
Lexus Champion
A lot of those "no-haggle" prices are psychological. I got a new car for my wife 2 years ago, and looked at a Toyota Highlander. I called a dealer about 1 hour from me, and they had a new "no-haggle" policy, which they claimed their customers "really responded well to." That was the highest quote I had on a Highlander out of 10 dealers.
10-28-14, 11:16 AM
#59
Instructor
This is the most important point in this whole thread. You can always get a better deal on a new car that is at the end of its product cycle or at the end of the model year, etc.. Good luck in negotiating a better deal on that new RC-F that will be in HIGH demand :
One other point before I go back into hiding, you will never get the best price over the phone or in email. They aren't going to give you something that you can take to another dealer and use against them. There is so much information available on the internet now that you can get an idea of what a "good" price is before you even set foot in the dealership but you really need to go there to show them that you are ready to buy if they are ready to deal.
It probably works a little different for pre-owned cars but I don't have any experience in that.
10-28-14, 11:25 AM
#60
Lexus Test Driver
A lot of those "no-haggle" prices are psychological. I got a new car for my wife 2 years ago, and looked at a Toyota Highlander. I called a dealer about 1 hour from me, and they had a new "no-haggle" policy, which they claimed their customers "really responded well to." That was the highest quote I had on a Highlander out of 10 dealers.
I am not talking about "no-haggle pricing", I am talking about a sophisticated computerized negotiation program that provides real time quotes using algorithms based on many factors criteria.