SW17LS

I consulted with car dealers for years, specifically about how to drive repeat business, retain customers from sales to service, etc. Like I said...they really don't care. There is plenty of business, consumers today go where it's easy, not where it's good. Customer service is a focus for them, but only to a point. An individual customer is only worth so much to them, and they'll only go so far to please a customer. New customers are constantly coming through the door.

You can talk about how you think it should be all you want, I'm telling you how it actually is.

chikoo

I am who has already gotten it. I have never haggled for any car purchase in my life. Ever. I give my price to the dealer. If they like it, we have a deal. If not, I simply look for another car at another dealer.

Btw, my earlier comments were not directed to you

mmarshall

Well, that's the point. It's not the same everywhere..and I just explained why. But, in general, there is no comparing dealerships today to what they were like years ago. That's not simply my opinion, or what I necessarily want...that is a fact. And I'm glad it's a fact....i remember how much of a PITA car-buying used to be (and was for too long at Rosenthal LOL)

Anyhow, I think we all got off-topic (me included)....Toyota's haggle-free policies.

SW17LS

Out of curiosity...what is it you think "haggling" is?

You give a price to the dealer, they take it or you walk. That's haggling lol

chikoo

Well I guess then the great Lexus IS now haggling.... They put up a price and I either take it or walk away. I wonder why they are calling it haggle free pricing.

Haggling is when we go back and forth on my price your price and everything in between and then add free oil change and car wash before I sign the papers.

SW17LS

We have different definitions on "haggling". I don't do that, I just shop around for the best price, and use the data available to me to determine what I want to pay...and thats what I pay. Its no different than what you do...like I said, I never even set foot in the dealership until the deal is all worked out. Its not a stressful or difficult process at all. I've found that the internet sales staff at dealerships are prepared for this sort of consumer, and there's no "back and forth". they give me a quote that is usually pretty close to what my research has shown me is the value. I get 3-4, then pick the lowest one, if its still off present my data, and close the deal.

What they are proposing is just fun with numbers. "This is the MSRP"; "this is your LexusPlus price", they're just making up both numbers. At least now the price you and I come up with is based on what the market is bearing for that model at that time. If this takes hold, they just make up the numbers and artificially create a gap to make the buyer feel like they're getting a deal.

If that $80k car has an $80k sticker, you won't pay $80k for it. If I make the sticker $85k and tell you I'll sell it to you for $80k, you get all excited. They're just playing us for dolts here.

My0gr81

my niece's husband, a French national, living in Montreal, QC told me the Lexus dealers in France are small showrooms with very limited cars for test drives. one walks in, either know what they want and get a price on that or are "guided" by the product advisor on the different options that would suit their needs and price for each. they can go to another dealer, but most likely, will end up with the same pricing as they all abide by the MSRP price discounted based on regional stock, seasonal demands and manufacturer's incentives. Thisnsound a lot lime LexusPlus doesn't it?

Chocolate

I don't mind haggling on a big purchase like a vehicle, or a home. How often do you need to do it?

It's pretty clear that it is purely an attempt for more margin, think they'll mark the "Pure" price down as much as you could negotiate?

For my LX, they barely moved as it was already priced on the lower end, but I still got a better price just by negotiating for a few minutes - not too hard to sort by lowest price/miles. I was satisfied with the deal I got.

coolsaber

Buzzword misconceptions

The haggling implies some sort of struggle.

Group free, and anything before it is removed.

Same way if you read a Lead email, they like to use buzzwords like

"re-price"
"lowest possible price"
"massive incentives"
"trouble free or hassle free experience"
"Limited time only"
"Race to 100 units"
"Best Price EVER"
"Below Dealer Cost"


etc etc

coolsaber

Has anyone given any thought to what happens to this sales strategy on models that will just not move by themselves?

Chocolate

Correct, it is so transparent that this is just a way to push selling price higher. I will add in the past two years I am seeing other plays for additional margin, including reduction in service plan coverage (this is a big one as they would rather make the extended service plan more attractive), higher costs to borrow money, and additional charges to transfer warranties and service coverage.

chikoo

hag·gle
ˈhaɡəl/
verb
gerund or present participle: haggling
dispute or bargain persistently, especially over the cost of something.
"the two sides are haggling over television rights"
synonyms: barter, bargain, negotiate, dicker, quibble, wrangle; More
beat someone down, drive a hard bargain
"John spent nearly every Saturday morning haggling at flea markets and garage sales"


Exactly the process I follow too, and it includes cross shopping. The last time I was out shopping for a Mustang convertible, and I ended up, on my own as a result of cross shopping for features &price point, with a BMW convertible.

True. Or else move to the next one in the list but I will not keep proposing new prices to the dealer for the same car. That is called haggling.

Or they will bump it up to $100k and let you believe you stole it

mmarshall

Simple. If it gets bad enough, and/or if demand is high enough for other models and the manufacturer needs the factory-space for production, the manufacturer just drops that vehicle, period. Unfortunately, that is what has happened to a lot of GM sedans over the years....they have been dropped to convert the plants to trucks/SUVs.

mmarshall

No-dicker pricing is not necessarily a way of getting higher selling prices....or more profit. It depends on how the vehicles are priced to start with. Take Saturn, for instance...arguably the most well-known example. One reason why Saturn was so successful in the 1990s (along with their clever vehicle innovations, of course), was that even paying full-list for their vehicles, their S-series were moderately-priced to start with, and competed well with the average transition prices for the Corolla and Civic (back then their closet competitors), along with some domestics like the Ford Escort and Plymouth Sundance. Customers knew they were getting a good deal at Saturn even paying full-list, and, of course, benefitted from the unique customer perks that Saturn was known for. Saturn, of course, eventually folded, but it was not because of pricing....it was because the company, after 2000, was horribly mismanaged and tried to become like the rest of GM at that time.....which it clearly wasn't.

coolsaber

Not exactly, for instance some models like the RCF for the 15 year were not moving according to initial outlook. However in effort to push them through, the incentive loads on this model were heavy. So does this model which is one price for all, keep business as usual, were if a model does not sell well, just keep on bumping the Lexus + Price down or would their be a bottom floor?