Luxury car manufacturer Mercedes-Benz is trying to finish haggling by fixing the cost of certain models in an attempt to stop “rip-offs” and buyer remorse — but industry insiders say clients could end up paying more.
To prevent price gouging — and massive reductions — Mercedes will sell its new EQC electric automobile direct to clients via an online ordering system, then create a trader to do the handover.
Manufacturers have experimented with online sales versions — the Subaru BRZ sports-car was initially an online-only proposal and Toyota is doing the same to handle limited distribution of its recently released Supra — but Mercedes would like to introduce fixed pricing on more versions in its range.
Mercedes says selling a car at a fixed cost is legal, it only becomes illegal if several companies sell the same product at an agreed price.
However, a car industry veteran, speaking to CarAdvice on Condition of anonymity asserted: “Purchasing cars online removes the chance for a customer to negotiate on price. There are no doubt clients will pay more.”
The manager of Mercedes-Benz Australia, Horst von Sanden, says the study shows customers eliminate confidence following finding somebody else paid thousands of dollars less for the same car out.
“You hear these examples where some clients are very disappointed Because they are offered different prices. They inquire’ why does the trader try to con me?’ ,” said Mr von Sanden.
“From our standpoint, there are no bad intentions from the dealer; Every trader can decide how far they’re ready to dismiss… it is only a commercial decision.”
Mr von Sanden said he has taken phone calls from customers who’ve accused a dealer of”ripping them off”.
“In 1 instance, a client told me he had been visiting this dealer For years but when he later compared costs he explained’the dealer ripped me off’,” said Mr von Sanden.
“It doesn’t imply that trader ripped off anyone… if you shop around You consistently get a better price,” he explained.
“In that situation, someone else Under-bid the price and ruined the trust that the customer had with the Original trader.”