How much cash discount did you guys get?
12-06-14, 02:58 PM
#1
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How much cash discount did you guys get?
Hello, everyone. I intend to purchase 15' GS350 f. As we know, dealers always talking about BS. How much cash discount did you guys get? I'm in Vancouver.
12-07-14, 06:38 AM
#2
Pole Position
When I bought mine a year ago, the dealer took just under $5k off the MSRP. Then there was a promo for $2k delivery credit for cash deals that month (but it's $2k after taxes, so really like $1,700 discount before tax). I'm in Toronto, so this is at least Canadian info that should be a little more comparable than deals people get in the USA.
12-07-14, 10:39 AM
#3
Lexus Fanatic
Its a common misconception that dealers want to do business with a cash buyer over a finance or lease buyer, and that being a cash buyer is worth some additional discount.
Dealers SELL financing, and they get paid to do it. A cash buyer actually means less profit for the dealer.
I would negotiate your best deal with them thinking they're financing it, then in the end pay cash. They may go lower actually thinking they're going to get the financing.
Dealers SELL financing, and they get paid to do it. A cash buyer actually means less profit for the dealer.
I would negotiate your best deal with them thinking they're financing it, then in the end pay cash. They may go lower actually thinking they're going to get the financing.
12-07-14, 01:49 PM
#4
Its a common misconception that dealers want to do business with a cash buyer over a finance or lease buyer, and that being a cash buyer is worth some additional discount.
Dealers SELL financing, and they get paid to do it. A cash buyer actually means less profit for the dealer.
I would negotiate your best deal with them thinking they're financing it, then in the end pay cash. They may go lower actually thinking they're going to get the financing.
Dealers SELL financing, and they get paid to do it. A cash buyer actually means less profit for the dealer.
I would negotiate your best deal with them thinking they're financing it, then in the end pay cash. They may go lower actually thinking they're going to get the financing.
12-07-14, 03:53 PM
#5
Its a common misconception that dealers want to do business with a cash buyer over a finance or lease buyer, and that being a cash buyer is worth some additional discount.
Dealers SELL financing, and they get paid to do it. A cash buyer actually means less profit for the dealer.
I would negotiate your best deal with them thinking they're financing it, then in the end pay cash. They may go lower actually thinking they're going to get the financing.
Dealers SELL financing, and they get paid to do it. A cash buyer actually means less profit for the dealer.
I would negotiate your best deal with them thinking they're financing it, then in the end pay cash. They may go lower actually thinking they're going to get the financing.
12-07-14, 07:39 PM
#6
Lexus Fanatic
Being in the real estate business we get this with cash too. I get offers from agents all the time and they're $25k low when we have multiple offers and the agent goes "Well...my buyer is ALL CASH". My response is, so what? Unless you're in a market where appraisals are risky or at a price point or a property condition class where financing is shaky, why does the seller care if its cash or a loan? A good lender can close a loan in 10 days. Maybe its worth a couple K to not have to worry about the appraisal...but its not worth $25k.
12-07-14, 09:02 PM
#7
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Being from Canada, I think I can add a little context here. The pricing of cars in Canada, especially the Japanese brands, is somewhat convoluted. There is a signficant difference in the prices here between a cash and financed car price. For example, the 2014 GS Lexus has a $5k rebate only if you make a cash purchase. Cash in this context means that you are giving the dealer money that is not financed via Lexus Financial Services. and when you do that, you lose out on the Special financing rates, say 0% or 1% for 48 months.
So a cash buy here definentely reduces the price here from the manufacturer perspective. I see a lot of people borrowing money from their home equity or banks/credit union to buy these cars as it's a lot more attractive to get that $5k discount for cash payment from the manufacturer rather than getting a zero percent or very attractive finance rates.
for the op, I think a discount of 4k to 5k should be fine, on top of the incentives provided by Lexus.
But I've seen all Lexus dealers in Canada tacking on that crummy $595 documentation fees and the 3m film for hood protection.
So a cash buy here definentely reduces the price here from the manufacturer perspective. I see a lot of people borrowing money from their home equity or banks/credit union to buy these cars as it's a lot more attractive to get that $5k discount for cash payment from the manufacturer rather than getting a zero percent or very attractive finance rates.
for the op, I think a discount of 4k to 5k should be fine, on top of the incentives provided by Lexus.
But I've seen all Lexus dealers in Canada tacking on that crummy $595 documentation fees and the 3m film for hood protection.
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12-07-14, 09:18 PM
#8
Lexus Fanatic
The only way that makes sense is if you have some heavily discounted finance rates...what is a typical interest rate for a car loan in Canada?
Here rates are so low offering 0.9 or 1.9 is not a big deal for a manufacturer.
If a typical rate is 6%, and theyre giving you $5k cash back instead of a 0% rate, thats one thing...
Here rates are so low offering 0.9 or 1.9 is not a big deal for a manufacturer.
If a typical rate is 6%, and theyre giving you $5k cash back instead of a 0% rate, thats one thing...
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