AutoNation is going to have another try at no-haggle pricing. This time, I think they will succeed. I think the market is ready for it. By coincidence, I had just read Zag’s white paper when Mike Jackson made the announcement. He was talking about no-haggle in the showroom, but this has important implications for my field, e-commerce.
Zag’s argument is that if you’re the only dealer in town not giving a price on the internet, then you’ll be left behind. The flip side is that if you’re the only dealer who is doing it, then your competitors can easily undercut you. The trick is to create a movement in the industry – and AutoNation has the scale to do that. The article also cites Sonic, Asbury and Lithia.
Mr. Jackson says pricing is the last frontier in auto retail, and this is doubly true on the internet. It’s the one thing preventing true, business-to-consumer, online F&I.