CPO price negotiation strategy
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Driver School Candidate
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From: NY
CPO price negotiation strategy
My current lease expires at the end of July and I am in the market for 07 or 08 CPO LS460. How much discount off the asking price do I expect from dealers? Are they more willing to offer bigger discount if I tell them I'll arrange financing with them? What's the best time of the day, week or month to do the shopping? The problem is I don't have a second car so I must close the deal before I turn over my leased car, I don't have the luxury to shop around past end of July. Some of the cars I bookmarked from Lexus.com CPO search are already gone, it seems the economy has picked up considerably.
rule number 1, don't talk to them about financing or cash or who you will finance from. that gives them another way to rip you. price of the car is price of the car, finish negotiating that first. end of the month is always good coz' they need to meet quota for the month
CL Community Team
Joined: Mar 2007
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From: MA
A lot will depend on how many dealers are in your area. If there is only one within 200 miles of you, you won't have much bargaining power. When I bought mine I had 5 dealers within 50 miles of my home, and a 6th about 75 miles away. And as luck would have it, the one closest to my home (7 miles) met my offering price.
If I were you I'd price the car on Edmunds. They show you what the dealer pays for the car (approximately any way), so you can go in and offer $1000 over that. It helps to have your checkbook in hand with a check made out to the dealership in the amount you are offering. Hand it to the salesman and tell if he wants to sell the car today, you'll buy it. If he's not interested, tell him you'll cross out his name and write in the name of the other Lexus dealer. If there is no other Lexus dealer, let him know you've always dreamed about owning the ultimate driving machine and they're practically giving them away!
Be prepared to walk out. I know you are under the gun, but there's time for them to call you back with a counter offer, and you can always go up a little, after all the offer was your absolute ideal price.
If I were you I'd price the car on Edmunds. They show you what the dealer pays for the car (approximately any way), so you can go in and offer $1000 over that. It helps to have your checkbook in hand with a check made out to the dealership in the amount you are offering. Hand it to the salesman and tell if he wants to sell the car today, you'll buy it. If he's not interested, tell him you'll cross out his name and write in the name of the other Lexus dealer. If there is no other Lexus dealer, let him know you've always dreamed about owning the ultimate driving machine and they're practically giving them away!
Be prepared to walk out. I know you are under the gun, but there's time for them to call you back with a counter offer, and you can always go up a little, after all the offer was your absolute ideal price.
Thread Starter
Driver School Candidate
Joined: May 2010
Posts: 33
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From: NY
A lot will depend on how many dealers are in your area. If there is only one within 200 miles of you, you won't have much bargaining power. When I bought mine I had 5 dealers within 50 miles of my home, and a 6th about 75 miles away. And as luck would have it, the one closest to my home (7 miles) met my offering price.
If I were you I'd price the car on Edmunds. They show you what the dealer pays for the car (approximately any way), so you can go in and offer $1000 over that. It helps to have your checkbook in hand with a check made out to the dealership in the amount you are offering. Hand it to the salesman and tell if he wants to sell the car today, you'll buy it. If he's not interested, tell him you'll cross out his name and write in the name of the other Lexus dealer. If there is no other Lexus dealer, let him know you've always dreamed about owning the ultimate driving machine and they're practically giving them away!
Be prepared to walk out. I know you are under the gun, but there's time for them to call you back with a counter offer, and you can always go up a little, after all the offer was your absolute ideal price.
If I were you I'd price the car on Edmunds. They show you what the dealer pays for the car (approximately any way), so you can go in and offer $1000 over that. It helps to have your checkbook in hand with a check made out to the dealership in the amount you are offering. Hand it to the salesman and tell if he wants to sell the car today, you'll buy it. If he's not interested, tell him you'll cross out his name and write in the name of the other Lexus dealer. If there is no other Lexus dealer, let him know you've always dreamed about owning the ultimate driving machine and they're practically giving them away!
Be prepared to walk out. I know you are under the gun, but there's time for them to call you back with a counter offer, and you can always go up a little, after all the offer was your absolute ideal price.
I went to Edmunds, the prices given by TMV (true market value) calculator are pretty close to dealer asking price. But it doesn't show what dealers paid for their CPO inventory, may be you're referring to new car prices?
you finance with lfa (lexus financial services), i don't think the dealership has much say in it
but regardless, if they know you will finance, yeah, they might make you think they give you a better deal on the car, but then they might rip you a bit on the rate. bottom line, me personally i don't mix the price of car vs buy/finance. if a salesman come to me and ask me that question, it simply tells me that he/she is not giving me the best deal possible
but regardless, if they know you will finance, yeah, they might make you think they give you a better deal on the car, but then they might rip you a bit on the rate. bottom line, me personally i don't mix the price of car vs buy/finance. if a salesman come to me and ask me that question, it simply tells me that he/she is not giving me the best deal possible
CL Community Team
Joined: Mar 2007
Posts: 4,264
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From: MA
No, its there for used cars. For example, they show a 2008 LS460 SWB base as having an approximate dealer cost of $39,117. I do emphasize the word approximate as there are a lot of factors that can impact the dealer's acquisition cost. For example, a long term customer may get more for his trade-in than a stranger off the street, so the dealer's cost will be higher.
Driver School Candidate
Joined: Apr 2010
Posts: 10
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From: United Arab Emirates
The discount-off-the-asking-price depends in the color of the car and the installed packages. If you are willing to go with the black interiors, then you can expect higher discounts. Beige interiors are usually more difficult to negotiate.
I would say that your starting price should be about $5000 lower than your willing-to pay-price. It will not hurt you, and dealers will try usually to arrive at a price in the middle. But never ever pay the asking price.
I have bought two 2007 LS460L CPOs in three months ago. Both had all the packages (i.e. suspension, rear-seat upgrade, pre-collision, luxury). The first one was white and it had about 47k miles. The dealer was asking $47k. I offered him $39k and he finally agreed to sell it for 43500 inclusive. the second was gold with 39k, and the dealer was asking for $50k. I offered him $42k and he accepted immediately. I wish I offered him less :-).
The conclusion: There is big room for price negotiation with CPOs. Good Luck and keep us posted :-)
I would say that your starting price should be about $5000 lower than your willing-to pay-price. It will not hurt you, and dealers will try usually to arrive at a price in the middle. But never ever pay the asking price.
I have bought two 2007 LS460L CPOs in three months ago. Both had all the packages (i.e. suspension, rear-seat upgrade, pre-collision, luxury). The first one was white and it had about 47k miles. The dealer was asking $47k. I offered him $39k and he finally agreed to sell it for 43500 inclusive. the second was gold with 39k, and the dealer was asking for $50k. I offered him $42k and he accepted immediately. I wish I offered him less :-).
The conclusion: There is big room for price negotiation with CPOs. Good Luck and keep us posted :-)
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Thread Starter
Driver School Candidate
Joined: May 2010
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From: NY
Thanks for all the advices.
I was very surprised how quickly dealer agreeing to my price. I haven't bought one yet. There's one 08 CPO listed in Lexus site with 25K miles, ML, Nav, asking $51500 so I sent the dealer an email if they'd consider $46500 and they got back to me right away they're ready to deal if I could be more flexible with the price, I didn't get back to them and I was surprised to receive another email the next day that they'd do the deal at $46500 provided I closed quickly.
I thought $5000 discount I requested was a little aggressive, so if they easily conceded $5000 off their asking price, I wonder what their real bottom price was should I bargain hard.
I was very surprised how quickly dealer agreeing to my price. I haven't bought one yet. There's one 08 CPO listed in Lexus site with 25K miles, ML, Nav, asking $51500 so I sent the dealer an email if they'd consider $46500 and they got back to me right away they're ready to deal if I could be more flexible with the price, I didn't get back to them and I was surprised to receive another email the next day that they'd do the deal at $46500 provided I closed quickly.
I thought $5000 discount I requested was a little aggressive, so if they easily conceded $5000 off their asking price, I wonder what their real bottom price was should I bargain hard.
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CL Community Team
Joined: Mar 2007
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From: MA
Yes, you should definitely try to get a little more out of them. However, they are probably being truthful when they say you have to act soon. The end of June is not only the end of the month, its also the end of the quarter (although I'm not positive when Toyota's quarter ends 
).
).
Lead Lap
Joined: Jul 2006
Posts: 531
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From: CA
Yes, you should definitely try to get a little more out of them. However, they are probably being truthful when they say you have to act soon. The end of June is not only the end of the month, its also the end of the quarter (although I'm not positive when Toyota's quarter ends ).
).Toyota's fiscal year ends March 31. So there may be some added incentives to close a car sale at the end of each quarter.
CL Community Team
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From: MA
Driver
Joined: Jun 2010
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From: GA
I bought mine just before Memorial Day weekend. Incentive was 1.9% financing for 3-years, expiring 6/1. Spent 45 minutes haggling over the price to no avail. Car was located 105 miles from home. Couldn't get a better rate via Credit Union. Two others were going after the same car. I was 1st with a "hold" deposit. Beat out No. 2 by a matter of hours! Bottom line; it's a function of supply/demand. If demand is high and supply low, dealers don't need to budge on asking price.
CPO '07 LS460L w/ Executive Seating Package
'04 Explorer Eddie Bauer
CPO '07 LS460L w/ Executive Seating Package
'04 Explorer Eddie Bauer
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