Mercedes-Benz vans change to non-negotiable fixed prices in Australia

Mercedes-Benz’s commercial vehicle division is set to follow its passenger car partner with fixed, non-negotiable prices from May of this year.

He delivery van division of Mercedes-Benz It’s about to switch to non-negotiable fixed prices in Australia.

The measure follows the introduction of non-negotiable fixed prices for Mercedes Benz passenger vehicles from January 2022, and sling cars from July 2021.

Dealers have been informed that the change to fixed, non-negotiable prices for Mercedes-Benz vans will take effect from May 2023.

Signed offers on vehicles to date remain at current prices.

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

The industry is divided on the move to fixed prices for new cars.

Automakers that have transitioned to the new business model, such as Honda and Mercedes-Benz, say it’s fairer to consumers.

Detractors of fixed-price business models say removing bargaining power will cause prices to rise.

Under the Australian Consumer Law, it is illegal for merchants to set fixed prices among themselves.

However, Mercedes and Honda have rewrote their contracts with dealers and now hold all stock and appoint dealers as “agents” who handle inquiries and deliver the cars.

Mercedes-Benz’s passenger car division in Australia is awaiting the outcome of a $650 million Federal Court case, in which most dealers have launched legal action against the German auto giant over the shift to the pricing business model. permanent.

Deliveries of Mercedes-Benz cars and SUVs fell 5.5% in 2022, the first full year of sales under the new business structure, in a new car market up 3.0% from a year earlier.

And Honda Australia posted its worst annual sales result since records had been kept since the late 1990s last year, 18 months after switching to fixed non-negotiable prices.

Joshua Dowling has been a motorsports journalist for over 20 years, spending most of that time working for The Sydney Morning Herald (as motorsports editor and an early member 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 over 10 years.

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