sphereman

Hello All....

I am in the market for a new car now (either 460 SWB or Porsche Cayenne v6). If I chose 460, it will be a purchase. For Cayenne, it will be a lease.

Anyways... is it possible to get a 460SWB at an invoice thesedays (08 models). I heard big lexus dealers such as Longo in California have so many SWB sitting in their lots...

I'd apprecaite any comments.

Thanks!!

vollandt

As for getting the car at invoice, there’s only one way to find out, just make the offer and be ready to walk away. You never know, even if the dealer doesn’t go for it right away, toward the end of the month if they are behind on their quota, you may get a call back.

I did a $2500 over invoice deal in NYC on a SWB last week. That was about the limit in this area then.

If you were to negotiate a LS460 at invoice deal, why not wrap that price into a lease deal? You can do a onetime payment lease and lexus financial caries the remaining debt on the car at 4.5%. If you ultimately want to own the car, at the end, just pay the residual and you’re very much inline with your would be total out of pocket on a simple cash buy deal. If you do change your mind and want to opt out at the end of the lease period, because of the way the residual is subsidized by the factory in a lease, you are much better off than if you bought car outright then went to sell it on the open market.

rominl

iTrader: (4)

you can try, but i say it's a far stretch. they have a lot of swb but i know they are selling ok. i think 2k over invoice is a good price to shoot for if you are in socal

sphereman

Hi..
Thanks for your input...
About your comment above, can you elaborate a little more? I was not really into leases until thesedays..so I am not too familiar with leases. What did you mean by 'lexus carries the remainging debt on the car at 4.5%"??

Thanks again!

Mike_TX

I think what he's saying is the residual.

If you pre-pay your lease, you're just getting a discount for paying the payments up front. The car still belongs to Lexus, though, so they're giving you a reduced interest rate on the part they own (the residual value).

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rominl

iTrader: (4)

if so then i think it's very dangerous, coz' if the car is totaled, then you lose everything on your payment (that's just like a huge amount of downpayments)

daryll40

It doesn't work that way. There is some accreted value that is returned.

rominl

iTrader: (4)

in that case it depends on the term. i am pretty sure the downpayment is gone if you total a leased car, even if you just drive it off the lot

Nospinzone

....is it possible to get a 460SWB at an invoice thesedays (08 models).

Regardless of what anyone tells you here, there's only one way to find out. Walk into the dealer, tell them what you'll pay, and have your checkbook in your hand ready to write.

Even better, have a check made out for the full invoice price payable to the dealership and hand it to the salesperson (make sure they take it in hand). Tell them if they cash it you have a deal, if not, then they can tear it up.

I was taught this over 30 years ago by a very shrewd man. Over the years I've done this on various items I have bought. You would be surprised how few people can actually bring themselves to physically hand you back that check once its in their hand. (BTW, with lesser priced items you can use cash which is even harder for them to give back!)

Now if you REALLY want the item and they refuse the offer, you are still in a great postion of bargaining UP from your price rather than trying to bargain DOWN from their price.

USCRugby

Excellent post

USLEX

OK, I'll bite. Did you pay for your LS460 this way and were you succesful?

vollandt

If the car is totaled, you are in the same situation financially as if you had just bought the car outright from the beginning, no worse.

vollandt

When you buy, or lease, you have exposure to a depreciating asset. The big difference when it comes to luxury car leases is that the factory subsidizes some of this depreciation. The subsidy varies by make, model and time of year. It’s a way of lowering the cost, without lowering the sale price. In the case of a 36m/10,000 74,000MSRP LS460, the factory residual is .53 of MSRP or 39,220. If you negotiate a sale price of say 62000 on the car and do a lease deal, you are responsible for paying the difference between 62,000 and 39,220 or 22,780 plus the interest on the residual for the three years. At the end, you have the option of paying the 39,200, or walking away. If you take the option to buy at the end, and the interest rate on the lease is low, you are no worse of than if you had did a buy from the beginning. The thing is, wholesale market value 3 years from now on that car will more likely be in the 35k range ( or less). If this is true and you return the car at the end, lexus just ate 4,200 on your behalf.
So, when comparing lease vs buy and the interest rate on the lease is good, in the worst case scenario a lease equals a buy deal, in the best case a lease is much better.

Nospinzone

I have 5 Lexus dealers within 50 miles of me (actually 4 are within 20 miles). I went to each one and told them the vehicle I wanted (SWB, Comfort Package, Nav & ML, Park Assist, Power Doors/Trunk, Pre-Collision System, and Preferred Accessory Pkg). The Pre-Collision System meant that the car had to be special ordered because no such cars were shipped to any snowbelt states. From the CR report I got, I knew the dealer invoice was $63,725 on an MSRP of $73,322. I also knew the holdback.

I told each one I would buy the car right now for $1000 over invoice. I won't go through all the responses I got about how they couldn't sell it at that price. There were lots of attempts at various sales techniques as to the demand for the car, how they couldn't do it, how I was crazy, yada, yada ,yada. Of course, I countered with my own buyer's techniques, e.g. I'm very interested in the BWM 750 and the Mercedes S550, and that $1000 plus holdback was a fair profit considering all the ancillary business they would get from me. Well at the fifth dealership (which also happened to be the one closest to my home) the salesman said let me talk to my manager. He came back with $2000 over invoice. The rest, as they say, is history. I did hem and haw a little bit, but I sensed this was the best deal I was going to get. Subsequently, 3 of the other 4 dealerships called me with better offers than their first offer. I told them too late, I already bought the car. One told me he would have met my $1000 over invoice offer. He probably wouldn't have, but it made him feel better to make me think I overpaid (yea, right).

The two keys are I was prepared to walk away from each of those dealerships, and we started from the price I wanted to pay, not the price they wanted to get. I was in the fortunate position where I didn't have to buy a car (in fact I still have my '95 Q45a) and I WASN'T MARRIED to buying an LS460. I did really want it, but I made sure they didn't know that. I liked both the 750 and S550, but I would have waited another year if I had to for an LS460. So while I physically didn't have the checkbook in my hand (I actually used my credit card for the deposit), I made it perfectly clear that I wanted to buy the car TODAY if they met my price. The only concession I made to the dealership was I gave them a $3000 deposit which is much higher than normal. However, I figured at the price I was getting it was no big deal, and besides I got Amex points for it anyway. There was a little more to the back and forth than that, but I think that gives you the picture.


I actually paid $65,773 and for the life of me no matter how many times I went over the figures, I couldn't figure out why it was $48 higher than it was supposed to be, but I let it go!

shern

iTrader: (6)

Excellent.

It's a luxury when you have multiple dealerships to leverage off eachother. It gives you the ability to throw an offer and turn your back. I salute you!