Lexus manager says I should never buy a new car
#16
The Edmonds 'True Market Value' price seems to be a pretty good deal, especially since it includes the transportation cost. I am hopeful I can negotiate a similar price on a purchase.
#17
I put a lot of miles on my vehicles and tend to keep them for a long time, so the 10% I could have saved 10 years ago doesn't much matter.
It's one of the few big investments that, I admit, is more heart than head...
#19
I too am a fan of negotiating via email. Lexus and other luxury dealers are very receptive to it...mainstream dealers less so as I have noticed with Jeep. They always try and pull out the hard sell, the alternate choice close...etc. I'm in sales myself so I see it a mile away.
Was the guy's education correct?
Part of a good salesperson's job is educating the consumer and helping to push the consumer into the best product and situation for them. So...if a salesperson thinks leasing is the best option for someone they should try and convince the consumer of that.
Issue is you have to build rapport with the customer first, and a good salesman has two ears and one mouth and uses them proportionally. Sounds like this salesman didn't do that, and because of that his message which was likely correct did not get across.
Originally Posted by Gruu
I went to a Lexus dealership a year ago with a friend of mine when he was shopping for a car. The dealer there immediately started pushing a lease, even before finding out what car my friend wanted. When my friend indicated that he wasn't interested in a lease, the dealer said (and this is an exact quote), "That's because you haven't been properly educated yet."
Part of a good salesperson's job is educating the consumer and helping to push the consumer into the best product and situation for them. So...if a salesperson thinks leasing is the best option for someone they should try and convince the consumer of that.
Issue is you have to build rapport with the customer first, and a good salesman has two ears and one mouth and uses them proportionally. Sounds like this salesman didn't do that, and because of that his message which was likely correct did not get across.
#21
Was the guy's education correct?
Part of a good salesperson's job is educating the consumer and helping to push the consumer into the best product and situation for them. So...if a salesperson thinks leasing is the best option for someone they should try and convince the consumer of that.
Part of a good salesperson's job is educating the consumer and helping to push the consumer into the best product and situation for them. So...if a salesperson thinks leasing is the best option for someone they should try and convince the consumer of that.
Given that context, whether leasing was right for my friend was beyond the point. (It turned out that it wasn't.)
#23
First time posting so please excuse any errors.
I just purchased a GS F Sport and the dealer kept mentioning a lease. I've always purchased cars and kept them for 8-10 years.....hoping to do the same with this car.
But the finance manager kept saying over and over that there's a $2500 financial lease incentive. Not wanting to leave anything on the table, I asked him to go thru the motions of explaining how it would work (hoping there's a $2500 discount somewhere) but he couldn't explain it well enough (or maybe I'm just a bit dense) and I didn't see the $2500 anywhere. Not familiar with leases so it was probably me.
He did mention one thing that made me pause about buying though. With a lease, if the car is in an accident (and get it repaired), you can simply turn it in at the end of the lease. No hassles. Since I now own the car, if it gets into an accident, the value is reduced which I now eat. Maybe I didn't understand this correctly, but that's how I interpreted it.
Anyways...didn't go the lease route even though I've been re-considering if I should have. I put a substantial down payment enough for the payment to be easy. Also, I did get the car right above invoice so that makes me feel good......not to mention taking a sharp corner in Sport S+ mode.
I just purchased a GS F Sport and the dealer kept mentioning a lease. I've always purchased cars and kept them for 8-10 years.....hoping to do the same with this car.
But the finance manager kept saying over and over that there's a $2500 financial lease incentive. Not wanting to leave anything on the table, I asked him to go thru the motions of explaining how it would work (hoping there's a $2500 discount somewhere) but he couldn't explain it well enough (or maybe I'm just a bit dense) and I didn't see the $2500 anywhere. Not familiar with leases so it was probably me.
He did mention one thing that made me pause about buying though. With a lease, if the car is in an accident (and get it repaired), you can simply turn it in at the end of the lease. No hassles. Since I now own the car, if it gets into an accident, the value is reduced which I now eat. Maybe I didn't understand this correctly, but that's how I interpreted it.
Anyways...didn't go the lease route even though I've been re-considering if I should have. I put a substantial down payment enough for the payment to be easy. Also, I did get the car right above invoice so that makes me feel good......not to mention taking a sharp corner in Sport S+ mode.
#24
After my trade, discount off MSRP, and at most, a minor down paymeny (no more than what's typical in a lease), I am around 35% less than MSRP to finance for 5 years. I drive around 16k miles a year and keep it for 6 years.
#25
dealers only push leasing because then they make double profit on the car. Profit from your initial lease, as well as profit from the sale of a lease return. Yeah you can buy a car but thats why they push lease's
I took a class a few years back on becoming a car sales man for chevy and they were saying that prices are only markup. HIS WORDS NOT MINE "A chevy cobalt comes in brand new at $26.5k but really only cost the dealer 16k to make and ship to dealership so, sales man part is to keep as much money as home as possible!"
I took a class a few years back on becoming a car sales man for chevy and they were saying that prices are only markup. HIS WORDS NOT MINE "A chevy cobalt comes in brand new at $26.5k but really only cost the dealer 16k to make and ship to dealership so, sales man part is to keep as much money as home as possible!"
#27
first, congrats on the new car! leasing always seems attractive, but if they are pushing it that hard, and it's that complicated, you can be sure that the dealership is making a profit somewhere
First time posting so please excuse any errors.
I just purchased a GS F Sport and the dealer kept mentioning a lease. I've always purchased cars and kept them for 8-10 years.....hoping to do the same with this car.
But the finance manager kept saying over and over that there's a $2500 financial lease incentive. Not wanting to leave anything on the table, I asked him to go thru the motions of explaining how it would work (hoping there's a $2500 discount somewhere) but he couldn't explain it well enough (or maybe I'm just a bit dense) and I didn't see the $2500 anywhere. Not familiar with leases so it was probably me.
He did mention one thing that made me pause about buying though. With a lease, if the car is in an accident (and get it repaired), you can simply turn it in at the end of the lease. No hassles. Since I now own the car, if it gets into an accident, the value is reduced which I now eat. Maybe I didn't understand this correctly, but that's how I interpreted it.
Anyways...didn't go the lease route even though I've been re-considering if I should have. I put a substantial down payment enough for the payment to be easy. Also, I did get the car right above invoice so that makes me feel good......not to mention taking a sharp corner in Sport S+ mode.
I just purchased a GS F Sport and the dealer kept mentioning a lease. I've always purchased cars and kept them for 8-10 years.....hoping to do the same with this car.
But the finance manager kept saying over and over that there's a $2500 financial lease incentive. Not wanting to leave anything on the table, I asked him to go thru the motions of explaining how it would work (hoping there's a $2500 discount somewhere) but he couldn't explain it well enough (or maybe I'm just a bit dense) and I didn't see the $2500 anywhere. Not familiar with leases so it was probably me.
He did mention one thing that made me pause about buying though. With a lease, if the car is in an accident (and get it repaired), you can simply turn it in at the end of the lease. No hassles. Since I now own the car, if it gets into an accident, the value is reduced which I now eat. Maybe I didn't understand this correctly, but that's how I interpreted it.
Anyways...didn't go the lease route even though I've been re-considering if I should have. I put a substantial down payment enough for the payment to be easy. Also, I did get the car right above invoice so that makes me feel good......not to mention taking a sharp corner in Sport S+ mode.
#28
Its actually more likely the dealer will get the car back if you trade it in than if you lease it.
I took a class a few years back on becoming a car sales man for chevy and they were saying that prices are only markup. HIS WORDS NOT MINE "A chevy cobalt comes in brand new at $26.5k but really only cost the dealer 16k to make and ship to dealership so, sales man part is to keep as much money as home as possible!"
Of course they want to sell it for as much as possible, thats just good business. Remember the dealer is not the manufacturer, dealers are independent businesses that are franchises of the manufacturer.
Originally Posted by heasyrider
But the finance manager kept saying over and over that there's a $2500 financial lease incentive. Not wanting to leave anything on the table, I asked him to go thru the motions of explaining how it would work (hoping there's a $2500 discount somewhere) but he couldn't explain it well enough (or maybe I'm just a bit dense) and I didn't see the $2500 anywhere. Not familiar with leases so it was probably me.
Leasing is a little complicated. There are a lot of terms that you need to learn, and you need to understand the mechanics of a lease. Its very easy for a dealership to hide profit from a deal in a lease, which is why dealers like leasing. If you know how the numbers work though this negates that advantage for them.
If you're going to keep it 6 years you probably did the right thing by buying.
Last edited by SW17LS; 09-03-13 at 01:27 PM.
#29
they probably really only see maybe 4-5k in profit, maybe less depending on how long the car is sitting on the lot but those were his words, not mine.
your GS/IS/LS what ever, I wouldn't think takes more than 25-30 grand to build our cars for them to sell for upwards of 40-50.
#30
That markup usually goes to many sources such as paying employees, commission, any bills to keep that dealer open, and then its profit but I wouldnt doubt that it cost a manufacturer more than 15-20k to make a chevy cobalt. depending on quality of parts and where they are getting from in bulk.
Lets put it this way. I make widgets. It costs me $15 to make a widget. I am in the business of making widgets, not selling them to the end user. So, I need someone to sell my widgets in a store. So, you have a store...and agree to sell my widgets. I sell each one to you for $30, and suggest you sell them for $40 (the MSRP).
A customer comes in and wants to buy my widget from you. He says "I won't pay you $40, because it only cost $15 to make this widget. I will buy it from you for $25." Can you sell it to him for that? Sure...but you loose $5. I'm getting my $30 per widget from you, regardless of what you sell it for. If you're a savvy business owner will you loose money per widget? No. So, you cannot sell the widget for less than $30 or you will loose money. All of your costs of keeping your store open depend on your ability to sell my widgets for more than you bought them from me for. How much I make for making the widgets doesn't have any impact on your expenses.
Thats how it works. The invoice prices are out there, the holdback is out there, the available incentives are out there. We all know what profit is in what car. A GS has about $4k in profit before holdback. A cheaper car has less, a more expensive car more. What it costs to make a GS means nothing to you as the buyer, or to the dealership...because they didn't make it.