Anyone getting Discount?
I think Lexus dealers are forbidden from marking up over MSRP on any car, best they can do is to option out their allocations with Nav/ML/Comfort etc. I really doubt anyones going to get a discount, local dealer probably has close to 200 people on a wait list for the LS and this dealer is 1 of 4 dealers in the houston area. No dealer has the need to discount on a such a hot and demanded vehicle. Lexus making stunning cars that sell out quickly for MSRP is going to make dealers very profitable and of course they love that
Driver
Joined: Aug 2003
Posts: 187
Likes: 1
From: California
Edmunds now has dealer invoice pricing on the web
I just noticed that Edmunds posted the dealer invoice pricing on their web site for the LS460. On a car with a sticker price of $85,146, the dealer invoice is $72,843. That's not including the dealer holdback, plus any after market accessories they try and throw on.
That's quite a spread, and for now I'm sure they are enjoying making the full spread on every car they sell. However, I would anticipate being able to get at least a $3,000 discount by the end of the year. I just don't believe that demand will continue at the current level once more cars ship to the dealers. There is still plenty of competition from MBZ, BMW and Audi, who may be just a little more motivated than Lexus right now to push some high end cars out the door.
If you are looking for a lease, the other manufacturers all have more attractive rates in place as well. Lexus is not doing anything to promote leasing an LS460 now, and I doubt many people who need to lease a car will pay the ridiculous rates the dealers are currently quoting.
That's quite a spread, and for now I'm sure they are enjoying making the full spread on every car they sell. However, I would anticipate being able to get at least a $3,000 discount by the end of the year. I just don't believe that demand will continue at the current level once more cars ship to the dealers. There is still plenty of competition from MBZ, BMW and Audi, who may be just a little more motivated than Lexus right now to push some high end cars out the door.
If you are looking for a lease, the other manufacturers all have more attractive rates in place as well. Lexus is not doing anything to promote leasing an LS460 now, and I doubt many people who need to lease a car will pay the ridiculous rates the dealers are currently quoting.
Lexus Champion
Joined: Dec 2002
Posts: 3,474
Likes: 2
From: Tennessee
My local dealer doesn't like to negotiate on ANY thing. In fact they act downright uppity about it, like I'm crazy for even thinking that they could sell below sticker price.
Anyhow... what dealers are known for responding well to low-ball offers? In a year or so I might consider the LS460 but would really only offer invoice + warranty @ MSRP, + shipping...
I mean they'd make a good solid thousand bucks profit, at least, on the warranty, plus kick-back on the car even at invoice price.
Anyone think that's possible a year from now? I wouldn't care if it's a late 07 or an early 08 either... beggars can't be choosers.
Anyhow... what dealers are known for responding well to low-ball offers? In a year or so I might consider the LS460 but would really only offer invoice + warranty @ MSRP, + shipping...
I mean they'd make a good solid thousand bucks profit, at least, on the warranty, plus kick-back on the car even at invoice price.
Anyone think that's possible a year from now? I wouldn't care if it's a late 07 or an early 08 either... beggars can't be choosers.
I just noticed that Edmunds posted the dealer invoice pricing on their web site for the LS460. On a car with a sticker price of $85,146, the dealer invoice is $72,843. That's not including the dealer holdback, plus any after market accessories they try and throw on.
That's quite a spread, and for now I'm sure they are enjoying making the full spread on every car they sell. However, I would anticipate being able to get at least a $3,000 discount by the end of the year. I just don't believe that demand will continue at the current level once more cars ship to the dealers. There is still plenty of competition from MBZ, BMW and Audi, who may be just a little more motivated than Lexus right now to push some high end cars out the door.
If you are looking for a lease, the other manufacturers all have more attractive rates in place as well. Lexus is not doing anything to promote leasing an LS460 now, and I doubt many people who need to lease a car will pay the ridiculous rates the dealers are currently quoting.
That's quite a spread, and for now I'm sure they are enjoying making the full spread on every car they sell. However, I would anticipate being able to get at least a $3,000 discount by the end of the year. I just don't believe that demand will continue at the current level once more cars ship to the dealers. There is still plenty of competition from MBZ, BMW and Audi, who may be just a little more motivated than Lexus right now to push some high end cars out the door.
If you are looking for a lease, the other manufacturers all have more attractive rates in place as well. Lexus is not doing anything to promote leasing an LS460 now, and I doubt many people who need to lease a car will pay the ridiculous rates the dealers are currently quoting.
Lexus Champion
Joined: Dec 2002
Posts: 3,474
Likes: 2
From: Tennessee
Driver
Joined: Oct 2006
Posts: 121
Likes: 0
From: CA
My local dealer doesn't like to negotiate on ANY thing... In a year or so I might consider the LS460 but would really only offer invoice + warranty @ MSRP, + shipping. I mean they'd make a good solid thousand bucks profit, at least, on the warranty, plus kick-back on the car even at invoice price...
We got 22 mpg on our first tank; after averaging 16 mpg on our Phaeton, we are really enjoying the range on our LS460L...
Pole Position
Joined: Oct 2006
Posts: 225
Likes: 0
From: WA
Driver
Joined: Oct 2006
Posts: 121
Likes: 0
From: CA
Lexus Test Driver
Joined: Oct 2006
Posts: 1,031
Likes: 4
From: US: Northeast
I dread taking my Porsche in for the first time as I have heard that they are horrible in Pittsburgh. Fortunately the first Porsche service isn't until 20,000 miles!
Driver
Joined: Apr 2002
Posts: 144
Likes: 0
From: New Mexico
pimpin'
Dealer Dan says...
If I'm selling 300 Fords a month..
I can get by on a $500-$1500 margin,
if I sell 40 Lexus, well, I better get a bunch more to stay open.
Then I gotta polish the marble floors and cherry walls!
"It's hard for a pimp in the city".
If I'm selling 300 Fords a month..I can get by on a $500-$1500 margin,
if I sell 40 Lexus, well, I better get a bunch more to stay open.
Then I gotta polish the marble floors and cherry walls!
"It's hard for a pimp in the city".
Lexus Fanatic
Joined: Jan 2005
Posts: 20,206
Likes: 253
I just noticed that Edmunds posted the dealer invoice pricing on their web site for the LS460. On a car with a sticker price of $85,146, the dealer invoice is $72,843. That's not including the dealer holdback, plus any after market accessories they try and throw on.
That's quite a spread, and for now I'm sure they are enjoying making the full spread on every car they sell. However, I would anticipate being able to get at least a $3,000 discount by the end of the year. I just don't believe that demand will continue at the current level once more cars ship to the dealers. There is still plenty of competition from MBZ, BMW and Audi, who may be just a little more motivated than Lexus right now to push some high end cars out the door.
If you are looking for a lease, the other manufacturers all have more attractive rates in place as well. Lexus is not doing anything to promote leasing an LS460 now, and I doubt many people who need to lease a car will pay the ridiculous rates the dealers are currently quoting.
That's quite a spread, and for now I'm sure they are enjoying making the full spread on every car they sell. However, I would anticipate being able to get at least a $3,000 discount by the end of the year. I just don't believe that demand will continue at the current level once more cars ship to the dealers. There is still plenty of competition from MBZ, BMW and Audi, who may be just a little more motivated than Lexus right now to push some high end cars out the door.
If you are looking for a lease, the other manufacturers all have more attractive rates in place as well. Lexus is not doing anything to promote leasing an LS460 now, and I doubt many people who need to lease a car will pay the ridiculous rates the dealers are currently quoting.
Lexus dealer makes less than that after everything calculated in 12%-13%. Thats not "invoice", which is in reality never correct and true invoice price is always lower and in line with margin above.
I wish dealers were making 18% on their cars, that would be some life!
Yeah I'd be wary of that invoice price. From my previous Lexus experience, those Edmunds, Consumer Reports, etc...have never been accurate. The only place I've seen accurate invoices is CarsDirect.com
And yes, it does sound too high of profit margin to me also.......
And yes, it does sound too high of profit margin to me also.......
Driver
Joined: Aug 2003
Posts: 187
Likes: 1
From: California
Maybe I'm miscalculating something, but isn't 72,843/85,146 = .8488, which would mean that the margin is 1 - .8488, or .1512, which would be 15%?
Would anyone from the dealer community like to confirm whether Edmunds has accurate invoice numbers on their web site?
Would anyone from the dealer community like to confirm whether Edmunds has accurate invoice numbers on their web site?