Lexus3oi

on the BMW forums, the consensus for calculating a decent target price on a new bimmer, is to use the "dealer invoice" price on the car + selected options, then add $100-$1,000 to that for dealer profit...it may take some shopping around, but apprently there are a lot of dealers that have no problem selling at those prices

can the target price on a new Lexus be found the same way?...are Lexus dealers willing to work up from invoice?

i realize when the new GS first comes out, dealers may not be willing to go much below MSRP for several months, but i'm talking about several months later, when supply finally balances out with demand

Luke27617

iTrader: (2)

All depends who you are dealing with at the dealership. I always deal with a sales manager or with my Lexuses with a GM since I had a chance to meet him at a local dealer.

When I bought GX460 right after it came out, I have paid $250 over invoice. All options were priced at invoice too. You need to remember that there is a big markup when you start adding options.

I have already contacted my dealer and I am on the list to place custom order in December as soon as they can do that. We have not discussed the pricing, but since this is a custom order vs. a car already on the lot, I am sure I will get it within $1000 over invoice.

Doesn't matter what brand and if the vehicle has been just released, I have never paid more than $1000 over invoice minus any additional incentives they may have.

Please remember that dealer still gets 3% + additional incentives for every vehicle sold even at invoice level. You can get additional discounts for financing if you ask for it. As example I always got $1500 incremental discount (Lexus loyalty program).

Find a right person at the dealer (start with Internet Sales manager if you know noone), negotiatie hard and walk away from the best deal. They will always call you back and try to finish the deal. This is the time where you need to stay by what you want and push back. They may thank you again and say they cannot do it, but you will get a follow up call from someone higher trying to close the deal.

Also remember that not always you can get the best deal from local dealer. Negotiaite with at least three. As an example my local BMW is terrible and couldn't get a deal with them when the 335i came out. I did a deal with a dealer from another town and saved up a lot.

rominl

iTrader: (4)

short answer is yes, they can deal from invoice

long answer is it depends on what car, supply and demand, and timing. when the 4gs first arrive, i don't think they will bother talking about invoice, it will be xxx amount off msrp if at all. but over time when the car gets "cold", yes, invoice + something, or if lexus is giving a lot of incentives, it will be even under invoice

same for bmw anyway. when f10 first came out, msrp or nothing and that quickly dropped off. when m3 came out, it's msrp PLUS something, and now it's much lower

Lexus3oi

thanks for the input guys...i do realize i will most likely have to work with several dealerships to find the best deal, but i am glad to hear that it will be possible to work up from invoice prices

and as i mentioned in my first post, i do expect that it will be hardest to deal immediately after the cars start arriving on the lots, so i will be willing to wait a few months until the demand dies down some

jjbenzo

My experience is that Lexus dealers are generally willing to meet somewhere in the middle of MSRP and invoice. Not a bad deal at all. Depending on the car, you can get more. We just bought our Range Rover recently. Land Rover has some sort of agreement among it's dealers that they can't sell a vehicle to a customer who lives in a territory serviced by another Land Rover dealer without a monetary penalty (which is passed down the the customer). Therefore, our experience was that our local dealer (and most all for that matter) would not deal much at all because they knew you pretty much had to buy from them. Pretty crappy in my opinion.

SNiiP3R

iTrader: (3)

I've spoke with the dealer a few days ago, regarding the prices and no V8 option. Regarding the prices of the new GS, he said they don't know the exact price yet, but they expect it to be priced around $60K ? I asked them if they'll be willing to go below MSRP, he said no and I will have to wait....

Well, regarding the V8, he said they're ok with the fact that Lexus won't be offering a V8 version. The V8 was not a big seller anyway.

jtrue28

Yeah, for 40 extra horses, the 6K price premium certainly wasn't worth it.

*Batman*

It will probably be difficult to get good deals in the first couple of months, then should be back to normal. For Lexus cars I have typically found you can get Invoice+500 quite easily.

If there is a double dip downturn in early 2012 that will help.

jjscsix

When I leased my car almost two years ago, I was dealing with the sales manager at a dealer near me. He and I hit it off because we both own Corvettes. He discounted the car quite a bit, but was still a couple of thousand above invoice (there is a big markup in Lexus from invoice to MSRP). He kept assuring me that he was taking care of me.

A friend of mine who also buys a lot of cars - several BMW's and M-Bs the past few years hooked me up with the sales manager at another Lexus dealer in town. With no hassling at all he priced my car $1500 less than the dealer who was "taking care of me". I don't recall exactly, but I think he was $500 over invoice.

BTW, there is a punch line to this. Both dealers are owned by the same group!

jjscsix

I do expect a well equiped GS to be close to 60 with everything on it - and I think the F-Sport package will be stupid expensive (like the LS). And that is my concern. Infiniti did the same thing. Loaded M37 push $60 and M56's can easily get up around $67. In 2006 my loaded M45 was $56k. And now they are having to discount the M's pretty heavily to move them.

BTW, my '10 GS350 with Nav and Levinson and a few other typical options listed for about $51. If a comparable car becomes over $55 (without F-Sport) I'm out.

rominl

iTrader: (4)

generally with no added incentives, of all the lexus i have gotten, i think 500 above invoice is a reasonable price

Lexus3oi

that's what i was hoping to hear when i started this thread...even if it takes a couple of months for the price to come down to that

Lexus3oi

i remember in an earlier preview article about the new GS350, the writer mentioned he expected the new GS MSRP to be pretty close to the older model's...hopefully this will be true...i'd hate to see a crazy 10%+ price jump

js619858

At Least Lexus won't rape you like BMW!!! Don't Lexus have some rule they can't change over invoice or MSRP on new cars?

*Batman*

It's not an effective rule. Dealers can't charge over MSRP. However they can add a "paint protection package" before putting it on the lot for sale, and then charge $4000 for that option on top of the MSRP.

That said, I doubt there will be a massive shortage of this car on launch. Shortages only happen on limited volume productions - e.g. if they launched a GSF and many dealers don't even recieve an allocation, and many only get one car, then you would have a shortage and gouging.