Negotiating the Deal: Why Women Pay More for Cars than Men

If you ask a random sampling of women how they feel about car shopping, most would rank it right up there with a root canal. Many women say that the dealerstake advantage of them or don’t treat them with respect. Others are uncomfortable with the high-pressure negotiating process.

Research shows that women pay $500 – $1,000 more for cars then men. In fact, women pay 46% more for goods and services in general than men. Think about it. We pay more for hair cuts. We pay more for clothes. We pay more for dry cleaning. And, we pay more for cars. Why? Because we allow it! We DON’T ASK for a better deal. In fact, women will pay as much as $1,353 more for a car just to avoid negotiating.

So, why don’t women like to negotiate? Are we just wired differently than men, or is negotiating an acquired skill? According to experts, it’s a little of both. Women are more relationship-based than men. When we spend time with someone, even a car dealer, we think that a relationship has been established. We feel guilty if we don’t give them our business. Men are better able to separate the relationship from the negotiation. A male customer and a salesman may get to know each other during the negotiations, but if the numbers don’t work out, the male customer walks away from the deal. Guilt-free.

Perhaps society is to blame for teaching women that it is not appropriate or “lady like” to be assertive. We are supposed to put the needs of others before our own. Young girls are encouraged to playhouse and other cooperative, compliant games while boys are encouraged to compete and towin. When a man displays initiative, he is considered a “go-getter”. A woman displaying the same behavior is consideredpushy andaggressive.

Does this mean that women are less capable negotiators than men? Hardly. Women simply take a different approach, one that is more “collaborative” thancompetitive. Women are more likely than men to listen to the needs and concerns of all parties involved and look for a win-win scenario. This approach allows women to develop long-term relationships without burning as many bridges as men, who tend to focus on short-term gains.

So, what can women (and men) do to be tougher negotiators?

1. Do your homework. Know all the facts and figures, including what you should pay for the car, what financing rates you qualify for, and how much your trade is really worth, before you ever set foot in the dealership.

2. Set higher goals for yourself going into the negotiations and hold firm to those goals. The more you ask for, the more you get.

3. Maintain the home court advantage. You do not have to negotiate a car deal in person. Negotiating over the phone or by fax helps separate the transaction from any perceived relationship. It’s a lot easier to walk away from the negotiating table when you aren’t physically there.

4. Take your time. Buying a car should be a process, not an event. Patience is your strongest negotiating tool. The dealer is usually more desperate to sell the car than you are to buy it.

5. Remember that YOU are in control. The dealer is competing for YOUR business, not the other way around. If one dealer doesn’t bring the right numbers to the table or makes you feel uncomfortable, there’s another dealer right down the street who wants your business.

Of course, we must be careful not to make too many generalizations. Not all women are intimidated by the negotiation process. Nor do all men naturally enjoy haggling. I guess that’s why 60% of Women’s Automotive Solutions car buying service clients are men!