10 August 2015

Lexus has become the latest company to have a go at non-negotiable car sales with the caveat of improving customer service.

It’s only a toe in the water at this stage, confined to 12 pilot dealerships in the US. Though popular Stateside, Lexus is hardly a brute force in volume terms in the UK, so the move may have little, if any effect on British car retailers. However, the firm is known for its impressive service both in the US and in Britain, with consistent podium finishes in customer satisfaction surveys. That reputation, and that it’s an established manufacturer, gives some credibility to the endeavor.

This isn’t the first time a carmaker has had a stab at selling vehicles with a no haggle disclaimer. Tesla springs instantly to mind, mainly because it’s current, but others including (both now defunct) Daewoo and, in the US, Saturn, had a go.

That doesn’t sound like a great track record for fixed-price sellers but it is worth noting that Lexus’s sister brand in the US, Scion, sells cars for a non-negotiable amount under the ‘Pure Price’ banner. 

The question is whether fixed-cost sales will gain momentum or if they will remain a flash in the pan? Is the effect such that they will become the expected norm and are savvy, better-informed buyers content to erode the sales process to a single-price ticket?

As ever, we’d be glad to know your thoughts.

Jack Carfrae
Editor
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Tags: Daewoo, Lexus, Tesla