Luxury car dealers are trying to overcome the car salesman stigma with a bit of technology and a more personal approach, the New York Times writes.
A Car Salesman for the Web-Connected World
Lexus rolled out a program last May, dubbed “Lexus Plus,” that allows customers to deal with just one person at the dealership throughout the buying process, according to the publication. That means no more waiting for three-quarters of an hour for the finance director, Jim Dunn, general manager for JM Lexus of Margate, Fla., tells the Times.
In addition, Lexus Plus sets a fixed price with a view to get away from the much-derided practice of haggling, the Times writes. The auto industry has tried fixed pricing before but had abandoned it, according to the publication. But now they’re on the rise again, with Tesla selling all its cars at a fixed price, while Costco members can get referred to participating dealerships for pre-negotiated sales terms, the Times writes.
Lexus’s new program is only in place at 10 of its 238 U.S. dealers but three more are gearing up for it, according to the publication. So far, it seems to be paying off: at a Lexus dealership in Allentown, Pa., unit sales were 28.6% higher in the first quarter year over year, its owner tells the Times.
Cadillac, meanwhile, is harnessing the power of mobile apps for something entirely different: a pilot program in New York allows Cadillac owners to change up models up to 18 times a year, according to the publication. The $1,500-a-month program is letting Cadillac tap into a younger market, meanwhile, the Times writes. While the average Cadillac owner is 62, the average age of the 8,000 who have asked to sign up for the new program is 34, and 90% of them have never driven a Cadillac, according to the publication.
Other car makers are taking similar steps to change the car-buying experience, the Times writes. Ford’s luxury arm, Lincoln Mort Company, allows customers to do test drives from their home, with car salesmen bringing them a choice of fabric swatches, and offers service pickups and drop-offs, according to the publication. Lincoln also offers drivers for $30 per hour to pick up Lincoln customers from doctor’s appointments or run errands, the Times writes.
Commentary on the New York Times article by Eric A. Taub
Posted by: The Wealth Advisor
