2016 Lexus CT 200h Side
Lexus buyers at certain dealerships will no longer have to haggle and negotiate over the price of their new car. Lexus group vice president and general manager Jeff Bracken announced that a dozen Lexus dealers will experiment with fixed-price car sales, in a bid to make the new-car purchasing process easier and more appealing to customers. Few automakers offer fixed pricing, with Toyota‘s Scion brand and electric-car company Tesla Motors notable exceptions. Bracken said that he thinks no-haggle prices on Lexus models could make the sales process simpler and thus more appealing to young and female shoppers. “We strongly believe the concept will further elevate transaction transparency and customer care,” he said last week at a Center for Automotive Research briefing in Michigan. “We know there is significant growth in the purchasing power of women, millennials, and minorities. So, we’ve tailored our sales process to be more conducive to diverse needs and the ever-evolving definition of luxury.” According to The Detroit News, a small group of Lexus dealers will begin the no-haggle pricing program in early 2016. If all goes well, the program could expand to all 236 U.S. Lexus dealers in 2017. In the pilot, dealers will set one price for a car, and must, “be willing to let the customer walk away” if he or she doesn’t like it, Bracken told the News. Bracken said that Lexus dealers have invested $400 million in renovating and updating their luxury showrooms over the past four years, and that another $800 million in investments are planned over the coming three years.