What discount can I expect on ES350?
 

Since I'm thinking seriously of acquiring the ES350, can I get an idea from you all what kind of discounts you've been seeing on this car from the dealers lately? I have no trade-in. Thanks.

I think this forum expresses discounts in terms of $$$ off MSRP, since we don't EXACTLY what invoice is. The range has been $0 - $4800 off of MSRP. The amount discount you get depends on the following (please add to this list if you can think of more):

1) Supply of cars with your desired color/options
2) Demand for the cars with your desired color/options
3) Time of year when you purchase
4) Floor model or fresh off the boat
5) Your negotiation skills
6) How low of a trade-in price you get (N/A for no trades)
7) How much cleavage you show (N/A for male customers or straight female salesperson)
8) Number of Lexus dealers nearby
9) How high interest they can charge you (N/A for all cash purchase)
10) How many cars you plan to buy that day

One thing I was able to do was to finance through Lexus and then immediately pay off the loan with another loan through my credit union. My credit union considered the car new and gave me the lower new car interest rate even though, technically, it was a refinance.

Lexus was able to cut me a break on the price because they were financing me, they got credit for booking the loan and closing the loan successfully, and I was able to get a lower interest rate through my credit union. Everyone came out a winner.

not exactly. the dealer loses any finance commission if you pay off the loan within the first 3 payments, so the dealer and lexus financial actually lost, not that it matters to you. just setting the record straight. :D

Hmmm. They didn't bat an eye when I told them I planned to pay the loan off immediately. Thanks for the update.

uh oh. I paid my loan off in less than four months. Oh well, the dealer makes plenty on me.

Go to the KBB.com and configure your car... Take the information (difference between invoice and msrp) and go bargain.

FWIW - The dealer will make what is known as a "mini" if he sells to you at invoice price... Most don't know this but there's about an extra 3% below invoice price that the dealer reaps if he can get the car off the lot within 30 to 90 days of it rolling off the truck, the term for this is known as "hold-back." If you can deal in this region, you-da-man... Most dealers hem and haw about how they're getting screwed, but then again I never paid a mortgage on a big dealership building.

Since the ES350 is selling briskly right now, I don't believe most dealers are discounting that much right now like the previous models. However, $1000 to $1500 off the sticker are almost a given without any negotiations. The typical dealer markup is about 12.5% off the base suggested retail. Options tend to have higher markups especially some of those high priced options that include NAV and Mark Levinson--they can run from about 18% to 25% or more. You should go to Edmunds and get the dealer invoice so you know what you are dealing with. I know on the "old" ES330, you can get them for about $250 over invoice and I have heard a few have gotten right at invoice. My guess is you should be able to get a new ES350 for about $800 above invoice with some negotiation skill. If you don't mind waiting and all they have to do is order the exact the car you want, you can likely do better at say $500 over. I also suggest you do your shopping after Xmas like late Dec or January when it's traditionally very slow where everyone is more worried about paying off their Xmas bills and the last thing they want one is another car payment to worry about. Do your serious negotiations on the last few days of the month since they generally have monthly sales quota to fill and you can get a much better deal at that time instead of going in say early in the month. When I bought my GS4 new a few years ago, I used the same tactic and paid $400 over invoice on a $55k sticker car.

You should also try the internet as well as Sams Club and Costco since many have bought cars thru them. FYI, I stopped by the local Lexus dealer and test drove the ES350 and the saleslady right off the bat told me $1500 off the sticker (and I didn't even ask her for a price) and she further hinted that there's lot more room to negotiate. Good luck. Let us know how it turns out.

I work for an auto finance company. This is correct, depending on what the "charge back" policy is with the finance company. Some have a zero charge back policy. Others have 120 day policy from contract date. Depends on the lender.

In most cases, if the loan is paid off within the first 3 or 4 months, the dealer is charged back his reserve. Same goes for warranty, gap, etc.

Without a trade involved you should be able to negotiate at least 2,000 or better off sticker.

Before you take one home run it through the CL member contributed checklist.

I purchased mine (Ruby/Black) for $3000 under MSRP. I had the invoice price on the car and all options. I have USAA insurance wihich has a pricinig service that was dead on on invoice prices, now what the dealer really pays for the car is a different issue. NADA invoice numbers were good also. Don't forget the manufacture holdback, I think Lexus is 1% of base MSRP.

I've been talking to (five) dealers in the Washington, DC area about purchasing an ES 350 UL. The retail MSRP is $44,012 and I was told $2,500 off (by three different dealers) without even negotiating. IIRC, the invoice price totaled ~$37,800? I've seen several websites which state that Lexus has a 2% holdback on the base MSRP of the car but I don't know if that's accurate.

In CA, you can get the ES350 with Premium Plus Package with Navigation for about $200 under invoice. However, it looks like you are not in CA, unless you want to consider fly to CA and drive the car back, I don't believe this info is too helpful to you.

Just trying to help out.

Edmunds.com ES Forums have some really great information about Prices Paid and Buying Experience. They have an individual thread simply about this topic. People tend to post there all the time stating how much they paid, etc. Seems pretty common to be able to buy in SOCAL at invoice, or close to it.

You're correct, my mistake on the Lexus holdback it is 2%.