√Toyota Australia rules out switch to fixed prices for new cars

Australia’s top-selling car brand for the past two decades has again ruled out a switch to non-negotiable fixed prices, as research shows buyers still want the ability to negotiate.

Toyota Australia has again ruled out a possible switch to a non-negotiable fixed-price business model for new-car sales.

The statement comes as Honda continues to face dwindling sales since it made the controversial switch in July 2021, and Mercedes-Benz finds itself in the middle of a $650 million Federal Court battle over the change in January 2022.

“We’ve made very strong commitments as recently as last week again, that (a fixed-price business model) for Toyota in Australia and for our dealers is not a plan,” said the sales and marketing boss of Toyota Australia, Sean Hanley.

“We speak about (the fixed-price business model) because you’ve got to, because it’s happening in the Australian market with some brands right now,” said Mr Hanley.

“But … we have made it very clear to (Toyota dealers) we’re not planning (a switch to fixed prices).”

When asked why Toyota has fixed prices in New Zealand, the high-ranking executive said: “New Zealand is a totally different market. It has a big used-car market, a big imported used-car market … so it’s not an apples for apples comparison at all.”

In September last year, an exclusive Drive poll among the Top 12 car brands in Australia – which sell 80 per cent of new motor vehicles locally – unanimously ruled out the switch to fixed prices for new cars.

MORE: Top 12 brands vote against fixed prices

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