The general manager for Lexus U.S.A. announced the experiment today at a Center for Automotive Research event. “While negotiation-free pricing is not revolutionary, we strongly believe the concept will further elevate transaction transparency and customer care,” he told his audience of people in the industry.
Automotive News points out that this is one way for Lexus to differentiate itself in the luxury car market, where German automaker BMW has outsold Lexus in recent years. The pricing model doesn’t work unless customers believe that sticker prices are fair, and it may not work in a situation where a minority of dealerships (12 out of 236, in this case) are part of the program.
Of course, customers who do want to haggle could just drive down the street to a dealership that’s not part of the program. Simple.
American car-buyers may associate the no-haggle model more with Saturn, a now-defunct General Motors brand that used the model to differentiate itself from other car brands we well as from its cousins within GM. However, this model hasn’t died out. Electric car maker Tesla also doesn’t negotiate prices with customers.
The no-haggle model isn’t isn’t even new to Toyota: the company’s Scion brand also offers no-haggle pricing, or “Pure Price.” The cost of accessories and add-ons might be negotiable, but the prices for vehicles themselves are fixed.
Lexus experiments with no-haggle dealer pilot, Bracken says [Automotive News]
by Laura Northrup via Consumerist
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