6 Steps to Negotiating the Best Deal on Your New Lexus
Shopping for a new Lexus can be a stressful process, but these negotiation tips can help you get the best deal without losing your mind.
1. Check Dealer's Inventory
When you are walking in a dealer to make a business deal, you have to know what they have and what they are running short on. Before trying to push your salesman into reducing the price of your Lexus, be sure you are visiting a dealer that has a big number of the same model in stock. A dealer that has one Lexus RX left won't go down in price as much as a dealer that has 20 in their inventory. Visit a few dealers' websites and check their inventory, then you will have a little secret about their inventory, but they have nothing on you.
2. Choose the Right Season
Choosing the right season to shop for your car can make a huge difference in the negotiation process. You won't get the best deal if cars are flying off of the lot. Instead, you want to choose a time when the dealer is struggling to make any sales, then you walk in knowing you are probably their only customer for the day. The best time of the year is between Christmas and New Year. If you plan ahead of time, you can end up getting a great deal in these chosen days; however, if you can't take the time during the holidays, then try shopping between January and February; this is when sales are slowest for new cars.
On another note, the sales and commissions at most dealerships get calculated at the end of the month, so if you try to negotiate a deal in the last three days of the month, they would probably try harder to make the deal happen so they can get their bonuses from the manufacturers.
3. Travel to Various Dealers
If you want the perfect deal, you will have to shop around for it. No one wants to drive 50-miles to a Lexus dealer if they have one just two miles away from them, but if you want a special deal, you have to do some driving. Most dealers are privately owned and they are operated differently. The more a dealership makes sales, the more incentives and bonuses they get from the manufacturer, so you could easily get a deal at one dealer that you would never get at another dealer. Plan to visit three or more Lexus dealers before putting your signature on the bottom of the long contract.
4. Walk Away
If you're not truly prepared to walk away, even in the last minute, you won't get what you want. Before even stepping foot inside a Lexus dealer, prepare yourself mentally to walk away, but you have to really walk away if you need to. Most salesmen have a way of reading people, simply because they encounter so many of them. You can't pretend to walk away, you just need to be able to get up, walk away, and visit the next dealership. The trick is to leave your name and phone number before the walk-away, and you will most likely get a phone call the same day with the deal you wanted.
5. Choose the Right Car
If you want to be able to get the best deal on your new Lexus, then you have to be slightly flexible. Once you decide on the right model for you, then explore all of the options within this model. Some specific vehicles get more discounts than others, so keep your options open if you can. It would be a shame if you're trying to negotiate $2,000 on one car, while there is one almost exactly the same that already has a $3,000 discount. It is always best to check the dealer's inventory online before going there, this way you can compare as many vehicles as you can without a salesman telling you what's best for "you."
6. Don't Trade-In
Not everyone can afford the luxury of having a gap between selling and buying cars, or even putting a down-payment on a car before selling the old one. However, if you are able to sell your car privately, you are guaranteed to get a few thousand more than if you trade-in, and sometimes the difference is HUGE. Dealers are masters of combining numbers and making it seem like you're getting a good chunk of money for your trade-in, but in reality, your trade-in value will probably end up covering some fees and licenses. Sell your old car on your own, but if you can't, try places like CarMax, as they give you a check the same day, and most of the time, they value your used car higher than any other dealership.