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I am interested in purchasing a 2020 ES. I have been to the dealership and researched the 2019 ES price forum. The dealer seemed quite desperate to sell me an ES350 due to the economic situation. I was originally offered $2,500 for a trade but got him up to $5250. Lexus is offering 0% financing OR $2,000 in Lexus cash. While the trade in amount was right for me, the dealer was not willing to come very far off the price.
The offer was:
MSRP: $47,360
Adjusted Price: $44,965
How much lower should I expect the dealer to go based on what you have seen or paid in these economic times?
You should be able to do better, based on the current economic scenario.
For reference, I helped my SIL with a 2020 ES350 on 2/29 from a dealer in Atlanta. MSRP of $47,080 and adjusted price of $38,314. Got $2,000 for her beat up (front bumper damage) 09' Accord with 200k miles. Ended up at $39,500 OTD after taxes and licensing.
I saw an article a couple of days ago that said that, in areas that have not (yet) been severely affected by COVID-19, new car sales are down by about 40%, and in the areas where they have been more severely affected, new car sales are down by as much as 80%.
Considering how low sales are, I would think that, even if a dealer was offering me 20% off from MSRP, I'd rather wait to buy a car until the time comes when not having to worry about health risks returns. Even at that point, dealers will still be offering great discounts because they will be trying to boost their sales to compensate for the lack of sales now.
At the current time, even if I could buy a car entirely with internet and phone negotiations and even if the dealer was willing to deliver the car to my home, I'm not sure that I would want to accept the risk, even if minimal, that an infected employee from the dealership might be delivering the car to me and that he/she will have sat in my car while bringing to my home or that he/she will have to come into my home to complete the paperwork for the deal. Right now, to me, there are more important things than getting a new car.
This could create a shortage (and thus demand) for the '20 ES (or certain trims).
There is no question that, with auto plants shut down, nothing is being added to the supply of cars, but, if people aren't buying cars, there is no need for added supply.
Then, there are other factors. In the last 3 weeks, large numbers of people have seen their investment portfolios, retirement accounts, etc. decrease in value by 20%, 30%, or more, and many who, a month ago, would have thought about buying a new car will have changed their plans as a result of the changes in their personal financial situation. Add in to that the many whose financial situation has changed for the worse with a loss of income as a result of the large number of businesses that are completely shut down at this point.
The reality is that the economy is not going to start to recover until the health crisis has ebbed. By all projections, the number of new infections and new deaths that we are seeing daily now are, sadly, going to look very small compared to numbers of new infections and deaths that we are likely to be seeing daily 2-3 weeks from now.
Even after the spread of COVID-19 is brought under control and the economy starts to recover, there will be an extended period of time before there is a full recovery of the economy. The reality is that, it is going to be a buyers' market for cars, with deep discounts from MSRP and large incentives from manufacturers, well into the future.
You make some excellent points Lesz. I also have to wonder if the coming economic challenges won't impact luxury manufacturers more than mainstream car companies (such as Toyota for example). The luxury manufacturers may reduce production in anticipation of this so it is really hard to say how this will play out. In my humble opinion, I doubt any auto manufacturer will maintain their production levels given the expected doldrums ahead.
Our RC F Sport is coming off lease in October (the first lease we've ever done) and we just put a deposit on a '20 NX F Sport, nicely equipped. Got about 18% off during these trying times. Also, Lexus gives you four months of lease relief, and the dealer absorbed one lease payment of $777.
Well, Lexus didn't change their incentives going from March to April looks like (at least in my region). You'd think they'd increase incentives in the face of this pandemic. I'm trying to get a good deal on a 2020 ES350 F-Sport.
Well, Lexus didn't change their incentives going from March to April looks like (at least in my region). You'd think they'd increase incentives in the face of this pandemic. I'm trying to get a good deal on a 2020 ES350 F-Sport.
Same here in Tennessee. Dealers are still trying to play hard ball, but I think their tune will change by the middle to end of April. Fingers-crossed
Same here in Tennessee. Dealers are still trying to play hard ball, but I think their tune will change by the middle to end of April. Fingers-crossed
I'm in Tennessee too. I walked away from the deal and NEVER even got a call back. The dealer was probably offering me more than book value for my car but still wasn't willing to come below 44k on the car. Not worth it to me.
Don't forget about Atlanta! I've bought half of my Lexus vehicles there. On new cars the 5 Lexus dealerships compete against each other quite aggressively.
Depending on the number of units in a dealer's inventory, with factories closed, future shipments are uncertain. As a result the dealer may be trying to protect profit, particularly in current situation.
I ran into a similar situation in 2011 after Tsunami in Japan disrupted supply chain and dealers (Acura for me at that time) were uncertain of near term shipments, and not dealing.
Just haggled over the phone with a dealer for a 2020 ES 350 F Sport (MSRP $52,415). Sales guy was like "we want this to be a pleasurable experience, so the price is the price even with this pandemic going on", etc. I fired back that they're not a Lexus Plus dealership, and that the price should be negotiable. Got him down to $47k, which is still only 10.33% off before TT&L (15.1% after $2.5k rebate). He claimed they were only making like a $400-600 profit at $47k, which I'm guessing is BS considering the 15-20% I've seen others get on this forum.
03-28-20, 12:49 PM
MARCH 2020 ES Deals
