Shopping for a car at a dealership can be overwhelming. After picking the perfect car, you have to sit down with the salesperson and review the pricing details. At this point, most car buyers will choose to negotiate the car’s price down to a more affordable figure. However, some dealerships now use a “no haggle” pricing model. But what does that mean?
What no-haggle pricing means
A CarMax store front | Yana Paskova/Getty Images
Some new and used car dealers, like Carmax and Carvana, are known for their “no-haggle” sales policy. According to iSeeCars, this means that “all advertised prices are final,” and no negotiating is necessary. As you can imagine, this policy streamlines the sales process for both the dealership and the buyer, as there is no need to go back and forth about the car’s price.
It also makes it easier when comparing a no-haggle price to a car from a competing dealership. If the car at the other dealership is priced lower, and you can haggle, then you know which car to go with.
Do no-haggle dealerships really not negotiate?
Dealership customer | J. Conrad Williams Jr./Newsday RM via Getty Images
If you pride yourself on being a masterful negotiator and want to try your luck with a no-haggle dealership, you’ll be disappointed. If a dealership’s policy is that they do not haggle, they will most likely stick to the policy no matter what. It could be classified as false advertising if they did end up haggling with you.
Also, haggling with one buyer would mean they would need to haggle with all of them, which would negate the original policy.
Why dealers have a no-haggle policy
By adopting a no-haggle policy, dealerships are able to offer buyers competitive pricing from the get-go, which may attract more first-time buyers. After all, consumers don’t need to negotiate on other products they buy, so why haggle on a car?
Should I buy a car from a no-haggle dealership or a traditional one?
A customer checks out a used Corvette at a dealership. | Getty Images
If you’re the type of car buyer who would rather not waste time negotiating a car’s price, then a no-haggle dealer could be your best bet. Just know that when comparing the car’s price at a no-haggle dealer to one that does, the no-haggle price could be a little higher.
However, if you don’t mind working with the salesperson to get the best price possible for a car, then a traditional dealership could be the better choice. At the end of the day, you could end up with a really good deal.
Always remember to do your research
A man sells a BMW to a couple. | Kent Nishimura/Bloomberg News.
Whether you’re shopping for a new or used car at a no-haggle dealership or a traditional one, it pays to research the pricing first. Check sites like KBB.com or Edmunds to see what other buyers are paying for the same type of car, and be sure to compare prices with other dealers in your area.
Once you have narrowed down your search and found the right car, make sure you’re getting the best deal possible, even if that deal is one you can’t negotiate on.