The MSRP for the GX I'm going to purchase is $53,318. The sale price is $45,513. I'm not sure exactly what invoice is, but I think it right at about $46,500. He also quoted me on a GX with the same options and RSES and Lexus Link MSRP $55,778, dealer cost $48,661 and sales price $47,661. So I'm actually getting it for $1000 under invoice. I've also just recieved another quote from a seperate dealer for $45,587 for the same options as the quote at $45,513. You're right, Lexus can't really demand what my local dealership in Spokane was asking at $49,322. My local dealer told me he didn't understand how the other dealers could offer me their price, since it was below what they pay for them. Obviously this isn't true, but it still makes me nervous that I will run into a problem when I go to finalize the sale. I would love to stay local, but for $4000 I can't afford it.

Josh

P.S. Is it ok to post prices I've been quoted or is it against the rules of this forum? Since I haven't finalized my deal yet, do you think the dealer I've been working with may change his price if he were to read this?

 

I don't blame you for going that far out to save $4k. That's not chump change. I don't know what the rules are here as to pricing discussions although I've seen a few others post them so I figure it's okay. I wouldn't worry about the dealer reading this post and then reneging on their original commitment. It's very bad for business for them to outright lie to you and I think a Lexus dealer is held to a much higher standard than most other makes. That's not to say it couldn't happen but highly unlikely.

It's funny, before I purchased by 05, I was looking at an 06 also. And when I went into the local dealer here, I was looking at one loaded like yours (MSRP appx. $53300). They at first said that the lowest they could go was $4k back of sticker. But when I told them I had friends in the business, they changed their tune and went to about $1000 over invoice. They said their invoice was $46.5k on that vehicle also, although when I went to research sites like Edmunds.com and CarsDirect, their invoice numbers were about $600 lower than what dealer said (and this includes the dealer delivery charge by the way). Who's right and who's wrong? Who knows. But in any event, assuming invoice is $46.5k on the model you are looking at, they are selling below to clear stock for 07's and clear up their floorplan carrying costs (it's the interest they pay for vehicles they have to inventory and gets more expensive as they sit on the lot more). Plus, the floorplan is like a large revolving credit facility so they are also tying up needed cashflow.

Most dealers want to turn inventory before 60 days and I think GXs are staying on the lot longer than their other models (don't know the # of days though). And I don't believe they are losing any real money in the deal because they have approx. $1000+ in manufacturer holdback on the GXs (this is not verified as it is hearsay from my friend who is the GSM at a Lexus store but for the sake of discussion, I'll take it at face value). Your deal looks like they are giving you most of the holdback. And your Spokane store is obviously not figuring their holdback when they say they are losing money.

Moreover, they'll likely still make money on you when you go to finance your vehicle (if you sign a retail contract with them). When they sell that contract to the true lender (in this case probably Toyota Financial/Lexus Financial because they'll have the best rates with the current Golden Opportunity sales event), they will mark up the rate that the lender charges them and make some money on the discount. During these factory sponsored promotions, it's hard to beat the captive finance company's (like Lexus Financial) rates but I'd still look.

If you are planning on financing, I'd check your local bank/credit union rates and then go in there to compare the dealer's rates. Also be sure to ask the dealer to tell you what their best "buy rate" is from the lender and tell them you don't want to pay more than .25% over the buy rate. This may or may not work as some dealers won't let you know the buy rate (which is the rate the lender charges them). NOTE: this buy rate will obviously be variable depending on your credit profile. In many cases, the "best rate" dealers quote customers is at least 1.00% to 1.50% over the buy rates (which is good money for the dealers). And they'll then try to sell you on back-end products (like GAP, credit life, paint protection, window tint, LoJack, Vin etch, etc. etc.). Those are all big money makers for the dealers. I personally wouldn't buy any of that stuff but that's just me.

Just a suggestion, depending on when you are planning on actually pulling the trigger on the purchase, I'd call your sales rep up to confirm the price and maybe even talk finance numbers with him/her so that you can lock that variable down. If you know your credit score, I'd tell him/her what it is and ask for the buy rate for someone with that score. He should be honest with you (best rates usually go to those with 730+ scores). Then all you do is go in, sign the papers and drive off.

 

I've checked around with the local credit unions and the best rate I was able to find was 5.49 for 72 months for their best rate. Then when I called to get preapproved, that same day they jumped to 5.99, which wouldn't have made a difference anyways because I'm not going to pull out the loan until 9-4-06 or around there. I did get approved for thier best rate, so I hope it won't jump up again before I make my purchase. The .50% rate increase bumped my payment up about $10 a month, which isn't too bad. The dealer I am working with told me it would have to be a cash deal because I'm out of state. So I wouldn't be able to lease or finance it through Lexus. But then again, I don't think they have a 5.99 or lower finance rate over 72 months. I'll let you know what ends up happening and if there are any snags along the way.
Another thing I have to have the dealership do is deliver the vehicle to me out of state. So they are going to deliver it to my hotel in Las Vegas; I'm going there mid September for a family reunion.

 

Got it. Actually 5.99 is a really good rate right now on a 72 (for something that is not manufacturer subsidized). Certainly let me know how it goes and good luck!

 

llcc1975 It seems like you and are have this thread all to our selfs so far! My dealer called me last night and said there could be some issues because I'm out of state. He said I might have a problem getting it registered in ID since I'm buying it in CA. I don't know why there would be such a problem because he's delivering it to Las Vegas out of state, so I shouldn't have to pay CA sales tax. And I don't want to becasue their tax is 8.25% and ID is 5.0%. He told me it would get worked out though and not to worry. I should have everything worked out by the end of next week. I better because I have to buy my one way plane tickets to Vegas and then we're going to drive it up, which is around 1117 miles. I have a 2 month old son, so hopefully he take the car ride well! By the way llcc1975, were your xenon's pretty easy to install? I've read the threads on them and think it should be pretty easy. How much difference can you see from the factory lights? Can you see much further out too; not just brighter light??? What brand did you go with?

Thanks,
Josh

 

I'm surprised there is such a hassle. I live near the border with PA, and people in NJ buy PA cars and vice versa all the time. Maybe the fact that there is third state involved in the turnover makes it more complicated?

 

No kidding, it's nice to have the space! Anyway, I agree with Silverlady--I'm not sure what types of problems they are having with the sale at all, especially if they are requiring you to obtain your own financing through your local Credit Union. This should be a very simple cash transaction for them. They don't have to charge you sales tax whether or not they deliver the vehicle to you in CA, NV, or ID . . . . or NY for that matter. The sales tax for you is paid to ID when you go and register your vehicle with your local DMV.

I've personally purchased vehicles from other states before (from dealers) and have had no issues.

If you are still concerned, I'd call them and make them explain what their issues are with the transaction instead of just vague "you may have a problem." Since this is a new car, the dealer will hold what's called an "MSO" or "MCO", which is an acronym for a Manufacturer's Certificate (or Statement) of Origin. This is non-state-specific document that is like a title but is not because your vehicle needs to be non-titled or else it is not considered new. When they sell the vehicle, the MCO is surrendered for a state title. Since you live in ID, that would just be an ID title instead of a CA title. I see no reason why there should be a problem with this. Just to be safe, I would also call your DMV on Monday to determine if they have a problem with it. They really shouldn't though.

As for the xenon kit. It took me about 2 hours total to finish the install. And I actually went back to it a couple of times to fix some minor things (in terms of bracing the ballasts better). I ordered the "XenonDepot" 6000k kit from XenonDepot.com. They have an "Xtreme" line of kits that are cheaper by a little more than $100. I chose the more expensive one because they come with Philips ballasts and bulbs. The Xtreme kits do not.

Overall, the install was relatively easy and straightforward notwithstanding the fact that the documentation that comes with the kit leaves a little to be desired. I used the installation guide made by a guy named Tony that's on this forum. There are a couple of differences b/w the 2003 GX (which he had) and mine (a 2005). Further, XD also changed their kits a little since Tony's install (i.e. main difference being the ballasts are physically different-shaped and the kit now utilizes the headlight wiring harness on both sides of the vehicle instead of just one side).

Anyway, if you end up getting it, I'd recommend reading that whole thread to see the differences (I added my $.02 worth in that thread). And you can always let me know if you have questions.

As for driving with a 2-month old, good luck! I'm sure he won't be all that bad because don't they just sleep a whole lot at that age anyway?? We just took our 3 year old and 9-month old on a 750 mile road trip. They did okay but there were some "challenging" moments.

 

Ok I talked to the dealer today and he had a little more info for me, but I'm still wondering where the problem is. He said that they would send the MSO to the credit union (CU) and they would then forward it to me. I would then take the MSO to the Idaho DMV and pay my tax, license, reg. etc. The problem the dealer was saying was that the CU's usually put a stamp on their cashiers checks that say something along the line of "This cashiers check is only valid if the Title is sent directly to the CU". Since it is not titled and they only have the MSO then it poses a problem for the dealership because they can only send the MSO, not the Title. Again, I don't know why it would be such a problem, I know they sell a lot of new (non titled) vehicles and many of those go to out of state buyers. I'm getting nervous about the whole deal now because I need to buy my one way plane ticket to Vegas this week and the flights are filling up fast. I don't want to buy a one way ticket before knowing I'm going to get the GX, otherwise I may get stuck in Vegas, which would be fun, but I would go broke the first month.

 

Okay, I don't think this dealer rep is understanding the process too well. Of course they can't give a title because the MSO is all they have. The CU (and most banks) will have that sort of restrictive endorsement on their official checks for people looking to buy vehicles. This is for their protection. Fact of the matter is that this verbiage is not self-executing. In other words, when they go deposit your CU's check, it's not like their depository bank or your CU can just deny it because they sent an MSO instead of the title. In fact, if it's an Official Check (cashier's check), there's no way to generally put a stop pay on it (it's equivalent to cash), save for fraud.

I would talk with your loan officer at your CU and explain the dealer's (unfounded in my opinion) concerns and let them know exactly what the process will be from the dealer's standpoint. I think your loan officer can then tell you if they see a problem with this or not. They shouldn't because they will get their title eventually (because you're an honest person), just after you surrender the MSO to the DMV for your title. In fact, I would even ask your CU if they have an issue with the dealer just giving you the MSO initially so that you can go directly to the DMV to title and register your vehicle. It could save you a couple of days (and potential additional mail delays).

In my experience, good communication (and preventative communication when needed) can resolve many potential issues before they arise. By the way, I'm in the auto finance biz so I do understand the process.

 

I talked to the dealer and he said as long as the CU doesn't put the stamp on the check then we would be ok. The woman at the CU told me that she wouldn't put the stamp on the check and she would even allow the dealer delivery guy give me the MSO and I could then; like you said; take it to the DMV and save some time. Now I need to think of a good (funny) license plate. Thanks for all your help. I'm going to pay $3000 down on my credit card and then finance the rest through the CU. They are going to give me the check to take to the delivery guy. Are there any potenial problems I should be aware of? Also, when I inspect the GX before signing the final paperwork, what should I pay special attention to?

 

That's great Josh. I'm glad your CU is working with you (that's the nice thing about most CU's, they're generally not as big as large banks and are a little more accomodating at times).

The license plate is all you my friend, no suggestions here.

I wouldn't anticipate any problems. But if it were me, about a week before I were to transact the deal, I'd call up the dealer to do a mock up of the actual bill of sale (they'll call it a Buyer's Order, or Purchase Agreement, or something like that) that includes everything numberswise so there are no surprises (make sure they mock it up using the actual vehicle you are buying). And if they won't or can't mock this up due to system limitations, get the numbers from them in writing in just an informal format.

As for numbers, there should only be: (a) the price of your vehicle and any accessories; (b) back end products such as LoJack, VIN etch, extended warranties if you were to say yes to these (I personally would not); and/or (c) a documentation fee. This last thing is charged by most dealers regardless of whether it is a cash sale or retail installment financing. Depending on the dealer, it could get ridiculous (like mine that charged me $388 for a doc fee). Some only charge about $150 (much more reasonable). Just make sure you are charged a reasonable doc fee (and although they say it's non-negotiable, I think it is).

Things you shouldn't see are: (a) credit insurance or GAP addendum or waiver (b/c this is a cash sale to them); (b) any sales tax (b/c you are registering out of state); and (c) any what we call in the business "Junk Fees" such as a 'Salesperson fee' or 'market fee' or anything that just makes you wonder what in the world it is for. I doubt you'll see this from a Lexus dealer, but just be on the lookout.

Read over these numbers like you did when you bought your home (assuming you did) and got a copy of that HUD-1 settlement statement before you closed. Then, if you agree with all of the numbers, use it to calculate your CU's final proceeds check and ensure that when you actually walk in to ink the deal, that all of the final numbers match up to the preliminary numbers you got previously.

Let's hope for a smooth transaction and I really hope you enjoy your new GX. We've absolutely loved ours. I've owned many vehicle models in the past (SUVs and non) and I'd have to say this is the nicest vehicle I've owned in terms of driver comfort and overall ownership satisfaction.

And . . . . send pics of your new GX when you get a chance!

 

Oh yeah, Lexus dealers try to sneak things into the contract, just like any other dealer. When I bought my '99 RX the monthly loan payment was higher than what I calculated with Excel (with a PDA in my hand!!) When I questioned it, the finance manager said, "Oh, so you don't want the term life insurance, then?"
The last time I saw that trick was at a Mazda dealer in 1984!
You would think that the BS would end with the sales guy, but that's not true any more. The finance manager can acutually rip you off more, as described in the previous post.

 

Well, I've asked the dealer to give me the exact total amount for the entire purchase. He said it would be $45,678.75. This would be including the GX (of course), $45 Doc fee, $15 One way trip permit (so I can drive it to ID), $8.75 tire tax, since I'm buying it in CA (I'm not sure why I'm paying this, if I don't live in CA, and I'm not taking delivery in CA, but it's only $8.75) and that's it. I will pay tax, license and reg. in ID. So it sounds like it should be pretty easy to get everything signed and finalized. Although, I think I'm probably more nervous about buying the GX then I was buying my house. But that's probably because I haven't seen the GX and I've done everything over the phone and email so far. My emailed price quote of $45,678.75 would be enough proof that it shouldn't be any higher than that right??? I will try to get some pics of the new black on gray GX. I was offered the Lexus chrome wheels for $900, but decided to go without them. Do you think it would be worth it? Or would I be better off buying some later on if I decided to go with chrome?

 

Sounds like an outstanding deal.

 

Those are pretty legit numbers based off what you said your purchased price was in earlier posts. Wow, $45 doc fee? That's a bargain!

I'm not familiar first-hand with the CA tire tax so can't say whether it applies to out of state sales or not, but for the nominal dollar amount relative to the transaction total, I wouldn't worry about it. This amount would go to the tax authority anyway.

On the chromes, you know, that's really up to you. $900 is a bit steep for chromes to replace your existing factory wheels. You could probably find a shop to do it for about $100 to $150 a piece if you wanted your OEMs "dipped." That is if you can find a local shop in ID that will do it. Not many towns have shops that chrome. So, if it's important to you to have chromes (wasn't to me), then take the dealers (but I'd negotiate that price still--hey why not?). If not, then save the money. Heck you may even decide to go with bigger wheels later on (I've seen a few folks on this forum go with larger 18" to 22" wheels and if that's what your ultimate intent is, the $900 now is a waste of money especially considering you could probably buy a new set of chrome wheels for that amount -- you'd still have to pay for tires on top of that though if you went larger diameter).