| In 1990, General Motors capitalized on consumer's | | | | meaning that while you will not pay $1000 more |
| intense dislike of the auto purchasing process and | | | | because you have poor negotiating skills, you will also |
| introduced the Saturn. Saturns were, and are still, sold | | | | not save $1000 if you have good ones. |
| at a flat price with no dickering, dealing or haggling. | | | | There are certain people who historically do benefit |
| Today, almost 25% of car buyers purchase vehicles | | | | from purchasing cars from no-haggle dealerships. |
| from flat price, or no-haggle, dealerships. But are they | | | | Young adults, women and minorities in particular, have |
| truly saving money? | | | | historically paid higher prices than other groups at |
| At no-haggle dealerships, cars are priced at a flat rate | | | | regular auto dealerships and may benefit from |
| that typically includes a standard options package and | | | | no-haggle pricing. In fact, reacting to the trend of |
| a built in profit for the dealer. Additional options may | | | | more and more young people turning to no-haggle |
| be sold in flat-rate packages or a la carte. At regular | | | | dealerships for their automobile purchases, Toyota |
| dealerships, cars are displayed with a Manufacturer's | | | | introduced the Scion in 2003. The Scion is a small car |
| Suggested Retail Price but everything including | | | | that comes with trendy options packages and is |
| options, warranty, financing and dealer profit is | | | | priced and marketed directly at young people who |
| negotiable. | | | | don't want to negotiate to purchase their car. |
| Research has shown that educated consumers pay | | | | Therefore, if you are willing to do the research and |
| much less for cars at regular dealerships than at | | | | confident in your negotiation skills, you will almost |
| no-haggle dealerships. This is because regular dealers | | | | certainly save money at a regular dealership unless |
| set average profit goals over time. For example, if | | | | you want a Saturn or Scion. Then you'll have to pay |
| they sell five cars, the average profit per car should | | | | the same price as everyone else. However, if you're |
| be a certain amount, say $1,000. That means of | | | | timid, too busy to research or spend time making a |
| those five cars, three could sell for $1000 profit, but | | | | deal, or in one of the groups that historically are |
| the dealer could make $2000 and $0 profit on the | | | | offered worse deals, you may be better off at a |
| remaining two cars and still hit their goal. At a | | | | no-haggle dealership. |
| no-haggle dealership, the profit goal is fixed per car, | | | | |