While only a minority of dealers currently employ a no-haggle system, many have found their profits actually increase after switching.
Sonic Automotive, one of the largest dealership groups in the U.S. will be introducing a no-haggle sales policy for their 100+ dealerships over the next few years. Others are sure to follow.
No-haggle dealerships are obvioulsy attractive for car buyers who hate negotiating, but do they offer better prices?
The short answer is Yes and No. It all depends on the dealership.
There is no common pricing system among no-haggle dealerships. Some price their cars as low as they can bear while others factor in a comfortable profit.
Some no-haggle dealers will not budge whatsoever on price, while others will go lower if presented with a better offer from another dealer.
A big problem for consumers who purchase at no-haggle dealerships is that they may get ripped off on the back-end process after the sale of the vehicle.
Many car shoppers assume that if a dealer is upfront with the price of the car, they will be upfront with all other aspects - which simply isn't true.
No-haggle dealerships that sell cars in large volumes usually do offer good prices, but we would never recommend you choose a dealership solely on the fact they offer no-haggle prices.
My recommendation is to use my step-by-step Car Buying Process to get the best deal. It doesn't matter if the dealer is no-haggle or not, as long as you end up with the best price.