Website Scaring Auto Dealerships
A haggle-free auto sales website has some auto dealers concerned the public will become dangerously well-educated on car pricing, an industry expert said. “Dealers are afraid if they give customers their best price, they will just take that price and go to another dealership and see if they can beat it,” said Jeremy Anwyl, the vice chairman at Edmunds.com. The website that has provoked a negative reaction is TrueCar.com, which is aligned with 4,100 auto dealerships and presents car buyers the option of going online to find a guaranteed price from a local dealership. TrueCar actually reveals the dealers’ true cost of a car, which some dealership associations complained is just going too far. The guaranteed prices eliminated the tradition of haggling for a price at the dealership. But TrueCar was seen as potentially something that could drive down profit margins by provoking price wars.
A haggle-free auto sales website has some auto dealers concerned the public will become dangerously well-educated on car pricing, an industry expert said. “Dealers are afraid if they give customers their best price, they will just take that price and go to another dealership and see if they can beat it,” said Jeremy Anwyl, the vice chairman at Edmunds.com. The website that has provoked a negative reaction is TrueCar.com, which is aligned with 4,100 auto dealerships and presents car buyers the option of going online to find a guaranteed price from a local dealership. TrueCar actually reveals the dealers’ true cost of a car, which some dealership associations complained is just going too far. The guaranteed prices eliminated the tradition of haggling for a price at the dealership. But TrueCar was seen as potentially something that could drive down profit margins by provoking price wars.
