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The Honolulu Advertiser

Posted on: Saturday, May 28, 2005

Sexism persists at auto lots, survey finds

By Luladey B. Tadesse and Cori Bolger
Gannett News Service

Tiffany Denny is an electrical engineer with a strong math background.

Sandra Chortkoff, middle, and Kristine Hart, both of Bakersfield, Calif., mulled the purchase of a Ford Mustang last October at a dealership in North Hills, Calif. Women make up more than half of new-car buyers, but many fear getting ripped off by sales people.

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But she's not comfortable going to a car dealer alone.

"I want to get a good deal on a car, and a man may be better at getting a good deal than a woman," says Denny of Newark, Del.

Other women share her concerns. A survey from Power Information Network, a division of J.D. Power and Associates., found that of about 800 female buyers nationwide, some 40 percent believe their gender negatively influenced the way they were treated in their most recent visit to an auto dealer.

And they're right, according to a Consumer Information and Price Discrimination study.

The 2001 study, conducted by two universities, found that female buyers tend to pay slightly more for a vehicle — an average of 0.2 percent — than men. That works out to about $45 per car purchase.

Trust does not appear to be strengthening between women and dealers, says Joni Gray, consumer advice editor at Kelley Blue Book in Irvine, Calif.

Who's making the decisions?

Women increasingly are decision-makers in many, if not most, vehicle purchases:

50 percent. The share of new cars women bought.

48 percent. The share of used cars women bought.

80 percent. The percentage of purchases in which women played an influential role.

"That's a surprise because car companies are marketing more to women," she says.

More automakers are recognizing that women are the fastest growing segment of new and used auto buyers, according to Road & Travel magazine.

Women purchase more than 50 percent of all new vehicles, 48 percent of used vehicles and have a say in 80 percent of all auto purchases, experts say.

Some automakers have created divisions specifically to market to women and are finding creative ways to reach them.

When Nissan launched its Quest minivan in August 2003, the automaker targeted "the active female" through broadcast and print media.

"The idea was, 'Moms have changed, so why shouldn't the minivan? Why couldn't the minivan be stylish and functional?' " says Fred Suckow, of Nissan North America.

Volvo unveiled its "Your Concept Car" model — the first car designed by women for women — during the Geneva International Motor Show in March 2004.

In September, General Motors spent about $7 million to launch its 2005 Pontiac G6 on "The Oprah Winfrey Show." Winfrey gave away 276 of the sedans to the audience at her season premiere.

Still, there appears to be a gap between automakers' marketing efforts and the actual auto-buying experience.

Roughly 75 percent of women surveyed say they would bring a man to the dealership to avoid paying more than they should, according to the Power Information Network survey.

Last year, Christy Bramlett of Jackson, Miss., brought her boyfriend along to buy a car. Though she researched prices beforehand, bad experiences with mechanics made her gun shy.

"I felt like my boyfriend could do a better job of talking them down in price and keep them from taking advantage of me," she says.

Three years ago, Kendal Hester stopped at a Jackson, Miss., dealership to test drive a vehicle.

Hester, then 24 and single, decided to buy a car and sat down with a salesman to finalize the paperwork.

"During our conversation, he asked, 'Do you want to give your husband a call and I'll work something out with him?' " she recalls. "I was so appalled, I got up and left."

Lloyd Williams, a general sales manager at a Ford dealership, acknowledged such sales people do exist. "In every profession that's true," he says. "Unfortunately, it created the slogan, 'Buyer, beware.' "

To alleviate the problem, experts suggest automakers need to make dealerships more aware that how they treat female customers is tied to their success.

"When the dealership can't connect with women, then women feel disconnected to the brands themselves," says Tracy Chapman, co-director of brand consulting at Just Ask a Woman marketing firm in New York.

Some automakers are teaching sales people how to interact with women. "More and more dealers are finding ways to streamline the interaction process between dealers and females," says Suckow of Nissan.