Buy it or pass...?
01-30-13, 04:36 PM
#1
Lexus Test Driver
Thread Starter
Buy it or pass...? BOUGHT IT!
Help! I spec'd a 2013 LS460 RWD with my preferred option list a couple months ago. When push came to shove, my dealer and I could not agree on a price, so the deal was off. Well, guess what? The dealer ordered the car anyway, it just came in, and I got the phone call - come on in!
Being no dummy and reading the forums here, I learned of the Costco deal where a prearranged margin over invoice is agreed to. So I go in to the dealer, test drive the car (OMFG!), and mention the Costco deal. They immediately cop to 2k over invoice versus their "usual" 3-3.5k over. Then, the argument over the "invoice amount" ensues. They are $900 higher than my calculations from various internet sites. Turns out the $900 is TDA which is apparently a legitimate dealer cost to support national advertising of Lexus products. There is also a $500 doc fee. There are no financing, loyalty, or competitive incentives on this LS. They gave me a trade-in number on my 2010 ES350 which sounds reasonable (I'll go to Carmax tomorrow to check).
So what do you pros advise I do to get the best price I can on the car? Rather than Lexus's 3.x% rate, I intend to finance the purchase (but CAN pay cash if needed) with a local credit union that is looking for new business at 1.99% (refi-ed wife's GS450h with them a few months back). What say you?
Being no dummy and reading the forums here, I learned of the Costco deal where a prearranged margin over invoice is agreed to. So I go in to the dealer, test drive the car (OMFG!), and mention the Costco deal. They immediately cop to 2k over invoice versus their "usual" 3-3.5k over. Then, the argument over the "invoice amount" ensues. They are $900 higher than my calculations from various internet sites. Turns out the $900 is TDA which is apparently a legitimate dealer cost to support national advertising of Lexus products. There is also a $500 doc fee. There are no financing, loyalty, or competitive incentives on this LS. They gave me a trade-in number on my 2010 ES350 which sounds reasonable (I'll go to Carmax tomorrow to check).
So what do you pros advise I do to get the best price I can on the car? Rather than Lexus's 3.x% rate, I intend to finance the purchase (but CAN pay cash if needed) with a local credit union that is looking for new business at 1.99% (refi-ed wife's GS450h with them a few months back). What say you?
Last edited by williakz; 02-06-13 at 08:49 PM.
01-30-13, 04:49 PM
#3
Lexus Test Driver
Thread Starter
Problem is that with a 3.75% county tax, the dealership's trade-in price (tax-free) generally matches (or gets very close to) what can be had from Carmax or quick private sales. Also, I'm really not interested in protracted dealing with private buyers due to logistics/wasted time vs. potentially higher price.
01-30-13, 04:52 PM
#4
2013 purchase
The only price that is outrageous is the $500 doc fee. All that includes is them processing the paperwork for the sale and in most cases today it is electronically forwarded by them to DMV. I have paid only $100 on my last three vehicles. I had a 2010 Lexus, then in 2012 I purchased a new LS and a new Toyota 4RUNNER. Most contracts have a statement in small print that states this is not a State mandatory fee. It is just a profit booster for the dealer. In 2006 a dealer wanted to charge me $200. I told him if you want to sell me the car just sign the manufacturers documents over to me and I took them to DMV and had everything processed. Took about 30 minutes. I'll do any kind of work for $200 for a 30 minute job.
01-30-13, 06:52 PM
#6
It is very hard for any seller of any product to turn down cold hard cash. Walk into the dealership with $2000 cash or a certified check for $5000. Hand the sales manager the money/check. Tell him you want to buy the car today for $(insert your price here). Otherwise both the MB and BMW dealers are begging you to take their even better deals. But then you really would prefer a Lexus, "after all my wife has a GS450h". Tell him some lucky dealer is going to sell a high end car today.
Be smiling, be very polite, don't in anyway be rude or offensive, just be matter of fact. It's awfully hard to hand you back the money and say no. Not that they can't do it, but it is awfully, awfully hard.
BTW, for what it may be worth, tomorrow is the last day of the month.
Be smiling, be very polite, don't in anyway be rude or offensive, just be matter of fact. It's awfully hard to hand you back the money and say no. Not that they can't do it, but it is awfully, awfully hard.
BTW, for what it may be worth, tomorrow is the last day of the month.
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01-30-13, 07:30 PM
#8
Lexus Test Driver
Thread Starter
Jeez, thanks Trini! Just got off the horn with PenFed and they have me set up for 0.49% for 48 months. You saved me half a grand, friend. I'll be sure to hoist one your way next happy hour!
Also thanks Valley, Spin, and Lex. All your suggestions will be used. Wish me luck!
Also thanks Valley, Spin, and Lex. All your suggestions will be used. Wish me luck!
01-31-13, 12:02 PM
#9
They usually say they HAVE to charge that because of some bogus state law or something...BS!
What usually happens is they will deduct that price from the car somewhere and show it in a different box down below.
Whit
01-31-13, 12:08 PM
#10
It is very hard for any seller of any product to turn down cold hard cash. Walk into the dealership with $2000 cash or a certified check for $5000. Hand the sales manager the money/check. Tell him you want to buy the car today for $(insert your price here). Otherwise both the MB and BMW dealers are begging you to take their even better deals. But then you really would prefer a Lexus, "after all my wife has a GS450h". Tell him some lucky dealer is going to sell a high end car today.
Be smiling, be very polite, don't in anyway be rude or offensive, just be matter of fact. It's awfully hard to hand you back the money and say no. Not that they can't do it, but it is awfully, awfully hard.
BTW, for what it may be worth, tomorrow is the last day of the month.
Be smiling, be very polite, don't in anyway be rude or offensive, just be matter of fact. It's awfully hard to hand you back the money and say no. Not that they can't do it, but it is awfully, awfully hard.
BTW, for what it may be worth, tomorrow is the last day of the month.
Last edited by Joeb427; 01-31-13 at 12:54 PM.
01-31-13, 01:51 PM
#11
When I was shopping for my car I considered an Infinit M45 that a dealer had on the lot. His cash price was $1000 HIGHER than the finance price. I paid cash for my LS 460 and there was no difference in price, although they were probably hoping I was going to finance.
01-31-13, 02:00 PM
#12
Oh absolutely Joe. I wasn't suggesting buying the car for cash, only presenting good faith money to sign a purchase agreement at a favorable price point for williakz.
When I was shopping for my car I considered an Infinit M45 that a dealer had on the lot. His cash price was $1000 HIGHER than the finance price. I paid cash for my LS 460 and there was no difference in price, although they were probably hoping I was going to finance.
When I was shopping for my car I considered an Infinit M45 that a dealer had on the lot. His cash price was $1000 HIGHER than the finance price. I paid cash for my LS 460 and there was no difference in price, although they were probably hoping I was going to finance.
01-31-13, 03:45 PM
#13
Lexus Test Driver
Thread Starter
Good call! They bumped the trade-in by $500 to offset the doc fee which is PREPRINTED on the sales contract! Since the trade-in comes off the top, I saved an additional $18.75 in sales tax. I'm going to take the wife to dinner on that windfall - wings, sweetie?
01-31-13, 04:07 PM
#14
Lexus Fanatic
Did you do the deal?
I'd be interested to know what they gave you for your ES since I traded in my 2010 ES two months ago...feel free to PM me if you'd prefer that...
I'd be interested to know what they gave you for your ES since I traded in my 2010 ES two months ago...feel free to PM me if you'd prefer that...
01-31-13, 06:59 PM
#15
Lexus Test Driver
Thread Starter
That was then, this is now. Different cars (mileage/options/condition), different markets, different players. You obviously did the best you could at the time. That's all you can do - second-guessing yourself about things that cannot be changed is a recipe for a life of hurt and bitterness. Be happy!