• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
RetailMillennials

Millennials Are Changing the Way Americans Shop for Cars…for the Better

By
Ian Salisbury
Ian Salisbury
and
Money
Money
Down Arrow Button Icon
By
Ian Salisbury
Ian Salisbury
and
Money
Money
Down Arrow Button Icon
October 8, 2016, 2:05 PM ET

From streaming movies to splitting restaurant tabs with Venmo, millennials are streamlining commerce in all kinds of ways. Now their enormous collective buying power is changing yet another aspect of how Americans shop: Bargaining for the family car.

It’s long been a rite of passage—if one that’s universally bemoaned—sitting at a car dealer’s cluttered desk, dickering over the price of a new vehicle.

But millennials—used to purchasing everything from music to groceries to hotel stays online—are starting to change that as a number of major care markers strike deals to sell cars at fixed list prices, according to a report Thursday in the Washington Post.

The evidence: Costco last year struck a deal with General Motor dealerships to sell 465,000 at fixed prices. Meanwhile electric car maker Tesla, which expects to sell around 90,000 cars this year, has made a practice of it. Other brands like Subaru and Lexus have also been experimenting with the practice in certain locations, the Post found.

Just One Out of Five Millennials Has Tasted a Big Mac

One big reason is that, instead of assuming they will just deal with a salesperson, millennials tend to research purchases online, visiting an average of 25 sites, according to trade journal Automotive News. That means they’ve largely made up their minds by the time they arrive on the lot.

“These buyers aren’t looking for a salesman; they’re looking for a customer advocate,” Alison Spitzer, vice president of Spitzer Automotive Group, a chain of Cleveland dealerships, told Automotive News.

To be sure, the car business is one of the last to move into the digital age. Across the country, state laws, designed to protect dealers’ businesses, prohibit car makers from selling directly to consumers over the Internet. And some aspects of the transaction, like the value put on a trade-in and financing terms make it difficult to do away with traditional bargaining altogether. All the same, dealers are slowly being forced to adapt to the tastes of millennial consumers like most other businesses.

“We know from some of the research that we do that there are a lot of young folks that are not so intrigued by the traditional negotiation process,” Lexus executive Jeff Bracken told the Washington Post last year as it began its fixed pricing experiment. “And even a group of folks that just don’t even want to go in the dealerships.”

This article originally appeared on MONEY.

About the Authors
By Ian Salisbury
See full bioRight Arrow Button Icon
By Money
See full bioRight Arrow Button Icon

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

HealthFood and drink
Chains like Sweetgreen and Chipotle are finally realizing they need to look beyond the ‘slop bowl’
By Phil WahbaFebruary 27, 2026
3 days ago
burger king
AIOpenAI
Burger King tests OpenAI-powered headsets that will track the friendliness of drive-through workers
By Dee-Ann Durbin and The Associated PressFebruary 27, 2026
3 days ago
Two restaurant workers wearing black stand in front of a silver "Flippy" fry station.
AIAutomation
Meet your new robot fry cooks: Inside the $28 billion race to disrupt White Castle and Jack in the Box
By Sasha RogelbergFebruary 26, 2026
4 days ago
Customers in the electronics section at Walmart on Black Friday in Columbus, Ohio, US, on Friday, Nov. 28, 2025. Americans are planning to spend more this holiday season than last year, according to credit reporting firm TransUnion. Photographer: Brian Kaiser/Bloomberg via Getty Images
C-SuiteLeadership
McKinsey studied 61 growth companies that outperformed their peers through COVID, inflation, and labor shocks. Here’s what they all had in common
By Geoff ColvinFebruary 26, 2026
5 days ago
The Home Depot storefront
InvestingHome Depot
Home Depot CEO says with the housing market stalemate, ‘our customers are telling us that they’re not investing’
By Jacqueline MunisFebruary 25, 2026
6 days ago
CommentaryCulture
Gen Z’s enthusiasm for all things touchable is resurrecting the analog economy—and costing parents
By Luba KassovaFebruary 24, 2026
6 days ago

Most Popular

placeholder alt text
Middle East
U.S. military gives Iran a taste of its own medicine with cheap copycat Shahed drones, while concern shifts to munitions supply in extended conflict
By Jason MaMarch 1, 2026
1 day ago
placeholder alt text
Success
MacKenzie Scott's close relationship with Toni Morrison long before Amazon put Scott on the path to give more than $1 billion to HBCUs
By Sasha RogelbergMarch 1, 2026
1 day ago
placeholder alt text
Economy
Your grandparents are the reason the U.S. isn't in a recession right now. That won't last forever
By Eleanor PringleMarch 1, 2026
2 days ago
placeholder alt text
AI
American schools weren’t broken until Silicon Valley used a lie to convince them they were—now reading and math scores are plummeting
By Sasha RogelbergMarch 1, 2026
1 day ago
placeholder alt text
Middle East
As Iran attacks Dubai, the tax-free haven for the global elite could see 'catastrophic' fallout — 'this can also send shockwaves globally'
By Jason MaMarch 1, 2026
1 day ago
placeholder alt text
Health
Gen Z men are eating ‘boy kibble,’ the human equivalent to dog food, to load up on protein cheaply
By Jake AngeloMarch 1, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.