Lexus No Haggle Pricing Experiment Facing Dealership Opposition

By adpock - April 5, 2016

lexus buying no haggle

When it comes to car buying, few things are more satisfying than haggling with the dealer and getting the right price. But perhaps it might be better to just get the right price without all the negotiating?

That’s certainly the way CarMarx Inc. looks at it, and they’re philosophy has given rise to a car-buying movement that throws out the old model and embraces a no-haggling approach to car buying. We’ve known for a while now, in hopes of wooing younger buyers, Lexus is at the very least testing out the idea; they’ve already launched a pilot program at 11 dealerships. Alas, now we’re hearing about push-back.

While speaking at the National Automobile Dealers Association convention in Las Vegas recently, Jeff Bracken, group vice president and general manager for Lexus, said: “Many of our dealers, philosophically, are opposed. They’re saying, ‘You’re wholesale. We’re retail. Stay out of our business.’”

While many still believe that the best way to get the best price is through savvy negotiating, according to a survey done by Autotrader last year, roughly 44% of car buyers would prefer a no-haggle approach. So yeah, it’s complicated, but Bracken still believes the program has a future, even though dealerships would need to cooperate.

But what do you think? There’s quite a lively discussion brewing on the forum already, so hop on in and let us know your thoughts.