Report: Price haggling to be a thing of the past at Lexus dealers

Most if not all of us are familiar with the experience of negotiating, or price-haggling at the dealerships to get the lowest price possible for a vehicle for sale. And it’s all but a smooth, and seamless transaction for the most part and above all, it can be daunting and stressful to the point where you just want to stab your salesperson in the eye (no, don’t actually do that).

Now, obviously, that’s down to how well the salesperson does his or her job, but for the most part, there’s always a clash between the buyer trying to get the right price without overpaying, while the salesperson seeks to get the most money out of the transaction.

Though, in a bid to try and rid of this complication in the new car buying process, USAToday reports Lexus seeks to eliminate the whole process of negotiating at dealerships as a way to differentiate themselves from the buying experiences of other automakers. 

Their belief: the elimination of the haggling process provides a more premium experience, according to Lexus division manager, Jeff Bracken.

The new pricing strategy may take some getting used to with Lexus expecting a slight dip in sales and market share in the coming short-term months. Though the overall idea for this plan came after Lexus conducted a market research study in 2013 with a small group of dealers to see where they can improve with the dealership experience. Their biggest takeaway: the biggest complaint that customers had for the dealership was the entire haggling process.

With this pricing strategy, Lexus would be the first automaker to have fixed pricing since General Motors rid of Saturn, the only other brand to utilize this method.

Do you think this will make buying or leasing a Lexus easier and improve the experience? Should all dealers adopt this model?

Let us know in the comments.

– By: Chris Chin

Source: USAToday


Chris Chin

Chris Chin is the Editor-In-Chief of egmCarTech and is a regular contributor to Automobile Magazine.

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