Dealer cost?
Lead Lap
Joined: Aug 2005
Posts: 706
Likes: 8
From: Texas
Last edited by rjm; Feb 7, 2012 at 01:39 PM.
I already told all of you that i had the papers in front of me for the price that the dealer payed for the GS, Only 3000 between invoice and MSRP. Why do you think this is the case?? That is because they vastly inflated the MSRP to 65% to offset the 2,500 price of the car and pass it on to the dealers. That way the dealers can still have room to sell the car despite the small price gap due to great residuals. Once the residuals fall down to 58%, the invoice will also fall 2,500 dollars to get $5,500 between MSRP and invoice. This is called the "initial offering" by Lexus to help sell more car with better residuals and get them selling.
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Lead Lap
Joined: Sep 2008
Posts: 3,706
Likes: 234
From: #BBNine
I already told all of you that i had the papers in front of me for the price that the dealer payed for the GS, Only 3000 between invoice and MSRP. Why do you think this is the case?? That is because they vastly inflated the MSRP to 65% to offset the 2,500 price of the car and pass it on to the dealers. That way the dealers can still have room to sell the car despite the small price gap due to great residuals. Once the residuals fall down to 58%, the invoice will also fall 2,500 dollars to get $5,500 between MSRP and invoice. This is called the "initial offering" by Lexus to help sell more car with better residuals and get them selling.
I already told all of you that i had the papers in front of me for the price that the dealer payed for the GS, Only 3000 between invoice and MSRP. Why do you think this is the case?? That is because they vastly inflated the MSRP to 65% to offset the 2,500 price of the car and pass it on to the dealers. That way the dealers can still have room to sell the car despite the small price gap due to great residuals. Once the residuals fall down to 58%, the invoice will also fall 2,500 dollars to get $5,500 between MSRP and invoice. This is called the "initial offering" by Lexus to help sell more car with better residuals and get them selling.
I was at my Lexus dealer yesterday looking at the new GS350 and he told me the same thing....$3k markup from MSRP. Then I went to the Mercedes dealer to look at the E-350. The MB rep told me Lexus' markup is 17% and MB markup is 7%. It sure would be nice to know who blowing smoke!!
I already told all of you that i had the papers in front of me for the price that the dealer payed for the GS, Only 3000 between invoice and MSRP. Why do you think this is the case?? That is because they vastly inflated the MSRP to 65% to offset the 2,500 price of the car and pass it on to the dealers. That way the dealers can still have room to sell the car despite the small price gap due to great residuals. Once the residuals fall down to 58%, the invoice will also fall 2,500 dollars to get $5,500 between MSRP and invoice. This is called the "initial offering" by Lexus to help sell more car with better residuals and get them selling.
Instructor
Joined: Apr 2004
Posts: 1,106
Likes: 34
From: California
I already told all of you that i had the papers in front of me for the price that the dealer payed for the GS, Only 3000 between invoice and MSRP. Why do you think this is the case?? That is because they vastly inflated the MSRP to 65% to offset the 2,500 price of the car and pass it on to the dealers. That way the dealers can still have room to sell the car despite the small price gap due to great residuals. Once the residuals fall down to 58%, the invoice will also fall 2,500 dollars to get $5,500 between MSRP and invoice. This is called the "initial offering" by Lexus to help sell more car with better residuals and get them selling.
I'm somewhat confused in the thought process behind dropping the invoice price as my understanding is that when leasing, the adjusted cap cost is essentially the negotiated "cash" price of the car...
Instructor
Joined: Apr 2004
Posts: 1,106
Likes: 34
From: California
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