Why Used Car Price Haggling is a Thing of the Past

Why Used Car Price Haggling is a Thing of the Past

As a negotiation tactic, car price haggling has become a thing of the past with changing buyer behaviors. It is mainly due to the fact that haggling is uncomfortable and sometimes stressful. In this process, both the customer and salesperson attempt to seek advantage for making huge financial benefits. Customers look to extract the best value by purchasing a used car at the lowest possible price.

On the other hand, commissions paid to the sales person out of the profits in the sale process are factored into the same price of the vehicle. Hence, both of them try to argue over the price for reaching an acceptable agreement. However, the process sometimes becomes confrontational and awkward. As such, this age-old tradition is slowly fading away. Here are some reasons that make car price haggling a dying trend.

Rise of the Internet and Online Searches

Unlike older times, it is now a lot easier to know everything related to a vehicle on the internet. There are dependable online resources that provide effective car valuation services along with complete information needed by consumers. You can easily compare used car prices nationwide for the vehicles that you seek.

With a single tap on the mouse, you can find the entire inventory within a geographical area at your fingertips. As a result of this simplified procedure, car buyers are more informed than before. To leverage this resource, most car dealerships are also developing interactive and feature-rich websites that showcase their entire used car inventory with detailed specifications.

Changes in the Sales Commissions Paid

In the past, salespersons were paid through profit-driven commission. This commission was calculated as a percentage of profits earned on every vehicle sold by them. In the current context, dealerships are more inclined to introduce commission-free compensation packages to their salespeople. They prefer an annual salary with or without a specified bonus for every vehicle sold within a specific time. This method has diminished the requirement of haggling.

Rather, it emphasizes a goal-oriented sales process where the focus is laid on meeting the customer’s overall needs. Here again, online used car purchasing processes have largely affected the buying process. The entire procedure can be completed online. From financing to delivery, customers can easily monitor costs involved in each step. A new breed of well-trained and knowledgeable car consultants are available to educate buyers about the vehicle’s history, financing, competition and warranty.

Changing Buyer Behaviors

There has been a consistent increase in the number of buyers who prefer paying the asked price of a vehicle instead of haggling for the same. A majority of buyers find it to be an uncomfortable experience. Mostly, young buyers do not feel comfortable when they haggle on the price of a car. It is because they are better informed about the real value of the vehicle they seek.

In fact, most of them use their mobile devices to get a fair deal in the process. Hence, dealerships are also trying to respond to these behavioral changes with competitive and transparent pricing.

Due to these reasons, used car price haggling is losing its place in the car-buying process.