This "One Price" / "No Negotiation" is Getting Tiring

[At Law]

Good Afternoon,

I have been looking for a new Tahoe recently and a couple of dealers have the "one price" offering.

This seems very odd and not something any buyer would be interested in doing.

I have seen Tahoes sitting on lots for months and they will not reduce the price or take any offers.

They are clearly paying interest on these vehicles. One would think they would want to clear these off of their lots and stop the interest charges and free up cash.

Has anyone else run into this lately and thoughts?

 

[SubSonic]

Nope, never run into this. I always use the "lowest" / internet only pricing as my baseline to start negotiating down from.

 

[Garandman]

Last car we bought from a dealer was a 2014 Subaru from a “No Haggle” dealer. The price was more than private sale but well under what Edmunds, KBB, NADA said were dealer prices: $2,000 less.

We bought the Tahoe private sale so can’t compare. We bought three new Chevies from these folks

https://www.banksautos.com/inventory.aspx?_new=true&_make=chevrolet&_model=tahoe&_trim=lt

 

[SnowDrifter]

I got mine from one of the 'the price you see is the price you pay' lots

Price was on par with KBB in my area. No room to haggle, but I think for what it is, the price was fair. Had new tires, drive belts. Like... Ink still on the tires. They didn't have even a dozen miles on them. Full maintenance records - very well taken care of. No leaks, knocks, noises, etc etc. Needed tie rods but aside from that, was turn key.

It's definitely a different experience, but, IMO, much less stressful. You look over the vehicle, determine if it's something you want to go with, and make a binary decision from there. No need to sit down and negotiate for over an hour plus and still end up walking out empty handed.

From the time I decided "I'm ready to buy" to walking out the door, keys and title in hand, was 15 minutes or so. Easy easy

 

[07Burb]

I got mine from one of the 'the price you see is the price you pay' lots

Price was on par with KBB in my area. No room to haggle, but I think for what it is, the price was fair. Had new tires, drive belts. Like... Ink still on the tires. They didn't have even a dozen miles on them. Full maintenance records - very well taken care of. No leaks, knocks, noises, etc etc. Needed tie rods but aside from that, was turn key.

It's definitely a different experience, but, IMO, much less stressful. You look over the vehicle, determine if it's something you want to go with, and make a binary decision from there. No need to sit down and negotiate for over an hour plus and still end up walking out empty handed.

From the time I decided "I'm ready to buy" to walking out the door, keys and title in hand, was 15 minutes or so. Easy easy

This is pretty much how I like to buy a vehicle, as well. I may negotiate a LITTLE bit but I'll see a vehicle, look at the price and see if that price is in the range I was looking to pay, look the vehicle over and then decide to buy it. I may try and negotiate the price a little bit but if the starting price isn't within a close range of what I'm willing to pay I won't waste my time going to look at it let alone negotiating for it.

 

[randeez]

Eh I still haggle lol. Just be willing to walk away really. After my daily totaled I looked for a month or so.

Bought my yukon used a while ago before but price on lot was different than online price...still offered them 3k less than that. They came off 2k

Lexus dealership had a 2010ish camaro ss, was on lot 2 or 3 months I went by and talked to them. On lot for 17,700 tax tag title blah wanted 19+k for it. Same thing no haggle pricing, they couldn't sell it for a penny lower than that. Still told them 16k out the door, easiest sale they'd make all year, I'll have bank wire the funds by the time they wrote of the paper work. They Wouldn't budge sat on lot 2 more months until they dropped price to 15.9k before it sold.

Threw a retarded low number out for a prius, same deal.. no way, I was out of my mind, i wont find a better deal, i left....manager called me back a few times saying they could make the sale come on in.

Car i ended up buying they wouldn't budge but was priced decent already, 18k miles, cpo'd and would do low apr% because of being cpo

 

[cheyenne383]

It all depends on what you're buying. When I bought my Subaru I was in shock about the lack of negotiation... being a craigslist and GM guy most of my life I expect to show up with a *** of cash and save a good chunk of money. The Suby people basically just said here is what we'll sell it to you for, take it or leave it... I should have left lol.

There seems to be more "best price" mentality nowadays, haggling/negotiating is becoming a lost art and people are too intimidated to press the issue. I'm sad to see it go, I'm shameless... I ask for discounts as a part of paying for ANYTHING... I've been pleasantly surprised at sporting goods stores, auto parts stores, private sales, etc. Be willing to research ahead and walk out, a few hours for a couple grand in savings is more than you could make in that time typically.

 

[SnowDrifter]

haggling/negotiating is becoming a lost art and people are too intimidated to press the issue.

My counter to this, is haggling as a buyer has also become a lost art.

I no longer do haggling if I'm trying to sell something on craigslist, facebook, etc. The sheer number of people that start off with a 50% offer, planning to go up to maybe 60% is wild. Or the folks where we chat and chat and chat, agree on a price, then they show up with the "I only brought this much $$" excuse is extremely frustrating. That and you have the folks who don't even put forth the effort - they expect me to compete against myself and propose to them, a price. There's haggling, and there's just being a *****. I've yet to encounter the former, which is a real pity.

I can't speak to the business decision to discontinue the art of negotiation, but on my end: It's proven to be both a waste of time, and a slap in the face. I post something for sale with a price attached. That's what I expect to get for it. If I wanted less, then I would have posted it for less. I am not your coupon.



Perhaps I have an unpopular opinion here, but I've officially been broken by the system.

 

[yates ™]

I see nothing wrong with it as long as they have good pricing to begin with. If you're trading in that is where you still haggle.

 

[PG01]

I walked into a honda dealer the other day, had to go to home depot and it was right next door. I went for a test drive too, 18 accord touring 2l turbo 10 sp, $33,900....i told him ill give him 30 cash, blah blah.... he got up a few times.... i was just wasting time because i had to get my daughter from piano prac, maybe i was there 1/2 hr 40 minutes.... he said he couldn’t go any lower so i walked out. Texted me an hour later maybe..

300 off.... bought my last 3 hondas there too..... lol... whatever not in a rush and half heartedly looking....

 

[07Burb]

LOL....must not be too hard up for sales if their willing to pass up a solid cash offer. Some times I wonder if paying cash actually hinders the bargaining power because they make some much money off people who finance their vehicles a lot of times unless it's 0%, of course. lol

 

[yates ™]

LOL....must not be too hard up for sales if their willing to pass up a solid cash offer. Some times I wonder if paying cash actually hinders the bargaining power because they make some much money off people who finance their vehicles a lot of times unless it's 0%, of course. lol

Absolutely they would rather you finance through them then pay cash. They are paid by the lending institution as long as you keep the loan for X amount of months. 0% I am not sure but I am sure they are getting incentive from somewhere.

If you guys think a dealership stays a float from just the Vehicle transaction you may want to do some research as to how they actually make money, it may help your negotiations.

 

[WillCO]

Good Afternoon,

I have been looking for a new Tahoe recently and a couple of dealers have the "one price" offering.

This seems very odd and not something any buyer would be interested in doing.

I have seen Tahoes sitting on lots for months and they will not reduce the price or take any offers.

They are clearly paying interest on these vehicles. One would think they would want to clear these off of their lots and stop the interest charges and free up cash.

Has anyone else run into this lately and thoughts?

I see it, but more so on the BMW side. The largest BMW dealer in Colorado is a one-price dealer and they will indeed not move a dime. To their credit, they are very transparent on the incentives. A few years ago when the pricing and incentive information was easier to come by on the BMW forum I found that this dealer was indeed using every lever available to them to lower the customer price. So, I guess there are some manifestations of that model that work better than others.

I bought my Tahoe the old fashioned way, I found some good quotes from nationwide dealers like Laura and Al Serra, then carried those into my local dealers, established myself as an immediate-term buyer, and asked them to come as close as they could to those prices. In the end, the dealer that did the best happened to be the one closest to me in town, which was sort of nice. And they were close enough on the price for a plane ticket and a 600 mile drive to not make sense.

I doubt my experience is typical anymore though.

 

[TheMaineEvent]

A couple car guys I know say that offering cash isn't really an incentive anymore. Perhaps it still works with a used car dealer, but the large dealers don't care if you pay cash or not.
Personally, I like the no haggle price. Saves me a lot of grief going back and forth. The last car I bought, before the Tahoe, I got the dealer to throw in some oil changes and service work so I felt happy. The dealer I bought the Tahoe from, Avis, doesn't service vehicles and they really are a no haggle seller, but I feel they're aggressively priced. They want to move their vehicles, not sit on them.

 

[RST Dana]

Good Afternoon,

I have been looking for a new Tahoe recently and a couple of dealers have the "one price" offering.

This seems very odd and not something any buyer would be interested in doing.

I have seen Tahoes sitting on lots for months and they will not reduce the price or take any offers.

They are clearly paying interest on these vehicles. One would think they would want to clear these off of their lots and stop the interest charges and free up cash.

Has anyone else run into this lately and thoughts?

Wherever you located? My dealer is in Cincinnati. Real easy to work with.

 

[sneasle]

With the suburban I just bought, I was surprised how easy the negotiation went. Gave the vehicle a good looking over, ran my mental calculator for the issues I saw, and offered them a price. They took it without any fuss, which makes me wonder if should of gone lower.

I agree that the ‘all cash’ offer on new vehicles is probably less likely to move the needle on price due to all the incentives associated with financing and trade-ins. For used vehicles, especially ones that are old enough or have enough miles that they are harder to finance directly, ‘all cash’ can really accelerate a deal. I think it did in my case...

 

[WillCO]

Absolutely they would rather you finance through them then pay cash.

+1. I walked in to buy this Tahoe with a credit letter from my credit union - for intents and purposes that is a blank check where the dealer can write in their name and the amount and the CU funds the loan the next day. Essentially a cash deal.

The dealer's finance manager spent 15 minutes trying to convince me to use her financing instead, even though the terms weren't quite as good. She actually told me that doing so would be "a great help to the dealership." She must have been behind on her quota.

 

[ChrisYukon]

+1. I walked in to buy this Tahoe with a credit letter from my credit union - for intents and purposes that is a blank check where the dealer can write in their name and the amount and the CU funds the loan the next day. Essentially a cash deal.

The dealer's finance manager spent 15 minutes trying to convince me to use her financing instead, even though the terms weren't quite as good. She actually told me that doing so would be "a great help to the dealership." She must have been behind on her quota.

My answer would have been "What will you do for me if I get a loan from you?" (I'd be looking for them to take more off the price.)

Usually, there is an incentive paid to the dealer for using the manufacturer's financing. When I bought my wife's Toyota, there was actually an incentive for NOT using dealer financing. We took that route - then shared that incentive with the dealer. (They got $300, I got $450.)

 

[Ilikemtb999]

My counter to this, is haggling as a buyer has also become a lost art.

I no longer do haggling if I'm trying to sell something on craigslist, facebook, etc. The sheer number of people that start off with a 50% offer, planning to go up to maybe 60% is wild. Or the folks where we chat and chat and chat, agree on a price, then they show up with the "I only brought this much $$" excuse is extremely frustrating. That and you have the folks who don't even put forth the effort - they expect me to compete against myself and propose to them, a price. There's haggling, and there's just being a *****. I've yet to encounter the former, which is a real pity.

I can't speak to the business decision to discontinue the art of negotiation, but on my end: It's proven to be both a waste of time, and a slap in the face. I post something for sale with a price attached. That's what I expect to get for it. If I wanted less, then I would have posted it for less. I am not your coupon.



Perhaps I have an unpopular opinion here, but I've officially been broken by the system.

Or the famous, “best price?” Or “lowest you’ll go?”

I usually ignore those people on CL or counter with my full asking price. I usually price CL stuff like 30% higher assuming I’ll get lowball offers but some people outdo themselves. I wonder how many years till people just ask for it for free.

 

[Garandman]

We pay cash but don’t mention it up front, as others have mentioned thinking they can make some money in financing may help the deal.

It all depends on what you're buying. When I bought my Subaru I was in shock about the lack of negotiation... being a craigslist and GM guy most of my life I expect to show up with a *** of cash and save a good chunk of money.

Subaru has the distinction of being the brand with the highest percentage of cash buyers. To cater to that, they keep down the MSRP and dealer margins especially compared to brands that do a lot of leases.

In New England you can’t swing a cat without hitting a Subaru dealer and they do a lot of volume so pricing is aggressive. Alaska Subaru dealerships are notorious for holding you hostage. There is at least one dealership in Washington that caters to “Fly and Buys.”

http://www.cars101.com/alaskasubaru.html