Lexus Expands its One-Price, No-Haggle Program (photos)
Lexus is finally recognizing the negative impression associated with trying to get a good deal when buying a car at a dealership. This new program should make buying a Lexus a simple, stress-free process.
1. A Better Car Buying Experience
After decades of terrible customer experiences at most dealerships, Lexus is finally recognizing the issue and modernizing the process. A huge part of buying a car from a dealership is the negotiation, and customers almost always feel they get the short-end of the stick. Lexus is promoting the no haggle selling plan, as part of their famous top shelf customer service experience
2. Program Expansion
So far the no-haggle-selling program is small, but expanding and now 13 dealerships have adopted the new strategy. The program goes for both new and used vehicles at these dealers, in attempt to make shopping for a car an easy, clear process, like buying anything else. There are seven other dealerships working to adopt the new program, and these dealerships should be added by the end of 2017.
3. Auto Industry Customer Satisfaction Survey
Lexus used auto surveys conducted by market research companies to find out the paint points potential buyers feel. The surveys show that the back and fourth between the customer and the sales person is the most discouraging part of shopping for a car. The Lexus Negotiation Free Pricing program is designed to clear the frustration and anxiety, as well as the adversarial tone customers adopt when trying to get the best deal. Lexus Plus is training sales personnel from various dealers on the new system, covering their expected behavior from when the customer walks into the door, until the financing paperwork is done. The program aims to make buying a Lexus an errand, not a chore, with customer able to deal with no one but their sales person.
4. Standard Prices
Prices of vehicles will be standardized, and the customers will get a quick briefing when they enter the dealer regarding the no-haggle program. The trade-off to this program is that cars might not be sold at the lowest price possible, negotiated by a savvy customer with a motivated salesperson, but for most people the stress reduction is worth it. So far, customers have responded positively to the new program at the 13-dealers that are already using it, and with the focus shifting from price negotiation to the car itself, customers are getting exactly what they want in a car, rather than wasting time worrying about pricing.
5. Customer Service
General Manager and Vice President of JM Lexus, Jim Dunn, explained that under the old system customers complained about two things: the duration it takes to finalize a car sales, and the amount of people they deal with when buying a car (sales person, manager, financing, etc). The new program eliminates all of that, with a quicker buying process and involves dealing with one person only. By never experiencing the negative emotions that come with going back and fourth in haggling, dealerships can now provide more catered customer service. Lexus plans to eventually implement the new program at all 237 dealerships, providing car shopping experience unlike any other car dealer.
For help with service of your car, check out the how to section of ClubLexus.com