No Haggle Car Buying: Everything You Need To Know
Image by Gerd Altmann from Pixabay
Getting a new car can be exciting, but there’s a lot about the process that people don’t enjoy. One of the biggest reasons a lot of people don’t like buying a new car is the haggling and the uncertainty of whether they got a good price on their vehicle.
If you don’t haggle with a car salesperson it can feel like you’re getting swindled, especially if you know someone who got the same vehicle for less.
That’s where no-haggle car buying comes in. Buying from a retailer that offers no-haggle car buying can give you some assurance that you’re getting a good price, without the hassle and uncertainty of haggling.
Even though no-haggle car buying can be a lot easier and feel better than buying a vehicle you have to haggle for, it’s not all upside, there are pros and cons to both types of car buying.
Here’s what you need to know about no-haggle car buying, how it works, and whether you’re actually going to get a good deal.
Where No Haggle Car Buying Got Started
If you’re going to buy a no-haggle car it’s probably worth knowing how the practice got started.
For a long time, car sales were based, in part, on the negotiating skill of the salesperson. They would try to upsell car owners on additional features, package upgrades, and all for the best possible price for them (which usually meant more than those features were really worth).
The reason people put up with the salesperson price hike was because if they were good at negotiating and good at the haggling game, they could get a better price for more features. You could, if you were lucky, even get a car for less than it was worth.
Or, at least, people thought you could.
However, because haggling was so unpopular, GM decided to release a line of vehicles that no one had to negotiate for. Set-point pricing or no-haggle pricing was first introduced for Saturn and continued being standard practice for Saturn until they stopped being made.
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What No Haggle Car Buying Means For You
No-Haggle car buying means, in the most basic terms, that the advertised price is the price you’re going to pay. If you ask for an upgrade or an add-on, there will be a pre-determined price for that too.
That can be a good thing, it’s one less thing to worry about and means you don’t have to stress about buying your vehicle if you don’t like negotiating.
However, on average, the prices for no-haggle cars are higher than the prices for vehicles you do haggle for.
In some cases, the advertised price on a no-haggle vehicle may be higher than the advertised price on vehicles you will haggle for, which means that you’re paying more even if you don’t really haggle on the car that allows it.
Can You Haggle Or Price Compare A No Haggle Vehicle?
If you want to go to a no-haggle dealership, can you use price comparison or other opportunities to haggle?
Well, no, you really can’t. The thing is that no-haggle dealerships mean it. No-haggle cars are the price that’s listed, plus the additional price or discounts depending on the features you do and don’t want.
If you try to haggle on a no-haggle vehicle you’ll be told what the price is, and that the salesperson can’t change the price. Even if you have a cheaper price available to price compare, they probably won’t be able to make an exception.
Even the dealership manager may not be able to offer discounts, depending on whether they own the dealership or have pricing authority from the owners.
If you continue trying to haggle or bring the price down for different parts of the deal, you may even be asked to leave the dealership.
For dealerships that offer some no-haggle vehicles and some vehicles you can haggle on, you may be directed toward a vehicle that you can haggle for.
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Does No-Haggle Mean No Negotiation?
No. Going to a no-haggle dealership, or getting a no-haggle car, doesn’t necessarily mean you won’t have to negotiate your deal.
In fact, for most vehicles, you’ll need to negotiate basically everything but the base price of the vehicle. Maybe you won’t negotiate the price for a better trim level or additional features, those are often set, but you’ll need to negotiate which features or trim level you want.
Even details like the color of the vehicle and the length of the warranty may need to be negotiated. Many salespeople will still look for opportunities to negotiate, not necessarily because they want to swindle you, but instead because they want both to make sure you’re getting the right car for you, and because they want to get a good review from you and from their manager.
Unfortunately, the truth is that some salespeople will be looking to con you into paying more than you want to or getting features you don’t need. By going to a no-haggle dealership, or opting for a no-haggle vehicle, you might signal to those salespeople that you’re an easy mark.
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Which Is Better, No Haggle Car Buying Or Haggling?
At the end of the day, it depends on the person whether haggling is a good option. Haggling can still get you a better deal on your vehicle, cutting into the dealership’s profit margins and securing a better deal for you, either because of a lower price or a more favorable loan.
However, no-haggle car buying can often be faster, and you already know whether you have the budget for the vehicle you want to buy. It’s a little less complicated and designed to make car buying more accessible to more people.
Plus, you don’t have to worry about getting a worse deal because of a bias from the salesperson, or because of your gender or race.
At the same time, getting a vehicle you do have to haggle for can often mean you can get features or perks that you can’t get from a no-haggle vehicle. Sometimes dealerships can throw in additional features or perks through an on-site or contracted mechanic to help sweeten the pot.
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