Lexus Plans Test of No-Haggle, One-Price Selling | Edmunds.com

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Lexus Plans Test of No-Haggle, One-Price Selling | Edmunds.com

Lexus is about to test a no-haggle, no-negotiation plan at 11 Lexus dealerships in an effort to make the buying process faster and less stressful.

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threxx

This could be Lexus' attempt at eventually implementing "minimum pricing", which would only work if adopted by all dealerships in the country. Kind of like when you go shopping for high end appliances, the dealers have signed contracts saying they won't discount those luxury appliances.
I do wonder, though... will Lexus try to compensate for the popularity of various models? Like when a popular new design first comes out, will their "up front" price be more like MSRP, and then as its popularity wanes over the coming years due to newer stuff coming out from Lexus and its competitors, will they gradually drop that up front price?

isellhondas

This didn't work for Saturn and it'll only work if ALL the stores hold to the price which probably won't happen.

kyfdx

They could do it where I live..

Two dealers, same owner.
Next closest dealer is two hours away.

fintail

It might work if dealers collude/agree - I suspect many RX and ES etc buyers are mortified at the task of negotiating on a a car.

kiiwii

get a quote. take that price and knock off another $1-2k and ask the "traditional" dealer to match.

isellhondas

kiiwii said:

get a quote. take that price and knock off another $1-2k and ask the "traditional" dealer to match.

Except Lexus stores are few and far apart and often owned by the same owner like it is here.

Not like Honda or Toyota where the parent company loves crowding stores into an area so they can cannibalize business from one another. This causes stores to do shady things and high turnover.

soakee

This DID work for Saturn and DOES work for CarMax...Saturn suffered from sub-par products. I personally would not want to buy a car this way, but I understand that some folks hate negotiating.

dandg

I am seeing this in dealers in NH (just has one) and Mass, this Price fixing-aka MAP is on all the L Certified cars I am looking at (2014-15 RX 350's). If I can't find a Lexus dealer who will negotiate I will buy one from non Lexus dealer-they are still covered by Lexus New Car Warranty so I don't lose anything and save 2-3k !
If Lexus dealers are reading this,bad move will not work and you will lose more buyers then you gain !

stever

Have you compared the one-price number to TMV @dandg?

hm, just looked at a '15 Obsidian with just under 16,000 miles at that Bedford dealer. "The" price is $41,532.

When I try to build that car using the Used Car appraisal tab here I come up with a Certified Used Price of
$42,550.

I probably messed up some of the options - be curious to see what you find out "in the real world" as you shop.

dandg

I have bought several CPO's cars the last one a GX, they moved 3500 off the price they had on it down in Mass.
15's can be found from 37700 ("ask" they will deal) at a non Lexus Dealer with 11k miles, to 38900 (again" ask") at a Lexus dealer further south were the L Certified "price fixing" is not going on due to competition !

I will no be a customer at a one price dealer were everyone pays a higher price, no thanks.

clusterclown

I'm about to buy a left over new 15 RX. I think the no haggle price is fair, seems to be below invoice. But I'm sure not a fan of the "no haggle" plan. Looked at 13 and 14 CPO units and not impressed with the pricing on them. I hope it doesn't catch on.

roger611

Nice try Lexus, but we all know you're the follower on this. Tesla did this first and now Lexus is because they are scared of losing business. Pathetic. Absolutely pathetic.

toplexussales

The person at Lexus who dreamed this up is very out of touch with the real market; Often the Lexus buyer just wants quality and a quality experience requires a fair amount of time and also well compensated and professional staff. In a Lexus dealer people are happy to pay for what they can AFFORD to pay because the value is in the product. There are economically driven people, but these will mostly act in a way which they perceive is in their own best interest when making a large purchase. This means even though they will be told there is "no negotiating" they absolutely will continue to try to negotiate and see if there is a better price to be had. On top of that they will still want to haggle over the price/value of the trade-in and the interest rate. Net/net, no time will be saved for the customer which was supposedly the goal. I sell a lot of Lexus vehicles and I sell most of them for sticker price which nets the dealership about 2-3% profit. Most business people would agree this is more than a fair profit for the work the dealership does (the value the dealership adds) and also the risk that the dealership takes (by owning product/inventory, taking in trade ins, and providing a PROFESSIONAL staff capable of delivering top shelf service). Lexus had better be careful. In the end if they force their dealership network to do things with respect to price which neither serve the customer or the dealer but limit the dealers options, the dealer will be unable to maintain their current levels of service (they might not be able be able to retain or otherwise afford to pay for adequate personnel) and the original goal of customer satisfaction will suffer.