Wah

Hey all,
I'm ready to go buy my wife a new car tomorrow. I got financing (5.9%) through capital one/Costco ("blank check"), a carsdirect.com printout with the RX priced at $500 below invoice, and the trade-in (2003 Jeep Grand Cherokee) all cleaned up and vacuumed.

Do you think asking for the carsdirect price is reasonable at this point? This is how I've done it for my last two cars and the dealers were fine with it.

Can't wait! We are getting an Flint Mica (or silver) RX awd with Nav, Prem Plus Luxury Value edition, heated seats, RS wipers, 18" wheels, cargo mat, wheel locks, and towing prep. (I think this is the standard navigation model in this region).

Thanks!

steiner

I always asked for free tint, always got it, from Honda to Acura to Lexus. On my RX350 I also got all weather car mats and cargo mat and a golf shirt and a pen... When you are ready to close the deal, they will give you these stuff to get you sign the paper. Small stuffs, but it makes you feel you get a good deal and makes your wife feel like a winner (but at the end you always pay)

And remember to check the VIN number to make sure it matches the paperwork.

Threxx

500 BELOW invoice? Wow... is that normal for the RX to go that low? What dealer(s) and/or what service did you use to negotiate that price?

rxdriver

You might get invoice price based on other posts and the fact that the 2008 is imminent, but be sure to go in and negotiate using whatever that dollar figure is. In other words, don't say "$500 below invoice" to the dealer, or you'll get into a debate about the definition of "invoice".

Also, know what your trade-in is really worth. Use Edmunds and KBB (an average of the two), and also see what the retail price is for the same vehicle sitting on used car lots in your area. You won't get retail price of course, but that will help you confirm that your trade-in value is in the right ballpark (a couple thousand dollars below retail).

You don't want to drive a hard bargain on the new car, only to get shafted on the used car trade-in. You only get a good deal if you get a good price on both the new car and the trade.

Good luck!!

Lexus_G

I got my RX on Nov. 2006 $500 below invoice. So it is possible if you tell them you're are serious. Good luck.

Tadich

This is the exact vehicle that I purchased two days ago for $38,500. I was pretty happy with the deal and we love the car.

T

jjbodean

just curious to know what is your definition of invoice?

rxdriver

My definition of "invoice" is what Edmunds and KBB say it is, of course including the destination charge.

Somehow the dealer can always find things to add to that number, most often including an "advertising fee".

Frankly, I generally don't expect a dealer to sell me a car at that invoice price without the help of manufacturer incentives. A fair price to pay for the car is around 3% to 5% above invoice before incentives and without tax, title, etc.; the dealer has to make money on the transaction. But I don't want them padding what I'd consider the starting price before getting a fair profit out of me.

Wah

I showed them the $500 under invoice price and they accepted it. They also threw in all-weather mats. From some of the other posts it seems that they may have had room to go lower, but it seems like a fair price to me. They tried to rip me off on my trade-in though, so I went down the street to a used car lot and sold my wifes jeep there. Saved about $2000 even after figuring the tax savings from a trade-in. Picking it up tomorrow!

jjbodean

i would consider invoice what the dealer actually pays the factory for the car. that number of course will include holdback which the dealer will get back, and advertising fees, which they will not.

i guess we can agree to disagree on our own definitions of invoice

rxdriver

Believe me, I used to think that way - a fair price for the car is somewhere above what the dealer actually paid for it. That makes sense in any other sort of business scenario. The problem is that I've found I can't trust the dealer to tell me what their invoice price really is.

I used to go into a dealer and do the "$500 over invoice" thing. And then they'd whip out a copy of the invoice when their number was much higher than what I thought it should be. I've never seen an actual invoice, of course. I have seen heavily doctored photocopies of invoices, where parts are blanked out, crossed out with a magic marker, numbers are hand written, or my favorite, typed in with a typewriter on a document that was orignally created with a dot matrix printer.

I've seen fees on these "invoices" including the fairly-common advertising fee to things like the regional documentation fee, the inventory acquistion fee, the initial finance charge/loan originiation fee (for the dealer), training fees (for their techs for new features), and so on. I've even seen the dealer invoice have two different totals on the exact same car at two different dealerships.

Maybe I've had an unusual streak of dishonest dealers. And this was all back in the 90's, so maybe things have changed since then. But given my experience, I'm too jaded to walk into a dealer and effectively say, "honestly tell me what you paid for that car, and as a fair guy, I'll give you $500 more than whatever that number is." I've tried that too many times and failed. I'd rather walk in with an actual number, and basing it on the Edmunds invoice price seems to be a good place to start.

I adjust my expectations based on market conditions, too - I don't just try to buy every car at the same level over Edmunds invoice price. Forums like this one are a great way to gauge the market and see how low you can realistically go. Hot sellers will command more profit, slow sellers will be down around Edmunds invoice price, or less after rebates.

rxdriver

Congrats on closing the deal, and also getting a good deal on both the RX and the Jeep!

Wah

I wouldn't say I got a good deal on the jeep considering I didn't sell it privately... I will, however, say that I am glad to see that piece of ***** go. I hated that car with a passion... don't EVER get a jeep. Although, I'm sure most people on a lexus forum already know that....

We picked up the Millenium Silver/Black RX today. My wife was very happy. It makes my 4Runner feel really old... I think I'm gonna have to think about a new car as well! IS-F?

Catman

Anyone know anything about what kind of deals/price to expect in the Triangle area of North Carolina?