Lexus ES350 Price Negotiation Help

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Why are you making offers on cars that you aren't buying, and why is the dealer accepting them?

Generally, you offer. He accepts. You buy.



Price wasn't right anyway.

He changed his mind and wants a GS now.
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I don't think the sales people really care, as they get so many inquiries around here. Besides, I'm going through different dealers this time.
 
Out of state owners get special service. Local customers who drove 20 miles out of town to buy get sent back there for service.

VIN's tell you where a car was purchased.
 
What if the car was purchased used while still in the factory warranty period? I guess the used car buyer is totalled screwed in that case, since they probably don't know where the car was first purchased.
 
It's very simple. You live in our sales area and go outside it to buy the same vehicle we have a franchise to sell, be prepared to drive back there for warranty service.

You just moved here, traveling through, you are treated like family.

Guys, this isn't a one sided game. The dealers from out of town selling the same make and model car as we do sell a service contract they know we don't accept. Simply to force the customer to come back to them for service. We sell a service contract that is honored at any GM dealer.
 
> We sell a service contract that is honored at any GM dealer.

You are telling us that the service contract that you sell will be honored by any GM dealer but you as a GM dealer will not do warranty work on a car bought at other local competing GM dealer.

What makes a service contract backed by GM different than the warranty repairs backed by GM?

- Vikas
 
The difference is you can be in Alaska or Florida and any GM dealer will honor a GM service contract. Selling that contract is looking out for the customer's best interest.

Selling a non GM contract assures you will find dealers that don't accept it. Aftermarket service contract companies go out of business faster than Paris Hilton changes boyfriends. Leaving a dealer that repaired a car under their promise to pay stuck with hundreds of thousands of dollars in unpaid claims in a month's time.

I don't see GM going out of business anytime soon.

Guys, you are wasting your time. The minds that came up with our service policies have hundreds of years experience in this business. Their CSI ratings, repeat business, and referrals climb every year since they've been in business. GM brings candidates to our dealership to train to be new GM dealers.

The only people who aren't satisfied with us bought their car elsewhere. We can live with that.
 
I did not say we didn't do warranty work on vehicles bought at competing dealers. I said we don't do warranty work on customer's cars who live in our area and purchased at competiting dealers.
 
And it's just one more reason why I have little interest in purchasing another GM product, if I have to put up with nonsense like this.
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Honda and Toyota have NO such policy with regards to warranty work.
 
Nonsense? We're not good enough to buy the car from, but we're good enough to service it when you don't feel like driving back to your dealer?

The fact is, you're the buyer we don't want. You haven't spent a dime with us, nor will you ever. We're supposed to do you a favor? What's in it for us?

Our customers know we're not here 10 hours a day for our health. It's a business. In return for their loyalty every person here bends over backward to exceed customer expectation. According to GM and our bottom line it's working.

You are satisfied with far less than we offer to each and every customer. You get lied to in order to get you in the door, you find out and still don't leave. You make offers on cars you don't intend to purchase. You passed up honest dealers to do business with the others. They ripped you a new one in the F and I department.

Here we establish relationships that last a lifetime in many cases. Since 1994 when I came here, I've NEVER heard someone say a salesperson lied to them. Our dealer invests large amounts of his profits in the community. I've seen him tear up or write off bills that customers on limited incomes could't afford to pay. Customers with different skin colors than his.

You don't want to do business with a dealer like this, I say bless you and I hope you find what you're looking for down the road.
 
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Nonsense? We're not good enough to buy the car from, but we're good enough to service it when you don't feel like driving back to your dealer?



I gave you the opportunity to offer me a competitive price, but you didn't. That's your loss.

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The fact is, you're the buyer we don't want. You haven't spent a dime with us, nor will you ever. We're supposed to do you a favor? What's in it for us?



You get paid for warranty work. Sure, you aren't nearly as well as out-of-warranty work, but you still get paid.

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You are satisfied with far less than we offer to each and every customer. You get lied to in order to get you in the door, you find out and still don't leave. You make offers on cars you don't intend to purchase. You passed up honest dealers to do business with the others. They ripped you a new one in the F and I department.



Excuse me? My buddy and I have every intention of purchasing. No one that I know purchases after their first round of shopping.

I think you misunderstand how competitive the Lexus market is here in California. We have nearly ten dealerships within 100 miles that are competing for business.

I only work with dealers that are known to be honest. I read reviews of users on CL and Edmunds.
 
Our prices are competitive. They may not be the lowest.

We don't need your warranty work. I have plenty of non-warranty and warranty work from my own customers. What's my incentive to do warranty work for you? The answer is I don't have one.

The hundred bucks you saved on a $20k+ auto will now be spent by you in your time and fuel money driving back to your dealer for warranty repairs.

Our customers get a free two way shuttle ride to work or home. Or we have a well appointed lounge for them to wait in.

No one you know purchases after their first round of shopping? Here the final price you are qouted before you walk out the door is their best price. Customers don't have a lot of time to go back and forth with haggling. I guess California is different.
 
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Nonsense? We're not good enough to buy the car from, but we're good enough to service it when you don't feel like driving back to your dealer?

The fact is, you're the buyer we don't want. You haven't spent a dime with us, nor will you ever. We're supposed to do you a favor? What's in it for us?

Our customers know we're not here 10 hours a day for our health. It's a business. In return for their loyalty every person here bends over backward to exceed customer expectation. According to GM and our bottom line it's working.

You are satisfied with far less than we offer to each and every customer. You get lied to in order to get you in the door, you find out and still don't leave. You make offers on cars you don't intend to purchase. You passed up honest dealers to do business with the others. They ripped you a new one in the F and I department.

Here we establish relationships that last a lifetime in many cases. Since 1994 when I came here, I've NEVER heard someone say a salesperson lied to them. Our dealer invests large amounts of his profits in the community. I've seen him tear up or write off bills that customers on limited incomes could't afford to pay. Customers with different skin colors than his.

You don't want to do business with a dealer like this, I say bless you and I hope you find what you're looking for down the road.




You say it's "It's a business" but you seem to take it very personally when someone won't buy a car from your sales staff. Keep in mind, the sales staff and the service staff are separate entities of the same business. I've bought cars from dealerships with ---- service and in turn took my car to a better service department.
 
There are multiple reasons why someone would buy a vehicle out of town. Many people simply don't want locals to know their personal financial business. Maybe they're buying a car for their girlfriend and don't want their wife to know. I completely understand that.

I take it personal when you attempt to take up the time of the dealership's employees when their time should be devoted to people who spent their money here. We're never not busy, so any time spent on you is time taken away from a loyal customer. That wouldn't be very good business sense now would it?

The dealership's track record speaks for itself, and it's a long and successful record. Since we've been in business we've seen a Buick dealer change hands twice, a Ford dealer 3 times, a Chevy dealer twice, another Chevy dealer twice, a Honda dealer twice, and a Nissan store 5 times.

A business relationship is give and take to be successful. When you buy your same model car out of town and want me to do warranty repairs, you have nothing to give.

Bottom line, if you want to be able to service your customer and stay in business,you have to make a profit. When negotiating on a new car gets down to no profit for the dealer, and he has over 100 employees he feels obligated to keep employed, we say no thanks.

These above mentioned dealers forgot the part about making a profit. That's why they're no longer there. For charity, I recommend the Salvation Army.
 
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There are multiple reasons why someone would buy a vehicle out of town. Many people simply don't want locals to know their personal financial business. Maybe they're buying a car for their girlfriend and don't want their wife to know. I completely understand that.

I take it personal when you attempt to take up the time of the dealership's employees when their time should be devoted to people who spent their money here. We're never not busy, so any time spent on you is time taken away from a loyal customer. That wouldn't be very good business sense now would it?

The dealership's track record speaks for itself, and it's a long and successful record. Since we've been in business we've seen a Buick dealer change hands twice, a Ford dealer 3 times, a Chevy dealer twice, another Chevy dealer twice, a Honda dealer twice, and a Nissan store 5 times.

A business relationship is give and take to be successful. When you buy your same model car out of town and want me to do warranty repairs, you have nothing to give.

Bottom line, if you want to be able to service your customer and stay in business,you have to make a profit. When negotiating on a new car gets down to no profit for the dealer, and he has over 100 employees he feels obligated to keep employed, we say no thanks.

These above mentioned dealers forgot the part about making a profit. That's why they're no longer there. For charity, I recommend the Salvation Army.




Again, each dealership is independent and they can run it anyway they choose. While I think it is commendable that your dealership tends to honor those that bought a car from them, your questions like "What do I get out of it?" don't make a very good argument. You get paid regardless of whether a customer bought a car or not. Unless your service workers get a commission on every sale, I don't understand your reasoning.
 
Our customer's warranty money is better than another dealer's customer's warranty money. Why? Easy. We're reinforcing the confidence they put into us by purchasing a vehicle here. We both get the payoff from doing business with each other.
 
I may have missed it but a dealer can pull up my entire vehicle history including place of purchase by my VIN? What kind of details does it divulge? Purchaser name, address, purchase price, loan amount (if through dealer), etc.?
 
Excuse me if I am getting too personal, but would you be willing to divulge your position at the dealership? How many levels of management between you and the big cheese?

In my experience, very few business owners can survive long term with "you can take your business elsewhere" attitude towards "undesirable and low-lifer" customers.

- Vikas
 
One has to envy the position MrCritical's dealership is in and also wonder if there is no other competition around, both for sales AND service. Because it sounds like a case of high demand and low supply, at least as far as service goes. Surely this just ain't natural in the car biz?
 
I don't believe I have ever heard of a business with such a casual attitude on pursuing sure-thing customers, and "leaving money on the table", as the saying goes.

What, the owner doesn't have the smarts to expand capacity, work additional shifts, etc?
 
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