Dealers northern california seem to be offering about 8k off MSRP for ES 350. This seems like a good deal but should i not bother negotiating further. This is something they are giving as their first offer and so assuming that they may go lower as well. I dont want to be too greedy and at the same time not leave money on the table. Just wanted some advice on whether i should negotiate more since it is their first offer.
Has anyone recently been negotiating a deal for ES 350.

Thanks

 

If you want to request a price via the internet on a specific car, I don't see a problem with doing so as long as the price requests that you make to various dealers are for cars that are very similarly equipped. Otherwise, when you compare prices, you will be comparing apples to oranges. On the other hand, if you do as I suggested and just say what package and options you are interested in, the dealers should respond with cars that are very close to what you have specified. So, either way, you should end up with quotes for cars that are very similar to each other.

Unless the dealer is a Lexus Plus dealer with "no haggle" pricing, the advertised prices are definitely not the best prices that would be available, and, if you buy a car for the advertised price, you are definitely leaving money on the table.

With the current $4000 Lexus rebate for the ES350, recent posts here would indicate that the best prices that people are currently getting are somewhere around 20% off from MSRP. That translates into discounts of about $10,000 for an UL package ES, a bit more than $9000 for a Luxury package ES, and a bit more than $8000 for a base or Premium package ES.

In previous years for the Generation 6 ES, maximum end of the model year discounts topped out around that 20%. With this year being the end of the Generation 6 ES run, with Lexus rebates being higher than they have been in previous years, and with higher unadvertised incentives that Lexus is likely offering to dealers this year, I would expect that, this year, the best discounts in the next couple of months should be a little better than the 20% available in previous model years.

 

 

In the end, it probably won't make much difference whether you do it the way I suggested or the way that you saying. So, do whatever you want to do, but there is a reason why I would choose the way that I've selected.

If I tell the dealer what package and options I'm looking for, and, if he/she doesn't currently have the car in the dealer inventory, he/she would have the option to check expected upcoming deliveries or to check other dealers with the possibility of doing a dealer trade. In the event that those options don't produce the exact car that you are looking for, the dealer would then give you a price quote for the car that they do have in inventory that comes closest to what you want, and that car would likely be the same car for which you would have otherwise asked about if you requested a quote on a specific car. So, telling the dealer what package and options you want might have a slightly better chance of getting you the exact car that you want.

 

 

I just went through the Costco Auto program that had a local salesman contact me. He's working up a quote for a base model as well as one level up w/NAV. It will give me good starting points.

 

Just a word of caution about the Costco Auto Program. Their price quote is likely to be okay, but it is not likely to be even close to as good as what is possible. It just makes sense that, when you add a middleman to the process, that middleman is going to be taking his/her cut, and that means a higher final price.

 

I spoke directly to the dealership (10 miles away) which may kick a portion back to Costco - I'll probably never know for sure. Their quote (via email):

ES 300 - Premier & Nav:
MSRP:
Base 38,950
Blind spot 500
Heated/wood/leather wheel 450
Intuitive parking assist 500
NAV 1,495
Premier pack 1,480
Premier discount -500
Mats, Net, etc 334
Destination 995
Total MSRP 44,204 (invoice 41,937)
Dealer Discount -3,124
Dealer Installed Items 340
Total before rebate 41,402
Rebate -4,000
Price 37,402

Admin Charge 649
Tax 1,262
Fees 89
Out The Door $39,402

In my head I was hoping for something under $40 so I'm off to a good start, I think. I don't think the dealer will negotiate on this but I guess I could ask him to throw something in.

 

On the lexus websites, the lease deal is listed as $329 for 36 mo with 3999 due at signing. At the same time it also says Lexus cash of $4000. Does it mean that the $4000 can be used against the 3999 making it $0 down or is $4000 somehow included in the $329 price.
Sorry, this may be a naive question but i have been out of the market for a while..

 

The $4000 cash applies to purchases of an ES and does not apply to leases. The incentive for leases is built into the $329/month lease payment.

 

I found out that Costco, like Truecar as well, charges the dealership for each completed transaction. Costco gets between $300.00 to $500.00 for each car sold and Truecar gets $400.00 for each sale... Ostensibly, this would be passed on to the buyer. Not good...

 

Paying someone $300 or $400 for purchase assistance would, to me, be quite reasonable if the pricing that resulted was truly special. But the reality is that, by using good buying techniques, you can get pricing on your own that is quite a bit better than what you can via sources like Costco.

 

The dealer pays Costco, not the purchaser, much the same way that the dealer pays the newspaper. It's a marketing expense, the grand total of which are spread across all buyers.

So far I have collected 3 offers, all have come within $500 of Costco. Still searching for the bottom...

 

What I meant when I said the charge would be passed on to the buyer, is that the CHARGE - i.e. whatever Costco or Truecar charges - would be passed on to the buyer in the total sale. Not a gift of money...Costco makes it seem like its a service to their members but they're getting paid. IMO all dealers will pass this service charge on to the buyer in the price of the car... I would not use Costco or Truecar to buy a new car. I'll do my own negotiating...