kcarter76

I am about to purchase a 2012 GX460 in the next couple of weeks and I have a few questions about how there tier system works.

Koz

I found it best to have a written quote from the best bank offer when purchasing. Don't say anything until you have made the deal on the price and trade-in. Tell them you want to use Lexus financing. The Stealer will deal better on both (price and trade-in) when they think they can whack you on financing.

Koz

rxgxmdx

Yep, that's the way to go. The finance manager initially offered me a Lexus rate that was 2 points higher than the rate found on bankrate.com. Two points! They had the nerve. Then I showed her the offer letter from the bank, and she lowered her rate.

redrocks

Pretty amazing. Lexus must think buyers are stupid! Hey, I don't mind Lexus making money, but be competitive (and honest).

rxgxmdx

Actually I think this is the Stealer's doing, not Lexus per se. The dealers can make some extra money on the "spread" between the rate they get from Lexus and the rate they give you.

ISFSPORT10

I am the finance manager for a large Lexus dealer in south Florida. Pm me if you have any questions

redrocks

Yes, you're correct, "not Lexus per se". Sales/finance tactics never change.

rs/ss

I used to sell new and used cars and IMHO the #1 thing not to say is on the lot is "I'm paying cash" because to the dealership that mean make as much profit as you can on the price because you wont have another chance in the finance department. In my experiance dealerships are more apt to take a skinny deal if they think they can make up the difference in the finance department.

Capirato

How much money is made in the Finance Department ??

I'm curious becase I always pay cash.

~ Cap

rs/ss

Finance departments make money and there Finance managers are able to make commission in areas such as financing customers at an interest rate greater than the best rate they may qualify for. Other areas of potential profit are in after market products or services sold by the finance manager such as service contracts, tint, dent removal contracts and back up sensors to mention a few.

The Finance guys I worked with make $10k a month on a consistent basis. One trick Sales managers would do is to inflate the monthly payment by $10-20 and with that a Finance manager could sell his after market insurance and equipment for just another $10-20 bump.