Re:The rise of 'stealerships' and the shady economics of car...
by BeetleB on Thursday September 01, 2022 @04:26PM
(#32682627)
> Why do people get all worked up over a difference ± a few hundred dollars on a very expensive purchase?
Because $500 lets you buy $500 worth of goods whether you are spending $1000 or $30000.
Also, the difference can be a lot more than $500. I've known people to save a few thousand dollars.
> I just really don't get the whole haggling thing. If you want a lower price, wait until one is being advertised
I waited till too long to learn how to negotiate, and once I started doing it, I understood why your strategy is quite suboptimal. With dealers, it's simple: If you don't haggle, you will always pay more. The price you can get with successful haggling is often lower than the price will ever be advertised, in any nearby dealership.
Also, while haggling seems like a pain, it can actually save time. A friend was once buying a used BMW, and he wanted a price a few thousand dollars less than the dealer was offering. Just asking for that lower price didn't help. So he told the dealer he had found a dealer with the price he was looking for, but it was all the way in a nearby town and he would rather just by it locally. The dealer then agreed.
There was no dealer in another town selling at that price. I wondered why the local dealer didn't ask for proof. The likely reason: It wasn't an unreasonable price, and the local dealer knew that if the buyer could afford to wait, he will find a dealer somewhere selling at that price. There was utility in him getting rid of this car rather than wait for another buyer.
Haggling can save you a lot of time. The only reason I go to private party for used car is you'll almost always get better deals there. But I do pay a price: I have to wait a lot longer on average.
Because $500 lets you buy $500 worth of goods whether you are spending $1000 or $30000.
Also, the difference can be a lot more than $500. I've known people to save a few thousand dollars.
> I just really don't get the whole haggling thing. If you want a lower price, wait until one is being advertised
I waited till too long to learn how to negotiate, and once I started doing it, I understood why your strategy is quite suboptimal. With dealers, it's simple: If you don't haggle, you will always pay more. The price you can get with successful haggling is often lower than the price will ever be advertised, in any nearby dealership.
Also, while haggling seems like a pain, it can actually save time. A friend was once buying a used BMW, and he wanted a price a few thousand dollars less than the dealer was offering. Just asking for that lower price didn't help. So he told the dealer he had found a dealer with the price he was looking for, but it was all the way in a nearby town and he would rather just by it locally. The dealer then agreed.
There was no dealer in another town selling at that price. I wondered why the local dealer didn't ask for proof. The likely reason: It wasn't an unreasonable price, and the local dealer knew that if the buyer could afford to wait, he will find a dealer somewhere selling at that price. There was utility in him getting rid of this car rather than wait for another buyer.
Haggling can save you a lot of time. The only reason I go to private party for used car is you'll almost always get better deals there. But I do pay a price: I have to wait a lot longer on average.