"Note to New Car Buyers: Send Your Minority Wife Out to Get the Worst Price!"
Here’s a press release which assumes, I suppose, that I have at least one wife who qualifies as a minority. Actually, Sam’s an African American, originating as she does from the RSA. Anyway, AutoBrag.com‘s playing the “HERE’S A STARTLING SURVEY, BUT DON’T WORRY ABOUT OUR METHODOLOGY” PR game, and playing it well. And here’s how they did it! “We sent out 87 pairs of observations [sic] to compare how the best price difference between the White Males, verse [sic] White Females, Minority Males and Minority Females to 35 Southern California new car dealerships to keep track of how each pair with different race and gender only would be treated by the salesperson. The results are astonished. [sic] The race, gender, and car make affect the price American consumers pay for their new car significantly. And, again, the differences of the best price between different race and gender are even greater if one considers the long-term financing and opportunity costs throughout the lifetime of the new car purchase.” How’s that for statistical control? Does that fact they were all “college kids” influence your opinion? Those of you who wish to get a closer look at the race card in Autobraggadoccio Danny Chan’s hand can make the jump for the results.
“Statistically, White Females are given higher prices than White Males. Minority Males are given much higher prices than White Males. White Male Sellers charge higher prices than Minority Salespersons. The differences in savings become even higher when the shopper takes a loan and the compound interest and other costs are considered
“What does this mean? That traditional car dealerships continue to employ predatory sales tactics? Does the Internet help to change this old-school regime? The purpose of this study is to alert consumers to the fact that if they stepped onto the lot without negotiation then minority and women may be at a disadvantage of getting the best price.” So, at the end of it all, Chan wimps out. Figures.
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As others have written, this "report" is worthless, but that Harvard Law Review article (a taste of which can be found at islandia.law.yale.edu/ayers/fairdriv.htm) was a bit more rigorous. Anecdotally, when my girlfriend was looking for a new car, we ended up leaving a Nissan dealership with her uttering the words, "what is this, some kind of vagina tax?"
When I lived in Germany, and was intimately involved with the car business (and was privvy to the incentives proffered to the propulsion pimping profession,) many a new car buying female enlisted my services. I bought the wheels on behalf of her. For me, that brought much better results than hanging out in singles bars. @Christian: The chivalrous thing to do would have been to rescue the maiden from the chauvinistic car creep and act as if YOU would buy the car. Come signature, she'd show up.