Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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I suggest you do a few things before negotiating.
One, go to consumer reports and buy the car invoice pricing information. Having third party information is invaluable in negotiating and I found the free stuff from edmunds, etc was not sufficient. You'll see that what they call "invoice" is not what really is the invoice. Take that information and build a spreadsheet. Always know what their profit is on the deal. What's sufficient is up to you. And CR gives great advice at how to negotiate.
Two, have you driven the sport X package car? If not, I suggest you do that. I found I didn't really like the suspension nearly as much as I liked the standard package. Remember, everything sounds great due to marketing but the proof's in the pudding and personal preferences are key.
Three, find at least 1-2 other dealers and make it known amongst them that you are shopping around for the best value. It's important to always try to keep as much leverage as you can and not get sucked into the "I have to have it now" complex. And being upfront with them shows your honesty.
Four, prioritize your options. Are all of your options necessary? Could you live without something? I found the website to not be exactly correct to option availability of existing cars (You can always special order a car). There was a regular, luxury package, nav package, and then sport. I wanted the Mark Levinson radio but it was just impossible to find...especially when you try to match external and interior colors. Remember, the chances this dealer will have your 350 on the lot is very slim. And to be honest, the regular stereo sounds quite good anyway.
Five, and most important...Know your Best Alternative to the Negotiated Agreement (BATNA). It's an important negotiation term and very searchable in google. If I walk away (which is what you should do if they start to laugh at you), what is the best deal I can attain somewhere else whether it's with Lexus or someone else. And very important, never tell that number to the dealer.
I was prepared and knew all of the numbers and that's why I got the close to 10% break on the car. Will everyone get that break? Doubtful, but I have no idea. A friend just bought a Mini this weekend and couldn't get them to budge off of MSRP. But to get them to move, you need to have proof of why they should move. Show them how you came to your numbers and it has to be logical. Remember a dealer cares for only his dealership so what I get in Texas has nothing to do with what you may get in IL.
Hope that all helps. Sorry if I rambled a bit but, I love a good negotiation!
Cliff
PS - Side note, but if you can set the anchor point first...it's statistically shown that the person who sets that anchor usually does better in the deal.
PPS - Oh, and never use the word "fair" as in "This is a fair deal." It's a relative term. Fair can mean many different things to different people.
I'm new to the state, and heard the doc fee is outrageous at $500. Is it negotiable?
Recently, I have been thinking about trading in my current Toyota Corolla S. I was debating between Acura Type S or Lexus IS 250. The Acura seems to have more goodies but I decided to go with the IS 250. I just love the design of the car and the features seem to be more than enough for my needs.
Unfortunately, the prices are quite high in Hawaii. The car is only going for about $32k but they increase the prices of all the cars over here. I'm looking at a $5k increase. That's the sucky part. I was looking into leasing but they have no great programs and I might as well buy it outright. So far, I have been going on review sites like edmunds and kbb and the reviews have been mostly positive. I also like that its like Toyota and quality is very good.
I just hope I make the right choice...I just want the car that I've always wanted. Just gotta pay the price...
late.
I was stationed at Hickam AFB (Oahu) for three years and had three cars shipped from California. It was easy and inexpensive.
Once you are sure which model and options you want, hunt down your best deal via the internet in SoCal. You'll want to consider dealers close to Long Beach because the pier is located there. I dealt with three different dealers and all were happy to deliver it to the Matson pier.
Make a contract with Matson to carry the car and name the dealer as your agent. It takes about three weeks and costs about $1000 to ship. Most banks have no problems with these sort of deals--you just FedEx the paperwork back and forth.
While you're waiting for your Lexus to arrive, sell your Toyota privately (and probably get more for it). You'll probably have to pay your sales tax directly to the state (just call the tax office downtown for details).
Caveat: make sure the dealer ships the car with the original MSO or you won't be able to register it.
By the way, if you keep the car in HI less than a year, you can avoid the personal property tax (aka sales tax).
Mahalos for the advice. Some of my other friends also recommended that I travel to the States to purchase the car. The pricing is quite expensive in Hawaii. I'd love to do that but my work makes it quite difficult to take a vacation. Plus, I don't really want to wait for it. I must be nuts for wanting it...It's just hard to resist after that test drive...hahah.
No need to travel. In fact, you don't want to go to the CA dealer--if you do, you could get stuck paying CA sales tax. Drive the one you want at the local dealer, make sure you want it, and buy it over the phone/internet. It's simple and far less expensive. Waiting is tough, but the $4k you save will buy lots of gas, tires, and dinners at Duke's!
Thanks for the info. Can you help me regarding my situation? I'm pretty new to this type of thing. I never knew I can just purchase a car over the phone/internet. I was thinking that I physically had to be there for all the paperwork.
How about the loan? I had Servco Lexus run my credit and I was approved with a Credit Union down here. Can I still go thru them? I also had my car appraised for trade in. I didn't want to deal with the paperwork and hassle. I don't really wanna wait even though I will probably lose out if I trade it thru Servco Lexus.
I hope you can feed me some information and what websites / dealerships are good in California.
Mahalo!
Tony
$4779 Due at delivery TTL, DMV and all fees included
$389 month
36 months/12K
+this is the package they've advertised all over up here. They say $2500 down but after the tax and associated fees you pay $4779 out of pocket.
or
$2000 Total Out of Pocket
$475 month
36/12
Either way the price of the car is about 32,500. That's base, No Navi. They're just about the same deal if my math is correct. That's supposed to be $1000 over invoice according to the dealership.
It's really simple. Start by e-mailing dealers in SoCal--there's plenty of reputable dealers mentioned in this discussion. Tell them right up front that you will be shipping the car out of state because some dealers will do it while others won't. Once you have agreed upon a deal ask the dealer to Fedex you the contract and loan documents for the car. Call Matson to schedule the shipment and ask specifically if you need a power of attorney or other such document to allow the dealer to ship the car. You sign the stuff, Fedex it back along with your paperwork from Matson.
When the dealer delivers the car to Matson at the Long Beach pier, it will be thoroughly inspected before Matson accepts it, so you shouldn't have to worry about the dealer giving you a damaged car. You can also ask the dealer to send you digital pictures of the car before shipping. You can track the status of your car online (Matson will give you the info). When the car arrives, you'll get a call from Matson, but it sounds like you'll be waiting at the pier already!
Financing shouldn't be a problem because your credit union can do it all electronically. If they don't want to play, you can always use the dealer financing. It may be easiest to use the dealer's financing, but make sure they give you a good rate.
You'll have to pay Matson directly (about $1000). You'll also pay taxes to HI directly (there's a tax collector's office downtown). Register the car at DMV--you MUST get an MSO with the car (make sure the dealer understands this).
I bought three cars this way and helped friends do it as well. You will save thousands...For example, when I bought my 2002 Tahoe, the HI dealers were asking $10k over sticker and sticking to it. I bought the Tahoe from Camino Real Chevrolet for invoice minus rebates and saved at least $10k--after the $1k to ship it.
Mahalos for the info 'n tips. I look forward to getting the car soon...
: )
I think you can do better. Check my post post #1574 from February. I live NW Philly burbs.
I am one who likes to get a good deal, but not one who is going to go to the ends of the earth to get the best deal ever -- so ultimately, you have to figure out if the deal is good enough for you. Considering the PA/NJ has some good competitors within a close radius, you can work the numbers.
How much are you paying for the car? I got a little more than the base (mine had premium package, but no nav), and am paying less than they quoted you and I was $1,250 less out of pocket. And when I got the documents, they made a mistake and only used $1,000 down, so I got $250 back at signing (and I'm paying the same price). Obviosly there was still some money on the table
I priced four dealerships, in the PA/NJ/DE area, and this was the best deal I could get without killing myself. I shopped back and forth for about 7 days both at the dealer and by email. Two of the dealers were also only willing to do the deal with the cars on the lot -- the dealer I ended up going with got my car from Long Island in the color/interior I wanted (which I would highly recommend -- Black Sapphire with Tan).
It also sounds like to me they may not be quoting you with the best money factor. You should find out all of the details on that too.
I am extremely pleased with my car, and am quite happy with the payment I'm making for this great car. It was AWESOME in the snow.
Nav
18in wheels/tires
HID headlamps
Premium Pkg
Preferred Accessory Pkg
Contacted Longo, Tustin, Westminster, Newport, Cerritos. Only the Longo guy was patient enough with me (I'm not good at haggling, especially over email). Tustin refused to counteroffer saying I was too far from what they can sell it for. Westminster was next closest at $32,256. Newport was willing to match any offer but didn't respond to my emails fast enough. Cerritos only send me an automated email with a quote and never a follow up. Hopefully the Longo guy will keep his word tomorrow.. otherwise we'll have some nice dim sum for driving out there..
if you search on web you can find a picture of the applique.. it is applied to the rear top bumper area.. it says... Lexus... almost like a small clear bra for where you step on or put stuff on... most people like it.
IS 350 with Luxury Plus and Mark Levinson Audio.
MSRP $41,527
My Cost $37,793
fees due at signing: $1595
1st payment $579
Bank fees $600
Doc fees $149
DMV fees $259.50
NJ Tire Fee $ 7.50
Money factor .00235 $579 month/ 36 months / 12K
Any opinions?
Nav
Prem Pkg
18in wheels/tires
HID headlamps
Preferred Acces Pkg
The deal at Longo Lexus fell through due to inconsistency with the dealer.
By the way, some friend told me that maybe I should wait until the 2008 IS250 model come in the market, and so the 2007 will drop down the price in order to sale more. Is that true or not? Anyone has Any idea, please reply to me. I am waiting for it...Urgent, please! Thank you sooo much and really appreciated it. :P
All the IS 250 models have the option for Nav +/o ML stereo.
Each individually costs less than the combined package. Both invoice and MSRP. eg: Nav $2550, ML $940, pack $3990, for a difference of $500.
What gives?
The MSRP for the 2007 IS250 with Premium Package, Heated/Vented Front Seats, HID Headlamps, 18" Alloy Wheels, Rear Lip Spoiler and Preferred Accessory Package is: $35577, and your special Internet price is $30244 plus tax and DMV fees.
Carsdirect.com quoted $30,517
Is this a good price? Should I negotiate down on the price some more?
Congratulations on your new car. if you dont mind please let me know out the door price you paid for your car. I am in the market of buying exact options you have. Thanks
for me the tax was $2460.94 for a grand total, out the door price of $34522.69. the title/license fee at westminster was $28 more then other dealers. they claim they do electronic filing hence the charge. less mistakes that way.. hmmm.. i was too tired to argue. at least it wasn't taxed so i know it was a government fee. we put $7000 down on a 36 month 5.64% simple interest finance. we brought our own financing through capital one and the dealer matched it.
I got my IS on the 2/28/07 and I got my license plate on 3/26/07 mailed from westminster (not DMV)!!
so it was pretty fast!!! Consider that Westminster has received it, and mail it to me. Got here a little over 3 weeks.
does that include TTL??? If it is the out of door price, it's great!!!! But if not, it's average. Fair price.
I am not sure what kind of price they got in Nor Cal.
but So Cal here, I got just about the same options as you did. just don't have the Spoiler. My MSRP was $35222
and my deal was $29800 (around).
That price did not include TTL or DVM fees. Oh, the one they have does not have a spoiler or Nav. I'm going to negotiate it down to $29500 first, then let me counter-offer. I'll be happy if they accept $30000 + TTL.
Anyways, see my post Lexus Philly
I had read here or on another site that they didn't deal to much but I couldn't have been more pleased.
This is what I ended up with:
2007 Starfire Pearl IS 250
Nav
Prem Pkg
18in wheels/tires
HID headlamps
Preferred Acces Pkg
MSRP was $37,772. They initially said $34,899 plus TTL and $698 dealer fee. I showed them the prices from this thread and said I wanted an OTD price of $34,825. They countered with $34,899 OTD. Maybe not the best deal, but it was painless, JM Lexus people were very professional and I think it's pretty good by Florida standards...Now I'm stylin' !!!
Big Ups! to everyone who contributes to this site/thread for helping me get behind the wheel of my first Lexus.
Premium Package (wood interior, perforated seats,etc)
Accessory package
HID
MSRP : 35222
OTD : 32000, around 29100 + TTL, San Francisco, CA
TTL=OTD-29100=32000-29100=$2900 ???
Thank you very much!
But, OTD is 32000 - the cash I paid
San Francisco county, CA = 8.5% tax
Brand new, 8 miles only
Premium Package (wood interior, perforated seats,etc)
Accessory package
HID
MSRP : 35222
invoice : 30,676
OTD : 32000,San Francisco, CA, tax= 8.5%
31699 is actually below their invoice.
PS99472, you are Mr. Ko, right? (just wanted to make sure.)
januvia, well how soon are you looking to get the car?
I might be able to call WM, and see if I can get the deal for you.
I am in the process of purchasing a Lexus IS 250 '07 within a few weeks and wanted some tips if there was any way to negotiate the price. Here is what I'm looking at:
Tungsten Pearl
msrp: 31, 425.00
freight: 715.00
sport? package: $4,354.00
total: $36, 494
I know it's pretty high especially since I live in Hawaii. I have no time to travel to the states and purchase it there due to my work restrictions. I'm also trading in my current Toyota Corolla S '05 as well. I want to drop it down maybe 2-3 thousand but am I being realistic? Damn. I hope anybody can help me...I REALLY want this car. haha. It's just dope and I think it's my future girlfriend. ^_^