The effects of No-Haggle Vehicle Pricing on Canadian Consumers

Organization

Automobile Consumer Coalition (ACC)

Published

2006

Summary

This report looks at the use of uniform pricing ("no-haggle") in the automobile industry. Today, "no-haggle" retail pricing is almost universal in Canada except in two important areas: houses and automobile sales. Many consumers do not understand why automobiles cannot be sold at fixed prices without negotiation. In addition to uncertain and fluctuating values, the automobile consumer is also often beset with deceptive or questionable marketing practices and hidden costs and unexpected expenses. Some vehicle manufacturers have responded to these consumer concerns by introducing fixed price/"no-haggle" retailing practices to improve customer satisfaction. This report is based on a study of one such program, Toyota Canada's "Access Toyota" program. The data for the study was generated by visiting 53 Toyota and Honda dealerships across Canada as a typical consumer. One of the key findings of the report was that "No haggle" pricing results in higher prices for consumers who are prepared and willing to negotiate but also that uniform pricing programs such as the "Access Toyota" program and accompanying internet websites provide valuable information to consumers and enhance their negotiating position.

This document is available in the following language(s):

Third-Party Information Liability Disclaimer

Some of the information on this Web page has been provided by external sources. The Government of Canada is not responsible for the accuracy, reliability or currency of the information supplied by external sources. Users wishing to rely upon this information should consult directly with the source of the information. Content provided by external sources is not subject to official languages, privacy and accessibility requirements.

English only

OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database