keithkk

I never use kbb.com but I use truecar , edmund, cardirect and lot of search. I never care what their invoice is. All i need to care is my OTD. This guy were giving me little more than $43K (no fee and tax yet)

saz25

No problem. Everyone has their own way of negotiating.

I never consider OTD. The state fees and taxes are controlled and can't be negotiated, so I never clutter the discussion with it. I only negotiate what the dealer has control over.

I determine invoice price. I also determine what the dealer hold back it. That gives me a ceiling at which I never go above. Dealers have additional kick backs which I try and eat into.

To each his own.

I'm glad for this forum as it helps people know what to pay and avoid getting ripped off by car sales people.

Another point, I almost never believe anything a car sales person says.

Steve

tomonlexus

MSRP on RX 350 to be ordered out.
Comfort.. Display Audio.. 19" Alum wheels.. Intutive Park Assist.. Premium Pkg with Blind spot.. Towing Pkg .. Wood/Leather steering wheel.. Paint Protection.. Preference Pkg.. Cargo Envelope net
Destination


MSRP $47,743.00
Add $ 589.00 Regional Advertising
Total $48,332.00

Wisconsin dealer offered me $2,065 off list or 4.273 % off list.
How can some Club Members be getting $4500 - $5000 off MSRP. Wouldn't that be below cost?

dctex99

Probably a smaller dealer so needs more profit per car; plus some large dealers will go into holdback and other "incentives" for being remodeled!!

Gymniac

Even if they sell at invoice they still make money.

All Lexus dealerships also get 2% of the base MSRP holdback, which is a rather nice "padding" you and I don't have to begin with.

tomonlexus

On this site and from the salesman I heard the holdback has been eliminated by Lexus
Can anybody confirm that?

On my build out the "holdback" even if it is still done would be 2 % of $47,743 or $954.xx.
If I could talk the dealer out of that, my discount would now be of $3019.
Hard for me to believe that some dealers large or small COULD sell on a notrade deal another $1000 to $2000

What good is the invoice price.................is it a sham?
Thanks for any advice.

dctex99

NO, Holdback for T/L was always 2% of BASE price; so $780!!!!

saz25

"regional advertising" ???
Who are they kidding. I'd walk out as soon as they mention that. I would totally ignore that in the calculation.

That's ridiculous.

This works for me. Not to say that's how everyone does it. I determine my price and do not budge a dime. With my car, it was approx. $49,500 MSRP. I said $44,000 on the last 3 days of the month. One dealer said they could do $44,700. I said no thanks. Another dealer said $44,500. I said no thanks. And another, after the sales manager called his general manager and then whined about costs of doing business, etc. I said I would buy today at $44,000. He eventually agreed and now I'm driving a 2013 Lexus RX350, my first Lexus and I love it.
Steve
Steve

saz25

I find that its best not to even discuss how you arrived at your price. I don't even mention invoice, holdback, etc. If you do, they try to "lie" and say either your invoice price is inaccurate or that hold backs are eliminated. They have many ways to make money on the vehicle. Incentives to the dealer change monthly.

Besides, I don't believe anything a car sales person says. And I mean nothing. By and large they are not (and I repeat, not) your friends. They want to have a relationship with you so they can sell you another car someday or that you would refer your friends.

Their trick or game is to make you think you got a good deal. That's the whole "game".

Be firm and shop around.
Steve

dctex99

But just a FYI; there IS a regional advertising fund or variations thereof....I have the ORIGINAL from the FACTORY invoice on my former 64 Thunderbird and they were charged $20 for Ford's advertising Fund, and $2.40 for 8 gallons of gas!! But if you have put a few million in a modernized dealership they will give you $500 or so incentive for that back; it adds up and it makes those improvements worth it!!!

saz25

Regional advertising fee?? You must be kidding.
Yes I remember them years ago but not now.

Again unless they drop it along with dealer fees, I'd walk away.

The more people let dealers get away with this crap the more they will keep them.

Steve

Gymniac

The following list is as of Oct 4, 2011. I'd challenge your sales man to tell you exactly when Lexus stopped giving him the holdbacks...and catch him lying

http://blog.autoshopper.com/articles...aler-Holdback/

saz25

Regardless of what the sales person says, it has been proven that, at least in areas where there are several Lexus dealerships competing for your business, that you can get 10% off MSRP on a 2013 RX.

In areas with little or no competition you can't do as well. In those cases people have driven many miles or have even flown to different cities to save big bucks.

Steve

tomonlexus

I love the conversation here. I hope you that answer are being honest and just not talking to see you in print.

So that we are all arriving at the same MSRP I will list the specs on my pending order.
Base Price On 9420A FWD $39,310, Comfort Pkg $1,340, Display Audio $860, 19" wheels $770, Intutive Parking assist, $500, Premium Pkg with Blind Spot system $2,760, Towing Pkg $245, Wood/Leather wheel & shifter $330, Paint Protection $429, Cargo Envelope Net $49, Pref Accy Pkg $255, Destination Charge (MKE) $875.
Total MSRP $47,723. Both Costco & Consumer Reports got same total.
Consumer Report Listed Dealer Invoice as;
Base Invoice $36,754, Optional Equipment $6,741, Destination Charge $895, Regional Advertising $589,
Total Dealer Invoice $44,980
The Regional Advertising is not on the sticker but CR states the Dealer will be charged for it.
The Dealer hold back list is dated a year ago so that may be accurate or not.........only time will tell until someone finds out whether it is in effect or not on Lexus. I have bought cars from this salesman before I don't think he was lying to me.

Based on the discounts some here are getting the invoice means nothing. We are at the start of a new model year with hot new Lexus designs and with that said they don't have to sell cars at a loss Example one sale here was 11.1% off MSRP
Some here report being offered zero discount others like here over 11%
There are 2 dealerships in MKE both owned by the same company. 70 miles away another dealer who may be in bed with the MKE dealers.

Any further thoughts?

dctex99

Yes, Are you saying the "Paint Protection" is a factory option?? Most places it is a can of spray they charge hundreds of dollars for and a complete scam! And an aftermarket add on....?? BTW holdbacks have been consistent for years, both being paid and the amounts; some pay on MSRP, some on base!