CAK 500

I'm in the process of hunting for a new RX350 for the wife, and was hoping to get some input on pricing strategy.

The facts:
Vehicle MSRP: $49,533

Invoice: $44,476 ($41,976 after incentives below)
Edmunds TMV: $45,638 ($43,138 after incentives)
TRUECar best local price: $46,389 ($43,889 after incentives)

Lexus Cust Loyalty Incentive: $1,000
Lexus Cust Loyalty Certificate: $1,500

Dealer asking: $45,582 (including incentives, excluding TTL)

Based on my research on Edmunds and TRUECar, I'm thinking that $43,000 after incentives, before TTL, is a reasonable price for this vehicle. Am I missing anything?

scgt652

Truecar.com is an excellent resource. My brother used it to get a Panamera for $9,000 off msrp. You should also check out the price quotes offered by the Costco Auto Buying Service.

speed_Demo

Here in CA, I've been told TTL is about 10% of vehicle price. This price would've been ok in CA, not sure about NC tax and registration fees.

However, I think the customer incentives is bull****. Markup on vehicle is about 5k from invoices. SO I think you misunderstood the incentives...incentives from MSRP, not from invoices price.

But try to get $44500 included TTL. You buy in mid quarter, beginning of the month. at least get 2.9% finance for 60 months.

situman

Hey may I ask what's this Lexus Cust Loyalty Certificate: $1,500? I know about the $1k loyalty rebate. I, like you, am shopping for a '11 RX350 and the dealers keep using the $1k as their discount to me. I'm pretty miffed about that.

mmarshall

Your brother got 9K off list for a reason....and more then just Truecar. A Panamera, essentially a 100K or 100K+ vehicle, lists for more than twice what a typical RX350 does (I know...I reviewed one). You would expect a greater mark-up from invoice/wholesale/retail (and greater discounts off of list price) than with a 45-50K RX. the Panamera also does not sell in huge numbers, so demand for it is not strong like for the hot-selling RX, which has been a gold-mine in sales for Lexus since Day One. The $45,582 the dealer is asking for this RX, while maybe (?) not the absolute lowest price that can be had, sounds very reasonable to me, considering the RX's hot-sales and demand. That's (roughly) an 8% discount off retail. I'd consider it, if it were my money and I was interested in that specific vehicle....though if I were shopping for a new RX, I'd probably want one with a lower list-price and fewer options.

Also (something that has not been verified yet)...this 2011 model is still considered a new vehicle, right....never sold or titled, and has less than 1000 miles on the odometer? Some so-called leftover "new" vehicles are actually factory-program cars that have never been titled but were owned/driven by factory-reps. That, of course, can make a big difference in the asking price.

GoHuskers

I always try to get between 8-10% OFF of the MSRP. With these incentives it is much easier to get 10% off. You know that dealers need to make a living too. And NO I don't work at the dealer but I have bought at least 20 new cars for the families.

So, if you can get about $5000 OFF from your MSRP then call it good.

grabber2

Sorry to be off topic, but what is TTL? Tax, Tile, & Loan?

mmarshall

Tax/Title/License. Those costs, if applicable, will vary by state, and sometomes local, jurisdictions.

CAK 500

The $1,500 loyalty certificate was given to owners of certain 3rd gen GS models that are subject to a recall for potentially defective valve springs. So I luck out with this extra $1,500 on top of the $1,000.Good question. No, this is a brand new vehicle.

CAK 500

I offered $43,000 this morning, and I thought the guy was going to start crying or something. He said he was working for me, and would take it to his manager and get right back with me. That was about 7 hours ago.

Whatever. I'm not going to negotiate with myself. They know I'm a good customer, having just bought a new GS for $50k a few years ago and having my cars serviced there for 11 years now.

In the meantime, I contacted another dealer who has the same car minus 2 options I didn't really care about anyway.

MSRP: $48,894
Invoice: $44,078
TMV: $45,318
TrueCar: $46,164

Incentives: $2,500

Asking price is:
$45,980
1,379.40 taxes
$105 TL
$499 doc fees
-$2,500 loyalty discounts

$45,463.40 out the door

He also said that they would deliver car to my home when it comes in ... dealership is 3hr. drive.

ABC

Why deal with one salesman? Email every Lexus dealer you're comfy driving to, let them know exactly what you want and see what price tag they send you. Pit them against each other and see who will give you the lowest price. Let them do the work. I did this with my IS and it worked like a charm.

situman

Tried doing that with a few dealerships. They won't even talk about price at all unless I give them my credit card to show good faith. I guess this is what happens when supplies are still supposedly low and early in the month.