encore888

Interesting story - the customers may see it as not being very accommodating but it's a consistent method - no heavy incentives most of the time. Right now, other brands with more willingness to deal that way will cater to those expectations.

LexFather

Well it also helps dealers who don't have to rely on incentives to sell cars. That cuts into their profit, which cuts into my expresso and loaner vehicle

I never understood the point of a "luxury" brand advertising monthly payments lower than non luxury cars. I'll never forget the scan I had "get a new G35 for $169 a month" I mean WTF?

rogers2

I guess I don’t buy into the “Our focus at Lexus has never been on volume” such B.S.
Just like I don’t buy into what the Acura GM says. I don’t believe what the Lexus GM says. Every car company is about money which equal volume in sells. This GM talks as if Lexus have some type of super special car in its lineup. The IS F is a monster but why don’t you bring a nice coupe, supercharger, turbo, something with a wild factor to the market. Maybe redesign the old SC, lord that car was beautiful.
Despite not given huge incentive the Lexus vehicle is still cheaper than the German counterpart so why even give incentives like the Germans. I admire Lexus for holding their ground but it’s nothing more than what Honda dealerships do on a daily basis. Lord, have you ever tried to talk a Honda salesman down!! It’s a nightmare.

ivanz

Prices in Canada actually went up this year, and you can hardly buy any Lexus below MSRP. I find it helps a lot in terms of resale value, since any discount on a newer car causes used prices to go down by the same amount.

MPLexus301

iTrader: (3)

While I see what you mean, also consider that there are a few different takes on "most profitable" and in this instance it seems clear that Lexus is concerned with the long term effects the brand would suffer by offering steeper incentives, whereas other companies are more worried about moving cars NOW. Not saying that either philosophy is right or wrong, but rather different ideas.

Less rebates and incentives lead to higher transaction prices which often times means less cars sold than comparable competing models (in SOME cases). If BMW sells 2K 7 series a month then in 2-3 years there is going to be a far higher volume of them in the used market than LSs if Lexus sells 400 or 600 a month. Exclusivity pushes up resale prices. This whole argument is sort of pointless since everyone is selling less cars right now but if Lexus focuses on transaction prices, profits, and long term sustainability it leads to higher resale prices in the used market which leads to closer-to-MSRP/higher transaction prices on new cars which then bolsters brand image, value, perception, and again...sustainability.

CDNROCKIES

This happens to be exactly our recent experience in SUV shopping. BMW and MB are both willing to deal...Lexus not so much. This would have been our third Lexus purchase in a row....but between the lack of willingness to deal on a '10 RX and the issues that I had on my IS F calipers Lexus didn't fit the bill.

Not to be argumentative, but if the stellar Lexus service isn't part of the package then the decision isn't really close.

Benz was ready to at least make some sort of discount on their brand new model. They also offer better rates than Lexus out of the gate.

pagemaster

I don't buy into the “Our focus at Lexus has never been on volume” either. Volume is exaclty what the executives want however you need to make sure you are making the same profit year over year on the volume you are selling...the last thing you want is your profit margin to be reduced. Toyota idled the Lexus plants recently (March 09 and earlier) and this has reduced the inventory thus driving up demand which lowers the rebates. Toyota finally came to their senses and realized that they had way too much capacity. Earlier in 2009 Lexus was offering over $3000+ off the price of a new Lexus...now it is down to $1800 or so

kalvano

And M-B's also take a much more giant depreciation hit than a Lexus does.

It's a trade off.







The first Lexus is always the hardest one to purchase, especially for move-up buyers.

I just had a lady who bought a car from me last summer, and we spent two hours going back and forth on price and everything else. She was moving up from a domestic to a Lexus. Sadly, her car was totaled and she had to buy a new one. This time around, she came in, picked one out, said what kind of deal can you do, negotiated for maybe 5 minutes after that, signed papers and was done. This time around, she knew what she was getting in terms of luxury, reliability, and service.

The next time, we'll probably do everything over the phone and she'll just come in and drop the old one off and pick up the new one.

CDNROCKIES

Of course, you're correct there.

Depreciation means little to those that can lease their vehicles and write them off to their businesses though.

I8ABMR

I dont want to sound like an ******* but its comments like this that make the consumers laugh at the dealerships going under and brands struggle. Lexus and all car companies are in it for the money. I understand brand image blah blah blah, but to make it in these times they will need to do more than act like they are to good to haggle. When I drop 50k on a new car I want my *** kissed not a hand shake and a walk to the door. As much as I love my Lexus, I almost bought the M35 because I felt that dealing with Lexus sales at the dealerships was really taking the fun out of getting a new car. In the end I went to another dealership because the first dealership told me " We will not nickel and dime with you". I actually bought my car and went back to the first dealership to pick up some accessories, and I made DAMN sure for that ******* salesman to see the new car and his commission out the door.

pagemaster

If the car manufacturer does not offer rebates then what is the salesman suppose to say?

Right now Lexus is offering $1800 incentives....if the buyer comes in expecting $8k off like the Cadillac CTS and the incentive does not exsist then the buyers needs to take a hike and learn what Toyota's and Lexus's are all about.

madmax2k1

You don't need incentives and rebates to get a good deal on any car these days; just talk directly to the fleet/internet manager and 90% of the time you can get the car below invoice. I got a Lexus RX 350 for $2500 below invoice and an Infiniti G37 for $2000 below invoice.

I8ABMR

I used my costco card and got my car at 500 over invoice after haggling for weeks. I am pissed and bitter about my Lexus sales experience. I think if I was in CA the prices would be a little better because of the volume

kalvano

Bull****. Unless you bought RX from December 2008 to now, no way you got $2500 under invoice.

kalvano

You do sound like what you don't want to sound like.


I never said we won't negotiate, I said if a deal doesn't make sense, we won't do it. By "make sense", I mean make a reasonable profit. That's our prerogative to refuse a deal. Also, I don't care how much you are spending, I'll treat you with respect and be up-front, but if you act like you expect your *** kissed, I'll kick it to the curb. I don't need to sell a car that badly.


One last point, the salesman has no control over the numbers, those come from the manager, so way to go there. That was a very mature thing to do, and shows a good reason why that dealership was apparently uninterested in your business.