Car Chat General discussion about Lexus, other auto manufacturers and automotive news.

Lexus Plus "Upfront Pricing"

Thread Tools
 
Search this Thread
 
Old 02-05-17, 03:29 PM
  #16  
clerkp
Driver School Candidate
 
clerkp's Avatar
 
Join Date: May 2015
Location: pa
Posts: 48
Received 5 Likes on 5 Posts
Default

Lexus plus is a joke and an insult to customers. My dealer wouldn't budge even though I had an offer for 4k more off. I walked and bought my gx out of market. I don't make enough money to leave 4k on the table. My wife tried to talk the local dealer into matching and they were nothing but obnoxious and patronizing. "We have a right to make money too .". So for that we were supposed to pay near sticker for a new gx. No thanks.
clerkp is offline  
Old 02-05-17, 03:34 PM
  #17  
Toys4RJill
Lexus Fanatic
 
Toys4RJill's Avatar
 
Join Date: Nov 2011
Location: ON/NY
Posts: 31,560
Received 72 Likes on 63 Posts
Default

Originally Posted by clerkp
Lexus plus is a joke and an insult to customers. My dealer wouldn't budge even though I had an offer for 4k more off. I walked and bought my gx out of market. I don't make enough money to leave 4k on the table. My wife tried to talk the local dealer into matching and they were nothing but obnoxious and patronizing. "We have a right to make money too .". So for that we were supposed to pay near sticker for a new gx. No thanks.
Good for you. $4k is a big diff. I would go elsewhere too for a $4k difference
Toys4RJill is offline  
Old 02-05-17, 03:43 PM
  #18  
clerkp
Driver School Candidate
 
clerkp's Avatar
 
Join Date: May 2015
Location: pa
Posts: 48
Received 5 Likes on 5 Posts
Default

Originally Posted by LexsCTJill
Good for you. $4k is a big diff. I would go elsewhere too for a $4k difference
We told them to just get close and they wouldn't give. Gave them every chance. The pricing scam doesnt work if they budge so I'm not surprised. This may work in small markets where I live but in large markets it could never work unless every dealer bought in.
clerkp is offline  
Old 02-05-17, 04:12 PM
  #19  
Toys4RJill
Lexus Fanatic
 
Toys4RJill's Avatar
 
Join Date: Nov 2011
Location: ON/NY
Posts: 31,560
Received 72 Likes on 63 Posts
Default

[QUOTE=clerkp;9761137]We told them to just get close and they wouldn't give. Gave them every chance. The pricing scam doesnt work if they budge so I'm not surprised. This may work in small markets where I live but in large markets it could never work unless every dealer bought in[QUOTE]

Looks like you got what you wanted at a price you wanted. Curious as to why you asked another dealer to match the $4k off? Why not just give the dealer who offered you $4k more off your business?
Toys4RJill is offline  
Old 02-05-17, 04:20 PM
  #20  
clerkp
Driver School Candidate
 
clerkp's Avatar
 
Join Date: May 2015
Location: pa
Posts: 48
Received 5 Likes on 5 Posts
Default

[QUOTE=LexsCTJill;9761145][QUOTE=clerkp;9761137]We told them to just get close and they wouldn't give. Gave them every chance. The pricing scam doesnt work if they budge so I'm not surprised. This may work in small markets where I live but in large markets it could never work unless every dealer bought in

Looks like you got what you wanted at a price you wanted. Curious as to why you asked another dealer to match the $4k off? Why not just give the dealer who offered you $4k more off your business?
Preference was to buy local but it's a good point. I suspect my next Lexus will also come from the same dealer. They even delivered the car to me 250 miles away.
clerkp is offline  
Old 02-05-17, 04:31 PM
  #21  
pman6
Racer
 
pman6's Avatar
 
Join Date: Aug 2012
Location: CALIFORNIA
Posts: 1,927
Likes: 0
Received 15 Likes on 11 Posts
Default

sounds like this "lexus plus" is a dealership dependent program, not a universal lexus pricing program. But designed to exploit the nice guys who don't like to haggle.

No one should spend more than a few minutes total haggling over prices. Just name your price, and walk away and let the dealer think it over. It's like a game of poker, calling their bluff.
It's not like you need the car right away. The customer has the advantage of time and competition. There's some sales department somewhere that needs to meet quota, and you might get lucky.

Lexuses are a dime a dozen, some other dealer has almost the exact same car you want. It aint no Ferrari LaFerrari.
For me, it's below invoice or bust.

And car salesman have always been this way. Don't expect them to be classy. Swallow your pride for a minute. It's the deal that matters, at the end of the day.

Last edited by pman6; 02-05-17 at 04:39 PM.
pman6 is offline  
Old 02-05-17, 04:39 PM
  #22  
RNM GS3
Lexus Test Driver
 
RNM GS3's Avatar
 
Join Date: Feb 2002
Location: New York
Posts: 7,264
Received 70 Likes on 52 Posts
Default

Originally Posted by G Star
Club Lexus continues to think and operate completely in their own car enthusiast bubble. Most people don't know how to negotiate and try to avoid the confrontational aspect of car buying as much as they can. For these kinds of buyers, knowing there is a no haggle lower price is much preferable than being unsure of what you're doing.

For people who like to haggle, don't complain just yet, there are PLENTY of other Lexus dealerships that have not adopted this program.
I think you are not giving the average consumer enough credit.
Most people shop online for EVERYTHING including CARS and HOUSES.
Maybe senior citizens still negotiate at a dealer but anybody 50years old or younger is very proficient at finding deals online.
The people posting on Edmunds forums ARE NOT car enthusiasts by any means, they are just looking for the best price.

Used cars are a different story though......

Last edited by RNM GS3; 02-05-17 at 04:44 PM.
RNM GS3 is offline  
Old 02-05-17, 04:50 PM
  #23  
RNM GS3
Lexus Test Driver
 
RNM GS3's Avatar
 
Join Date: Feb 2002
Location: New York
Posts: 7,264
Received 70 Likes on 52 Posts
Default

Originally Posted by mmarshall
Eventually, like it or not, I think we are all going to have to get used to no-haggle prices. It may not not come all at once, but much of it is inevitable......more and more companies and dealerships will turn to it one way or another. Saturn's phenomenal success in the 1990s proved that it would work (Saturn later folded, not because of their pricing system, but because of horribly bad management and interference from parent GM after 2000). Scion also showed how no-dicker pricing could be successful....it folded, not because of the pricing, but because it was the wrong division, at the wrong time, making controversially-styled vehicles, and selling out of Toyota shops where their parent Toyota got most of the business.

I understand that there are some folks (and will always be some) who believe in old-fashioned dickering and negotiation, even in an atmosphere more conducive to a Middle-Eastern open-market bazaar than an auto dealership. Indeed, a friend of my brother once bought a new Civic by holding firm and negotiating at a dealership until midnight (most dealers, of course, close around 9 PM weekdays and 5 or 6 PM on weekends). Some of you right here on Car Chat still like to do it the old-fashioned way. But more and more people, nowadays, simply don't have the time for that, with today's busy lifestyles.

Added to that, more and more car-buyers want more and more perks at the dealership....coffee, computer-stations, day-care and play-rooms for kids, snack bars, car-washes, and, of course, loaner-cars...all these things take money to operate, and dealerships simply cannot afford them if they are going to pare the price of every car they sell to the bone......while customers, of course, should not be getting ripped off, dealerships also need to make a reasonable profit if they are to stay in business and offer all those perks that everybody likes so much.
Complete disagree - if anything the discounts are going to get bigger as the competition increases.
Way too many dealers and almost every car these days is pretty nice, for consumers its great.
RNM GS3 is offline  
Old 02-05-17, 04:55 PM
  #24  
mmarshall
Lexus Fanatic
 
mmarshall's Avatar
 
Join Date: Oct 2003
Location: Virginia/D.C. suburbs
Posts: 91,477
Received 88 Likes on 87 Posts
Default

Originally Posted by RNM GS3
Complete disagree - if anything the discounts are going to get bigger as the competition increases.
Well, that was just my point.....they will probably be no-dicker discounts.

Way too many dealers and almost every car these days is pretty nice, for consumers its great.
But, in the future, it's going to be more a question of which one of those nice cars you buy, more so than how much you actually pay for it.
mmarshall is offline  
Old 02-05-17, 07:41 PM
  #25  
Maikerusan
Advanced
 
Maikerusan's Avatar
 
Join Date: Mar 2015
Location: Ontario
Posts: 565
Received 48 Likes on 35 Posts
Default

Originally Posted by RNM GS3
I think you are not giving the average consumer enough credit.
Most people shop online for EVERYTHING including CARS and HOUSES.
Maybe senior citizens still negotiate at a dealer but anybody 50years old or younger is very proficient at finding deals online.
The people posting on Edmunds forums ARE NOT car enthusiasts by any means, they are just looking for the best price.

Used cars are a different story though......
I am not yet a senior citizen, but I negotiate at the dealer.

of course I live in Canada and Edmunds is absolutely no use here.
Maikerusan is offline  
Old 02-05-17, 08:07 PM
  #26  
Fizzboy7
Lexus Test Driver
 
Fizzboy7's Avatar
 
Join Date: Mar 2008
Location: California
Posts: 9,747
Received 171 Likes on 102 Posts
Default

Much of this depends on the region and surrounding competition. I live within a dozen miles of seven Lexus dealerships. You better believe that creates a massive amount of competition. And when there's competition, the prices drop a lot. If your town only has one or two dealers, then he/she has the means to hold prices steady. It's a bit of a supply and demand thing.

Overall, set prices are to benefit the dealer, not the consumer. But there are plenty of suckers out there, or people who do not want to haggle. I say let them pay more for not doing their homework. This will ensure the dealer can line their pockets so us bargainers get nicer loaners- or something to that effect. =)
Fizzboy7 is offline  
Old 02-05-17, 08:13 PM
  #27  
mmarshall
Lexus Fanatic
 
mmarshall's Avatar
 
Join Date: Oct 2003
Location: Virginia/D.C. suburbs
Posts: 91,477
Received 88 Likes on 87 Posts
Default

Originally Posted by Fizzboy7

Overall, set prices are to benefit the dealer, not the consumer. But there are plenty of suckers out there, or people who do not want to haggle. I say let them pay more for not doing their homework. This will ensure the dealer can line their pockets so us bargainers get nicer loaners- or something to that effect. =)
You seem to be assuming, however (correct me if I'm wrong) that people who don't care to haggle are suckers, and all get lousy deals. That's not the case. Many of the posted discounts at dealerships are not bad prices at all. Some are, of course, if demand for that particular car is high and supply low. But, then again, under those circumstances (high demand, low supply), it would be more difficult to get a lower price even if you did haggle like in a bazaar.,
mmarshall is offline  
Old 02-06-17, 06:45 AM
  #28  
daryll40
Pole Position
Thread Starter
 
daryll40's Avatar
 
Join Date: Oct 2002
Location: Pennsylvania
Posts: 3,013
Received 427 Likes on 290 Posts
Default

Originally Posted by mmarshall
You seem to be assuming, however (correct me if I'm wrong) that people who don't care to haggle are suckers, and all get lousy deals. That's not the case. Many of the posted discounts at dealerships are not bad prices at all. Some are, of course, if demand for that particular car is high and supply low. But, then again, under those circumstances (high demand, low supply), it would be more difficult to get a lower price even if you did haggle like in a bazaar.,
What this creates is two markets. In places like Pittsburgh where I am, there are two Lexus dealers owned by the same person/company. So they have a monopoly. But I can see that it's now going to be worth my hassle to buy probably from one of the three Akron/Cleveland dealers who have competition. It's a hassle for the customer. But the delta is probably about $3000 per car. Or I'll give up on Lexus and get something where I don't pay a premium because one dealer has a monopoly locally.
daryll40 is offline  
Old 02-06-17, 07:26 AM
  #29  
clerkp
Driver School Candidate
 
clerkp's Avatar
 
Join Date: May 2015
Location: pa
Posts: 48
Received 5 Likes on 5 Posts
Default

Originally Posted by daryll40
What this creates is two markets. In places like Pittsburgh where I am, there are two Lexus dealers owned by the same person/company. So they have a monopoly. But I can see that it's now going to be worth my hassle to buy probably from one of the three Akron/Cleveland dealers who have competition. It's a hassle for the customer. But the delta is probably about $3000 per car. Or I'll give up on Lexus and get something where I don't pay a premium because one dealer has a monopoly locally.
Yep, I'm in Pittsburgh too. I was offered $1800 off of MSRP in Pittsburgh and told they wouldn't budget. I got $5800 off by making a few calls out of market. Lexus plus may work but only if it accurately reflects true market value not a dealer's monopolistic view of market pricing.
clerkp is offline  
Old 02-06-17, 08:09 AM
  #30  
SW17LS
Lexus Fanatic
 
SW17LS's Avatar
 
Join Date: May 2012
Location: Maryland
Posts: 57,827
Received 2,774 Likes on 1,981 Posts
Default

Looks like LexusPlus is turning out exactly like I said it would. Imagine when there aren't any traditional dealers left to get that $5,800 off.

And remember, lots of people argued with me trying to tell me how great it would be.
SW17LS is offline  


Quick Reply: Lexus Plus "Upfront Pricing"



All times are GMT -7. The time now is 02:29 PM.