To Negotiate or Not to Negotiate?

In this day and age most all consumers have access to a computer. There is no more reading Car-n-Driver, Motor Trend, Consumer Digest. We now "Google", surf, browse or whatever you want to call it to find out the latest news and reviews on our next car purchase.

 

It is a fact that most buyers spend 18 hours online before they ever set foot in a Dealership, IF they do at all. It is this new buying technique that has driven dealers to post their... best, rock bottom price on the web. There is a constant war amongst the dealers to keep the lowest price out there, thus taking away the need, or in a lot of cases, the ability of the consumer to negotiate.

 

We find that the buyers are much more relaxed when they find out the don't have to spend hours back-n-forth trying to get the best deal they can. Instead of fists up and a round by round boxing match, the fists go down, customers relax and can find the process much more enjoyable.

Of course all that said, there are still the customers that want it the "old fashion way" and still try to negotiate and already best price out there just because. It has forced dealers to not recondition their cars as well as they used to so there is a little something left at the end of the deal.

Last night I had a customer come in with his wife. They were all over a Honda Pilot I have. They ranted about how clean it was, how lovely the leather was compared to the others out there with car seat indentations, food and crayons mashed into the carpets, etc. As we walked towards the building the first thing out of his mouth was, "how much better can you do on the price?" I asked him why I needed to do better? He said, "well it is a bit beat up..."

Believe it or not there is very little profit left in the price of a car anymore because of the internet. Profit is eeked out from the financing, warranties and other products that can protect your investment.