Lexus tries out no-haggle pricing at some dealerships

Lexus is looking to test out a fixed-price strategy at 12 of its 236 dealerships in the United States, in the hopes that it will increase transparency and lead to greater customer satisfaction during the car-buying process. 

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    The Lexus logo is displayed on a Lexus sedan in the showroom at Lexus of Kendall in Miami.
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One of the most painful parts of buying a car is the haggling process. We have to assume that the sale folks hate it. We know that car buyers hate it. It's so frustrating that an entire company has sprung up around the fact that you can buy cars from them with the prices being firm and upfront. No-haggle pricing is a nice concept, but will it ever catch on with mainstream car brands? Lexus is certainly willing to give it a shot.

The luxury brand is looking to test out a fixed-price strategy at 12 of its 236 dealerships in the United States. According to Automotive News (subscription required), Lexus general manager Jeff Bracken believes the move will "further elevate transaction transparency and customer care". It will certainly be an interesting experiment on many levels. We're curious how it will affect sales, but we're more curious to see how the dealers will price their stock.

You see, it's up to the individual dealer to set the price on a vehicle rather than the automaker itself. And it means a Lexus buyer could potentially be shopping for a car and find a better deal in Boise than in Boston. Or perhaps it would be the other way around, as one town might have a greater supply of a certain model to meet a larger demand. It's going to be something you should keep your eye on as its a conceptual experiment playing in both the economics world, and the psychological one as well.

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