The days of haggling over the price of a car are over, according to a new report by Auto Trader.
It found that younger buyers in the 25 to 34 age group were least likely to try to get a price reduction at the forecourt, with just a third asking for money off their purchase. People aged 55 to 64 were the most likely to haggle, with more than six out of 10 claiming to do so.
The report found that the main reason younger buyers are not haggling is because they have thoroughly researched vehicles and prices online before coming to the showroom. It’s important that you keep your prices competitive to attract customers, but it’s also important to offer good customer service and a decent test drive. Make sure you have the right level of road risks insurance for that in addition to your motor trade insurance.
The Auto Trader report said that online search is now so sophisticated that buyers can compare vehicles based on a high number of variables, from age and mileage to engine size and extras. As a result, pricing has become more transparent.
Nathan Coe, Auto Trader’s Operations Director, said: “As consumers and car dealers have the same expectations on price, the need for awkward haggling that has become intrinsic to the car buying process is eliminated — as both parties have easier access to clear information on car price comparison.
“For example, in January alone consumers conducted over 1.2 million valuations on Auto Trader, so if dealers are aligned to these valuations it will alleviate the need for haggling and make the sale easier.”
The report also said that eight in 10 customers using a mobile phone on the forecourt were doing so to compare prices.
The report asked 5,000 drivers about their car buying practices.