Mitsubishi Australia rules out switch to fixed-price new car sales

Mitsubishi says it has no plans to follow Honda and Mercedes-Benz with a fixed-price sales model in Australia, leaving customers with plenty of room for bargains for the foreseeable future.

Mitsubishi Australia says it has no plans to switch to a non-negotiable fixed-price new-car sales model, as research shows most buyers prefer the option of negotiating a bargain.

Fixed prices for new cars were introduced locally by rival Japanese brand Honda in July 2021 and German manufacturer Mercedes-Benz in January 2022.

Mitsubishi Australia CEO Shaun Westcott said Conduct at this week’s 2022 Mitsubishi Outlander PHEV launch: “We have no immediate plans to change our (new car sales) model in any way.

“We have no preference for agency (the industry term for a fixed-price sales structure) and we have no plans to go there at this time.

“I can’t say what the future holds because the world is changing, but we don’t have any immediate plans and we aren’t considering it.”

As previously reported by ConductAustralia’s 12 major automakers say they have no plans to move to a non-negotiable pricing structure.

The rollout of fixed pricing among a small number of car brands – which the industry calls an “agency” model because dealers become sales agents under the new deal, rather than owning the hall stock of exhibition – met with mixed success .

Mercedes-Benz sales have increased since switching to the non-negotiable fixed-price business model in early 2022, but Honda sales have reversed since the switch in July 2021.

Proponents of the fixed-price approach say the new business model is designed to be fairer to customers who aren’t good traders.

However, critics of the program say a fixed price structure penalizes buyers who know how to get a good deal and limits the ability of dealers to offer deep discounts — or generous trade-in valuations — to move the metal.

Tom started out in the automotive industry exploiting his talents as a photographer, but quickly learned that journalists got the best out of the business. He started with CarAdvice in 2014, left in 2017 to join Bauer Media titles including Wheels and WhichCar, then returned to CarAdvice in early 2021 as it transitioned to Drive. As part of the Drive content team, Tom covers automotive news, car reviews, tips and has a particular interest in feature films. He understands that every car shopper is unique and has different requirements when it comes to buying a new car, but there’s also a loyal subset of the Drive audience who enjoy entertaining enthusiast content. Tom has a deep respect for all things automotive, regardless of model, priding himself on noticing the subtle things that make every car tick. Not a day goes by that he doesn’t learn something new in an ever-changing industry, which then gets passed on to the Drive reader base.

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