FI showroom red and grey logo
MenuMENU
SearchSEARCH

Survey: Consumers Lose Patience With Dealer Car Pricing

Car shoppers demand "honest" pricing, according to a new AlixPartners survey. The survey was announced before the Auto Analysts of New York Conference held in conjunction with the North American International Auto Show taking place in Detroit, reported AutoRemarketing.

by Staff
January 12, 2007
2 min to read


Dearborn, Mich. — Car shoppers demand "honest" pricing, according to a new AlixPartners survey. The survey was announced before the Auto Analysts of New York Conference held in conjunction with the North American International Auto Show taking place in Detroit, reported AutoRemarketing.


According to John Hoffecker, AlixPartners' co-leader of the firm's corporate performance improvement consulting unit, consumers no longer have the patience to sort through rebates and other incentive offers to discern the actual price they're going to pay at the dealership versus the factory's suggested retail price.

Ad Loading...


One big reason, Hoffecker said, is the continuing influence of the Internet as an auto-shopping tool.


"Though rebates and other incentives were once a powerful marketing tool in the auto industry, this new research shows that auto buyers are no longer willing to settle for anything less than totally honest and consistent pricing," Hoffecker said. "In fact, ‘honest' prices had the highest mean score, 4.32, among all survey questions in that category, versus a mean score of just 2.86 for ‘lowest' prices."


Hoffecker went on to note the study's finding about what he said was the "stunning and breathtaking" rise of the Internet as an influence of auto-buying decisions.


"The Web has officially become a full-fledged retail channel for automotive," Hoffecker explained. "According to our survey, no fewer than 41 percent of auto buyers consider the Internet to be a credible source of product information, just behind ‘word-of-mouth' at 49 percent. By comparison, the survey shows that Consumer Reports magazine stands at just 12 percent.


"Along the way, the Web also has become the window through which auto shoppers compare not just vehicles but also prices," Hoffecker added. "Therefore, manufacturers that are moving to get their MSRPs more in line with their actual transaction prices may well be taking a step in the right direction. However, of course, weaning consumers from ‘deals' is no easy task, meaning that continued cost-cutting and other strategic actions should still be very much on the minds of manufacturers and suppliers alike."


Topics:F&I

More F&I

Photo of a keyring with mltiple keys, including a car key fob, on a white surface
F&IJuly 15, 2026

Integrating Nontraditional F&I Products

The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.

Read More →
Photo of businessman's hands holding eyeglasses at a desk
F&Iby Rick McCormickJuly 7, 2026

Trust Is Personal

Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.

Read More →
Photo of executive in a sports coat and glasses
Industryby StaffJuly 2, 2026

Amplify 2026 Billed as Turning Innovation Into Results

Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.

Read More →
Ad Loading...
Woman standing on stage smiling.
F&Iby Lauren LawrenceJuly 1, 2026

Own Your Outcome: F&I in the Digital Customer Journey

Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.

Read More →
$100 bill and magnifying glass on top of paper that says insurance policy terms and conditions.
F&Iby Lauren LawrenceJune 29, 2026

Tariffs Could Raise Insurance Premiums

As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.

Read More →
Red toy car sitting on top of coins.
Auto Financeby Lauren LawrenceJune 24, 2026

Smaller Loans, Longer Terms

The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.

Read More →
Ad Loading...
Under the hood of a Toyota Prius EV Hybrid car.
F&Iby StaffJune 15, 2026

New Lifetime Battery F&I Product Meant to Drive Dealer Traffic

EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.

Read More →
Several illustrations of question marks on a surface
F&IJune 10, 2026

The Psychology Behind Menus That Increase Add-On Sales

There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.

Read More →
Man holding magnifying glass over sales volume paper.
F&IMay 29, 2026

Why Your F&I PVR Is Misleading You

Here’s a handy checklist of the numbers to track in 2026 instead.

Read More →
Ad Loading...
Photo of woman typing on a laptop as she sits on a couch
F&Iby Hannah MitchellMay 29, 2026

Auto Consumer Anxiety Presents Opportunity

A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.

Read More →