Why Used Car Price Haggling is a Thing of the Past

Why Used Car Price Haggling is a Thing of the Past

In the past, price haggling was an indispensable part of the used car-buying process. However, this negotiation tactic is losing its spot in the modern context. The changes in customer behavior and interests have led to a more transparent buying process. Haggling is uncomfortable and awkward for most buyers. This process mainly entails arguments and discussions with an attempt to make financial advantages. Both buyers and salespersons try every tactic to extract the best value.

In this process, the commission-based remuneration paid to the salespersons plays a vital role. It is an amount paid out of the profits made from the sales of a vehicle. This system sometimes becomes stressful and confrontational for both parties. Hence, many dealerships are trying to break away from this tradition. They are moving toward a transparent sales process. Here are the reasons due to which price haggling became a thing of the past.

Changing Patterns of Sales Commission

The profit-driven commissions paid to the salespersons in the past are fading away in current times. These commissions were calculated on the profits made by selling a vehicle. However, in the modern context, dealerships have introduced commission-free pay packages in which they include annual salary for every salesperson. This salary may be inclusive of a specified bonus to be paid for selling the total number of vehicles within a stipulated time. Due to this method of compensation, haggling becomes unnecessary.

Most importantly, the changing remuneration packages lay more attention to customer-oriented sales processes. The salespeople are trained and advised to meet specific goals and requirements of a customer rather than making more commission. A major part of this change can be attributed to the online car-buying process that have evolved with time.

From finding a vehicle to its financing and delivery, every step of the process can be monitored by the customers through an online portal. The archetypal salespersons are replaced by well-trained car consultants who educate and guide the customers throughout the process.

The Evolution of Online Car Buying

With the rise of the internet, the process of car buying has become more simple and faster. There are many online resources that provide dependable information and car valuation for buyers. As a customer, you can seek help from these websites for comparing the prices of used cars at different dealerships in your area.

Availability of online data facilitates buyers to find the complete inventory of used cars at a particular dealership. They are more informed and ready with the right information before visiting the showroom. In this scenario, dealerships are also moving up the ante by developing interactive websites showcasing information needed by customers.

Evolving Customer Behavior

In the recent past, many car buyers have admitted that they prefer paying the quoted price of a vehicle rather than negotiating prices. They find haggling to be an uncomfortable experience because of the ease with which they can find information related to a vehicle of their choice. In response to these evolving behaviors, dealerships are trying to introduce more transparent and competitive pricing.

These are the reasons why car price haggling will soon become a thing of the past.