FI showroom red and grey logo
MenuMENU
SearchSEARCH

Women Better Negotiators Than Men, Study Concludes

Research from the Kellogg School of Management finds that women tend to pay more for repairs, but the study also reveals that women are better negotiators.

by Staff
July 18, 2013
2 min to read


EVANTSON, Ill. — When it comes to auto repairs, women tend to pay more than men, concluded a new study by the Kellogg School of Management. But the pricing gap tended to disappear when an expected repair price is mentioned.

The study, “Repairing the Damage: The Effect of Price Expectations on Auto-Repair Price Quotes,” was conducted by Kellogg professors Meghan Busse and Florian Zettelmeyer and Northwestern University Ph.D. student Ayelet Israeli in collaboration with AutoMD.com, an online automotive repair information site.

Ad Loading...

The researchers set up field experiments to test the effects of men and women calling auto repair shops to ask for quotes on a 2003 Toyota Camry radiator replacement. The callers either appeared well-informed of the market price ($365), misinformed with expectations of a higher-than-average price ($510), or completely uninformed, with no price expectation.

Among those who appeared uninformed, women fared worse and were consistently quoted higher prices. Women who called and expressed knowledge of the market price received quotes in line with that expectation. Men, on the other hand, were quoted the same price whether they said, “I have no idea what this costs,” or “I know the average cost is $365.” As expected, both men and women were quoted significantly higher-than-average prices when they said their expected price was $510.

“This comes down to stereotypes and assumptions,” said Busse, associate professor of management and strategy at the Kellogg School. “Our findings suggest that auto shops may assume men know the market price for a given repair, so they automatically grant it. However, they may not expect women to be knowledgeable in this area, so the perception is they can charge them more.”

When it came to negotiating for a lower price, many shops were unwilling to budge. However, when they did, it was more likely to happen for women than men. In fact, 35 percent of women were able to get their requested price met, compared to 25 percent of men.

“It’s kind of an ironic twist,” says Zettelmeyer, the Nancy L. Ertle Professor of Marketing. “The same kind of cultural expectations that cause repair shops to overcharge women are probably also responsible for showing preference toward women in negotiations.”

Ad Loading...

For more on the study, click here.

More Auto Finance

A fan of $100 bills sitting on a white envelope
Auto Financeby Hannah MitchellAugust 12, 2026

July Was Hot for Auto Borrowers

Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.

Read More →
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Financeby Lauren LawrenceAugust 12, 2026

Dealer Lender Preferences Revealed

When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.

Read More →
man sitting at desk using a calculator
Auto Financeby Lauren LawrenceAugust 10, 2026

Auto Refi Savings Surge

Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.

Read More →
Ad Loading...
Tiny toy car in front of small stacks of coins
Auto Financeby Hannah MitchellAugust 5, 2026

Subaru Enters Lending Business

The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.

Read More →
Man climbing ladder in front of mountain landscape.
Auto Financeby Lauren LawrenceAugust 3, 2026

Positive Equity Reaches Record High

Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.

Read More →
Photo of document next to calculator and inkpen
Auto FinanceJuly 20, 2026

Dealerships Are Paying the Price for Extended Car Loans

Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.

Read More →
Ad Loading...
silver car in background with hand in front holding out a set of keys, Trade-In Trouble, F&I and Showroom
Auto Financeby Lauren LawrenceJuly 20, 2026

Trade-Ins in Negative Equity Reach New Heights

As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.

Read More →
Two men in suit jackets shaking hands in front of a new-looking white vehicle
Auto Financeby Hannah MitchellJuly 15, 2026

Auto Credit Plentiful

June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.

Read More →
Woman's hands holding an wallet empty of cash
Auto Financeby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Ad Loading...
Three men smiling for headshots
Auto Financeby Lauren LawrenceJuly 1, 2026

Porsche Financial Services Shifts Structure

After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.

Read More →