[dropcap1]W[/dropcap1]e all love the smell of a new car, but hate the haggling element of the car buying process. But now, new online tools and services are making it possible for you to buy a car online without doing the in-store haggle.
But, like the wine industry, the eye contacts industry, and the real-estate industry, entrenched legacy interests are trying to stop you from using the internet to save money and get better products. But the irony is, the internet is actually helping car dealers make sales while helping consumers feel better about their purchase: a win-win.
Because of the internet more people have more access to more information than at any other time in history. Now, instead of relying on a dealer to tell you the price, websites and services like Kbb.com, Edmunds.com, and TrueCar.com provide you with lots of information about the cost of a new car and recent car sales. This makes you a more informed consumer when you buy a car.
This change of information asymmetry is great for you, but can scare some legacy interests. Legacy interests, who are adverse to any change in the way they do business.
For example, from the earliest days of the automobile until now, haggling has been a fixture of the retail car buying experience. Lengthy price negotiations where the information available to you, especially relating to price, came from a single source, the salesman you met on the lot. This created an image of the car-buying process that persists in almost everyone’s head. Eventually, a simple truth emerged; remove haggling from the equation, give you more information and price confidence, and a new era could be born. A new era with positive benefits for you and the dealers.
Now, that era is upon us. Consumers are turning to websites like TrueCar to help eliminate the hassle of the haggle. Read more