I posted this in the regional forum but figured it should have been posted here instead.

I was offered 200 over invoice, the chrome wheels with an MSRP of $2000 at "cost" for $988 and Xm added for $505. I don't know if this is a good deal or not. I was hoping to go lower than invoice but what do you guys think for the Phoenix area? Are the rims a good deal or are they still too expensive?

I have been looking for a Black Sapphire w/ Black interior but my dealer said that combination is pratically impossible to find. I like the look of the cashmire (Which they have in stock) but I'm afraid it will get dirty easily. Thoughts?

 

Which dealership and who are you dealing with?

 

Simple question ..... why do you think you are going to get a current model year Lexus for LESS than invoice? There are too many war stories on CL about people 'stealing' the cars from the dealers at extremely low prices. That may be true for a slim portion of the buyers, but out in the real world most buyers are paying a fair price (somewhere between invoice and MSRP, and I would guess closer to MSRP). If it is truly $200 over invoice that is a very good price, imo. Wheel price seems fair, but others would say buy aftermarket wheels. Choice is yours. I like the one stop shopping at the time of purchase, and if you like the wheels, get them. XM price for integrated unit is reasonable.

Would $200 or so difference in the quoted price really change your mind as to whether you would buy this car or not? Don't beat yourself up over the last few dollars. Life is too short.

 

Invoice +$200 is a pretty good deal. AZ dealers seem to be well-stocked with IS250's, so you might be able to get one for invoice, but so I seriously doubt anyone will go below that. These are still popular cars, and you're not talking to a Chevy dealer who has to blow 'em out. If this is what they offered you for the black sapphire/black that you want, you should go for it, that is a hard to find combo.

As for the chrome wheels, every Lexus dealer in Phx gets them from Luxury Wheel Co. in Tempe. You can buy them there yourself for $600 + trade on your stock wheels. If I recall correctly, that price includes mounting/install, and they come with a lengthy warranty (don't remember how long). The dealer is flat out lying about his cost being $988, although he may be figuring their labor cost to mount/balance/install in that. Unfamiliar with the XM option. Which dealer?

 

Ok. Now that I am getting closer to the deal (They say my car should be here by the end of the month). I was quoted Invoice +$200. So, I used a few different sources to determine Invoice pricing. I came up with just under $33,600. This is an IS250 w/ Premium, Preffered acc, HID, 18", XM and Spoiler.

The dealer gave me a print out of the from there inventory detail screen and has a few extra charges on there I was not expecting. Some of these seem 'extra'.

Base 26711.00
Accessories 5228.00
Destination 715.00
TDA 393.00
Dealer Holdback 628.00
Whsl. Financial Reserve 314.00

Claimed Invoice Total: 33989.00

Do these other items truly belong under invoice? I was expecting it to be $400 less (Which is the TDA). Any thoughts?

 

Well, he probably was hearing too many war stories over here in California, where the dealers have a TON of IS250s they are looking to move. I just purchased a 2007 IS250 w/the maximum regional allocated package: 18", HID, XM, Nav, Premium, Preferred Acc (Mat, Net, Locks).

The MSRP for this package on Lexus's site is $38258. The Dealer Invoice quoted to me by ... well, the dealer, is $33354 for the same package minus XM. I estimated XM to add on another 500 - so for my package the dealer invoice would be roughly $33854.

The true invoice, minus holdback and some built-in seller margin - I estimated at ~32500. I got my car a few weeks ago for less than $200 bucks above this true invoice price, which equates to more than $5500 off MSRP.

You should be cautious though - this is how Cali's IS250 market looks like (total buyer's market, duh) - AZ might be a totally different story. Good Luck!

edit: Oh wait, I have no spoiler, so for your package add whatever the invoice spoiler cost. Also, I didn't want the chrome rims - I like the 18" OEM alloys better, so add that cost in too...

 

I came up with an invoice of $33596, so yeah it looks like the TDA is the difference maker. I believe it is a legit advertising cost Toyota charges the dealer, so someone else will have to weigh in whether you can negotiate this out of your deal. Keep in mind that invoice is not the dealer's true cost on a vehicle. They are typically credited back by Toyota the holdback and some of the financial reserve when the car is sold. So their true profit on this car is likely going to be around $1k, not including any other add-ons or fees you might pay. The previous poster seems to have gotten a deal below invoice, but it's usually difficult to get any Lexus dealer below invoice unless Lexus is throwing them some back door incentive cash to get slow sellers (like the SC) moving. You could always try -valley dealers seem to flush with 250's.

 

i'm quite surprised they disclosed the dealer holdback to you. IIRC, they get the dealer holdback quarterly.

i do agree that 200 over invoice is a good price. glad you're getting a good deal