Lexus Tests No Haggle Pricing - Have You Already Changed To A Dealer That Streamlined The Purchase?

Toyota Motor Corp.’s Lexus luxury division is about one month away from launching a no-haggle pricing experiment that it developed with 11 U.S. dealers who volunteered. A significant number of retailers are unwilling to go along.

“Many of our dealers, philosophically, are opposed,” said Jeff Bracken, group vice president and general manager for Lexus. “They’re saying, ‘You’re wholesale. We’re retail. Stay out of our business.’ ”

Lexus wants to experiment with the new system in part to woo younger buyers, some of whom regard haggling as a retail experience better suited for their grandparents’ generation. Interest in a less painful car-buying process have helped given rise to CarMax Inc., the largest retailer of used cars, and TrueCar Inc., which provides consumers information about what their peers are paying.

About 44 percent of consumers don’t want to negotiate the price of a vehicle, a survey by car-buying website Autotrader found last year. While respondents said haggling was their top frustration, most said it’s the only path to a fair price, so 56 percent were committed to duking it out.

MDarringer - 4/6/2016 7:51:27 PM

+1 Boost

Lexus' no haggle pricing is price fixing and as such is anti-consumer to its core. I've seen a few wealthy clients who do no-haggle pricing. Some will inform the dealer what they will pay and that is their bottom line. Moreover, with the premium market being so volatile--due to quite a few customers are not brand loyal--one tactic is for the dealer to make the initial offer to the customer. The gamble is to come off list price--on your car in a highly contested segment--so that the customer stays rather than walks.

Terry989 - 4/7/2016 3:14:59 AM

+1 Boost

Matt is a compete idiot and can't grasp the simple concept of price fixing, which this is not - - - it is a sales model.

I welcome alternative models and have bought two cars over Ebay and ordered two new cars from my computer from dealers. Matt is one of the unscrupulous used cars sales person who wants you to be confused about the process so he can rip your off. How many times has he boasted about his exploits of flipping cars for absurd amounts of money.

Matt wants to preserve his anarchic way of life in backwoods Bakersfield by promoting protectionism over free market models.

MDarringer - 4/7/2016 8:38:25 AM

+1 Boost

@Terry989 if you want to be cash raped by price fixing, then be my guest. I'm happy to sell you anything at full price. I have no problem putting more money in my pocket at your expense. I mean I can't help it that you're one of the gutless sheeple that is too lazy/stupid to do research on prices, know your finances, and stick to your price point.

Lexus' model is protectionism not free market. Free market does not do price fixing.

Terry989 - 4/7/2016 12:19:54 PM

0 Boost

As a warning to anyone wanting to buy a car Ford or Hyundai in the Bakersfield area - - - don't. Vote with your money. Matt hates you if you are African American, Hispanic, Asian, Democratic, non-Catholic a woman. He will gladly cash rape you and then laugh at you and make fun of you behind your back. Take you business elsewhere, and don't be afraid to tell the local dealer why.

TomM - 4/8/2016 2:45:26 PM

0 Boost

Sorry - but MATT is right on regarding pricing - it is NOT a sales model because a number of independent corporations (Dealers) are having prices set by the producer - and that is NOT legal in most states to begin with. (a suggestion is different from a "set" price.

A number of others have tried and failed at that - because the competition doesn't comply - so sales are lost.

nguyenvuminh - 4/7/2016 8:55:46 AM

+2 Boost

:-) Of course MDarringer is going to be against no-haggle pricing because it renders his car sales job worthless. He's protecting his self interest. Just like how he continues to peddle the greatness of his Lincoln cars.

TomM - 4/8/2016 2:50:07 PM

0 Boost

I have a question - would YOU accept a third party to set the price you will receive in trade for your used car - without input from YOU? IE - YOU must accept ONLY this amount - you will NEVER get more. That is what no haggle price means. YOU will be unable to shop different Lexus dealers because THEIR prices will all be the same - and likely higher than other premiums offerings (and they are not worth more)

AND no haggle prices does not eliminate car salesmen - it actually makes their need even more - because someone will have to tell the customer that they cannot get a discount equal to the one the Mercedes dealer is offering - but still convince them to buy the cars.

skytop - 4/7/2016 5:12:33 PM

+1 Boost

Where is Saturn car company today with their 'no haggle' pricing.

No Haggle pricing = manufacturer price control = abused customer