| In 1990, General Motors capitalized on | | | | more because you have poor negotiating |
| consumer's intense dislike of the auto | | | | skills, you will also not save $1000 if you |
| purchasing process and introduced the Saturn. | | | | have good ones. |
| Saturns were, and are still, sold at a flat | | | | |
| price with no dickering, dealing or haggling. | | | | There are certain people who historically do |
| Today, almost 25% of car buyers purchase | | | | benefit from purchasing cars from no-haggle |
| vehicles from flat price, or no-haggle, | | | | dealerships. Young adults, women and |
| dealerships. But are they truly saving money? | | | | minorities in particular, have historically |
| | | | paid higher prices than other groups at |
| At no-haggle dealerships, cars are priced at | | | | regular auto dealerships and may benefit from |
| a flat rate that typically includes a | | | | no-haggle pricing. In fact, reacting to the |
| standard options package and a built in | | | | trend of more and more young people turning |
| profit for the dealer. Additional options may | | | | to no-haggle dealerships for their automobile |
| be sold in flat-rate packages or a la carte. | | | | purchases, Toyota introduced the Scion in |
| At regular dealerships, cars are displayed | | | | 2003. The Scion is a small car that comes |
| with a Manufacturer's Suggested Retail Price | | | | with trendy options packages and is priced |
| but everything including options, warranty, | | | | and marketed directly at young people who |
| financing and dealer profit is negotiable. | | | | don't want to negotiate to purchase their |
| | | | car. |
| Research has shown that educated consumers | | | | |
| pay much less for cars at regular dealerships | | | | Therefore, if you are willing to do the |
| than at no-haggle dealerships. This is | | | | research and confident in your negotiation |
| because regular dealers set average profit | | | | skills, you will almost certainly save money |
| goals over time. For example, if they sell | | | | at a regular dealership unless you want a |
| five cars, the average profit per car should | | | | Saturn or Scion. Then you'll have to pay the |
| be a certain amount, say $1,000. That means | | | | same price as everyone else. However, if |
| of those five cars, three could sell for | | | | you're timid, too busy to research or spend |
| $1000 profit, but the dealer could make $2000 | | | | time making a deal, or in one of the groups |
| and $0 profit on the remaining two cars and | | | | that historically are offered worse deals, |
| still hit their goal. At a no-haggle | | | | you may be better off at a no-haggle |
| dealership, the profit goal is fixed per car, | | | | dealership. |
| meaning that while you will not pay $1000 | | | | |