Curious about Dealer "List Prices" for Parts & Services
#1
Lead Lap
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Curious about Dealer "List Prices" for Parts
I'm getting ready to do the 60K service on my SC and called a couple of local dealers for prices on parts. The quotes were not much different but one was consistently slightly higher than the other. Neither offered any discount from their "List Price" even when asked. Then I contacted a couple of internet vendors (Toyota dealers offering Lexus parts at a discount) for prices. Not only did they offer discounts from the "List Price" but their "List Price" is about half what's charged by the Lexus dealers. So generally I can buy the parts from them for 30-40% of what the Lexus dealers charge! Wow. Of course I have to pay shipping but, even so......
What's going on here? I've often suspected that Toyota encourages it's Lexus dealers not to offer discounts on parts to retail customers but are individual dealers free to set their own "List Prices" even if they are double what the MSRP might be? How do we explain two different Lexus dealers in the same market area charging different prices? I also find retail discounts from Toyota dealers to be quite rare.
Am I right? Are they conspiring to rip us off because they have a monopoly or think we're not sensitive to price? I don't know about you all but I haggled as hard or harder for my SC as I have for any other car purchased from a dealer and ended up getting it for significantly less than asking. Like their parts prices their asking prices for used (whoops sorry, pre-owned) cars are sky high too but, at least, those are negotiable.
What's going on here? I've often suspected that Toyota encourages it's Lexus dealers not to offer discounts on parts to retail customers but are individual dealers free to set their own "List Prices" even if they are double what the MSRP might be? How do we explain two different Lexus dealers in the same market area charging different prices? I also find retail discounts from Toyota dealers to be quite rare.
Am I right? Are they conspiring to rip us off because they have a monopoly or think we're not sensitive to price? I don't know about you all but I haggled as hard or harder for my SC as I have for any other car purchased from a dealer and ended up getting it for significantly less than asking. Like their parts prices their asking prices for used (whoops sorry, pre-owned) cars are sky high too but, at least, those are negotiable.
#3
Lexus Champion
They have mark up the price at certain percentage to covered the overhead cost and make some profit. Some of the online stores are concentrate on huge sale volumes or sometimes they don't have the parts in stock, but wait until somebody order them, then they send in the order to cut down the inventory cost. Some of the big parts wholesaler can give you a deep discount because of their huge inventory.
Lexus dealership can't operate at the same maner, but they stock a lot of fast moving parts such as brake pads, timing belts, water pumps...and so on. But some rare parts that sell every six months, they may have 1 or 2 in stock.
About the price difference, the same goes to K-Mart and Walmart that across the street from each other and you will find out the same brand can sale at difference price. Then you log on to the internet the same merchandise is a lot cheaper than Walmart. No biggy.
Lexus dealership can't operate at the same maner, but they stock a lot of fast moving parts such as brake pads, timing belts, water pumps...and so on. But some rare parts that sell every six months, they may have 1 or 2 in stock.
About the price difference, the same goes to K-Mart and Walmart that across the street from each other and you will find out the same brand can sale at difference price. Then you log on to the internet the same merchandise is a lot cheaper than Walmart. No biggy.
#4
Lead Lap
Thread Starter
Well here's one example of a non-exotic part. Local dealer wants $26.07 (plus tax) for the air cleaner element. Internet Toyota dealer has it in stock with a list price of $15.61 and a sell price of $11.61 (plus shipping). This is not an internet only operation but a real dealership with overhead, inventorying costs, etc. Pretty major price differnce, huh!
#5
I personally have not seen more than a 20% discount off Lexus retail prices (retail prices as verified by Alldata.com and a automotive shop repair guide) I have a feeling when the "list" price of a part seems substantially lower than the Lexus factory price-that part is not OEM.
#7
Sorry CD i'm registered with Alldata for a 1990 LS400 and my auto parts list is for 90-94 LS400's (and does not list part #'s for filters) The air filter for my car is # 17801-50010-83 and i paid the full retail price of 26.96 at my local Toyota dealership.
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#8
Originally posted by Bradster
Sorry CD i'm registered with Alldata for a 1990 LS400 and my auto parts list is for 90-94 LS400's (and does not list part #'s for filters) The air filter for my car is # 17801-50010-83 and i paid the full retail price of 26.96 at my local Toyota dealership.
Sorry CD i'm registered with Alldata for a 1990 LS400 and my auto parts list is for 90-94 LS400's (and does not list part #'s for filters) The air filter for my car is # 17801-50010-83 and i paid the full retail price of 26.96 at my local Toyota dealership.
-Steve Ganz
-CarsonToyota/Lexus Parts
-TRD/L-Tuned/TTE/RMM/Brembo
-TOM'S Racing/L-Sportline/TEIN
-gonzo4u@earthlink.net
-1-800-908-6968
I don't think I've ever managed to get Steve on the phone, but Gordon and Angel can help you as well.
My local Lexus dealer sells this air filter for $34.99 - parts prices from Lexus dealers can be quite inflated.
#10
carpediem,
You will find this everywhere. Lexus will sell the same EXACT part as Toyota for a higher price. Same with Acura/Honda, Infiniti/Nissan . Also Lexus of Alexandria will generally be higher then Pohanka Lexus for service but for partsAlexandria is cheaper. Don't know why, it's just so. Bill Page Toyota will be more expensive then Jack Taylor Toyota. Maybe because of the location of each dealership.
You will find this everywhere. Lexus will sell the same EXACT part as Toyota for a higher price. Same with Acura/Honda, Infiniti/Nissan . Also Lexus of Alexandria will generally be higher then Pohanka Lexus for service but for partsAlexandria is cheaper. Don't know why, it's just so. Bill Page Toyota will be more expensive then Jack Taylor Toyota. Maybe because of the location of each dealership.
#11
Personally i'm not really concerned about the price of filters,plugs etc (retail vs discount) because that really is nickle and dime expenses for a Lexus.Does anybody have a source to get O2 sensors,mount mounts and all other Lexus parts at more than a 20% discount over retail? Pretty please
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felixcat
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02-09-09 07:06 PM