This comment confuses me. Isn't "MSRP," by definition, a mark-up? MSRP is just whatever the manufacturer recommends, and if it's a seller's market, the manufacturer will recommend a higher price. The invoice price or dealer price is the actual cost of the car to a dealer. That's the price we want to approach. For example, I see the MSRP for a 2021 IS 350 F with DHP is around $55,000. But without knowing the invoice price, it's impossible to know how much we're actually overpaying.

 

I get your point, but dealerships still have to make profit. At the end of the day it's still a business, and every department has to pull their weight. The sales department can't give all their inventory away and hope the service and parts department will carry them so the sales people and sales managers can get a paycheck.

The difference between cost and MSRP (Manufacturers Suggested Retail Price) is so the dealer can make something on the front of the deal... especially if a customer chooses not to purchase anything additional on the back-end. Example: Warranty packages, paint protection etc. Also, the difference varies between manufacturers, models, and trim levels. Some vehicles will see as much as a $4k difference between cost and MSRP, some will barely be $100.

Having said all of that; I wouldn't pay mark-ups either. That's up to the individual/purchaser. If they want it bad enough, they can sign on the dotted line. Nobody is holding a gun to your head and forcing you to purchase something over MSRP. I'd rather walk away, keep hunting for a better deal elsewhere, or just shop for another vehicle entirely if nobody was willing to work with me on the pricing of said vehicle.

 

People with money will buy them with high mark ups anyway, so the sales price would not come down to the reasonable level for a while. I’m certain that the dealers will price gouging the heck out of it. This is the worst time to buy any car.

 

No. The difference between invoice price and the MSRP allows the sales team to make a little profit on the front of the deal.

Take a look at this listing:
https://www.lexuscarlsbad.com/new/LE...b960aa2302.htm

It says MSRP $46455. Your logic says they’re going to charge you more than $46455. I’m saying they won’t and $46455 is already the marked up price. Hence, MSRP. Maybe in a couple years the MSRP will come down to $43,000 like the auto magazines list, but today it’s $46455. Invoice price is probably around $38000.

If you agree then I think we’re arguing over semantics. im not saying I’m an expert. I’ve only bought a couple cars in my lifetime from a dealership.

 

MSRP -manufacturer suggested retail price. If market allows it, you can negotiate to pay less then msrp. This is what happens 99% of the time.
When the market doesn't, then you will pay over msrp. Thats the so called "mark up" "market adjustment" "market premium" and so on.

I hope this clears up the confusion.

 

i think after 2-3months, or when dealers get their 2nd or 3rd round of supply, they will take MSRP. I have seen persistence with respectfulness go along way.

 

I’m personally going through my credit union’s car buying service. My deposit was placed with my local dealer, but they’ll have to negotiate with the CU. I went through them for my ‘16 350 FSport and got $5k off the sticker. I want the car badly, but not bad enough to be gouged or not the color I want. (I'm assuming the first ones will come fully loaded by default.)

 

Yeah just a car and it can wait, let someone else pay the hype. Unfortunately it will most likely be a once size fit all type of build.

 

Well, for what its worth, my dealer said they would never sell a vehicle above MSRP - I am not sure why anyone would be willing to pay more than what the Manufacture feels the car is worth but to each their own. I am certainly never going to pay above MSRP as I feel this car, while nice and all, will not be that special. Besides, its bad enough I'll be paying more for gas, insurance and registration....so why pay a premium to be finalized everywhere else. I am aware it will vary from dealer to dealer but in my opinion, seeing those that gouge their customers from those that don't will show the true color of the dealers.

 

Maybe my wording was off or something, but we're essentially saying the same thing at this point. It's all good.

 

the dealer that I have my deposit placed at said for sure they will mark up the car. the other 2 dealerships I'm on the waiting list said they will not mark up the cars, while one of said dealerships said they will likely only mark up the LE by about $5k. time will tell if they are true to their word.

I understand that this is the worst time trying to buy a car, new or used. but for me, I'm also unloading my Macan and will likely get more for it then if I was trying to sell it w/o this chip shortage situation. so, I look at it as a wash.

I also think it's good that there is a LE that will definitely have a significant mark up. the LE, although more special and limited, will test the waters of how desirable this car will be to the masses. maybe they will sell, maybe they won't. if they have a hard time moving them, dealerships may think twice about how much they mark up the regular version. as we all are enthusiasts that are genuinely interested in this car, we are a small sliver of the car buying public; a public that is increasingly approaching EVs and a public that still loves SUVs and CUVs. even in my neighborhood, as my sons and I ride our bikes through the neighborhood, I've noticed a lot of brand new Model Ys in people's driveways. the market will ultimately dictate the price of this car, imo.

 

I googled "Dealer ADM" and learned some nation wide chevy dealers do not price beyond MSRP. Other dealers do. I imagine these nation wide dealers have corporate pricing policies. I hope the same dealers that own the Lexus sales lots operate the same.

 

The internet has made everything transparent, from buying houses to cars, and that’s going to work in favor of us consumers. If just ONE dealership is advertising prices at MSRP, everyone will saunter to them or at least show the non-compliant dealership the price and force them to match it. Therefore, I don’t see ANYONE paying over list price for this a car. At the end of the day, it’s still a luxury product and it’s the onus of the salesman to close the deal. They need to be more stressed than we do and believe me they will be.

 

My sales rep called today to double check my color preference. Said the Inventory Manager was placing his orders (or something like that) in conjunction with the Launch Editions. He called it an ‘ISF’ and I just rolled with it, because we’re one step closer! 😜

 

So cool! I spoke with my sales rep as well who said they just started taking orders for the 2022 RX/RX450. No word yet in his office for IS, but you can see activity starting to happen. I also asked him about pricing over MSRP and held my breath... He said this dealership does not do mark up. That happily confirmed what I saw about Hendrick Chevy and now Hendrick Lexus (sample size of 1).

Should make for a nice buying experience, no di(%ing around about price.