Pull the Trigger, or not?

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The Critic

The Critic

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I figured that I ought to start a new thread since it really isn't about an ES350 anymore.

Car is a 2007 Lexus GS350. MSRP is 47,147, listed invoice is 41,300.

I negotiated the price down to 39,900. I'm really pushing for 39,000, but I think the best that the guy will come back with is 39,500.

Should I jump on it or not? (Car is for someone else) Dealers in Southern California won't go below 39,500. Should I wait it out? As far as I know, there isn't another 2007 GS350 equipped in the same configuration, in the same color, in California.

Thanks.
 
Pull the trigger. Holding up a deal over $900 on a $40K car makes me wonder if he should be driving a $40k car.
 
You are squabbling over $400 and its not even your money. If the buyer is satisfied than why the hesitation?

Yes.
 
$50 sounds low. Tax and everything will be high too. I spent $150 paying tax, tag, title on a $950 truck here in NC a couple months ago. I'm sure a brand new Lexus in CA will be more.

I would not nit pick over anything less than $1000 on a car that costs this much. Odds are the dealer is not that desperate to make a sale. If your friend does not buy it for $39,900, someone else will.
 
$50 for dealer's document fee. State title fees should run $350 or so. Tax at 7.75%.

Provided that I get 39,500 + TTL, I should be able to get out the door for a hair under 43k.
 
Quote:

I figured that I ought to start a new thread since it really isn't about an ES350 anymore.

Car is a 2007 Lexus GS350. MSRP is 47,147, listed invoice is 41,300.

I negotiated the price down to 39,900. I'm really pushing for 39,000, but I think the best that the guy will come back with is 39,500.

Should I jump on it or not? (Car is for someone else) Dealers in Southern California won't go below 39,500. Should I wait it out? As far as I know, there isn't another 2007 GS350 equipped in the same configuration, in the same color, in California.

Thanks.

Click to expand...


Don't cave in to dealer demands!...I often wished manufacturer's sold their cars direct...sometimes it bothers me people make a living off of selling a car for more than it's worth!...the guy selling the car can make more than the people building them!...tell your buddy to buy a Honda Fit and put the rest of the money in a mutual fund...then someday he'll be able to buy a Lambo...or at least a Viper...
 
Quote:




Don't cave in to dealer demands!...I often wished manufacturer's sold their cars direct...sometimes it bothers me people make a living off of selling a car for more than it's worth!...the guy selling the car can make more than the people building them!...tell your buddy to buy a Honda Fit and put the rest of the money in a mutual fund...then someday he'll be able to buy a Lambo...or at least a Viper...

Click to expand...


He has an offer for $1400 below invoice. How is he caving in? That salesman is making maybe a few hundred dollars on a $40,000 deal so if he keeps pushing, he is really pushing for the salesman not to make any money at all on the deal. That's pretty messed up no matter what business you're in.

But I do agree on the selling direct part. I think in the age of the internet, the auto business needs to just fix a price rather than continue to do this haggling game using salesman. Doing it the old way will just continue to breed bad will between consumer and auto dealers.
 
Porsche has tried selling cars without a dealer network a few years ago. They almost went under.

It amazes me when we call GM Tech assistance for help with an unusual problem. 90% of the time, we know more than they do. It's because we're hands on with the product all day and they aren't.

The manufacturer needs to treat the dealer better. They sell cars to fleets like Hertz, Avis, ect. for less than they do to a dealer. Hertz has zero investment with GM. Most dealers have millions invested. The fleets are guaranteed a certain price when their vehicles are sold at manufacturers auctions. Dealers have to fight some schmuck for fifty bucks.
 
Sounds like we are heading for no haggle pricing. It seems the new generation of buyers prefers that. However, think about how many here brag about how cheap they bought their car and how much they beat up the sales guy. Interesting that there is such a desire to let dealerships make as little profit as possible. I wonder how people would feel if things that directly affected their employment worked the same way. As a former salesman I can say that even though I made a fair amount of money, it was not worth the time. A deal like this would've gotten me $150.00. Then the guy goes through financing and buys paint and fabric protector, the extended warranty and the finance guy gets $2000.00. Meanwhile I was the one who haggled for hours to get $150. I finally got smart and started only greeting people looking at used cars. That's where dealerships and sales people make money.

ref

PS. I totally never understood people spending hours arguing over a couple of hundred dollars on a $40000.00 purchase. I had one guy haggle for 3 months. Then his car that he was trading in lost more value than what he saved. In addition to the headache of contacting all the dealerships etc, I would've just paid the $200 more we were at on day one.
 
I don't understand this haggling back and forth, and dragging it out for *days*.

I give the dealer *ONE* shot at my business. I will give the salesman one offer, which is an *out the door* price, and give him 10 minutes to get the sales manager to say "yes" or "no". If the answer is "no", I thank them for their time and leave.

I'm sorry, but the salesman has better things to do than babysit me all afternoon while we haggle over a couple hundred bucks. Get me in and out, then go after the next sale. The sales manager decides the bottom line price anyway.

I don't care how they work the numbers, if they accept the offer, then they're getting a check for the amount that I offered for the vehicle. Take the offer, or lose a shot at my business. I don't need their financing, or a hat and a keychain. I'm there for a vehicle. I make that very clear up front.

I don't need the salesman's help either. A good portion of the time, if their lips are moving, they're lying. My apologies to the honest ones, but you are well aware that there's some serious honesty issues in this line of work.

Also, I never buy new. I'm more pleased with one to two year old vehicles that are still under factory warranty, with no body damage, and nothing that reeks of cigarette smoke.

When I bought my '04 Silverado, it was 18 months old and was still under factory warranty. I bought it for nearly half of its original MSRP. Plus, the local elderly original owner had added $2,000 in accessories to the truck, all of which I would bought anyway, had they not already been there. That sweetened the deal even more.
 
Well, I take it this thread is about a NEW Lexus GS350.
grin.gif


I checked out a book from the library one time about car buying and it said the best time to buy a new car is at the end of the month; something about a sales quota or something.
dunno.gif
 
Quote:

...Interesting that there is such a desire to let dealerships make as little profit as possible. I wonder how people would feel if things that directly affected their employment worked the same way....

Click to expand...


You mean like supply vs demand? That affects everyone. Think about it, if the car has been out for a while, people haggle where as if the car is brand new (first year model: think Ford Mustang) people will pay thousands over MSRP just to have the first one.

It works the same in every industry. If my area is overrun with workers (due to massive layoffs) the pay per hour goes down when looking for new work, but after a while people find jobs, the demand for work increases, and pay per hour goes up due to the low supply. Supply and demand.
 
Quote:

...Interesting that there is such a desire to let dealerships make as little profit as possible. I wonder how people would feel if things that directly affected their employment worked the same way....

Click to expand...

I think if dealers would not keep their profits 'hidden' from average Joe, there wouldnt be this universal concensus to 'screw-the-salesman'. I hate knowing there is 'kick-backs', invoice-below' pricing, etc. Just sell the dang thing for what it is worth, quit trying to screw the customer, and make your reasonable profit at the same time.
 
Tim H. you hit the nail on the head. The problem is that right now, for high volume domestic models there is no such thing as a reasonable profit. Which leads to lying and cheating.

Include the holdback in an average profit margin of what people here want to pay for a domestic car. Take away insurance for the vehicle to stay on the lot, interest paid on floor plan, a $100 dollar commission for the salesman, keeping the vehicle clean. The million dollars (or more) you have invested in facilities.

A dealer could take his money and put in in CD's and make as much profit with a heck of a lot less headache. Plus salesmen that get paid a hundred bucks for a sale wont be around long.
 
Quote:

Pull the trigger. Holding up a deal over $900 on a $40K car makes me wonder if he should be driving a $40k car.

Click to expand...


I would agree.. that said, there is something in the human mentality to be assured that we are getting the best deal we possibly can. its bragging rights I guess, its a win, it is a feeling of superiority over the other person.

Someone that can ONLY afford the GS350 (a) shouldnt be buying that car, and (b) ought to have better time use of money than to haggle over $400, and (c) can afford and certainly ought to take Mike out to a number of NICE dinners and give him a kickback for his time.

JMH
 
Or, someone has the money to truly afford a $40k vehicle b/c they do pay close attention to all money that leaves their coffers and are careful on how they spend it. Setting a reasonable and thought-out price ceiling on a transaction and sticking to it is usually a good characteristic.
 
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