Is it Smart to Buy From a No-Haggle Dealership?
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.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid