Women Buying Cars

Ladies in the Driver’s Seat: Capitalizing on Our Buying Power and Rejecting Ridiculous Consumer Stereotypes

I recently bought a car. Well, I bought a minivan, but that’s a story for another time.  And when I say I bought it, I mean I bought it.  I went to the dealership, negotiated the deal, signed the papers, and, eventually, left with a shiny new vehicle.  I’ve mentioned this independent purchase to a few friends, and they seem genuinely shocked that I handled it all myself.  It wasn’t that they feel incapable of a car purchase; it was the idea of navigating the transaction without a wingman.

I get it.  Car shopping is not my favorite thing.  It’s intimidating and overwhelming, and I usually leave feeling like I need a shower. Compound the fact that I’m a woman and have only limited knowledge of automobiles (not because of my gender but because I just don’t have a keen interest in the subject), and things get downright scary.  I don’t take my dad or my brother or my bestie or even my husband to buy a car. Why would I? It’s not theirs to drive. But, given the reaction I received I wanted to explore the idea of women buying cars a little more.  The intersection of psychology and economics fascinates me.  Throw in the question of gender disparity, and you’ve got yourself a topic worth blogging about!

Women buy about 54% of cars in the United States, and they influence the overall purchase of 84% of vehicles.  But we dread the car buying experience.  Dealerships want us to believe that their sales staff treat men and women the same.  And I’m sure some of them do.  Others make their best effort.  But some, based on my unscientific observation and very real experience, patronize and undermine women at some point during the transaction.    

Case-in-point:  When I was negotiating the price of the super-cool minivan I decided to buy, the sales guy bounced in so excited to tell me that he’d found me $500.  What he failed to either notice or bring to my attention, was that the price of a bogus dealer package (who needs wheel locks on their mom van?) had actually increased by $200, actually netting a $300 difference from the previous offer.  It wasn’t the amount that irritated me, it was the audacity of the Wizard of Oz-esque manager to assume I wouldn’t notice the difference.  One thing I can assure you is that my ovaries don’t keep me from doing basic math.

Research supports these observations.  Multiple studies dating back several decades confirm gender and race discrimination in pricing and negotiation during the purchase of an automobile.  As a matter of fact, one study found significant differences in price even when all participants (men and women) followed identical scripts.  While I’m grateful for the validation that my experiences aren’t unique, it’s discouraging that even knowledge and confidence don’t compensate for generalized perceptions. 

I’m infuriated by the notion that we have to choose our car-buying wardrobe carefully, and that in 2019, women still experience these ridiculous biases.  So how do we overcome this nonsense?

Do your research.  

The internet has ample sources for trade-in valuations and true car pricing.  I suggest knowing enough about your perspective vehicle to talk about differences in features, models, and reliability.  Even incentives, rebates, and competitors’ pricing can come in handy. It’s also perfectly acceptable to simply show up, test drive a vehicle, and then leave.  Salespeople won’t make you feel that way, but a quick spin to rule out one car over another is a perfectly fine (and encouraged) practice.  When you get down to the numbers, don’t negotiate car payments – negotiate the price of the car.  Ultimately that’s what matters.

Take someone to ride shotgun.  

Honestly, things would have been much smoother and more fun if I had taken someone with me to buy my minivan.  If nothing else, they would have provided some levity for my jump into the deep end of mom life.  You don’t need to take your husband or dad or someone who appears to know more about cars than you.  Pick someone you want to share the experience with, not necessarily someone you see as an expert.  

A 1967 study examining the relationship between confidence and the car buying experience found that consumers were less vulnerable to persuasion when they had specific feelings of adequacy in making the decision.  In other words, confidence only matters in car buying when it’s specific to your feelings about car buying, not general aplomb.  Moreover, this and subsequent inquiries confirmed that buyer self-confidence increases significantly when they are accompanied by a “purchase pal.”  

get out there, ladies — Study up and buddy up, and go buy that shiny new ride! 

Geeky Stuff & Sources

• Ayres, Ian, and Peter Siegelman. “Race and Gender Discrimination in Bargaining for a New Car.” The American Economic Review 85, no. 3 (1995): 304-21. 
• Bell, Gerald D. “Self Confidence and Persuasion in Car Buying.” Journal of Marketing Research. 4 (1967): 46-52.
• Edmunds – Car Pricing & Reviews
• Kelley Blue Book – The OG of car sales pricing and advice.