Toyota takes haggle out of buying a car
Toyota New Zealand is making major changes to the way it sells its cars, moving away from the oldschool method of commission sales and haggling over prices.
The company describes the move as one of the biggest changes to automotive retailing in New Zealand’s history.
From next week Toyota dealerships are to become known as Stores, and they will be paid a fee to deal with customers.
Vehicles will no longer carry recommended retail prices, meaning there will no longer be any negotiation over prices.
Staff members will be salaried product specialists and not commission-focused salespeople.
The new system, dubbed the ‘‘Drive Happy Project’’ by the company, will also result in price reductions for all new vehicles, Toyota NZ chief executive Alistair Davis said.
That’s because the purchasing exercise will be haggle-free.
The change was prompted by Toyota research that found several likes and dislikes about the industry, Davis said.
The biggest concern was price negotiation and the buyer never being sure of getting the best deal. Another major concern was finding the right vehicle for the buyer’s needs.
Customers should feel positive about buying the right vehicle, Davis said.
From next month the Toyota Stores will not carry their own dealer stock but instead will display Toyota-owned demonstration models.
Once a customer has selected a car it will be delivered nationwide from one of three distribution hubs in Auckland, Wellington or Christchurch.
Toyota said this change would remove any pressure to buy from a limited selection of vehicles available at a particular dealership.
Davis described the traditional dealership model as an anachronism in today’s environment of customers using online tools to research car models.
However, Toyota had no intention of abandoning its network of dealers, Davis said.
‘‘They are a vitally important part of the sales process. They offer a local presence for our brand, an economic presence for their communities, and a human presence for customers.’’
Davis said the cars would also be more easily customised.