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Toyota Sequoia Prices Paid and Buying Experience

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Comments

  • hdfatboyhdfatboy Member Posts: 324
    I'm not sure what "SUV sales in a tail spin" has to do with whether tax write-offs are a significant driver of Luxury SUV sales. My view is that a tax write-off is a relatively minor factor to the buyer of a luxury SUV. Seems like you're off on a tangent, but I'll play along.

    Actually, car sales for 2007 are down by mid-single digits. If you include x-over SUVs, then SUV sales are actually up by 3.7% in 2007. Of the large SUV types, the luxury SUVs are down the least at -2.7% over 2006 and are down less than cars. This supports the argument that the sale of luxury SUVs are somewhat immune to gas prices however the non-luxury large SUVs have been sharply reduced. This is a good thing since it means that the price of gas is helping folks to buy the type of vehicle they "need" not necessarily the "image they want" (unless money isn't a significant factor in their buying decision). This has resulted in the sharp increase of small and x-over SUVs at the expense of mid and large non-luxury SUVs.

    http://online.wsj.com/mdc/public/page/2_3022-autosales.html
  • ponytrekkerponytrekker Member Posts: 310
    Large SUV sales are down 25% from a year ago. What you need to know is what % of people who buy these things write 'em off. Probably a bigger % now than 12/06 but I don't know.

    But whatever.
  • trebor129trebor129 Member Posts: 176
    I bought it to write off. Over 6000lb GWVR and you get like a $25,000 writeoff in the first year which makes an SR5 loaded Sequoia 5.7 4x4 cheaper than a Highlander. I wanted a full-size anyway given what I had to move, but I was worried about the gas consumption. When I factored in the writeoff it made it silly to get the smaller one as the savings on this is enough to buy 60,000 miles worth of gas.
  • hdfatboyhdfatboy Member Posts: 324
    Its a nice bonus when you can write-off the expense of a large SUV. I just don't think the business tax- write-off comes in to play for most folks when buying a luxury suv. No facts to support my opinion, however I'd be curious if anyone else purchased a luxury suv and if the tax write-off for business purposes was a major factor?
  • mikee2125mikee2125 Member Posts: 5
    What dealer made you that offer?
  • kyfdxkyfdx Moderator Posts: 235,175
    It's not just writing off the expense.. Every business can do that, with any car..

    It's the special accelerated write-off for vehicles that have a GVWR of over 6000 LBs.. A business can save an extra $10K in income taxes in the first year, over a comparably priced vehicle that doesn't qualify..

    For those luxury SUVs that have that 6000+ lb. GVWR rating, it probably doubles their sales.. (IMHO.. ;) )

    You gotta love those special tax rules... :surprise:

    regards,
    kyfdx

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  • hdfatboyhdfatboy Member Posts: 324
    So you think have of the large suvs sold in the US are purchased by business owners that are taking the acclerated write-off for vehicles over 6000lbs? My gut tells me that its probably more like 10% of the sales of SUVs over 6000lbs, not 50%, but I have no facts to support it other than large SUV sales seem to be very influenced by gas prices (sales were off 9.2% in 2007 for large SUVs).

    If half the large SUV sales were to business owners that were taking the accelerated tax write-off, I would think that large SUV sales would not be influenced that much by gas prices.
  • trebor129trebor129 Member Posts: 176
    "If half the large SUV sales were to business owners that were taking the accelerated tax write-off, I would think that large SUV sales would not be influenced that much by gas prices."

    The road is floaded with giant SUVs and gas prices have been in the news for a few years. Part of this is that gas prices are just not high enough yet and the news complains about it more than the buyers of SUVs really care. Part of it is the tax bonus. I actually forgot about the tax bonus when I decided to get a full size so I cannot say that was the reason for me but then I remembered about the tax bonus and realized that the Sequoia would cost me less than a Highlander. That made it a no-brainer.
  • amheck1amheck1 Member Posts: 44
    could anyone put the 6000-lb truck tax deduction in laymans terms, or maybe provide a link to something that explains it well? Trying to convey the info to my wife. Does it apply to leases, too, or just purchases?
  • amheck1amheck1 Member Posts: 44
    sstampa, try Stadium Toyota. We bought our 4Runner from there, and I contacted them about a Sequoia and they said $500 over invoice. He said it was because we'd be returning customers, but hey, it never hurts to ask......
  • mikee2125mikee2125 Member Posts: 5
    Thanks, I appreciate the information
  • kyfdxkyfdx Moderator Posts: 235,175
    Disclaimer: Not a tax professional

    It only works if you can depreciate assets for a business.

    So, for a personal vehicle it has no benefit..

    If you lease for a business, I don't think there is any advantage, either..

    The rule was put in place to allow businesses to buy work vehicles (i.e.: heavy trucks), and accelerate the depreciation, lowering their taxable income in the first year. Of course, the automakers soon discovered that their fat-cat SUVs met the technical requirements, and that opened up a whole new marketing avenue.

    Hope that helps..

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  • hdfatboyhdfatboy Member Posts: 324
    Here are a couple of articles on the "SUV tax loophole". You might want to check it out fully before taking the deduction since this article states the law was recently changed to only allow vehicles weighing more than 14000lbs to qualify. Previously the limit was 6000lbs which allowed many large SUVs to qualify. (I think the article might be incorrect since I think the vehicle has to be LESS than 14,000 and MORE than 6000lbs, but I could be wrong). The SUV loophole was changed in 2004 and is considered less lucrative than it used to be.

    The following quote was taken from the article link below:

    "However, when it comes to vehicles purchased utilizing the Section 179 break, legislators took back some of the benefit as it related to large sport utility vehicles. When the limit was originally increased, business owners were allowed to select for company use one of several light-truck models (which included many luxury SUVs) weighing more than 6,000 pounds fully loaded and write off most, if not all, of the costs on their tax returns. That changed on Oct. 22, 2004, when the American Jobs Creation Act became law; now only company vehicles weighing 14,000 or more are eligible for the larger deduction amount."

    http://www.bankrate.com/brm/itax/Edit/tips/Stories/sec179_deduction.asp
    http://www.selfemployedweb.com/suv-tax-deduction-2005.htm
    http://www.bankrate.com/brm/itax/biz_tips/20030403a1.asp

    Its still worth noting that only business owners or self-employed can take advantage of the SUV accelerated tax write-off. So if you aren't self-employed or the owner of the business, the suv write-off is not available to you.
  • kiiwiikiiwii Member Posts: 318
    Please correct me if I'm wrong on this. I believe you will still need to pay the tax when you purchase the SUV. You can request a tax refund or deduction when you do your annual tax return.
  • trebor129trebor129 Member Posts: 176
    "Please correct me if I'm wrong on this. I believe you will still need to pay the tax when you purchase the SUV. You can request a tax refund or deduction when you do your annual tax return."

    You pay no income tax when you purchase your SUV.
  • gagricegagrice Member Posts: 31,450
    This from the above link explains it pretty well.

    The SUV Tax Write-off Rules Broke New Ground

    Internal Revenue Service Code Section l79 lets a business write off the purchase price of equipment the first year (up to a total of $105,000). This code section eliminates the delay of depreciating assets over a number of years. Passenger cars aren't eligible for the equipment tax deduction. But trucks and SUVs are. However, there was a $25,000 ceiling for trucks or SUVs, limiting how much could be written off the first year.

    A loophole in the $350-billion stimulus plan passed in 2003 removed the $25,000 ceiling for SUVs. The large SUVS (over 6,000 pounds GVWR) were considered trucks, not passenger vehicles. The amount expensed the first year grew from a maximum of $25,000 to the full $105,000 in 2005. Suddenly, being able to write the full purchase price off immediately made the larger SUV a more attractive purchase. They gained an edge over regular automobiles and smaller SUVs subject to customary depreciation or the $25,000 ceiling.

    Clever businesses owners (and auto dealers) rushed to take advantage of the loophole. It fueled SUV sales and distorted the auto market. Then Congress started to feel pressured for passing a poorly-thought-out law that rewards people for buying more car than they need and encourages gas guzzlers.

    Congress passed another law that went into effect October 23, 2004, that rolled back the SUV deduction from the $105,000 in 2005 to $25,000. Unless a vehicle was placed in service before that date, the higher figure didn't apply. Congress may feel that they fixed this deduction, but there's been a lot of lingering confusion and mixed messages.

    One point that must be considered is the fact that depreciation deductions for these heavy SUVs will always be greater than depreciation deductions for regular cars or the smaller SUVs. For example, if a Realtor were to purchase a $47,000 Escalade and use it 100% for business, the entire $47,000 would be deductible over the life of the vehicle. And $25,000 of that would be deductible during the first year. Compare that to the purchase of a $47,000 regular car, and the maximum depreciation deduction over the first five years of business use equals $15,000 to $16,000. In effect, all Congress has done is to decrease the first-year write-off of these large SUVs
  • kyfdxkyfdx Moderator Posts: 235,175
    Thanks Gary!

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  • hanoverkenhanoverken Member Posts: 30
    I'm at the end of my lease with my current vehicle. Two of the SUV's on my hotlist are the Sequoia and the Denali. Has anyone driven both? How did they compare? I spent a couple hours in a Denali over the weekend and it was a pretty solid vehicle with all the toys. My local Toyota dealer does not have a Sequoia on the lot, but will soon. I'm curious as to how they will stack up both in driving experience and pricing. Any thoughts?

    Ken
  • hdfatboyhdfatboy Member Posts: 324
    I currently own a Denali XL '03 and am selling it for a new 08 Sequoia. My Denali has been a great vehicle. The following factors made the Sequoia a more desirable vehicle for my uses.

    Higher towing capacity - Sequoia
    More flexible 4wd system - Sequoia
    Blue tooth - Sequoia
    Significantly greater leg room in the second and third rows - Sequoia
    3rd folds into floor - Sequoia, Denali's heavy 3rd row has to be lifted out of vehicle
    2nd row folds flat - Sequoia, latest Denali 2nd row no longer folds flat
    Independent rear suspension - Sequoia

    The prices are comparable between the Denali XL and high end Sequoia.

    It should have been an easy call, however after owning 4 Suburbans over 20+years it was a challenge to walk away from GM. Maybe they'll wake up and catch upto Toyota in the future.
  • rtribblertribble Member Posts: 45
    We test drove the Denali and bought the Sequoia. No comparison for us, the Sequoia won hands down. On the Highway the Denali had a lot of wind noise and the Sequoia was very quiet.
  • hanoverkenhanoverken Member Posts: 30
    It must be quite a vehicle as the Denali was pretty slick for a big truck.

    It's amazing that GM has not figured out how to fold flat the 2nd and 3rd rows.

    Can you tell me what you paid for the vehicle? As it's quite new and supply is limited I'm curious how much dealers are will to negotiate. GM dealer's are letting Denali's go for well under invoice.

    Thanks,

    Ken
  • hanoverkenhanoverken Member Posts: 30
    I really didn't notice the wind noise - though the exhaust note was rather loud - nice - but loud. I'm driving a Platinum this weekend and I'll make a note of that.

    Can you tell me how much you paid for your vehicle and how it was outfitted? Thanks!

    Ken
  • keg97keg97 Member Posts: 189
    Hands down to the Sequoia. Larger and more flexible interior (assuming you're comparing reg Denali to Seq). The powertrains are quite comparable (nearly equal HP/torque and both have 6 speed autos) but the drive of the Sequoia might be a wee bit more refined. We drove both versions with the 20's so that was not a difference. I also think you get more of a roar from the exhaust of the Denali. I preferred that to the Sequoia, but both my wife and father much preferred the refined sound of the Sequoia (guess that is the Jersey coming out of me!). Interior materials/fit/finish is probably slightly to the Denali. I'm just not a fan of the Sequoia's dash layout. I love the GM triplets dash's simplicity and ease of use. I like the exterior of the Denali a bit more, but it is neck/neck with the Sequoia and obviously that is very much a personal preference type of thing.

    The dealbreaker on all of the GM SUVs is the failure of their 3rd row to fold flat. If that is not an issue to you, then you may lean more towards the Denali. But it was a fatal flaw to us. Otherwise, we have been bringing home the Escalade b.c both my wife and I loved the exterior on it (love the white diamond pearl paint) and we felt like it drove nicely as well.

    Good luck and let us know what you get!
  • hdfatboyhdfatboy Member Posts: 324
    Hanoverken
    "Can you tell me what you paid for the vehicle? As it's quite new and supply is limited I'm curious how much dealers are will to negotiate."

    Here's the background on the '08 Black/Red Rock Platinum Sequoia I purchased in late Dec. It is scheduled for delivery in early to late Feb. I hope you find this info helpful.

    I sent out a simple email to about 25 dealers within 50 miles of my home using email addresses available at this link http://answers.google.com/answers/threadview?id=217901 . My email stated I was looking to buy a Platinum Sequoia. No financing. No trade-in. I did not give out my name or contact information in the initial communication.

    About half the dealerships didn't reply. Most just wanted me to call or visit them. Some offerred a new Sequoia at MSRP. 2 offered a new Sequoia at $2000 off MSRP. 1 dealer offerred a Platinum at $1500 over Factory invoice. 1 offerred to sell a plat to me for $1000 over factory invoice. Both of these last 2 offers were in writing (email) without me having to provide any information about myself.

    I contacted the dealership where I bought my last Avalon to provide them with a chance to sell me a new Sequoia. I even visited them to talk with my previous salesman. I told them I had a $1K over invoice offer and asked if there was anything they could do for me. After the salesman discussed it with the manager, they called me back to tell me that they did not believe any dealers were offerring '08 Sequoia's at $1K over invoice. I assured them I wasn't lying and they suggested I follow-up with them if it didn't work out. I said thank you.

    I contacted the dealer that offered a new '08 Plat Seq at $1K over factory invoice. The Internet Mgr assigned me to a sales rep and I met with them just before Christmas to write-up a contract for my new Plat Sequoia (7933). My contract is for a 2008 Black (202) Platinum Sequoia with a Red Rock interior (21) plus the following options I wanted:
    Rear Entertainment - EY
    Cold Kit - CK
    DRL On/Off - RL
    Preferred Accessories Package (carpeted mats, cargo mat, door sill protector, cargo net, first aid kit) - Z1
    Wheel Locks - WL
    The factory invoice for this vehicle in the NE Region included Destination charge, TDA, gas, dealer holdback and financial reserve was $52,418. The contracted price was $1000 over this factory invoice price ($53,418). The final price for this Platinum Sequoia was $5126 under MSRP or .912 of MSRP. MSRP was $58634. I was able to get this price without ever having to leave my house. No PITA follow-up calls from dealers, no spending multiple weekends shopping a price. Just a good fair deal with little effort.

    The out-the-door price included the following in addition to the vehicle cost above:
    NJ sales tax - 7%
    NJ tire tax (5x$1.50) - $7.50 (Is there anything NJ doesn't tax?)
    On-line registration fee - $8.30
    NJ Title and 4 yr registration - $334
    clerical expense and document fees - $145
    For a total out-the-door price of $57,676.06.

    I specifically asked the dealer if he was OK sharing this information with all of you on this forum. The internet mgr. said it was absolutely OK and that he would welcome the opportunity to offer this same deal for any of you interested in an "internet sale" at this dealership located in Northern NJ. I have no personal interest in this dealership and did not know the Net Mgr before the evening I signed the contract. I found both the Net Mgr and Salesman to be both competent and professional. The Net Mgr is Ron and my salesman was - Andrew. Very good guys that made the entire process an enjoyable experience.

    I hope those of you on this forum that are interested in a Sequoia consider Ron as an option if you are in the market for a new Sequoia. Here's Ron's email address: rbailey@caldwelltoyota.com
  • hanoverkenhanoverken Member Posts: 30
    Wow! Great info - thanks. Very methodical approach to buying which dealers must hate as they love the emotional buyer who "has to have it". I have used a similar approach in the past but hdfatboy has it dialed in!

    I'm still a bit confused by the Platinum/Limited thing. It seems that you can load up a Limited with virtually all the Platinum options and end up $4k less. I added in the sunroof, nav, 2nd row captain's seating, power gate, 20 inch wheels, cold weather package, spoiler - everything but the running lights and rear air suspension. Am I missing something between the packages other than the fact that the Platinum's front seats are heated AND cooled? Unlike a regular Yukon and a Denali there's no difference in exterior or engine - unless I missed something.

    Ultimately it will be the drive that will decide. And perhaps pricing - I have read on a similar Denali forum that some dealers have let Denali's go for $1500 under invoice - probably due to incentives from GM. Hard to walk away from that if everything else is close.

    The third row thing is a buzzkill for me, but not a dealbreaker. They are not that hard to remove - my wife had a '99 Suburban and that 3rd row was big and heavy. Now they are split 60/40 and weigh a lot less. Still, a dumb move by GM after all the improvements that they have made in the model.

    I'm sure I'll be back with more questions after the drive. Thanks!

    Ken

    PS - will definately contact your guy in NJ. Hope I don't have to pay all those taxes - we pay enough in MA as it is!
  • hdfatboyhdfatboy Member Posts: 324
    Here's a basic list of the Platinum exclusive items not available as options on the Limited Sequoia:

    - driver adjustable suspension H-TEMS
    - ventilated front seats with heating and cooling
    - heated second row captain's seats
    - laser cruise control
    - Red Rock leather interior with black carpeting and black interior door panels

    If you get a fully loaded Limited Sequoia with all the available options that are standard on the Platinum plus cold kit & the rear entertainment unit, the MSRP including destintation charge is $55,965

    The MSRP on a Platinum with the rear entertainment package & cold kit plus destination (no laser cruise) is $58,195.

    Conclusion...is the front ventilated seats, driver adjustable suspension, heated second row seats and the option of Red Rock leather interior worth a list price of $2230 or about $2000 after negotiations? Only you can decide if these exclusive options are worth it. For many folks the Limited may actually be better since you can't get a bench seat in the Platinum.

    For me, I wanted the ventilated seats, heated second row seats, adjustable suspension and the Red Rock interior, so the $2000 was worth it to me.

    I considered both a new Denali XL or Escalade as a replacement for my current Denali XL. The third row seat design, lousy leg room in the second row compared to the second row in the Sequoia (where a 6+ footer can cross their legs), lack of Bluetooth in the GM products and the fact that the second row seats can't be folded flat even after you go through the hastle of dragging the 3rd row out of the Denali or Escalade made the decision to go for the Sequoia an easy call for me.
  • hanoverkenhanoverken Member Posts: 30
    Well don't tell my kids, as they were very impressed with the heated captain's seats in the Denali.

    I am driving a Platinum on Saturday, so I'll get to see, touch, and feel some of those options and then decide. I like my toys too...

    Thanks for all the help. I emailed your dealer. Hope I get the same deal!

    Ken
  • hdfatboyhdfatboy Member Posts: 324
    Hanoverken, Good Luck!
  • mittie1mittie1 Member Posts: 11
    Has anyone found a dealer in either Arizona or Southern California who is offering the Sequoia at $1000 or even $1,500 over invoice? If so what was the name of the dealer?
  • rtribblertribble Member Posts: 45
    hanoverken
    We paid $57,000 and it was equipped with the following options(some of which we would not have if we had ordered it);

    Base MSRP $56,365.00

    The extra mile option package D 1,520.00

    Vehicle shield package 349.00

    Cold kit 100.00

    Permavin/glass etch/warranty 199.00

    Rear seat entertainment system 1,670.00

    Daytime lights 40.00

    Dynamic Laser cruise control 600.00

    Remote start 529.00

    Window tint 179.00

    Total $61551.00

    We also noticed the exhaust on the Denali and yes it did sound good in the sense of a performance car but for us the Sequoia is a family car with creature comfort and a relaxing ride taking precedent over the performance aspects, even though this truck does perform right up there with the best.
  • mikee2125mikee2125 Member Posts: 5
    I am also from Southern California and ready to buy a new Sequoia but waiting until dealers are willing to get closer to invoice. Several years ago I called about 40 GM dealers and got their fleet managers name and then sent a fax to them letting them know that I would be buying a new tahoe in the next couple of weeks and putting the exact options I wanted and asked for a bid. I let them know if they had a tahoe that was close, to still put a bid in but state the differences from the requested vehicle. About half responded and there was a wide range of bids. The lowest one ended up being substantially below what I had been offered at the dealerships near me. I was going to wait a month or so and do the same thing on the Sequoia. But another idea might be to get several people from this forum interested in buying one and doing the same thing with an offer to buy as a group. Just and idea.
  • patsfan3patsfan3 Member Posts: 6
    I have received an internet quote of $49,576 for an '08 Sequoia Limited 4x4. It's a 5.7L V8 with the following options: FE, CK, EY, BU, NV, RF, RL, SR, CF. What do you think of the price?
  • hdfatboyhdfatboy Member Posts: 324
    What's the MSRP on the window sticker?
    Here's my personal opinion on purchase prices for '08 Sequoias. Its based on my shopping and recent purchase of a '08 Sequoia. Its an easy calculation and applies to all models with any mix of options.

    Take your final negotiated price for the vehicle only (no taxes, registration, documentation etc as these vary greatly from region to region and state to state). Divide that vehicle price by the actual manufacturer's sticker price. This is the price for the vehicle as it was shipped from the manufacturer and is located on the window sticker.

    The final total on the window sticker is the vehicle cost to the dealer plus additional expenses incurred by the dealership for taking delivery of that vehicle from Toyota.

    This window sticker cannot be altered by the dealer or even removed by the dealer under federal law. Only the purchaser can remove this label. If there are additional options the dealer is charging you for that are not on this window sticker it was added by the dealership after they took delivery.

    Here's my ratings of the deal based on dividing the vehicle price by the MSRP
    if you get a number greater than 1.0...you got ripped off
    Equal to 1.0...you paid list price (poor deal)
    .98-1.0...marginal discount
    .95-.98...OK
    .93-.95...good deal
    .91-.93...excellent deal
    .89-.91...outstanding deal

    Just my .$.02
  • fsowirlesfsowirles Member Posts: 195
    Several years ago I called about 40 GM dealers and got their fleet managers name and then sent a fax to them letting them know that I would be buying a new tahoe in the next couple of weeks and putting the exact options I wanted and asked for a bid

    With a GM, absolutely. If they don't sell them for invoice or behind, they don't sell. I got my 2003 Tahoe for $10K off MSRP, and took it in the shorts when I traded it in. Toyota will discount, but not like an American car dealer.
  • sstampasstampa Member Posts: 8
    Anyone leased an 08 Sequoia yet? Looking for 48 months @ 1,000 miles/month for a Limited MSRP $49,830 and $44,135 invoice...never lease before and trying to find out if it makes any sense? Any help owuld be appreciated tks
  • kgarykgary Member Posts: 180
    What's the MSRP on the window sticker?
    Here's my personal opinion on purchase prices for '08 Sequoias. Its based on my shopping and recent purchase of a '08 Sequoia. Its an easy calculation and applies to all models with any mix of options.

    Take your final negotiated price for the vehicle only (no taxes, registration, documentation etc as these vary greatly from region to region and state to state). Divide that vehicle price by the actual manufacturer's sticker price. This is the price for the vehicle as it was shipped from the manufacturer and is located on the window sticker.

    The final total on the window sticker is the vehicle cost to the dealer plus additional expenses incurred by the dealership for taking delivery of that vehicle from Toyota.

    This window sticker cannot be altered by the dealer or even removed by the dealer under federal law. Only the purchaser can remove this label. If there are additional options the dealer is charging you for that are not on this window sticker it was added by the dealership after they took delivery.

    Here's my ratings of the deal based on dividing the vehicle price by the MSRP
    if you get a number greater than 1.0...you got ripped off
    Equal to 1.0...you paid list price (poor deal)
    .98-1.0...marginal discount
    .95-.98...OK
    .93-.95...good deal
    .91-.93...excellent deal
    .89-.91...outstanding deal

    Just my .$.02


    Under your grading system I got an "outstanding deal". 2008 Platinum in Desert Sand Mica and beige leather, with cold weather package, laser cruise, dvd entertainment, daytime running lights, front skid plate and wheel locks, with a MSRP of $59,201 for only $53,580. If my math is correct that is .90505. Do I get a prize? I am still waiting for delivery. Signed the deal last week and left the deposit.
  • hdfatboyhdfatboy Member Posts: 324
    kgary,

    Congratulations. I do think that is an "outstanding deal".

    I am curious though about the MSRP you quoted. Is that the total number on the bottom of the actual window sticker or some other "MSRP" from the dealer. The reason I ask is that the MSRP I have on an '08 Platinum with everything except the skid plates is $58695. Are the skid plates really $500+ retail or is your MSRP number just a regional difference?

    If you have the actual window sticker it'd be interesting to compare against the $58695 for a fully loaded Platinum in the Northeast.
  • fsowirlesfsowirles Member Posts: 195
    Fitzmall.com in Maryland is selling them for $1400 over invoice (no haggle) including freight. So a Platinum w/:

    FACTORY INSTALLED OPTIONS
    (FE ) 50-STATE EMISSIONS
    (CK ) COLD AREA PKG INCLUDES:
    - windshield de-icer
    (EY ) REAR SEAT ENTERTAINMENT SYSTEM INCLUDES:
    - rear DVD player & audio
    (LZ ) LASER CRUISE CONTROL
    (RL ) DAYTIME RUNNING LIGHTS INCLUDES:
    - on/off feature

    ADDITIONAL FACTORY INSTALLED OPTIONS
    (P:005A ) CARGO COVER
    (P:03Z1 ) PREFERRED ACCESSORY PACKAGE
    (P:01SO ) SKID PLATE
    (P:02V2 ) VIP GLASS BREAKAGE SENSOR

    Would have the following numbers (all including freight):
    Delivered Internet Price:
    $55,320
    Factory Invoice:
    $53,920
    MSRP:
    $59,929

    Using the earlier posted scale, that is a .923 which is an excellent deal and requires no BS. I bought my 2007 Camry from these guys and handled everything except paperwork and delivery via email/phone.
  • hdfatboyhdfatboy Member Posts: 324
    "Using the earlier posted scale, that is a .923 which is an excellent deal and requires no BS. I bought my 2007 Camry from these guys and handled everything except paperwork and delivery via email/phone."

    IMO, that's a reasonable, fair deal. My only issue is if the dealer is requiring you to purchase:
    ADDITIONAL FACTORY INSTALLED OPTIONS
    (P:005A ) CARGO COVER
    (P:03Z1 ) PREFERRED ACCESSORY PACKAGE
    (P:01SO ) SKID PLATE
    (P:02V2 ) VIP GLASS BREAKAGE SENSOR

    These items are being marked-up to full list to make up for the $1400 over invoice price. Particularly the Breakage sensor which I think is a waste of $ IMO. If the dealership is willing to offer the $1400 over the "Manufacturer's Factory Invoice", not the dealership's invoice bloated with dealer add-on's, then I would characterize the deal as a good one at $1400 over Manufacturer's invoice.

    Don't let the dealership get you thinking they are giving you a deal when they quote a number over "invoice" but add on things you don't want to the original manufacturer's invoice. Start with the number over the "factory invoice", not the dealership invoice.

    Or better yet, tell the dealership you want .91, .92, .93 or .94 off the actual Toyota MSRP window sticker (they can't screw with the window sticker under federal law). Then add any dealership "bolt-ons" that you want (vs what they want to add) that you think are fairly priced (or better yet make the bolt-on purchases after the sale of the vehicle is closed). Otherwise the dealership will have you thinking you got a great deal when in fact all they did was sell you stuff from their parts inventory that you may not have really wanted.
  • kgarykgary Member Posts: 180
    kgary,

    Congratulations. I do think that is an "outstanding deal".

    I am curious though about the MSRP you quoted. Is that the total number on the bottom of the actual window sticker or some other "MSRP" from the dealer. The reason I ask is that the MSRP I have on an '08 Platinum with everything except the skid plates is $58695. Are the skid plates really $500+ retail or is your MSRP number just a regional difference?

    If you have the actual window sticker it'd be interesting to compare against the $58695 for a fully loaded Platinum in the Northeast.


    Skid plate and wheel locks MSRP for a total of $506.
  • hdfatboyhdfatboy Member Posts: 324
    "Skid plate and wheel locks MSRP for a total of $506."

    Congratulations. You've definitely earned a cupey doll for first prize. This would make your deal about $520 over factory invoice which is definitely an outstandinding deal and the best I've read yet. (Mine was $1000 over factory invoice. Factory MSRP $58544. Factory Invoice $52418. Platinum plus Rear ent. EY, Cold Kit CK, DRLs RL, Preferred Accessories Z1, Wheel Locks WL. Final vehicle price $53418)

    The only other consideration is did the dealer try to make up on the deal with the actual out-the-door price.

    How do yours match-up to these?
    Sales tax is 7% in NJ - obviously not up to the dealer
    NJ tire tax total $7.50 - obviously not up to the dealer
    On-line registration - $8.50 - obviously not up to the dealer
    4yr NJ state registration $334 - obviously not up to the dealer
    Dealer Doc fee - $149 - this would be the only other fee the dealer could try use to makeup his margin

    Out-the-door price of $57606.06.

    How do these dealer expenses match up with your contract?
  • fsowirlesfsowirles Member Posts: 195
    I calculated the amount over invoice. The numbers posted by the dealer are MSRP and Invoice. At the end of the day, they are discounting the car. The markup doesn't change and they have more cars than just those without that stuff if you don't want it. I know when I bought my Camry, I actually added stuff to an incoming car and I was provided MSRP and Invoice for the modified car. My price paid never changed from $600 over invoice.

    A+B=C

    Therefore

    (A+1500)+(B)=C+1500

    A: Invoice
    B: Markup
    C: Price Paid
    1500: Invoice Price of Options Added

    It's simple math.
  • kgarykgary Member Posts: 180
    How do yours match-up to these?
    Sales tax is 7% in NJ - obviously not up to the dealer
    NJ tire tax total $7.50 - obviously not up to the dealer
    On-line registration - $8.50 - obviously not up to the dealer
    4yr NJ state registration $334 - obviously not up to the dealer
    Dealer Doc fee - $149 - this would be the only other fee the dealer could try use to makeup his margin


    I paid

    NY sales tax
    NY tire fee
    DMV registration fee

    I did not pay

    dealer doc fee
    or any other fees
  • hdfatboyhdfatboy Member Posts: 324
    "I paid

    NY sales tax
    NY tire fee
    DMV registration fee

    I did not pay

    dealer doc fee
    or any other fees"


    Now we're talkng an outstanding deal.

    Is there a family member in the business or were you a walk-in, off-the-street customer? What's the dealership's name that offered this outstanding deal? Probably worth sharing with other forum members as this dealership deserves more business if they're offerring "$500 over factory invoice and no documentation fee" pricing on the new Sequoia.
  • kgarykgary Member Posts: 180
    I have no relationship with the dealer. I simply faxed a form letter to every Toyota dealer within 50 miles of my house, approx. 25 dealers, because the fax numbers were on Toyota's website this took less than 10 minutes. My form letter detailed the truck I wanted, the purported price (i.e. made-up) I was able to get on the internet, the fact that I was sending the same letter to every dealer within 50 miles and asking them for their best price and that I would not haggle with the price they gave. Because the letter was faxed, and not e-mailed, I bypassed the "internet" department and was instead picked-up by the next starving salesperson on the floor. I sent the form letter on a weekday where the salesperson is almost begging to lock-in a scheduled customer even if they have to give a low price in order to do so. About a dozen dealers faxed back their best price, some were higher than my made-up price, some were even at MSRP. I then advised the second low bidder that even though I had a lower price from someone else, it was less than $100 lower than the second low bidder, that I had a good feeling about their dealership and was giving them my business without asking them to match the lower price. Which demonstrated that I was going to live up to my no-haggle agreement and implied that I expected them to do the same. It also let them know that if they did not live up to their offer that I already had a better deal lined up. I then scheduled an appointment with the second low dealer. I brought my pile of "offers" from the other dealers, including the lower offer, and the signed "offer" from the winning bidder. The salesperson saw that I had the pile of offers with me and that I had left the lower offer on top. As a result of my pile of offers, she never even tried to back-off the signed offer that had been faxed to me.

    I have been buying cars this way for years and have always been able to get very competitive prices. The best part is that I typically spend less than 30 minutes with the salesperson and I don't have to engage in the typical face to face haggling. Instead all of the haggling takes place via the "silent auction" created by the form letter.

    By the way, there is no trade-in and I pay cash so their is no money earned via financing either.

    I can't take credit for the form letter - silent auction theory. I stole it from a book I read about 10 years ago called "The Millionaire Next Door". Its a good book and had several other ways "The Millionaire Next Door" saved money compared to the average Joe.
  • hdfatboyhdfatboy Member Posts: 324
    Very nice approach. (Although I'm not sure new car sales personnel would agree.)

    I essentially took the same approach but instead of faxing, I emailed using the addresses at this link. http://answers.google.com/answers/threadview?id=217901 I sent a similar email to your fax to about 50 dealers without providing my contact information other than a return email address. If you use the emails from the dealer's website, you can't send your email until you've provided your contact info therefore the addresses in the link above is a better approach.

    I sent the emails BCC so that the dealer's didn't know which were included in my distribution. I then sat back and waited for replies. I used this approach during the Sequoia's launch week just prior to Christmas and was able to secure the "$1000 Over Factory invoice with no dealer add-ons" offer without ever leaving the House.

    I would think that "$500 Over" deals (and possibly better as time passes) should become the norm using this approach. Particularly if gas prices rise even higher. Of course, those buyer's using the traditional approach of visiting various dealers will likely have a more challenging time securing this type of pricing since they are essentially subsidizing those that make their deals through email and fax.

    Once again, nice job kgary. Others should definitely follow this "email/fax" approach if you know what you want and are looking to get a fair price on your new vehicle purchase.

    BTW, what dealership won your business?
  • hanoverkenhanoverken Member Posts: 30
    I received a quote today of $49136 for a Limited with every available option (on the Limited) save the rear air suspension. The MSRP is $55,034 which converts to an .8928 on the "good deal scale" in previous posts. This price is at invoice, which seems to be unheard of so far for this car. I actually got 2 quotes at invoice.

    I used the same process as hdfatboy and emailed 40 or so dealers, 20 of whom got back to me the same day.

    I meet with the dealer this weekend to make a deposit, pick colors, etc.

    Ken W.
  • hdfatboyhdfatboy Member Posts: 324
    hanoverken,

    Just one small thing to check in your calculation. Is the MSRP figure you used for calculating the deal from the dealer or off the window sticker on the car? If its off the vehicle and the dealership doesn't hit you with exorbitant doc fees etc than you have an outstanding deal.

    Check the window sticker and get an estimate of the dealership's contract costs. Once you have that info in hand you'll know for sure how good the deal is. At invoice would definitely be an outstanding deal if the dealership's costs are reasonable.

    Great to hear the email approach I suggested worked for you. Other's should follow that approach, if getting a fair deal matters to them.
  • hdfatboyhdfatboy Member Posts: 324
    Looks like another cupey doll goes out to hanoverken (or he's going to have to share one with kgary).

    Great to see others saving money on their purchase of a new Sequoia. Just think of all the folks paying close to list instead of getting a fair deal. If others want to save thousands of $ just follow the steps I used, kgary, and hanoverken. You're sure to not only save alot of money you'll also save alot of wasted time running around to various dealerships only to have them waste more of your time trying to get a copy of your driver's license.

    If you know that you want a Sequoia there really is no better way to save alot of money than the email/fax approach we've described in this thread.
  • hanoverkenhanoverken Member Posts: 30
    Thanks to hdfatboy for his recommendations. I was quite surprised to get two responses at dealer cost.

    As far as dealer fees go there is a $279 doc fee, a $550 acquistion fee, and $86 registration fee. The doc is a little high, the acquisition actually lower than I had heard before, and the plate fee right on the money.

    I was sent a scan of the window sticker which is where I got the $55,034 MSRP. The person I spoke to was the sales manager at the dealership and he responded with exactly the info I wanted - not the case with many of the salepeople (some made you wonder how they ever sold anything!).

    I'm a couple months out, which gives me time to pick the colors that I want rather than choose from dealer inventory.

    I think as time goes on, if gas prices go up and the recession actually happens they may even go below invoice. The sales manager said as much and thought that Toyota may add some incentive (a la GM) if they don't sell as expected.

    Ken W.
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