why did the set price car dealerships

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not succeed. one of the aspect of car buying i dislike is the negotation part. i would have no issue paying msrp if i knew everyone else was. no need to negotiate. i know its been tried in the past, but none have succeeded .

Why?
 
Originally Posted by e55amgbenz007
This is unintelligible.


why did the set price car dealerships not succeed.

You know, like Saturn.
 
Originally Posted by WhyMe
i know its been tried in the past, but none have succeeded .
Why?

Porsche and Ferrari sell at msrp all day long.
But unless every dealership does it for "common" cars, no one can fo it for long. Consumers expect a huge discount. Caused by the car industry itself.
Saturn is one that tried it. They failed as their products were not competitive.
 
Originally Posted by e55amgbenz007
This is unintelligible.

Absolutely.
crackmeup2.gif





Why don't they have set prices at the dealership?

No haggle pricing seems to have been an unsuccessful campaign, which is unfortunate. I personally dislike the negotiations portion of he car buying transaction. I'd rather just get bent over at full price.......I'd also like everyone else to do so as well. Can't we all just get bent over at the same time and dislike or possibly like it in the same fashion? What do you guys think?




Thought I'd take a crack at translating
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I think the entire car dealership model is being disrupted. Look at Carvana and all the internet pricing options.
 
Originally Posted by e55amgbenz007
This is unintelligible.


Other than a few missing caps, I followed it perfectly. If you want confusing logic and 1980's Chinglish, then you should head over to FB or Reddit.
 
Well Tesla has a set price although they're a niche player at this point. But even they lower their prices at one point so depending on when you bought it, it may be cheaper or more expensive. They lowered it after the credit went down, I think it went down $3750, but they only lowered the price 2k so it might actually be higher.
 
Bought one Saturn in the early nineties. Meh.

Bought my Soul at Hertz. Had to get a new car now! Since it was demonstrably cheaper than similar cars at dealers or Enterprise, and since 90 percent of one year old cars are rentals, I was happy. My girlfriend and daughter did the same and they're happy too. Will probably do it again.
 
Originally Posted by Danno
Originally Posted by WhyMe
i know its been tried in the past, but none have succeeded .
Why?

Porsche and Ferrari sell at msrp all day long.
But unless every dealership does it for "common" cars, no one can fo it for long. Consumers expect a huge discount. Caused by the car industry itself.
Saturn is one that tried it. They failed as their products were not competitive.

Saturn was actually selling well, but apparently GM was losing money on it. This Harvard Business Review piece sets out what they believe was the issue. It was an expensive proposition to get into, especially since they didn't share many parts with other GM vehicles. I know it changed a bit in the future, but it was never a great idea to begin with. The whole model where they insisted on set prices actually made them more expensive than comparable cars from Honda and Toyota.

https://hbr.org/2009/10/weep-not-for-saturn-the-brand

However, as many have stated nobody really needs to negotiate these days with all these internet services and others like AAA or Costco. But I remember a Honda dealer back in maybe 1999 that had a standard no-negotiation policy. They had a competitive price list for everything and posted it on their wall. If you really wanted one and didn't feel like negotiating, there were dealers at the time that would do it.

The strange thing is that I started looking at car dealer for a new car, and most sales don't seem to even be interested. Some dealers I saw employees just barely doing anything. I think they've gotten to the point where almost all their sales are via internet referrals and buying services like Costco. I mean - I bought my car 15 years ago through Edmunds.com. I did test drive my car at a dealer but had to think about it. In the meantime I just put in a request and got a great price. When I got to the dealer I figured I'd ask if they'd budge maybe $100 and I was told they only give their lowest price. But yeah - just put out what you want and nobody really needs to negotiate any more.
 
I notice they will put a price on a vehicle and if it doesn't sell they lower it on their own until they sell it. Those fixed prices are still negotiable but you might have to drive off the lot or have them call you back to obtain a reduction in price. Everything is negotiable.
 
The no haggle model has fallen out of favor because dealerships have come to realize that there is more revenue in the traditional sales model.
They really can take you to the cleaners and customers fall for it.

The job of the dealership is to make as much money off of you as possible.
 
Originally Posted by Leo99
Originally Posted by e55amgbenz007
This is unintelligible.


why did the set price car dealerships not succeed.

You know, like Saturn.



Saturns were the ugliest things on the road.
 
When folks pay anywhere from $20k to $50k++, they are going to want to negotiate. The folks that prefer a set price on such a major purchase are a small minority.

The market in action, companies cater to the majority, that is if they want to be a successful company.
 
Our local "no negotiation" car dealership is consistently more expensive than the others. Yes, it's nice to see that boldly painted price on the windshield that is less than the sticker price. However, a quick look on Autotrader shows the exact same Mustang, in the same color, with the same options being advertised for thousands less than the "pay one price" place.

I looked into purchasing a Ford Raptor, and the "pay one price" place offered a nice $8000 premium added to the sticker price.

A quick look on Autotrader shows the exact same truck for $2000 under sticker price.
 
On everyday cars, dealers make surprisingly little on the price. Its the back end stuff where they make the money

Financing
Extended warranty
Gap insurance
Key fob insurance
Critical health insurance
Job loss insurance
Wheel and tire insurance
Rust insurance
...
...
...
 
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