MichelleN

http://www.car-buying-strategies.com...50-prices.html

This is without any option.


The dealer gets about $7000 rebate for this car, from the invoice price? Wow.

LexBob2

I looked at True Car at a 2012 with virtually no options, and their estimates for what you could get the car for in my area is $36,675-$37,317.

Of course these estimates will vary by dealer depending on their inventory, how anxious they are to move cars etc.

Jimbo68

That may be the dealer cost for the car but that is not his cost for running a dealership.. He has to add his labor, capital investment, taxes(both real estate and gov't), insurance, and probably other costs that I have missed. These costs must be averaged and added to the vehicles he expects to sell in any given year. That is if he wants a profit.

John U

It's kinda like gold.......it's free in the ground for anyone to get. But the cost of getting it out of the ground and to the market gets expensive.
Lexus is smart. A market has to have a population of 250,000+ in order to have a dealership.......unlike a Chevy dealership for an example, where you might have a number of dealers all competing on price selling for invoice or less cutting each others throat.

fwhite1967

I believe that is a typographical error with a misplaced decimal point. The approximate dealer holdback for Lexus is 2% of the Base MSRP. 2% of the base MSRP of $36,725 is equal to $734.50 NOT $$7,345!

js619858

Most dealers now make more from used cars.

lgb0250

That's exactly what it is! On the same page there's a 2011 with the correct holdback listed.

http://www.car-buying-strategies.com...50-prices.html

Bumbobee

I talked to someone who worked at a Lexus dealer here and they said the dealership makes 5-7 grand off of each car.

bobsobi

Actually, Lexus is a little bit more generous than that with its dealers -- in addition to the 2% holdback, Lexus has a 1% "wholesale financial reserve", so dealers get back 3% of the base sticker price.

If Ontario Lexus dealers are making 5K+ on ESs, then the good folks of Toronto looking to buy a Lexus need to hone their negotiating skills!