So, How’s That Lexus No-Haggle Experiment Going?

By adpock - July 25, 2016

lexus no haggle pricing

As we discussed this time last year, some Lexus dealerships have been experimenting with no-haggle pricing, even though other dealers have voiced their opposition to such an approach. Well, now that we’ve had some time to judge, just how well is the experiment going?

According to Lexus of Omaha (via Bloomberg), who switched to no-haggle pricing nearly two months ago, it’s going pretty well. Or at least it seems to be for salesman Jim Endebrock, who has sold 40 cars since the new policy was implemented on June 1. While Endebrock did lose one customer who fancied himself a “shrewd negotiator,” the majority of his clients have been thrilled with the simple idea that the sticker price represents the dealer’s best and only price.

It seems like a fairly intuitive way to shop for pretty much everything else, yet most major car brands have been reluctant to implement such a policy. But more and more individual no-haggle dealerships are popping up nationwide, thanks mostly to the shrinking profit margins brought on by the internet’s available transparency.

Of course, Lexus is leading the way. Lexus was “the first luxury brand to launch a factory-sanctioned pilot program for expanding the idea nationwide.” Currently, only 11 of 236 Lexus dealerships in the U.S. are offering no-haggle pricing. But by offering training and consulting, Lexus is making it easier and easier for dealerships to jump on the trend.