You asked for it, now one dealership from the Penske auto-group is doing it...no haggle pricing. Surprise Toyota in Phoenix Arizona, is experimenting with this fixed price approach to car buying. Automotive News spoke to General Manager Michael Faul about being different from his competition, "We don't want the typical high-pressure salesperson selling a vehicle," he says. "We want them moving the vehicles, but we also want them to focus on customer satisfaction."
The dealership has implemented a One Price program and was able to do so with because it is a brand new facility-
"We chose this store to test one-price because it was an open point and we could hire and train our staff accordingly from the beginning instead of trying to change the process midstream," Penske spokesman Tony Pordon says.
In several previous posts about car-buying, I have heard from many commenters how they would be willing to pay an advertised "no haggle" price provided that price was competitive. So how competitive is Surprise Toyota's One Price? A quick Autotrader search for a "Corolla" revealed the following-
The above prices are for a 2014 Corolla L MSRP from 17,835 tp 18,514. The One Price that Surprise is advertising seems fairly reasonable considering the low margins on a compact like this one. Faul is confident that this no-haggle approach will catch on-
"I believe within five to 10 years, most stores will have to be this way," Faul says. "Dealers have sold the way they have sold for years and done well. But customers want this."
But is it still the best deal? I ran a TrueCar inquiry for a 2014 Corolla L in the Phoenix area and found that some dealers might be willing to budge a little more.
I should add that the prices on TrueCar does not guarantee that these dealerships will indeed have a specific vehicle available at that discount. You would actually have to contact the dealerships to get this information. I did not want my inbox overrun, so I did not do this step. I applaud Surprise's attempt at moving towards no-haggle pricing but, when a few clicks reveals that a car buyer could potentially save upwards of two thousand dollars below Surprise Toyota's prices, I have my doubts regarding the success of this program.
(Photo credit Autoguide)
I'm Tom and I run AutomatchConsulting.com; I also write articles about car buying. If you have any questions about the car-buying process feel free to drop me a line in the comments or find me on Twitter @AutomatchTom and Facebook.com/AutomatchConsulting