I joined a buying group which has a contract with a Lexus dealership and was offered a huge discount off MSRP. I haven't purchased one yet but am seriously considering it. I joined the group to get a discount on a different item, but then I talked with a lady after I joined the group. She said she got almost $6000 off MSRP because she was a member of the group. So I started investigating her claim and found it to apparently be true. The discount I was offered was not quite as deep, but the model I thought about purchasing was not the highest priced model the dealer had at the dealership, so I suspect that the higher priced model would indeed have had a larger discount, just as she claimed
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Go to truecar.com to see that the dealer's cost is much less than invoice price. So don't be fooled if they are wilingl to show you the invoice and say they have to make something over invoice. I got $4250 off MSRP but had to really hold my ground for a couple of days. Told them I was on my way to the Acura dealer if they didn't want the sale. Guess what, my wife ended up with the IS 250.

 

Truecar.com is a very interesting website. According to it I got a GREAT DEAL on my new 2011 Lexus IS350 I just ordered 2 weeks ago with (NV, LT, LR, PA, Paint protection film, rear bumper appliqué). I used Edmunds.com invoice pricing to deal with them. I think the Truecar site even picked the dealer I went to for my purchase in the great deal locat dealer click option.
Per Truecar I paid exactly $900.00 over Avg. paid for a 2010 model for my 2011 model IS350. Man I feel better about my deal now I wasn’t happy really before I looked at that site today. I negotiated $1250 over invoice to order the exact car I wanted with exact options I wanted. Since in NC the Luxury package is rarely seen on newer IS350 cars (as is IS350’s themselves rare).

Per Truecar.com for my 2011 IS350 (Matador Red/ blk, w/ NV, LT, LR, PA, etc.) the MSRP was $46,104.00 which was about right from the dealer, the Avg. Paid = $45,678 Factory Invoice = $41,600 Dealer cost = $40,829 and a “GREAT DEAL”=$42,350 with all the options I picked (everything but ML stereo)

Drum Roll…. I paid $42,089.00 for the car so I got a “GREAT DEAL” and only paid $1260 over dealer cost and only $489 over factory invoice. This makes me feel a little better than before. Now if the car would ever get here (no word on delivery yet, estimated to be end of Dec. 2010).

 

I went to that truecar.com website.

For a 2011 IS350 Ultrasonic Blue Mica, Black Leather, F-Sport Package, Navigation System w/Mark Levinson Audio Package, Preferred Accessory Package, and Intuitive Parking Assist, and you get a sticker price of: $46,576.

Average paid: $46,664
Factory Invoice: $41,855
Dealer cost: $41,084

Best Local Price in my area is $41,855.

So, lets say you go to the Dealership and want this car with the exact same specs, and want it at that price: $41,855 (or even $42,000).

Dealer says they can't drop that low.

You say, I've done my research, I know how low you can go, and I want the car for $41,855.

Dealer says no.

Than what? Keep going to every dealership til someone says yes? What if they all say no?

Or, what if, one of them says yes, but gives you the car at a High APR?

Don't they normally sell cars at a low APR, between 0.9-1.9%? or something similar to that?

Never really bought a new car before, always had used, so I'm just curious on how you would approach something like this, with scenarios and so forth.

Do you keep pushing the price you want, and stick firm to it, until they agree? What if they do, and the APR is high as hell?

 

You're under no obligation whatsoever to finance through the dealer.

Personally I tell them I'm paying cash unless they can offer me some incentive to finance with them (some cases they get a cash kickback for financing, so they'll throw a portion of that $ your way.... this is fine, because you can still take the cash, then pay the loan off the next day with other financing )


But yes, basically you decide what price you're ok with paying ($500 plus the actual cost of the vehicle is pretty reasonable IMHO- $500 for doing a little paperwork is a fair profit for the dealer). Then you talk with dealers until you get what you want.

You're negotiating the price of the car only. Don't let them discuss monthly payments, your trade in, the financing, or any other BS until you have a final price in writing on the car.

Then you can discuss the other junk. Until then you are paying cash and have no trade in, you just want the price on the car.


Personally I do my negotiating by email- keeps a written record, lets you deal with it on your schedule, and usually avoids the quick-talking BS most dealers try.

 

Kurtz is correct in all aspects.

It is most important NOT TO EVER discuss PAYMENTS... Once you tell a dealer how much you want to pay a month they can put you in almost any car on the lot for that price with some kind of sneaky financing or other tactics.

You should always say I'm paying cash as he stated as well. Then they don't try and build up more into the car your buying to give you more for your trade. Its all a numbers game to them. But to you it is the bottom line car price that matters nothing else.

Also Incredible... To answer your question on what to do when they say NO.

KEEP RIGHT ON GOING... That's what I did went from dealer to dealer till one said yes. Luckily the dealer that said yes in my case is only about 60-70 miles from my house 45-50 from my work.

However you must be ready to go further if you need to. I will go up to about 1000 miles from my house if it saves me a $1000.00 on the purchase. Remember with a new car ANY and ALL dealerships must service and honor the warranty work from the manufacture. So if you buy it in Ohio and live in Florida your local Lexus dealer will service it and will do warranty work just like you bought it from them. You may not get their extra little perks (like where I bought mine they wash the car every service). But you will still get the same Lexus service as anyone else.

Back to the price and saving money if I have to take a train or bus 500-1500 miles away for $60-100 or even fly for $300 but get the car for $1500-3000 less I still save at least $500-2500 on the cost after gas, tickets, food returning home. I dont' mind driving especially in my shiny new car

SO SHOP TILL YOU DROP as my wife says. Sooner or later you will find someone willing to take your deal as long as it is resonable.

Even if it isn't sometimes like now I see 2010 model clearances sales on IS350's for $1000's under invoice price.

 

^^^ Great tips...

I bought my 2010 IS250 for $30,888 and the MSRP was around 35K -36K. I used truecar.com to know what is the average price people are paying in my area. Then I went ahead and got it a little lower to put it into the great price category.

Just walk into your dealer, tell them that you can only afford to pay this much $. Take it or leave it... Also, give out your alternatives such as BMW 328i, Acura TSX, etc. You don't want to look desperate in front of the dealer. They know they have you by the nads if you act like you really want it.

We also went to BMW Dealer after talking to the sales person to let him know that we were seriously considering BMW.

I have seen previous year's Brand New IS250 RWD going for $26,000 before. I'm sure you can get a nice deal on a new 2010 IS350. Just play hard ball and tell him it's your scrap car... you can wait

 

I agree with you Kurtz, but most dealers will give you a bunch of BS excuses to try to bring you into their stealership. I just tell them not to email me if they won't give me prices via email. BTW, do not ever give them your phone number, they will harrass you everyday...

 

Ok, so lets say that I finally get the price that I want for the car, but when they finance it for me, the APR on the car is higher than usual, that it seems that all the bargaining was done for nothing, you know what I mean?

I say this, cause a few years back, I was going to get a Mercedes E-Class, used for like $10k or something, and when they finally agreed on the price, i look at the paperwork, and the APR was like 24.99%! Thats why I worry now, that if I go to a Lexus dealership and get the price I want, the APR is jacked up, so that the negotiating I've done was in vain, you know?

But, I'll keep in mind to negotiate over email. Hell, when I'm looking for a car, and I'm negotiating back and forth, I'll even post the conversation I'm having with the dealer in the forums, so I can get advice before responding with something stupid, you know?

So, never discuss payments? Sounds good, and when you said I want to pay in cash, do I make it seem that I got $40k to pay upfront, or do you mean just the down payment?

Also, lol, you went to a BMW dealership? I live in Pasadena, and in Glendale, there is a BMW dealership right across from the Lexus dealership. I should do the same thing and just walk across to the BMW dealership, just to show that I'm not desperate for the car.

 

No kidding on the phone number. I made that mistake and got a call damn near every day from the dealership. It's a good thing I never answer my cell phone!

I actually emailed several dealers requesting price quotes. Some of them just won't email you a price. They want you to call in "to verify your option choices" or whatever they can come up with.

Right now you'll get a great deal on a 2010 if there's one left on the lot with the options you like. There's a $3,000 dealer incentive going on right now to clear them off the lot. However, don't expect to do much better than Invoice +$500 (if not more depending on your area) on a 2011 until well after the new year.

 

^^^ Trust me... this puts pressure on the sales guy. Especially, when his/her numbers a low for that week. Also, timing is important when buying a car...

Make sure you talk about how much you like the BMW in terms of performance and how nice the sales person is. Then tell him that you're kind of leaning towards a BMW because they offered you a price very similar. If he can get you a good deal, then you're getting in a Lexus.

I hated BMW after going there. But acted like BMW was great... In the end, the sales person realized that he was gonna lose a serious buyer to their competitor if he can't get me the price I want.

BTW, I also told him that I was a first time buyer for Lexus. I'm not sure if this would help. But I figure that if they treated me nice, I will become a permanent Lexus customer for life.

Definitely follow-up on advice from Kurtz and others also. They all work for them. Mine worked for me... I'm sure I would have gotten it for 30K flat, but my wife wanted to reward my sales guy with the extra 888 because he did his research. 888 is lucky number for Chinese.

 

Again, you're under no obligation to finance from the dealer.

There's tons of banks, credit unions, and other sources of financing if you don't have cash to pay.

Those places then give you a check that you hand to the dealer at purchase.



No, I mean you tell him you're paying cash for the car. The whole car. It's none of his business where the money comes from.

I would suggest you speak to a couple of banks/credit unions/etc and find out what they're getting for car loans, the rate is generally very low unless you have terrible credit. (in which case you probably shouldn't be borrowing $40,000 for a new car). Often you can get pre-approval for a loan up to a given amount before you ever start talking to a car dealer.

That gives you the freedom to not even discuss financing with them at all until AFTER you agree to a deal.


At that point you might say to the dealer "Ok, we've agreed on X dollars. I was just planning to hand you a check for X, but if there's any incentive you guys can offer to finance through you I'm willing to listen"


At that point he might say "Well, our rate is Y% but we can't give you anything else besides the loan" and if Y% is a better deal than the financing you already are pre-approved for, take it. If not say no thanks and just give him the check from the bank you're pre-approved for.


Or he might say "Well, if you finance through us we can take another $500 off the price" or "If you finance through us we can give you a credit for $500 toward F-sport parts" or "If you finance through us we can give you your first 3 oil changes free" or whatever. If he does this, you can take the deal, and the extra stuff, and not really care much what Y% is.

If it turns out to be lower than your other loan, great, keep it and don't take the banks money. If it's not better then you STILL take the 'free' stuff and then pay off the Lexus loan the next day with your pre-approved bank loan.


(check to insure there's no pre-payment penalty on the loan for paying it off early... there's usually not, and in fact it's illegal in some states for there to be a penalty for it, but it still shows up in some places)

 

always find out the loan rates u can get by applying and getting pre-approvals for auto loans through your banks/credit unions before u step into any dealership. that way u can negotiate the complete deal.

 

Is this worth it?

http://www.cars.com/go/search/detail...5&aff=national

I know that the mileage is really high, but after researching KBB and TMV on Edmunds, this price is actually $4k less than anywhere in my area.

I don't know if this car will still be around by July, but if I got this car with $1,500-$2,000 off the Sticker Price, and get financed by my bank (Chase, 48 month term with 3.96% APR), will it worth it?

Just curious to the feedback on this.

 

Depends on what you want. Here are two one brand new fully loaded for $36,995 well below invoice.

http://www.autotrader.com/fyc/vdp.js...standard=false

Here is another 2010 used 1633 miles for invoice I would negotiate down another 2-3k if it was me.

http://www.autotrader.com/fyc/vdp.js...standard=false

INcredible if they try that crap with financing walk away. I suggest getting pre-approved some where else and possibly getting your credit reports and having them with you when you go. That is what I did before my Honda purchase in 2007. I told them I wanted the Honda 1.9% or NO deal after we finally worked out the price.

Tell them if they meet your price and finance rates you will take the car TODAY or that day. They will negotiate unless they are stupid or really think someone else will come in and buy it for more. Also do it toward the end of the month if the sales are slow then they will jump. Dec. - Feb. is usually a good time to buy since most people aren't buying cars during the holiday they are spending all their money on presents. Historically it is the slowest time in car sales. OR wait till a snow storm when trying to buy a RWD car, and they will negotiate more maybe since most people will be looking for trucks and AWD at that time.