Fixed price “agency” dealer network will lead to higher new-car prices, says industry expert

The controversial fixed-price direct sales model about to be rolled out by Honda and Mercedes-Benz in Australia will likely lead to buyers paying more for new cars. Honda, Mercedes and other supporters of direct sales say fixed prices are fairer for all customers, especially those who aren't good negotiators. However, a leading industry veteran says it will lead to all customers paying higher transaction prices.