dwayne4lex

I'm coming up on the end of my 27 month lease and initially thought I would just buy my 2014 GS350 F sport. However, I had a accident in the car two weeks ago which made me do more research on leftover 2015s and pricing discounts available. There is no negotiating room on the residual value ($40,403) of my recently injured car, so I inquired about any leftover 2015 GS350 F sports. Here is the deal: 2015 GS350 F sport white with Flaxen interior MSRP $56K; after tag and dealer doc fees the price was $57K. Negotiated a price discount of $12,500 which leaves a final price (before taxes) of $44,500. Has anyone had a similar deal on a left over car? I want to make sure this is the best deal. And, did anyone have any issues turning in your lease car or additional wear and tear fees?

namzug

Turning in is a breeze. You'll be amazed how flexible they are. One big positive note is that you are getting new Lexus. Do me a favors and tell the Lexus dealership that you will give them $44,600 out the door. Out the door means tax, license and fees. The deal you are getting is what was being offered before Christmas. However that was before the 16's where in inventory. The dealership will be very motivated to move a 15 to replace a 16. Also, JAN is the slowest sales month so you are doing a bigger favor for them then the deal You are getting. Be firm and confident and you will get they best deal. One important point is to stay away from lot and negotiate on phone or email (best method) so that you are in control of the entire negotiation. Once you get the deal you want(have in writing) then go to dealership. Finally do not get anything extra for your car (security, coating, extended junk) because finance marks up 400% or more. Wait til you get home to think what you need then work with dealership to negotiate price down. Or search Internet for other dealerships with better deals. For example I wanted to purchase extended warranty on my 2008 Infiniti M35. In San Diego 3 year 36 month with $25 deductible was $1,800. However the dealership in Scottsdale Arizona offered 36 months 48,000 miles for $888.
If the dealership does not budge then check carsdirect.com. They will get you best deal but will cost you $500 for their service. I used them once and they beat all dealerships but I had to drive 120 miles to pick up car. However with $7k savings it was worth it. Good luck👍🏼

4sallypat

That's about what I got for a '15 GS350 RWD - 21% off MSRP including all discounts....

Will Lexus Financial cover the first month payment too like they did in the December to Remember event ?

As for turning in your old lease, make sure the repairs done to the car have been documented and hopefully certified by the body shop so that you don't have to worry about it after your turn it in for liability reasons.

I know, I went thru a collision certification that satisfied my lease agreement....

christoman

Namzug, when you say the "out the door" price, does that include sales tax (6.25% for me in MA). I am looking at a 2015 AWD F-Sport with an MSRP of $59,460. Was considering getting a low mileage used, but wondering if a 2015 new one would be a better deal.

Kevin350

Out the door means everything is included.

dwayne4lex

Thanks Namzug. Without your help I wouldn't have had the guts to stand firm on additional negotiations. I even had to get up walk out the sales office to get them to come down again on the price. Your advice was very helpful. Here is the deal that was negotiated today...Original MSRP $56K, OTD price (including tax, tag, title and dealer fees) $46K. Plus they were originally quoting payments based on 4% APR, but got 2.9% APR on best and final offer. Let's just say the salesman and the Operations manager were not happy, but I got a better deal and only added GAP protection (which I paid for out of pocket versus financing) during financing. Not $44,600 but close enough for me. Thanks again!!!

JDR76

Congrats! You're going to love it!

dwayne4lex

Definitely keeping all the repair/insurance info and police report just in case.

christoman

dwayne4lex, congratulations! Would you mind sharing how much the tax, title, etc. was above the MSRP (I think in Georgia you have a different type of sales tax, correct)? Trying to get a sense for what I should be shooting for as a bottom line price.

namzug

GAP is a scam! I've never ever heard anybody using the protection. GAP is another add on the dealership makes money. However, the price you negotiated is great! Good job!

dwayne4lex

Yes here in GA we have the TAVT ($3K) which is a flat 7% of the purchase price of the car minus trade in value if applicable. Tag $98, title $41 totaling $139. The always non-negotiable dealer fee was $599. Hope this helps

dwayne4lex

I wasn't a fan of GAP either until my wife's Nissan Ultima was totaled. We were upside down on that car $8K based on the insurance payout, but GAP paid off the difference. Now I won't by a car without adding GAP.

christoman

This is great, thank you. If my math is right, you got a 25% discount off of MSRP (assumed you paid the full 7% tax). Your MSRP was $56K and you only paid a little over $42K for the car!

The car I am looking at has an MSRP of $59,460. That would suggest I should get the price down to around $45 for the car itself.

The other wrinkle is that they told me it is a demo with 1,500 miles on it (but being sold as new). Any suggestions on how I should factor that into the negotiations?

namzug

For all intends and purposes the car is used (the demo). Salesmen with dealer's license can place dealer plates on the car and are exempted to tax, license and DMV fees. It is the purchasers responsibility to do that. For a dealer/wholesaler it's nice to have the luxury to use dealer's plates but the longer the dealer drives the car, more money is lost in terms of depreciation. So a dealer can drive the car for a few months or year and still make a profit (if bought below wholesale or a new car on the lot). In your case, you need to treat it like a used car. When you talk with the dealership make it known that you consider it a used car. Because you gain the upper hand in the negotiation. A few years ago, I helped my neighbor purchase as Mazda C9. The dealership had a brand new one for $40K and then they had a dealer demo (fully loaded even more than the new one) for $35K. I was able to negotiate the dealer demo for $31K out the door because I refereed to the car as used through out the negotiation process. I tried really hard for my target of 30K but my neighbor was very happy at the deal he got. Go in for the GS350 dealer demo asking $45,500 out the door (tax license and DMV fees). Do ALL the negotiation via email or phone NEVER go to the dealership. You should always negotiate in your environment and not theirs so you maintain control/upper hand. If they refuse your offer then thank them. If they want to sell it (and they do) they will contact you in a couple of days with their price. Stand on your offer and by he end of the week you got your deal. I tell my friends why would you swim with the sharks (on the lot/or at dealership)? Why not instead be in a shark cage (your home) where you feel safe and not intimidated. I know with a demo that you receive all the benefits (from Lexus) as a new one. Also, ensure that they include new mats and get the car fully detailed. Be patient and you WILL get your deal. Remember, you are doing them a favor not the other way around. Even if they come down to the $45,500 OTD price, they are still making a profit. If they say the lowest they can go is $47,500 OTD, that means they are trying to get a decent profit. Also, if you are financing through Lexus they will make a profit from that. But watch out because they will try to lower your credit score so that Lexus Financial gives them more profit. If you are going through your bank then tell them that if they met your price you are paying cash and can pick up the car anytime they need you to it (this makes them feel in control but they are not). Finally, never pay for any extra packages i.e. maintenance, security, wheel care, GAP etc. Most are marked up well over 600% and that is another way the dealership makes money. Wait until you purchase the car or after your buyers high wears off when you can think clear then purchase what you think you need. Remember you can buy that stuff anytime at any dealership before your warranty expires. When I had my 2008 M35, I decided to purchase extended warranty, the dealership in San Diego quoted me $1,800 for three years 36K miles with a $50 deductible. I searched the various forums and found a dealership in Scottsdale Arizona that offered them much lower. I called and they gave me an (official Infiniti) extended warranty for $866. It included 48MO or 42K miles and only a $25 deductible. My first post warranty visit it paid for itself (the work cost $2400). Good luck and email me for further help if required.

christoman

namzug, this is great advice, thank you. Broke your rule - I did go into the dealer earlier today, mainly because I wanted to see what the car looked like. Also drove another 2015 F Sport to confirm that I like the car (the gray one i want was actually on the showroom floor).

Offered them $45K (for the car, not OTD). They scoffed and wouldn't go below $50K. They were only willing to take a few hundred off for the mileage. I will definitely use your tactic of calling it used in the future.

I thanked them and left the dealer. I hope you are right and they reach out in the next few days. I am not desperate, so am willing to wait it out to find the best deal.