Mercedes-Benz vans are transitioning to non-negotiable fixed prices in Australia

Mercedes-Benz vans are transitioning to non-negotiable fixed prices in Australia

From May this year, the commercial vehicle division of Mercedes-Benz will follow its passenger car partner with non-negotiable fixed prices.

the Delivery truck division of Mercedes-Benz is in Conversion to non-negotiable fixed prices in Australia.

The move follows the introduction of non-negotiable fixed prices for Mercedes-Benz passenger cars from January 2022 and Honda passenger cars from July 2021.

Dealers have been advised that the switch to non-negotiable fixed prices for Mercedes-Benz vans will come into effect from May 2023.

Offers for vehicles signed up to this date are still valid at current prices.

Mercedes-Benz Vans Australia was contacted for comment but said it had no comment to make at this time.

The industry is divided over the switch to fixed prices for new cars.

Automakers that have switched to the new business model — like Honda and Mercedes-Benz — say it’s fairer to consumers.

Critics of fixed-price business models say the loss of negotiability will lead to rising prices.

Under the Australian Consumer Act, retailers are prohibited from fixing fixed prices with each other.

However, Mercedes and Honda have rewritten their contracts with dealers and now hold all stock – appointing dealers as “agents” who process inquiries and deliver the cars.

Mercedes-Benz’s passenger car division in Australia is awaiting the outcome of a $650 million lawsuit in federal court in which a majority of dealerships have taken legal action against the German auto giant over its move to the fixed-price business model.

Sales of Mercedes-Benz passenger cars fell by 5.5 percent in 2022 – the first full year of sales under the new business structure – in a new car market that grew by 3.0 percent year-on-year.

And Honda Australia last year posted its worst annual sales on record from the late 1990s, 18 months after switching to non-negotiable fixed pricing.

Joshua Dowling has been a motoring journalist for over 20 years, most of his time working for The Sydney Morning Herald (as motor editor and one of the early members of the Drive team) and News Corp Australia. He joined CarAdvice / Drive in 2018 and has been a World Car of the Year judge for more than 10 years.

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