Tip for consumer: If you are not completely familiar with costs on vehicles, get in touch with someone who is and have them explain pricing, invoice, holdbacks and value retention...this is not a great time to let ego get involved. In fact, if you want to be smart, if you aren't a white guy, bring a white guy with you to the dealership. He's not smarter, he just gets a better price on the same car. Otherwise go by yourself and spend more, then write and tell me that you "got a really good deal."
There's a LOT of ego involved in buying a car.
Let me categorically state that I am egoless in this area. I have had my clock totally cleaned buying a car and that was not just one time. It was a number of times. That changed when I started reading Consumer Reports and Edmunds. (Thank you god) I don't know much more now, but I have access to information.
Tip for dealers: Your job is to optimize your knowledge of consumer behavior. As long as women are paying more for the same car, why aren't you marketing more to women? Your competitor is and he's cleaning up. Women's buying patterns alone account for a significant portion of the increase in car prices over the last decade.
Who Holds the Power?
Aren't car dealers evil? You know...having a quality position in Dante's Inferno?
No. Their business, with a few exceptions, is the same as anyone else's.
Your Uncle John is a mechanic there and your Aunt Jane is on the floor. They employ people and the car industry employs vast amounts of people.... If they don't sell cars at a high price, they have to let people go. That simple.....
What's "evil" (from the consumer viewpoint) is walking into the place not knowing what a holdback is and pretending to make a "decision" for your family. (M or F).....
The consumer COULD have all the control in car buying, but they almost always choose to give all their power to the dealer. It is a choice and it is an ego driven choice.
In some respects, life is a game.
In some respects, buying and selling is a game.
Whether you're selling or buying you might want to ponder that thought.
If Car Buying Were a Game
If buying a car were a game, what rules would be involved? How would you win? What would you need?
If you were selling a car, what rules would be involved? How would you win? What would you need?
And, for the seller, if you want to keep a customer, what will you do to win the future game?
So we know that women continuing to buy more expensive items is not going to be a factor or a persuasive difficulty. (And indeed all research bears this out.)