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Shopping West Plaza Mary McMahon

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Cross shopping is a technique which some
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consumers use to get a better deal from automobile
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dealers. In addition to being used to get deals on
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cars, cross shopping also sometimes works for other you if you're getting the
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big ticket items, like appliances, and sometimes it
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is possible to save a substantial amount of money

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on cross shopping. While cross shopping turns a
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purchase into a complicated and time-consuming

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By cross shopping, consumers can exploit the fact that car

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Basically, when a consumer cross shops, he or she

plays multiple car dealers against each other. For

example, Jane Doe looks at Car A at Dealer A, and is

quoted a price on the car. After saying that she

wants to think about it, she goes to Dealer B to look

at the same model of car, and asks for a quote. Then,

she says that Dealer A o ered her a better deal on

the same car, and waits for a response; most

typically, Dealer B will cut the price, o er extra

amenities, or otherwise attempt to keep her

business.

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Cross shopping might be use to get a god deal on a major

appliance.

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Cross shopping has become much more prevalent in the car sales industry because of the growing number

of car dealers. Historically, consumers often had a limited number of dealers to choose from, and if they

had a speci c type of car in mind, they were essentially locked into the prices o ered by a speci c dealer.

Now that many new dealers carry a large inventory , as do used dealers, there are more options for

consumers, and dealers are well aware of this. Individual salesmen are often willing to go to great lengths

to get a commission, and consumers can exploit that by cross shopping.

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Consumers aren't limited to a speci c car when they cross shop, either. Many may choose to compare

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several di erent cars, sometimes radically di erent cars, which can make the situation even more

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complicated. If cars X and Y have very di erent base prices, for example, our hypothetical shopper would

need to focus on the amount of discount or extras o ered by the other dealer, rather than the direct price.

Many dealers have wised up to cross shopping, so shoppers need to be careful. Some will call each other to

see if they can nd out if the shopper is telling the truth about the better deal, and in some instances,

dealers have friendly relationships with each other, so they will steer consumers in a particular direction

by mutual agreement.

If you want to cross shop when you buy your next car, do your research rst. Narrow down your preferred

choices, and research their base values. When you talk to dealers, make sure to talk speci cally about the

sale price of the car, not monthly payments, and avoid clouding the issue with discussions about

warranties and methods of payment. If you want to cross shop with air, get your dealer to make you a

formal written o er which you can show to another dealer; you can also use this document to force the

dealer to commit to that price later, if you need to.

Mary McMahon

Ever since she began contributing to the site several years ago, Mary has

embraced the exciting challenge of being a SmartCapitalMind researcher and

writer. Mary has a liberal arts degree from Goddard College and spends her free

time reading, cooking, and exploring the great outdoors.

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Discussion Comments

CERTLERANT FEBRUARY 16, 2014

You're right, Glasis. There is little guesswork le in car buying.

This bene ts the customer, especially, because dealers have to be careful to price vehicles closer to their

true value.

Well-informed consumers should now come prepared with questions on why one vehicle may cost a few

thousand less than another on the lot with the same year, make and model.

If the dealer can't answer that question satisfactorily, that may be an opportunity for those who like to

negotiate price.

GLASIS FEBRUARY 16, 2014

In an age where vehicle history reports, other dealers' inventory and prices and even the value of a trade in

can be accessed instantly with a smart phone, prices for big ticket items are usually more or less universal

from one dealer to the next.

Car dealers know the buyer will most likely know all of the facts before they step onto the lot.

In addition, customers are more savvy, too. We know that the great super, employee-only deal we are being

o ered is most likely the actual cost anyone would get for the vehicle.

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