Does "No Haggle" Dealership mean you can't haggle?

[ejoshmo]

Hello All,

I am in the process of buying a car and I was looking at CarMax for a gently used SUV/Crossover.  On their website they use lingo like, "No haggle pricing."  Does this mean I can't haggle with them or is this a marketing strategy to get people in that don't like to haggle?  Tell me your experiences!

[Anonymous]

In my experience, they will not haggle. That is not what they are in business to do and don't budge at all. I have heard some individuals had success in getting the value of their trade slightly ($100-200) increased, but no drop in the car price. For some, Carmax is a saint... some people truly do not feel comfortable negotiating, for others... they want to be able to wiggle it down.

[ejoshmo]

My problem is that if they truly dont haggle there is no incentive for me to go to them (carmax).  Their proces were reasonable, but not necessarily lower than dealerships' used car prices.  I feel if I can haggle at a dealership I will be able to get a car for a better price than carmax.  Anyone else?

[mross1080]

"No Haggle" means your losing out. I dont really see a point to that at all except for the people that arent comfortable with car buying and are fine paying a marked up price. Just because thats your business model doesnt mean it makes sense or works well. If I opened a real estate agency and put that sign on the door there wouldnt even be a point to unlock the door because nobody would be coming in. Maybe you can try that with some new cars "saturn gave that a go" but not with used cars where there is so much out there and so much market change.

[CS800]

Definition of no haggle as I have seen over the years:

- We won't budge on our pricing since we have the best prices (in their own la-la land they do)

- We sell the best quality cars unlike other dealers (we just know how to buff out the imperfections and armor all our cars to death better than the other guys)

- We give you the best buck for your trade - transated to  you car might not even have a ding on it and everything look good but on our version of NADA, the condition of  your trade in is poor-fair BUT the conditions of our used cars will always be marked as excellent according to US.

- We can put 'no haggle' in our ads since we get enough customers that don't negotiate their prices and accept out mark ups. So we are cocky SOB's that could care less if we get your business. We will only remove the 'no haggle' when our sales go down.

- Don't bother asking the sales guy to come to he manager's thrones and ask the all mighty sales manager with too much gel in his hair for a price change.

[craigatcraignet]

If I can't dicker on price then there is no challenge.  In April my wife and I got a 2008 CPO BMW 328i Coupe.  It had the BMW CPO sticker that said $33,600.  When we were done we got it for $28,500.  We got them down $5,100!  

Always be ready to walk away.  My wife and I went to our car to drive away twice during the process.  If they want to sell the car and you're close on price they will come after you.  Go to a dealer and do a deal.  

It's a game.  Have fun with it.

[CS800]

Within reason, I negotiate. Always shop around. Be ready to walk away form he car of your dreams. Once a salesman see that you're into a car, they will try to persuade you how two or three other people are coming to see it etc..

Once they get yourt deposit, they know most of the times, they own you.

I went car shopping with a pal of mine and the SUV he liked was $19K. Negotiated with the manager for about 2 days. Got it for 17k with an additional 50k bumper to bumper warranty. Then they tell you that they are selling you the car at the price they bought it. Like i beleived him

[ejoshmo]

Seeing the prices of "no haggle" places like carmax makes me want to forget them all together.  Take for instance yesterday, I was at a Hyundai dealership and sort of liked the Santa Fe.  The MSRP was 30K for the limited (new) and I could just tell the dealer wanted to get that car off their lot.  I played it cool until he slipped and said they were about to start getting in the newly remodeled 2012 santa fe.  Now I know that I can haggle with him to get the lowest price for the car.  So I left that day to think about it and I went on their website.  The salesman never told me that on the internet they were listing the car for 26,500.  Now, if I decide that this is the car I'm going to start haggling at a rock bottom price and go from there.  I don't feel like I could do that at a "no haggle" place.

Any opinions on what my first offer should be, OTD?

[mross1080]

Pm Sent.

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@ejoshmo wrote:

Seeing the prices of "no haggle" places like carmax makes me want to forget them all together.  Take for instance yesterday, I was at a Hyundai dealership and sort of liked the Santa Fe.  The MSRP was 30K for the limited (new) and I could just tell the dealer wanted to get that car off their lot.  I played it cool until he slipped and said they were about to start getting in the newly remodeled 2012 santa fe.  Now I know that I can haggle with him to get the lowest price for the car.  So I left that day to think about it and I went on their website.  The salesman never told me that on the internet they were listing the car for 26,500.  Now, if I decide that this is the car I'm going to start haggling at a rock bottom price and go from there.  I don't feel like I could do that at a "no haggle" place.

Any opinions on what my first offer should be, OTD?

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[Anonymous]

Ok, Lets talk. A dealership has advertised itself as "No haggle." You as a customer want to haggle. Why won't they suddenly haggle?  Usually BTW the "no haggle" prices is the minimum profit the dealership is willing to make on their commitment to the deal.

1-if its the dealership itself and doing the advertising they can be

    a-liable for criminal or civil penalties or lawsuit due to claims of false advertising, bait and switch, miss-representation.

2- if its through a 3rd party resource like CARMAX or a USAA car buyer situation, and the customer came in from that ad and at some point they allow "haggling"

     a- they can be viewed as violating their contract

     b- they can be opened up to, if the customer did not like the eventual outcome some type of penalty or contract issue with the third party.

     c-they can be viewed as false or missleading advertising.

3-if its a NO HAGGLE, EMPLOYEE, or Friends and Family, or Employer Pricing (for example FORD A, Z, X, D plan pricing, or GM Employee pricing)

Its NO HAGGLE. Period as part of the arrangement the dealership engaged with the manufacturer they agreed as terms of accepting the Plan that the price would be what it is, no exceptions. They also agree that each deal done under a plan can and will be audited for complaince at anytime by the manufacturer or originator of the PLAN. As part of the no haggle aspect, you are unable to add anything to the deal at a no free, complimantery  discout or loss over MSRP. (like throwing in free all weather floor matts) to keep  competition equal between the stores.

If a dealership is found having violated the terms of the no haggle pricing, they can- be forced to forfeit profit or payment for that plan transaction, lose other payments or monies from the manufacturer, lose their ability to redeem Plan deals (as in no longer able to accept any Ford plan for a determined periods of time. When 60% of you rbusiness is done under a plan that's effectively putting you out of business.), possibly endangerment of your dealership franchise.

Mind you now. another circumstance: Dealer advertises as no haggle, you come in and haggle and they say Ok and you buy at a cheaper price, yo friend though assumed no haggle was the norm and bought at that price..Your Friend can bring in his experience and say he was a victim of false advertising or discrimination.