The Hybrid is a joke you can get the same mileage now without the battery! And the extra cost will offset nothing when you have to use premium gas and in 10 yrs a new battery will cost $5000 plus to replace.

When the dealer shows you the invoice do you really think you are seeing what the dealer is paying the factory? And if you do how would you like to buy the Brooklyn Bridge.
The dealer would have to shut his doors unless if he didn't make a good profit. The whole thing is the art of the deal where the dealership makes the customer feel he got a great deal. It is a joke lol.

The dealers make all of their money in factory rebates which you never see. Depending on the Vehicle they work between 15-20%. And if you do not believe it sit down and figure it out with a pencil and paper.

Think about it have you ever heard a person say after buying or leasing a car " boy did l get screwed? "

No everybody thinks that they are master negotiators.

That's a given, but really let's be real do as a business man would you really igmore supply and demand curves lol So FYI you can discuss car buying pro tips in car chat, u don't need to bump the price thread

Sorry l got carried away!

Is Sewell Lexus in the Houston area? If so, where is it?

So the dealers play a shell game -- the "invoice" is kind of bogus because they get dealer incentives and whatever, and a MSRP is just a "suggestion" of the car value.

But I see folks on this board discussing pricing both ways. I am trying to get a formula for a pricing band in each case.

Is it fair to say a reasonably good deal for a RX (not the sport model) is EITHER:

"Invoice" PLUS $500 or so

OR

MSRP MINUS $1500-3000

In Los Angeles. 4K off of sticker ($51,xxx). Roughly 9%

The invoice is a number that everyone points to as what the dealer pays. And without any other #, that is the "dealer paid amount" thats disclosed. Now upon sales, finacing, leasing etc, there will always be backend rebates and incentives that dealers will collect.

would love to know which dealer, and if it was off the lot or order?

Lexus of Glendale. Yes, it was a car that was in their inventory. Ask for Christopher and tell him Robert sent you.

Thank you all for posting. It really helped me negotiate a good price on the exact color and options i wanted. I got 4.3k off msrp on base lexus with nav, 20 inch wheels and safety system, msrp is 53,429. This is at prestige lexus in nj, kevin was my salesman. Happy hunting.

A couple of data points in the SF/San Jose area in California. We haven't purchased yet and are still shopping.

2016 RX 350 AWD, MSRP (Destination charge included) around $54k. Both the Costco price and the initial quote from a separate non-Costco dealer was $2k off MSRP, so $52k. This includes reserving a particular color combo of a car allocated but not yet arrived at the dealership.

$4k off an MSRP of $53k (but in NJ) sounds like a great deal. I wonder how the supply and demand situation differs between the two areas?

I live in the bay area and purchased our RX350 at Lexus of Concord. MSRP was 54,043 and dealer sold us the car for 51,043 + ttl. This was a straight up purchase with no trade-in. No dealer option add-on's etc.

3k off not as good as southern ca, but I thought is was a very fair price.

The Houston Auto Show start today. I thought someone earlier in this forum said they used a free coupon from an auto show in California to get a discount. I'd like to know more about how that worked: did you first negotiate the best price and then throw the coupon on the table, or start of with the coupon?

The Houston Auto Show will cost me $24 ($12 entry, $12 parking) so I wonder if there is a way to learn in advance whether Lexus will have similar free coupons. Is that a standard thing at auto shows?

That's a bit of a stretch. I just pulled the invoice on a 2016 RX350 F Sport:
MSRP $56.5k
Invoice $53.6k
Holdback is $1k.

And these are true numbers. Any time you're getting a deal below invoice, the holdback is the additional cushion they're working off of.

My buying style is much like yours. If I feel good then I consider that a winning deal. I have a great relationship with my dealer and they step up whenever I have any requests when I buy or service.

Keep in mind the salesperson doing most of the work for you is typically paid commission on the gross profit, which is the difference between MSRP and Invoice. I understand the dealership has other profit margins with financing and holdback, but these are usually not passed on to the salesperson.