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... .. ... GM plans to cut the haggling over car prices. Will it work?

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Originally posted by: Nebor
I hate haggling. It's ridiculous. Everyone should get the same price on things, IMO. I'm tired of having to get one of those proffesional haggler "car purchase liasons" out of the phone book.

I simply can't haggle myself. It's not in me. It seems petty and cheap.
So just because you don't want to make the effort to get a fair price you want to make sure that nobody else can get a fair price either. Great idea comrade.

ZV
 
Originally posted by: Engineer
Originally posted by: Wag
Originally posted by: Engineer
Originally posted by: Wag
Nothing is going to work for GM at this point.

I don't know...their 46% sales increase from their "everyone gets employee price" worked pretty well. Imitation is the sincerest form of flattery - Ford, DCM are now doing it also. Won't work long term, but worked great in the short run. Lowered their inventory by 26% in one month! :Q

Add the fact that *GULP*, GM is slowing rising in quality and reliabiltiy....but their product mix, IMO, still is aging and lacks innovative designs to maintain the short term pickup in sales.
As already noted it's probably too little too late. Unless GM radically changes their designs and reliability they are in big trouble. Frankly, mid-range Asian cars are much more appealing to me than GM is at this point.

I drove that Cobalt, and frankly it seemed like a plastic POS. The Civic, Mazda3 and its other competitors I've tested just seemed like a much better car.

I do admit that many domestic cars (big 3) make their cars with too much plastic. I sold my 1996 Intrepid and purchased a 2003 model several years ago. The interior was such a downgrade from the 1996 model. The entire plastic console looks more like a toy than anything else. The 1996 model was padded and very solid (no squeaks, rattles). The 2003 model rattles and squeaks. The quality, at least in the interior department, is just not there. Trying to cut corners, I agree, never will solve anything.

Who knows. Unless GM gets UAW concessions, you might be right.
I don't know if you can draw a straight line from excessive wages to poorly engineered cars. I'm sure there is some effect to the quality of build materials, but I would just think foreign manufacturers are just better at making their plastic not look like plastic.

 
Originally posted by: Nebor
I hate haggling. It's ridiculous. Everyone should get the same price on things, IMO. I'm tired of having to get one of those proffesional haggler "car purchase liasons" out of the phone book.

I simply can't haggle myself. It's not in me. It seems petty and cheap.

So because you suck at haggling a good deal, we should all suffer? 😛

- M4H
 
Originally posted by: Squisher
I don't know if you can draw a straight line from excessive wages to poorly engineered cars. I'm sure there is some effect to the quality of build materials, but I would just think foreign manufacturers are just better at making their plastic not look like plastic.
Not only that- Even though I admit the Cobalt had the better engine, the interior of the car just seemed poorly designed. The Civic LX I drove had a"cleaner" more solid interior. The whole car just felt more sturdy.

At this point I really think I am going to go with a Hyundai, Honda, Kia, etc. I just don't think I want a GM or another US manufactured car anymore.
 
Originally posted by: mugs
I think a lot of men like haggling because it lets them feel like they "beat" the dealer. This will rob them of that sense of accomplishment.

A lot of people also think if a car dealer makes a profit they're ripping them off... with set pricing they'll know they're making a profit.

I do know a woman who bought her Saturn because she thought the Honda dealership was trying to rip her off because they wouldn't go as low as she wanted on the price, so instead they offered her a longer loan term. This will be great for people like that, they'll have more than one brand to buy from. But if GM wants to get out of the mess they're in, they ought to focus on making better cars, not just better ways to sell the crappy ones.

Fully agreed, there is a sense of accomplishment and just happier feeling when you walk away knowing you got a discount.
 
I always thought that the "dealer" way of selling cars was extremely shady, considering it's such a big purchase. You'd think if you were going to spend $20,000, they'd at least have the respect not to have a sneaky car dealer trying to sucker you.
 
Unfortunately, even if GM makes better cars, and in fact, they do, people still think otherwise. GM has to sell cheap to attract buyers, then wait for reputation to catch up.
 
Originally posted by: Wag
Originally posted by: Squisher
I don't know if you can draw a straight line from excessive wages to poorly engineered cars. I'm sure there is some effect to the quality of build materials, but I would just think foreign manufacturers are just better at making their plastic not look like plastic.
Not only that- Even though I admit the Cobalt had the better engine, the interior of the car just seemed poorly designed. The Civic LX I drove had a"cleaner" more solid interior. The whole car just felt more sturdy.

At this point I really think I am going to go with a Hyundai, Honda, Kia, etc. I just don't think I want a GM or another US manufactured car anymore.


I gave up on GM about 6 years ago. My 3rd in a row and it was a complete lemon. The other two had various issues. Have went to Chrysler (for now) as the incentives at the time for automotive suppliers were fantastic (up to and over $10,000 off sticker with NO HAGGLING 😛). I've had no real issues with DC cars, but do admit that they do seem a little "cheap" on the interior. Also, resale value of most domestics really suck.
 
Originally posted by: Engineer
Originally posted by: Wag
Nothing is going to work for GM at this point.

I don't know...their 46% sales increase from their "everyone gets employee price" worked pretty well. Imitation is the sincerest form of flattery - Ford, DCM are now doing it also. Won't work long term, but worked great in the short run. Lowered their inventory by 26% in one month! :Q

Add the fact that *GULP*, GM is slowing rising in quality and reliabiltiy....but their product mix, IMO, still is aging and lacks innovative designs to maintain the short term pickup in sales.

As I've said before, American corporate culture plagues GM and Ford. It stifles true innovation, because innovation is a departure from the norm. Departure from the norm is considered risky, and American companies don't like taking chances. American culture has become too risk-averse and we are now paralysed by policy.

Also, the quality of the decisionmakers is piss-poor at these companies. These individuals lack raw talent, and everything that they are involved in will reflect this shortcoming. An individual with raw talent would be too much of a departure from the norm, and this is also considered bad.

Imagine Burt Rutan trying to work for a big company like Lockheed-Martin. It would never work. That type of innovation is considered far too "maverick" for a large American corporation
 
Originally posted by: 91TTZ
As I've said before, American corporate culture plagues GM and Ford. It stifles true innovation, because innovation is a departure from the status quo. Departure from the status quo is considered risky, and American companies don't like taking chances.

Also, the quality of the decisionmakers is piss-poor at these companies. These individuals lack raw talent, and everything that they are involved in will reflect this shortcoming. An individual with raw talent would be too much of a departure from the norm, and this is also considered bad.

Imaging Burt Rutan trying to work for a big company like Lockheed-Martin. It would never work.

the aerospace industry here is notorious for taking chances. the jsf is a huge risk for LM, and 787 is a huge risk for boeing. no,if you're going to say a national corporate culture (whatever the hell that is anyway) doesn't take chances it's the japanese. the japanese corporate culture is influenced to create evolutionary designs that improve on almost all facets of the original, but rarely does it to something truely revolutionary.
 
Interesting GM cars:
HHR, Malibu and Maxx SS, G6, all Cadillacs, Corvette. Don't know about their trucks.
 
Originally posted by: dman
If it was a winning concept there'd be more 'No haggle' dealers today. You can already go there and buy cars without haggling, but you'll probably pay more than if you spent a few hours shopping and haggling elsewhere.

If you don't like haggling you can also use an interenet fleet service (like autobytel) and buy cars at $x over invoice which will save you time and some money, but, if you are a good / annoying haggler you can get cars for below invoice, etc.

Good luck to GM.
I think most of the other people posting here have completely missed that point.
There already is a No-haggle policy at EVERY dealership.

You walk in. You pay what they ask. Everybody is happy.

The dealer wont stop you in the middle of signing and say "You know what? I dont think you shuld pay that much. I want you to argue with me for a little while before we can finish this."

Thats why I wont go to Saturn. ALL vehicles, regardless of class or make, are WAAAY overpriced. I need to be able to fight with the guy and get the price I want to pay. Even if he gets mad and cries bloody murder.

And to the folks who think the all prices are just going to magically drop everywhere: Forget it. The auto industry is not going to lose the billions of dollars they are accustomed to.
 
Originally posted by: shortylickens
Originally posted by: dman
If it was a winning concept there'd be more 'No haggle' dealers today. You can already go there and buy cars without haggling, but you'll probably pay more than if you spent a few hours shopping and haggling elsewhere.

If you don't like haggling you can also use an interenet fleet service (like autobytel) and buy cars at $x over invoice which will save you time and some money, but, if you are a good / annoying haggler you can get cars for below invoice, etc.

Good luck to GM.
I think most of the other people posting here have completely missed that point.
There already is a No-haggle policy at EVERY dealership.

You walk in. You pay what they ask. Everybody is happy.

The dealer wont stop you in the middle of signing and say "You know what? I dont think you shuld pay that much. I want you to argue with me for a little while before we can finish this."

Thats why I wont go to Saturn. ALL vehicles, regardless of class or make, are WAAAY overpriced. I need to be able to fight with the guy and get the price I want to pay. Even if he gets mad and cries bloody murder.

And to the folks who think the all prices are just going to magically drop everywhere: Forget it. The auto dealers are not going to lose the billions of dollars they are accustomed to.

Corrected.

The auto dealers pay a set price to the auto makers for the cars and then "negotiate" the price with the customer, which sets their profits. I don't think GM, etc. gets more because the car was sold for more.



 
Originally posted by: Banana
Interesting GM cars:
HHR, Malibu and Maxx SS, G6, all Cadillacs, Corvette. Don't know about their trucks.

As soon as get done moving I'm going to look a the Buick Lacrosse. I think it's based on the G6.
 
Originally posted by: shortylickens

And to the folks who think the all prices are just going to magically drop everywhere: Forget it. The auto industry is not going to lose the billions of dollars they are accustomed to.

if the prices were set where the average stealership sells the car for anyway, then the industry as a whole isn't losing anything (and in fact might gain as the depreciation figure will look better)
 
Originally posted by: MagicConch
I've heard that even in places with no haggling on the car prices there is still a lot of haggling on the trade-in.

Maybe, but its pointless.
As soon as you say the word trade-in, they automatically start calculating how much more they can screw you.

Haggle or not, every dealership wants to buy your old car for about 1% of its worth and then sell it used for about 20% of its worth.
Its just an oppurtunity to screw you even more.
 
Originally posted by: Engineer
Corrected.

The auto dealers pay a set price to the auto makers for the cars and then "negotiate" the price with the customer, which sets their profits. I don't think GM, etc. gets more because the car was sold for more.

But if the dealership cant stay in bussiness (by charging too damn much), then they wont be buying anything from the manufacturer.

However your point is still valid. The manufacturer doesnt see any direct impact when the dealer haggles well or poorly.
 
Originally posted by: Zenmervolt
Originally posted by: Nebor
I hate haggling. It's ridiculous. Everyone should get the same price on things, IMO. I'm tired of having to get one of those proffesional haggler "car purchase liasons" out of the phone book.

I simply can't haggle myself. It's not in me. It seems petty and cheap.
So just because you don't want to make the effort to get a fair price you want to make sure that nobody else can get a fair price either. Great idea comrade.

ZV

There's no difference between haggling at a car dealership and haggling at Nordstroms. It's not acceptable in polite society.

Like I said, I refuse to haggle myself. I don't have a serious problem hiring a haggler though. Because of him I got my '03 Acura TL S-type for $29.5k out the door. I was told that was a helluva deal. I got raped sideways on my Lightning though. Because it's SVT, I was told that I'd be fortunate to pay the sticker price for it. Then they tagged on the $700 lo-jack, $1000 "lifetime wax" that they screwed up. Made the paint look all funny, and cost more money to fix it. 🙁

I hate the car buying process entirely.
 
Originally posted by: rickn
I think they should move all manufacturing to China and give away their cruddy cars for free


They would have to because millions of "decent" paying US jobs would be lost. Nobody could afford it! :Q
 
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