Savvy shoppers gain access to vital pricing data so they can negotiate a better deal. Raphael Pak is not your typical car shopper, but dealers will be seeing more like him. In his recent quest for a minivan, Pak cruised dealerships to find the vehicle he wanted. If more consumers shop for cars the way Pak did, which industry watchers say is likely in the coming decade, the Internet will send shock waves through the auto retail business. Armed with more information about vehicle pricing, buyers will be able to shop dealers outside their neighborhood and get a better deal.
Dealers are there to make money.
I understand that. It's likely that even in 2008 the most technologically savvy shoppers will still have to go to a dealership to buy a car. But even today the Internet is lifting the shroud of mystery from the purchase process, arming consumers with pricing information and enabling them to negotiate a deal before ever seeing the salesman in person. That's why automakers and car retailers are trying to make car shopping friendlier and easier by offering more selection at fewer but larger stores, and selling cars with a no-haggle approach. Calif. Currently, however, many traditional dealers aren't sold on the Internet.