Lexus Wants to Change the Rules of the Game

Lexus NX

Some people buy cars with reckless abandon. They need a car, they go to their favorite dealer, they pick a car, they agree to buy it, they write a check, and they drive away.

These people don’t worry about the cost of the car, because they’ve decided the MSRP is reasonable, since the car will serve its intended purpose for the next couple of years or so.

I’ve known plenty of people who purchase cars this way. They buy vehicles with names like Denali, Benz, Porsche, Lexus, and more.

I am not one of those people. I’m a negotiator, and when I think I’m at the rock-bottom price, I try to go lower.

Then again, I don’t buy new luxury cars. The people who do would rather have a good experience at the dealership than spend hours trying to save a few bucks.

Lexus hopes to take advantage of that and could offer a no-haggle pricing policy. Could Lexus become the Saturn of the 21st century?

One of the best tools a car shopper has in his or her belt is the ability to walk away if negotiations go south. If a deal is close, oftentimes a sales manager would rather sacrifice a few bucks than let the buyer leave and go to another dealer.

Fixed pricing removes that tool and effectively tells buyers, “Go ahead and walk. We’d rather give you a superb dealer experience than waste your time negotiating.”

An article at The Detroit Bureau says,

The idea of going to a no-haggle approach has been under discussion at Lexus, currently the top-selling luxury brand in the U.S., since 2013. The maker has identified a dozen hand-picked dealers who will launch the pilot program during the first quarter of 2016.

There are a few dealers across America that have embraced the no-haggle approach to sales and, so far, it’s working for them.

I don’t think bargaining for cars will ever go away completely, but it does make sense for dealers who see a large percentage of non-negotiated cash purchases. The Lexus program should work, but I doubt it’ll filter down to Toyota dealerships anytime soon.

Would you rather purchase a car at a no-haggle dealership?

-tgriffith

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