Last weekend I thought I was ready to buy a 2002 RX-300 with Premium Plus and several accessories. The list came to $40,714, but the only discount I could get from the dealer was about $800. I had thought I could get more like $2-3,000. Therefore, I did not buy. Is this normal? Will the discount improve next spring?

 

The dealer is tryiung to rip you off. What is your zip code and what is the exact configuration and I'll try to price it out for you.

 

TD, Tony (RX300TC) is correct in that your dealer is trying to give it to you in the shorts. You should have several dealers in your area, so no reason for you not to try them all. A number of the California based CL members have bought at one site and have service done at another, simply because the service dept at their selling dealer is not as good as elsewhere. Regardless, you should be getting a much better deal than $800 off. And if you do wait until next spring, yes, the deals will be even better. Towards the end of the model year it's reasonable to expect that you can get an RX at close to invoice.

Good luck! They are great vehicles......we have about 37k on my wife's '99 AWD, still runs like a train, still tight and (of course, thanks to Zaino) still looks new!!

 

My zip code is 77429 (Houston, TX) and yes there are several dealers but I have visited only one.

RX300, 4WD, Premium Plus Package, Hitch, Heated Front Seats, HID, Wood Steering Wheel, Cargo Mat, Crossbars, Wheel Locks
Total MSRP = $40,714

 

Ouch, you live in the "Gulf States area", a nasty place to buy a Toyota brand vehicle. But that's another subject.

I confirmed your MSRP. One thing I'm suprised at is that the dealer gave you quote sans the rear spoiler. Why? Because almost every vehicle has it already installed, even though they list it as an option. Second, my personal opinion is that it just plains look better with it!

My research confirms this is not a great place to buy a Lexus. But all hope is not lost if you are willing to travel a little to get a good deal. Follow one of these strategies:

1. I see 6 dealers within a 100 mile radius of your area. You have to get them to bid against each other. The invoice on your car is $35,739. $1000 over invoice should seal the deal. In CA or NY you can do better, but not in your area. Write up a fax with the exact configuration you are looking for. On the fax state that you are ready to buy now and to the first dealer that meets your price of $36,740 gets the sale (obviously go with the dealer closest to you if they all bid). Some of them might counter-offer higher, wait and see till you get all the offers in. Fax your request to all 6 dealers. Remember, you're the buyer and have nothing to lose. They have to earn your sale. Do not accept bogus prep or documetation fees. Prep is already built into the price of every car, and doc fees should be no more than $20 in most states (this is exclusive of DMV charges).

2. If that doesn't work, try Priceline.com. Do the exact same thing, except offer $900 over invoice to cover the PL processing fee (it might be waived in your state). I, along with many other Lexus owners I know, used PL back in January and couldn't be happier. I got a fully loaded 4WD with Nav for about $38.5K (NY area), plus PL saved me the hassle of having to respond to every dealer. My time is money. I could have got a better deal on my own, but I didn't have the time then.

Try both these methods only if you are serious and ready to buy now.

Please let us know how it goes.. and good luck!

 

Use cardirect.com
I type in your zip:77429 and it show only $200~340 under MSRP.
When I type my Zip:91730 (So.Cal.) and it show $2852 under MSRP($800 over invoice). Huge difference...

 

Francis, if you read carefully, carsdirect doesn't serve Texas. So what you are seeing isn't reliable.

 

Thanks for the advice, guys. Before I got your message, I got another dealer in Houston to quote, and his was $1500 below MSRP. That's better, but I'm still after $3000.

I think your fax idea is worth a try.

By the way, most RXs in Houston do not have the rear spoiler.

Another interesting point. When I got the $800 discount, I was getting it through a program known as "Friends of Gulf States Toyota". My neighbor works for Gulf States and said this program would save me mucho $$. He referred me to a salesman, who quoted the price for this program. Guess they don't don't really value their friends!!

 

I got 2000 dollars off MSRP on my Rx300 Back in January when they had their "sale". I got it from Stevens Creek Lexus In San Jose California

 

When shopping for any brand of vehicle, never deal with "MSRP", such as, "I'll give you $$$ off of MSRP". That's a fool's game.

You should always go into the dealer knowing the invoice cost AND any dealer or customer incentives. There are enough sources on the Internet nowadays to find this cost out very easily. You should always negotiate up from the invoice (minus any incentives/rebates), not down from MSRP.

A dealer does not lose money selling at invoice. There are certain "buffers" built into his cost that protect him. At the same time, he isn't making money either (even with the holdback, but that's another subject). On most brands, a 3% (on invoice cost)profit is more than generous on a new car sale (don't forget, dealers make most of their money after the sale on service and maintenance).

Hope this helps those currently shopping.