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Car superstores rev up
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February 26, 1997: 11:07 a.m. ET
Customers prefer higher prices for better protection and less aggravation
From Correspondent Jody Davis
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NEW YORK (CNNfn) - Anyone who's bought a used car would probably rank it as one of his least favorite experiences. But the advent of the used-car superstore is changing all that.
Customers are abandoning their neighborhood dealerships for chains like Carmax and Auto Nation, which offer a huge selection of late-model cars with a checklist of promises. Each car is inspected, carries a 30-day comprehensive warranty and a five-day, money-back guarantee.
What they don't offer is the old American tradition of haggling over prices. Loretta Seymour of J.D. Power and Associates says superstores are changing the method of pricing cars.
"What we're finding is the definition of price is involving more of [the customer's] time or the amount of aggravation or hassle they have to go through in buying a vehicle," Seymour said.
But the quality assurances and pleasant shopping experience cost money. Customers can pay $100 or $200 more at a superstore than at traditional dealerships.
"You may be paying a few dollars more to buy [it at an independent dealership] than at the Car Max. The thing you have to ask yourself when you go in is: Do you feel comfortable for what you're paying?" automotive journalist Paul Eisenstein said.
The success of used-car superstores has prompted some old-line competitors to change the way they do business. Infiniti dealers and most General Motors dealers are now offering so-called certified used cars.
Mark Schienberg of the Greater New York Auto Dealers Association said the new policy is intended to give buyers greater peace of mind. (118K WAV) or (118K AIFF)
So customers have a choice between the best price or best protection, and they are choosing the latter. A nationwide poll reveals shoppers prefer superstores that guarantee quality five-to-one over independent dealers. 
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