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A new car is a big amount for anyone—but it will amount some bodies added than others, alike at the aforementioned dealership.

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A new U of T study, which is the aboriginal of its affectionate to anxiously appearance ample differences in the amount paid for a new car, reveals that age and alike in some cases gender can be a factor.

“We were afraid by the consequence of the aberration in how abundant bodies paid for an identical car that was bought in the aforementioned ages in alike the aforementioned city,” says Ambarish Chandra, Assistant Professor of Business Economics in U of T Scarborough’s Department of Management and the Rotman School of Management.

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Chandra and his colleagues at the University of Berkeley and the University of British Columbia yzed added than 10.5 actor new car affairs beyond Canada and the United States. For anniversary transaction they had the final auction amount of a car as able-bodied as the customer’s age and gender.

They begin the aberration in amount paid by consumers assorted considerably, in some cases by as abundant as abundant as $3,000 for a new car. They additionally begin that earlier consumers tend to pay added than adolescent consumers, but that earlier women in accurate pay added by an boilerplate of about $200 per car. The gender gap does attenuated amid adolescent consumers to the point area it is about aught amid youngest new car buyers (age 20-25).

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“This tells us it isn’t necessarily an archetype of bigotry because there is no affirmation dealerships are overcharging women accurately because for adolescent consumers that’s acutely not the case,” he says.

Instead, Chandra credibility to altered activity adventures aggregate by earlier women compared to adolescent women. He says the abandoned reliable account for the alterity is that in North America the apprenticeship and application gap amid men and women has narrowed appreciably over the accomplished 50 years. Although adolescent women still acquire beneath than men, the balance gap has additionally narrowed in contempo years.

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“We accept that bigger apprenticeship and application outcomes for adolescent women compared to earlier women, about to men of the aforementioned age, has important furnishings for negotiating ample purchases like cars and houses.”

Another acumen for the alterity in prices paid amid consumers about is the action of affairs a new car itself. Unlike best customer products, cars abandoned accept a appropriate account price, acceptation the final amount can be negotiated. Accomplished studies accept apparent as abundant as 80 per cent of bodies animosity the action of car affairs because of the agreement process. Chandra says best feel they are actuality overcharged, and alike back they do get a acceptable deal, abounding aren’t alike acquainted they did.

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So what does this beggarly for bodies planning on purchasing a car? Chandra suggests accomplishing your appointment aboriginal afore negotiating a price.

“The best way to accommodate a bigger amount is to accept as abundant advice at your disposal. If you apperceive the balance amount of a car for example, you apperceive how abundant it amount the dealership. That advice abandoned can advice you accommodate added effectively.”

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Services like Kelley Blue Book or Edmunds.com that account the absolute balance amount of cars are admired assets accessible to consumers. Chandra says that advice acclimated to be article abandoned dealerships knew about but now it’s added readily accessible online. Getting assorted quotes from altered dealerships can additionally advice advantage a bigger price.

“Everyone, not aloof earlier consumers, should be spending as abundant time as they can accomplishing ysis on prices and quotes because in the end it can save you bags of dollars.”

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The research, which accustomed allotment from the Social Sciences and Humanities Analysis Council, will be appear in the Journal of Industrial Economics.

Explore further: Buyers with a trade-in get a raw accord

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