Alo

My wife and I are planning to buy a new car in a month or 2, haven’t decided yet but in the short list that we have, Lexus ES350 is on the top. We checked the web and this is what we got so far:

From Lexus site,

Base $ 34,470
Delivery $ 875
Options $ 3390 Total MSRP $ 38,735
The option is called premium plus package.

My questions are:
1. If the price above is MSRP, then 88% of that is about $ 34,100 that we should aim for, correct?

2. Pebble Beach Edition is about $ 7350 but in autos.msn.com it showed this option cost around $2970, anyone knows why such a huge difference?

3. Is the fuel has to be 91?

We do appreciate the help, suggestion and the recommendation that you may provide…

jkayca

1. I think 88% is a good starting point but I doubt you will get it. You'll be asking for less than invoice if I've done my math right.
2. I don't know why msn is showing such a low price. A typo?
3. 91 is recommended. Many use regular without issue or complaint though.

I would go to a site like emunds and get a pricing report. It will list invoice prices, msrp and what others have paid. Print the report and take it to the dealer. I did this (I used a Canadian site) although the salesman was quite happy to show me the invoice costs.

Alo

Thanks jkayca,
From edmunds:

MSRP $ 39,175
Invoice $ 35,575
Other pying $ 36,565

I noticed from what i read on the board that you could get $ 1000 below invoice but not sure....

jkayca

Sometimes car manufacturers offer "kickbacks" to dealers. The money is supposed to cover the cost of the loan the dealer takes to buy the car based on an average time it takes a dealer to sell the car. If the dealer hasn't had the car on the lot for long there's a chance you can get some of this money since dealer is hasn't realized the full cost of the loan. It's hard to get though and you have to be pretty persistent. Edmunds should list this in their price report if I remember correctly.

kalvano

Lexus offers nothing like that, unless you are referring to "holdback".

Alo

Excuse my ignorance, but what is "holdback"

kalvano

You take what the car actually cost the dealer, and add a small percentage to it, around 2%, and that get's you the dealer invoice of the car.

It's basically a reserve fund that auto manufacturers pay the dealers on to ensure they make some money, even if they sell a car at invoice.

Good luck trying to get a Lexus dealer to go into holdback.

Alo

Appreciate the explanation kalvano, no i am not necessarily trying to get the "holdback" deal.
I would like to get something fair for both of us, the seller and the buyer.

kalvano

Lexus is cutting way back on production to help increase the value of the cars.

I'd go for $500 - $800 over invoice and be done with it.

Alo

thanks, i think that's what we're going to do.....

superchan7

Anything between invoice and those "market value" numbers is a good deal. I got mine for $1000 under invoice, but this was in early 2008 and with a lot of bickering.

Alo

Invoice from edmunds? lexus web site shows only MSRP.
If we call lexus, are we supposed to get the invoice or it's confidential?
Is the invoice we have from edmunds is pretty close?

Thank you again,

superchan7

The dealer will usually provide an "invoice" number if you ask, but that can be slightly higher than estimated by sites like Edmunds.

C. McHale

Since others have given you advice on the pricing and such, I'll throw in my two cents:

1.) Wait until Fall to buy an ES350, if that's what you're really set on. That's when the refreshed version is coming out, perhaps with some new features and a slightly revamped look.

or

2.) Skip the ES350 entirely, but stay in the Lexus lineup. If you can accept buying a pre-owned vehicle, go for an LS430. It's a better car than the ES350, no question, and you can get a 2006 model for anywhere from 26-40k, depending on options, miles, and whether its Lexus certified. Seriously, the LS430 is a HUGE steal at this point. I can't think of a better bang for your buck, if you're looking for a luxury cruiser.

kalvano

The 2005-2006 LS 430 is an awesome car. I love those.