IS - 2nd Gen (2006-2013) Discussion about the 2006+ model IS models

Invoice Pricing on IS250/IS350

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Old 10-15-05, 07:57 PM
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es250guy
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Default Invoice Pricing on IS250/IS350

Hey guys, this is my first post, so if I'm putting this in the wrong place...be kind.

Also, don't know if this will really help anyone as I don't think anyone is going to pay less than MSRP for a while.

9501 Model IS250 6 Speed Manual RWD
MSRP: $29,990
Invoice: $26,389

9502 Model IS250 6 Speed Automatic RWD
MSRP: $31,160
Invoice: $27,419

9506 Model IS250 6 Speed Automatic All Wheel Drive
MSRP: $34,285
Invoice: $30,168

9510 Model IS350 6 Speed Automatic RWD
MSRP: $35,440
Invoice: $31,186

Options:

NV - Voice Activated Navigation System with Backup Camera
MSRP: $2,550
Invoice: $2,168

PT - Premium Package (Perforated & Heated Seats and Wood Trim)
MSRP: $1,290
Invoice: $1,032
Old 10-15-05, 08:10 PM
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LDYNRED
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Default Accessories

Originally Posted by es250guy
Hey guys, this is my first post, so if I'm putting this in the wrong place...be kind.

Also, don't know if this will really help anyone as I don't think anyone is going to pay less than MSRP for a while.
Welcome to CL! Great first post. There have been alot of people waiting for this. And to add additional information, here are the prices for the accessories. Might have better luck getting a deal on some of these.
Alloy wheels: MSRP port installed $2450 w/ tires, $1800 dealer cost.
Ground effects Kit: MSRP port installed $1500 each piece (rear, side, front), $1100 each dealer cost.
Trunk mat: $70 MSRP, $38 dealer cost
Cargo net: $60 MSRP, $24 dealer cost
Floor mats $$95 MSRP, $54 dealer cost
No pricing available for XM or Sirium Satellite Radio or HKS exhaust. Also, no labor hours on this.
Old 10-15-05, 08:24 PM
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Nauticalx
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Why does lexus' site only have the navi package and premium package when you try to build a IS. Where are all the options such as Xenon, ML etc???

I just would like to price out a IS 250 with comparable features as a TL so I can dump the crappy TL for a closly equipped IS.
Old 10-15-05, 10:07 PM
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STIG
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oh god! that's the invoice price?? sweet!
Old 10-15-05, 10:18 PM
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brewkp4
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I am new to CL and the whole car purchasing thing.....in fact the new Is might be my first car ever.....anyway what is the invoice price? Is it the cost that each individual dealership pays and the MSRP is the mark up that the dealership sells?
Old 10-15-05, 11:20 PM
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knihc2008
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anyone know how long it takes for a car dealer to start selling their cars near invoice?

like, seriously, i hear about people getting 500 more than invoice in like... half a year or something? how was it with the old IS and the new GS?
Old 10-16-05, 06:03 AM
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spwolf
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500 over invoice? heh
Old 10-16-05, 08:34 AM
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Assuming those are the actual invoice prices, seems like Lexus has left less wiggle room for the dealers than on the GS (whose invoice-MSRP diff is much greater). Still, couple the holdback with these invoice prices and one can see why Lexus dealers are so profitable.

Biker, who wonders how long it will take for a dealer to take an offer of 28K for a base 250 MT.
Old 10-16-05, 09:25 AM
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MatadorIS
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Originally Posted by biker
Assuming those are the actual invoice prices, seems like Lexus has left less wiggle room for the dealers than on the GS (whose invoice-MSRP diff is much greater). Still, couple the holdback with these invoice prices and one can see why Lexus dealers are so profitable.

Biker, who wonders how long it will take for a dealer to take an offer of 28K for a base 250 MT.
If you add in a couple options, like Nav + Luxury package, the invoice to MSRP difference is over $5000 on the AWD model. I think the GS is around $6000.
Old 10-16-05, 09:39 AM
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awesome first post!

and yes, invoice is what the dealer pays, msrp is their markup.

I have a question though. When you custom order a car from the dealership, does that somehow count against the dealer regarding how many cars they can order in a given time period?

Sorry if that is phrased badly, but basically, heres what I am wondering. Obviously, the dealer wants to make the maximum amount of profit that they can on the cars that they currently have in stock. If the cars are selling well, they aren't likely going to be cutting any deals because someone else is going to come in and be willing to pay that higher price. BUT, if you custom order a car that's coming straight from Lexus, don't you eliminate that whole scenario? I mean that's a car that they have a guaranteed sale on, which they dont need to worry about maximizing profit on, because it's not sitting around the lot. So it seems to me that dealers cutting you a deal on a special ordered car would be a win, win situation for both of you, unless I am missing something here?
Old 10-16-05, 10:57 AM
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TheRupp
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Originally Posted by the_ez_rhino
I have a question though. When you custom order a car from the dealership, does that somehow count against the dealer regarding how many cars they can order in a given time period?
I think there's a difference between special orders and allocated vehicles. Special orders are vehicles that weren't allocated to the dealer, so therefore they have to order it with that option and color combination.
Old 10-16-05, 11:06 AM
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This info can be found on lexus.com. Your info is pretty informative though.
Old 10-16-05, 11:52 AM
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spwolf
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Originally Posted by biker
Assuming those are the actual invoice prices, seems like Lexus has left less wiggle room for the dealers than on the GS (whose invoice-MSRP diff is much greater). Still, couple the holdback with these invoice prices and one can see why Lexus dealers are so profitable.

Biker, who wonders how long it will take for a dealer to take an offer of 28K for a base 250 MT.
Dealer margins in automotive business are % base... Lexus gets some of the biggest margins - between 12% and 13%. So, 50k car has a lot bigger margin than 30k.

However, holdbacks are sales incentives for the dealers. In general, Lexus offers very low holdbacks. "Holdback" is what Edmunds and KBB calculate into discount when they say how much discount per car does any brand give. For example, I know for Toyota brand it is only $900, while for Lexus is even less. So I would think it would be quite impossible in general to get IS250 for 28k due to lower $$ they make on it. Plus it is still not supposed to be really an volume car like ES or RX, which has you can get off MSRP just because sheer numbers of sales.

GM for example gives on 4k per average but this is only from GM itself, not included any other incentives from dealers themselves, taken out of their margins.
Old 10-16-05, 12:40 PM
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Originally Posted by spwolf
Dealer margins in automotive business are % base... Lexus gets some of the biggest margins - between 12% and 13%. So, 50k car has a lot bigger margin than 30k.

However, holdbacks are sales incentives for the dealers. In general, Lexus offers very low holdbacks. "Holdback" is what Edmunds and KBB calculate into discount when they say how much discount per car does any brand give. For example, I know for Toyota brand it is only $900, while for Lexus is even less. So I would think it would be quite impossible in general to get IS250 for 28k due to lower $$ they make on it. Plus it is still not supposed to be really an volume car like ES or RX, which has you can get off MSRP just because sheer numbers of sales.

GM for example gives on 4k per average but this is only from GM itself, not included any other incentives from dealers themselves, taken out of their margins.
The margin from invoice to MSRP on practically all options for the GS are at 20% and within six months of going on sale, the car is selling for about $1K over invoice. I hope the same happens to the IS (but maybe even faster).
Old 10-17-05, 03:57 PM
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Originally Posted by spwolf
However, holdbacks are sales incentives for the dealers. In general, Lexus offers very low holdbacks. "Holdback" is what Edmunds and KBB calculate into discount when they say how much discount per car does any brand give. For example, I know for Toyota brand it is only $900, while for Lexus is even less. So I would think it would be quite impossible in general to get IS250 for 28k due to lower $$ they make on it. Plus it is still not supposed to be really an volume car like ES or RX, which has you can get off MSRP just because sheer numbers of sales.
.
I thought all holdbacks are a % of base not some fixed number - and it was 3% for Lexus.

Sorry if that is phrased badly, but basically, heres what I am wondering. Obviously, the dealer wants to make the maximum amount of profit that they can on the cars that they currently have in stock. If the cars are selling well, they aren't likely going to be cutting any deals because someone else is going to come in and be willing to pay that higher price. BUT, if you custom order a car that's coming straight from Lexus, don't you eliminate that whole scenario? I mean that's a car that they have a guaranteed sale on, which they dont need to worry about maximizing profit on, because it's not sitting around the lot. So it seems to me that dealers cutting you a deal on a special ordered car would be a win, win situation for both of you, unless I am missing something here?
This is why you can get an ED BMW for about $1K over the ED invoice - it's money that wouldn't normally come in another way. Lexus "should" be the same but I'd venture to guess that they just make too much money on all the other cars to bother much with special order or take too much money off on one.


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