How much discount should I ask for on a 2010?
01-26-09, 08:45 PM
#1
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How much discount should I ask for on a 2010?
What can I expect to get off MSRP on a 2010 RX350 that's going to be out soon?
One sales guy is trying to tell me on a new model introduction there is typically no discounts and people are buying MSRP. Is he full of it or what especially in this economic condition... do they really expect people lining up to buy the new RX have have way more demand than supply?
One sales guy is trying to tell me on a new model introduction there is typically no discounts and people are buying MSRP. Is he full of it or what especially in this economic condition... do they really expect people lining up to buy the new RX have have way more demand than supply?
01-26-09, 08:52 PM
#2
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I wouldn't think you will be able to get anything off for at least a couple months. We certainly aren't.
Despite what you hear over and over on the news, there are still plenty of people with money out there, and willing to spend it.
Our January sales this for this year are actually UP over our sales from last year. Granted, it's only by 4 cars, but still....
Despite what you hear over and over on the news, there are still plenty of people with money out there, and willing to spend it.
Our January sales this for this year are actually UP over our sales from last year. Granted, it's only by 4 cars, but still....
01-26-09, 10:41 PM
#5
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The good thing is that Lexus insists that the dealers do not go higher than MSRP.
You can always offer anything, what would be accepted is another issue.
I would start by asking for all applicable rebates (customer loyalty etc if offered). Check to see if there is a waiting list. If there is, do not expect any discounting. It will take few months to get the production catch up with demand and then expect a drop from MSRP. Check with fleet rates and for a fee you may be able to save some money, but that too may not be an option in first few months.
Salim
You can always offer anything, what would be accepted is another issue.
I would start by asking for all applicable rebates (customer loyalty etc if offered). Check to see if there is a waiting list. If there is, do not expect any discounting. It will take few months to get the production catch up with demand and then expect a drop from MSRP. Check with fleet rates and for a fee you may be able to save some money, but that too may not be an option in first few months.
Salim
01-26-09, 11:27 PM
#6
the reason they sell there is no discount is because,
1)the dealers don't have a army of the NEW vehicles.
2)when people come in for the new RX, its because they want it. they will pay whatever(because they have the money), even though they feel they didn't get a good deal. thats why dealers will not discount off new models. they keep gross.
3) the next person in line will buy 1 or the lets say 4 rx on the lot.
simple supply and demand. for ex. a lot of young girls want scion tc. Toyota knows this, thats why when you go to shop for a scion, there is no negotiating. "this is the price, if you want it you can buy it, if not someone else will, there are a lot of people that wants this car.
1)the dealers don't have a army of the NEW vehicles.
2)when people come in for the new RX, its because they want it. they will pay whatever(because they have the money), even though they feel they didn't get a good deal. thats why dealers will not discount off new models. they keep gross.
3) the next person in line will buy 1 or the lets say 4 rx on the lot.
simple supply and demand. for ex. a lot of young girls want scion tc. Toyota knows this, thats why when you go to shop for a scion, there is no negotiating. "this is the price, if you want it you can buy it, if not someone else will, there are a lot of people that wants this car.
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01-27-09, 03:35 AM
#8
Yep, supply and demand. Initially there will be more 'expected' demand for the new model. Dealers would rather not move a car on the cheap predicting that someone will want it for full price for a while. If that proves to not be the case then you might see some discounting.
Also, don't forget that the production started after the auto industry started to tank so I'm sure Lexus produced fewer vehicles than they normally would for a rollout assuming that the market is soft.
Don't forget, the reason we are all seeing these great deals out there is because they have already been produced and are rotting on the lots (rotting is a bit harsh but you know what I mean
). Lexus can lower production, sell fewer units and get more profit margin and they can still do well with this car. The US automakers have so many fixed costs that they have to keep rolling out cars and selling them at close to cost or below just to keep the assembly lines working b/c people are getting paid whether or not a car is produced. Although there have been some recent changes to this.
So my guess is that the super duper deals on cars will start to diminish a bit once production is better aligned with demand and a new rollout is better when a person needs to wait for a car to be made and delivered and pays full price than to discount the heck out them.
Just my $.02.
Jay
Also, don't forget that the production started after the auto industry started to tank so I'm sure Lexus produced fewer vehicles than they normally would for a rollout assuming that the market is soft.
Don't forget, the reason we are all seeing these great deals out there is because they have already been produced and are rotting on the lots (rotting is a bit harsh but you know what I mean
). Lexus can lower production, sell fewer units and get more profit margin and they can still do well with this car. The US automakers have so many fixed costs that they have to keep rolling out cars and selling them at close to cost or below just to keep the assembly lines working b/c people are getting paid whether or not a car is produced. Although there have been some recent changes to this.So my guess is that the super duper deals on cars will start to diminish a bit once production is better aligned with demand and a new rollout is better when a person needs to wait for a car to be made and delivered and pays full price than to discount the heck out them.
Just my $.02.
Jay
01-27-09, 05:56 AM
#9
Lexus Test Driver
itrcb4, as usual, demands will determine the discount. I would wait it out, let the initial hype die down, which should be pretty quick. Let them work out the bugs. Lexus makes a lot of RX, the dealers should be over stock in 6 to 8 months.
01-27-09, 01:16 PM
#10
Intermediate
Step 1.Go to edmunds.com and build yourself the RX you would like.
Step 2 Go to the dealer and see if they have one or can get one.
Step 3. If dealer ask's more than what edmund's say what this auto is selling for in your geographic area, make him an offer that edmunds recommends.
Step 4. If dealer will not deal, leave your name and phone number with salesman and tell him to call you when he can sell you the RX at that price. In the mean time contact other Lexus dealers in surrounding states. I have bought several cars in Texas even though I live in Arkansas because I saved anywhere from $1000 -$2000. You do the math. Make deal over the phone, buy one way Airline ticket $100 (SW Airlines) and drive back 325 miles in brand new auto.
Sweeeeet
And believe me, the local dealer will service your RX with a smile and be glad to do it even though they did not sell it to you.
Step 2 Go to the dealer and see if they have one or can get one.
Step 3. If dealer ask's more than what edmund's say what this auto is selling for in your geographic area, make him an offer that edmunds recommends.
Step 4. If dealer will not deal, leave your name and phone number with salesman and tell him to call you when he can sell you the RX at that price. In the mean time contact other Lexus dealers in surrounding states. I have bought several cars in Texas even though I live in Arkansas because I saved anywhere from $1000 -$2000. You do the math. Make deal over the phone, buy one way Airline ticket $100 (SW Airlines) and drive back 325 miles in brand new auto.
SweeeeetAnd believe me, the local dealer will service your RX with a smile and be glad to do it even though they did not sell it to you.
01-27-09, 05:26 PM
#11
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I did good then...
Ordered one today... got $800 (US dollars equivalent) off MSRP.
I guess I did not too badly considering all these comments here about buying at MSRP and if you don't, the next guy/gal will...
I guess I did not too badly considering all these comments here about buying at MSRP and if you don't, the next guy/gal will...
01-27-09, 05:49 PM
#12
$800 off MSRP ain't bad, but they still made easily $3000+ from invoice, so if $800 off is good for you and you're happy, then the dealer is surely happy too.
Right now, to get ANYTHING off MSRP is lucky at best. No one is going in and "looking" at a 2010 RX and not interested in buying it. It's just how the business works. Human nature vs. dealer nature. We don't just wake up and say "hem, I'm going to run down to the dealership and just look around." This is a car dealership, not a supermarket.
I would say if the market demand continues to tank and the sales numbers are just not there for Lexus, then by late summer you'll see some sharp deals on all models, but to expect big money off something just released and not even delivered yet is not likely.
The 2009 for $$$ off invoice can be expected, everyone is waiting for the 2010 so the 2009 are going to sit on the lot getting a nice sun tan.
Right now, to get ANYTHING off MSRP is lucky at best. No one is going in and "looking" at a 2010 RX and not interested in buying it. It's just how the business works. Human nature vs. dealer nature. We don't just wake up and say "hem, I'm going to run down to the dealership and just look around." This is a car dealership, not a supermarket.
I would say if the market demand continues to tank and the sales numbers are just not there for Lexus, then by late summer you'll see some sharp deals on all models, but to expect big money off something just released and not even delivered yet is not likely.
The 2009 for $$$ off invoice can be expected, everyone is waiting for the 2010 so the 2009 are going to sit on the lot getting a nice sun tan.
01-29-09, 06:02 AM
#13
Lexus Test Driver
$800 off? Thats bad in my opinion, especially when people here have been getting over $8000 off on the 09. Maybe you need a new car right away or money is not a concerned, but you can certainly do much better than that. The dealer made about $6000 off your transaction, thats not a bad day of work for them at all.
Last edited by The G Man; 01-29-09 at 06:05 AM.
01-29-09, 10:10 PM
#14
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$800 off? Thats bad in my opinion, especially when people here have been getting over $8000 off on the 09. Maybe you need a new car right away or money is not a concerned, but you can certainly do much better than that. The dealer made about $6000 off your transaction, thats not a bad day of work for them at all.
Why on earth would you consider any discount at all on a brand-new, totally redesigned Lexus bad?
We certainly aren't giving anyone anything off, and no other dealer around is.
How do you figure $6K, by the way? About 10% mark-up in the car, plus maybe another $1K in hold-back.
01-30-09, 06:15 AM
#15
Lexus Test Driver
Kalvano, you work for a Lexus dealer, you can do the math as to how I got the number $6000. As I said earlier, Lexus dealer will try to get MSRP while supplies are short on the new RX. That wouldnt last long, before the end of the year, the new RX will be selling close to invoice. Thats a $5000 savings for waiting 9 or 10 months. People who buy now just dont care about money or they just have to have the lastest and greatest as soon as they can. Little do they know, they are actually paying more for a car that will have more problems due to the brand new re-design. Lexus being as good as they are still have re-design issues, the smart buyers usually wait a while and let Lexus work out the bugs first.