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Today Ray and Zach discuss negotiation free dealerships (also known as one-price dealerships). Ray explains how they work and also what impact they have on the automotive industry at large. If you’re thinking of buying a car from Carvana, CarMax, or another one price dealership, you’ll be sure to want to listen to this podcast episode first.
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I am going through this scenario now. The problem isn’t the choice of wanting to haggle of have a better experience. From a buyer’s perspective, it is that the dealership is forcing you to trust them. I like the idea of a no haggle deal, but I do not like being forced into a trusting relationship with a dealer. I have 30+ years of buying cars and that distrust doesn’t go away over night.
I am looking at a car right now at a one price shop. I asked the dealer what they paid for the vehicle, what was their cost to certify, what was their PAC, profit … You get the idea. They would give me none of that information.
Trust goes both ways. I am not trying to screw the dealer out of making some profit on a vehicle, I understand how business works. But I think there needs to be a certain level of transparency if they expect me to trust them that this is their best price.
From the dealer:
“This pandemic has caused prices to sky rocket and unfortunately I am not gaining anything from this vehicle besides a worthy customer. To us, we’re pretty much losing money on this so that’s a sacrifice we’re willing to take.”
As an update of sorts, the dealer just dropped the “already at the bottom” price $600. I guess there was some wiggle room in there after all.