dvsone

I know for a RX350, there's about a 750 Dealer holdback, and you can get it near invoice (giving the holdback to the dealer as profit).

what about the IS350?
Assume the IS350 with luxory and nav/ML. MSRP is around 44.6K.. Invoice is around 38.9K.
What's the Holdback on this?
and can anyoneget this around 39K?

Batmobile

iTrader: (2)

i just got my 07 with the Lux package about a week now... w/o ML....all i got were the illuminating scuff plates and power shade... plus nav of course... for 40... before tax and tags... had to fight for that one... i'm pretty sure i've could've gotten them lower though... i didn't know i didn't get the ML until i drove the car off... i thought it was a standard if you got the nav... damn is350 brochures...

Smoky350

iTrader: (6)

I know you can get the 06 left over for invoice, but I don't think you will get an 07 for such a low price. I think that if you get it for $40k or less you should be happy. You should never count holdback as dealer profit because all it covers is advertising, prep, and other stuff.

kilo6_one

iTrader: (2)

"You should never count holdback as dealer profit because all it covers is advertising, prep, and other stuff."


That is an intresting way of putting it..........
Im just happy to get the car at invoice, im not planning to waste my time trying to bleed out the last nickel and dime.

Just curious, say ifyou do buy the car at invoice. How much does the dealer really make? meaning do they get kickbacks and other bonuses from lexus per car, plus whatever they can get you for in finance by manipulating your credit score and tacking on a quarter point here and there. I always find the whole dealership experincence to be rather intresting, im not saying all dealers lie and manipulate, but a fair amount do. Its all in the name of profit and how much the dealer can get off each customer. Its like the airline industry, nobody every pays the same price even though they are all on the same plane going to the same destination.

Irishman06

here's the kicker: dealers don't pay the invoice price.

Smoky350

iTrader: (6)

If you buy the car at invoice the dealer get's his holdback which really isn't profit because it covers expenses. He also gets up to 2% of your interest paid which depends on their buy rate. They also get money from the manufacturer, the amount depends on how many cars they sold and they get that money at the end of the month. Each dealer has a quota that they should meet. If they sell less cars they get less money per car if they sell more cars they get more money per car. It all depends on the program that the manufactuer has. In my dealership sometimes you have to sell a certain amount of cars in a months time or sometimes it's in 3 months. Sometimes you might be getting a great deal on the car but they may be making their money back on the interest they give you. You should go to a bank directly and see what rate you get, most of the time it will be lower than what dealership gives you unless they have specials. The best thing is telling them that you will finance thru them and once you close the deal tell them that you changed your mind and that you have a loan from another bank, this way you get a great deal on the car and get a lower rate. Dealers also try to make money by making you pay fees, buy protection packages and window etch(none of them are worth it and they make a lot of money that way) You should only pay for the car, tax, registration,inspection, doc fee(no more than 400 depending on state) and tire recycling fee.

So if you buy the car at invoice and they're not making money from your interest they're probably making $1,000 or $1,500. Each dealer has to usually make at least $2,000 on a car to pay salespeople, sales managers, finance managers, rent, porters, phone bills and other expenses.

Smoky350

iTrader: (6)

I'm not sure where you got that information from, but you are very wrong. I ordered cars for my dealership and we always pay invoice minus the holdback, unless it was a damaged from the factory that was fixed(which has to be stated on the bill of sale)

dvsone

Interesting thoughts everyone. Two fundamental questions left unanswered:

1. what IS the holdback on an IS350 for the dealer

2. Is it POSSIBLE to buy a 2007 IS350 at Invoice? or what's the likely lowest price - 1000 over invoice? etc?

thanks!

FinanceGuy

I just ordered my '07 IS350. Getting the car traded from another dealer. Mine's coming fully loaded ($9001.00 package), so the total MSRP is 45296.00 plus destination of $590.00. I paid $42000 for the car because of the high demand/lack of inventory here in the midwest. They've been going for 500 to 1000 off of sticker at other dealers I have inquired.

Dealer holdback is $714.00. As far as I know, no dealer is going to give it up to make a sale, but you never know.

Good luck to all of you...

Soda

I agree w/smokey350 on this one, they do pay invoice. Of course there is many incentives to the dealers from Toyota/Lexus, but it'll be once in a blue moon when they absolutely blow out an IS350 or any new model that's selling well. I'd just forget about holdback if I were you. You'll probably just make them angry and then they aren't gonna wanna work with you. They are entitled to make a profit ya know. Nothing in life is free!! Good luck!

Lexustom

Just a quick aside. My '06 IS 350 was fully loaded and the MSRP was $47,879 before destination. Have the '07's gone down in price? That would suggest that I should have waited a year.

flashsim

No, the MSRP did not go down. Different people have different interpretation of "fully loaded", that's all.

Lexustom

Thanks. To me "fully" loaded means "FULLY" loaded!

I do remember when "fully loaded" meant AM radio (with pushbuttons), heater, windshield washer and backup lights. AHHH, but I digress.........

Smoky350

iTrader: (6)

Answers:

1. Hold back depends on the price of the vehicle on the lexus it's abouth $750 to $850.

2. Everything is possible but it's unlikely. I would say that anything from $1,000 to $2,000 over invoice is a great deal on a 07 IS350. To get the best price you should shop at the end of the month because dealers have to meet their quota, and you should shop in dealerships that sell a lot of lexus' because their quota for the month is higher than smaller volume dealerships and they always have new cars coming and want to sell their stock.

You have to understand that it costs a certain amount of money to keep a vehicle on the lot everyday becuase of the insurance costs, interest...

kilo6_one

iTrader: (2)

its good to hear people in the car game being honest about how they do business, its a respectfull profession. Sadly there are alot of scammers and dealers that promote that behaviour.


So based on the information posted, how much does a dealer make off each sale? including holdback, kickbacks and quotas ect.