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Lexus dealership monopoly in Texas

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Old 06-09-12, 07:50 AM
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2010es350
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Default Lexus dealership monopoly in Texas

Im looking to purchase a new Lexus and called the local dealer . He gave me a number, I told him that I will look around for better rates. Later, I found another out of town dealer with $2000 less than the first offer. I called the local dealer and asked him if he can meet or beat this deal... He told me he can't and asked me where I'm getting this price.

Few minutes later, the other dealership called me and told me that they can't sell me the car caz they received a call from a regional manager not to sell car to me and I should just buy from the local dealer.


I'm pissed like ****... Screw this **** .. I'm thinking about writing a letter to US Lexus director for this monopoly.
Old 06-09-12, 08:32 AM
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sailakfan
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Originally Posted by 2010es350
Im looking to purchase a new Lexus and called the local dealer . He gave me a number, I told him that I will look around for better rates. Later, I found another out of town dealer with $2000 less than the first offer. I called the local dealer and asked him if he can meet or beat this deal... He told me he can't and asked me where I'm getting this price.

Few minutes later, the other dealership called me and told me that they can't sell me the car caz they received a call from a regional manager not to sell car to me and I should just buy from the local dealer.


I'm pissed like ****... Screw this **** .. I'm thinking about writing a letter to US Lexus director for this monopoly.
I too had the same experience and I am in Dallas/Fort Worth area and they would never budge. So last week I found the best deal so far and never disclosed the second dealership to anyone and bought a new RX 350 2012 for almost $6300 off MSRP. Good luck hunting
Old 06-09-12, 08:36 AM
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2010es350
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Do u mind sharing the info of the dealership where you bought the car from? Do u have name of the salesman u had?

Last edited by 2010es350; 06-09-12 at 08:49 AM.
Old 06-09-12, 09:59 AM
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imherenow
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ya you should tell us the dealership and salesperson. so next time i go i will keep this story in mind.
Old 06-09-12, 02:45 PM
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John U
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This is a manufacturers "play" to try to protect price levels....advanced "price fixing". The public is encouraged to deal with a local dealer to build the relationship. I've never been turned away from a service writer wanting to have my car worked on because I purchased it elsewhere...Money is all the same shade of green!
I travel 7 states for work....if the locals cannot compete in the open market I have 6 other states to shop and I do. I have purchased 8 vehicles in other states and only 2 within my home state.
Harley Davidson tries this to keep consumers from shopping out of town for a cheaper price and then the local dealer complains because he has to service all these bikes purchased by the price cutter out of town. Another brand of motorcycles tried charging a dealer $250 if he sold outside his area.
Old 06-10-12, 07:23 PM
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overclock
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There has to be laws against this. This is price fixing at its finest.
Old 06-10-12, 07:54 PM
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John U
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Originally Posted by overclock
There has to be laws against this. This is price fixing at its finest.
No, It's called MAP. A manufacturer can set a minimum advertised price a product can be sold for. The Supreme Court agrees.

http://ezinearticles.com/?Supreme-Co...-MAP&id=627990
Old 06-10-12, 09:16 PM
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SW17LS
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This is why you should never offer information. My response to the question "Which dealer is offering you that price?" would have been "Thats between me and the dealer, let me know if you can match the price or I'll buy it from them"...
Old 06-11-12, 05:10 AM
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RickC5
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Originally Posted by SW10ES
This is why you should never offer information. My response to the question "Which dealer is offering you that price?" would have been "Thats between me and the dealer, let me know if you can match the price or I'll buy it from them"...
Precisely. You absolutely MUST play your cards close to your chest to succeed in this game that the car dealers force us to play. NEVER show your hand!
Old 06-11-12, 06:33 AM
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SW17LS
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All kinds of things they can do to screw it up, do what they did, effectuate a trade on the vehicle out from under you, lots of stuff.
Old 06-11-12, 06:39 AM
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LexBob2
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I agree with RickC5 and SW10ES .

Remember these guys deal with people all the time and sell cars all day everyday and know what they are doing. The dealerships are profitable.

The buyer needs to hold on to some of the cards to keep some advantage.
Old 06-11-12, 08:53 AM
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garsarno
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And be ready to stand up and walk out if the deal is too much in their favor. You will be surprised as to how fast they will negotiate. And if they don't, reconsider an alternate brand and be sure to drive the different car to the Lexus dealership.
Old 06-11-12, 11:31 AM
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sailakfan
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Originally Posted by garsarno
And be ready to stand up and walk out if the deal is too much in their favor. You will be surprised as to how fast they will negotiate. And if they don't, reconsider an alternate brand and be sure to drive the different car to the Lexus dealership.
Exactly but we went to an out of state dealership and bought a brand new one for several thousand dollars less that what a Texas dealership was willing to sell it for.
Old 06-11-12, 02:21 PM
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garsarno
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Good for you. My local dealer initially gave us $5,000 less in trade in value versus what the different websites had estimated. I stood up, told my wife that we were leaving and going to the Lexus dealership 60 miles away. My salesman told us to wait and upped the trade in value $4,500 just like that! I think they thought we would opt for the wheel / tire / dent protection package like we did for our 2007. That was a no go for them too. And we were preapproved for Lexus financing before we got there and dealt. I also think that if they got the $5,000 extra, that would have given them some leverage in making our trade in a certified vehicle. They ultimately sent it to the auction.
Old 06-12-12, 03:15 AM
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lgb0250
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Originally Posted by garsarno
Good My salesman told us to wait and upped the trade in value $4,500 just like that!
That's called "boxing" the trade. Common practice in the auto business. If the salesperson tells the customer that his trade is worth $10000 when in fact his used car manager appraised it for $15000 and gets you to agree to it, his commission is based on any profit in the new car, PLUS the $5000 he boxed you on your trade.


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