Lexus Purchasing Advice?

[m j b]

Originally Posted by swils8610

Unlike the domestics that you can order to your spec, most imports don’t do things the same way.

I'll respectfully disagree and suggest that maybe you mean Japanese imports. I've ordered BMW, Audi and Porsche cars exactly to my specifications with no extra delay. And a Chevy, twice.

[Tha Baron]

Originally Posted by Knappo 1307

Who goes in to a dealership and negotiates anymore in person? I do everything over the phone, the sitting waiting around for the dog and pony show going on behind closed doors is over for me. Everything is done on the phone, between several dealerships and when I'm happy with one I go and sign the papers. All while being very polite and respectful...

Of course, I usually get a price indication on particular models via email or through their internet sales manager... BUT having your checkbook on the table is a good sign of a serious buyer. Some dealerships actually choose not to do the dog and pony show altogether.

Perhaps my summary implied I walked in and rudely put my boots on the table and demanded a deal with a stack of cash... Not the case, the last three cash deals I've done the reps were happy to have the sale and glad I got what I wanted.

The reality is if you act like you have other options and plenty of resources to be patient you'll do far better than the others that have their lease up in 2 weeks and need a nice car with a sub $400 payment.

Anyway sorry to hijack the thread OP - good luck with your Lexus

[Tha Baron]

Originally Posted by lig

I’m always amazed at the knowledge and experience on this board. Looking for some of that right now.

Not a debate as to which car as She Who Must Be Obeyed has decided her next car is a 2020 RX350. It’ll be her car and she never says “no” to me so I’m totally good with this choice.

We are the buy and drive for many years type and I honesty think this would be a good vehicle for that style.

Here’s my question. The Sales Advisor - a fellow I really like in that he is a true car enthusiast with a real love/ownership of the S2000, FD and Mk IV that I share tells me that their store is different.

One of 18 high volume Lexus stores that don’t really haggle - they just put whatever incentive is in play from Lexus and that is the price although they hinted that an end of the year situation might bring bigger incentives.

What threw me was this: He stated that the cash sales price is higher than the lease price because Toyota Finance adds incentives on leases that cash buyers do not receive.

Does this make any sense?

I’d just as soon pay cash and be done with it. I think they have 1.9% financing available and I suppose I could take the financing if it got me the lower price and then just pay it off early before paying too much in interest.

Thanks in advance for any light y’all may be able to shed on this.

Ask the dealer if they have a limit on how much you can put through on a cash back card? Most dealerships will say $5,000 is a limit but I swiped a 2% cash back AmEx at Rick Case Honda in Weston FL for an Accord...

But if you can get an overall better deal by getting a loan and paying it off, then do that.

CR price guide is showing $2,250 Customer Cash incentive on the 2019 model... I'd buy one of those instead of the 2020 model.

[kulak]

My experience is dealers have been fine with cash deals. They are usually willing to meet me half way on the finance special cash back. They don’t make as much but the deals are quick and easy letting them move on to the next deal.

[lig]

Another data point: Turns out my rep was straight up on the pricing model.

https://www.lexus.com/lexusplus/

They are a Lexus Plus dealer.

Feedback from you guys has been outstanding - the experience and collective knowledge here always impresses.

Thanks to all for the contributions.

[swils8610]

Originally Posted by Tha Baron

Sure that’s what they rather you do, but I’ve had my best deals telling the guy I’m paying cash for a prior model year car... thats where the “real” incentives are... not some BS rental lease or 2.9% finance rate that gets you $2000 off sticker. Telling a guy you can pay cash for their car when 99% of other buyers rent or finance is the perfect opening power move...

Act like you don’t need their car by saying “you’re looking at 5 different brands (Yukon, Odyssey, 5 series or Accord always sounds good), you want cash out the door prices and you want the best deal off msrp”. Tell them you need to leave and attempt to leave after you got their numbers and you’ll ”come back tomorrow”. Then offer your low ball when they ask “what do you need to do the deal today.”

Added bonus if you buy during a slow buying time (I like the week between Christmas and New Years Eve).. telling the SA/Dealer you need a lease or their financing setup is a sign of weakness.

My latest car I bought is an A6 I got 27% off of msrp and a trade in at $1000 over Carmax’s offer... SAs generally get flat amount commission per car they sell and aim for monthly unit sales bonuses.

Negotiate any trade in separate... know what car max will offer you, don’t forget trade in tax benefit as well.

Respectfully disagree with the “cash” part of your statement. I’ve run dealerships for 25 years. Dealers do not like cash. They hate it. I’ve passed on car deals because the customer is paying cash. We make money when financing or leasing a vehicle. The bank/leasing company pays us “flats” for using them. Flats and be $250 up to $1000.


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[swils8610]

Originally Posted by m j b

I'll respectfully disagree and suggest that maybe you mean Japanese imports. I've ordered BMW, Audi and Porsche cars exactly to my specifications with no extra delay. And a Chevy, twice.

With Toyota/Honda that’s how they do it. German cars or domestic you can def order a car to your specs. I’ve spent the last 14 years running a Toyota and VW store...I know domestics can be orders and German cars also. My apologies!


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[SMD]

Originally Posted by swils8610

Respectfully disagree with the “cash” part of your statement. I’ve run dealerships for 25 years. Dealers do not like cash. They hate it. I’ve passed on car deals because the customer is paying cash. We make money when financing or leasing a vehicle. The bank/leasing company pays us “flats” for using them. Flats and be $250 up to $1000.


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Good to know as it saves me from buying a car (live in NYC and was about to buy as I am getting hounded by my kids). I don't finance anything, be it a car, my house or my business. Debt free (and car free) for me I guess.

[Naples09]

Great info in this thread.

I'll chime in as we own two RX's. Buy the last week of the year if you can wait that long. Best incentives from Lexus occur during the December to Remember event and dealers want to hit sales goals at month end. Start working with dealers about 2 weeks before year end on the car you want with the same options/msrp so you are comparing apples to apples. Then work them against each other the last week of the year.

If you plan to keep the car just finance it at the best rate - as the dealer will discount more. Then you can pay it off in a couple months based on what the hold period is in the contract.

Leasing and buying at lease end will usually cost you more in the end.

[ludetuner]

If you are looking at a lease, read the fine print. Some areas to look out for ... what are the early termination penalties and is there a purchase option. If there is a purchase option, simply multiple the monthly payment by the term and add the residual to compare to cash price.

Should also factor in the opportunity cost of typing up money on a depreciating asset if you’re paying cash. Can you invest the money instead and get a better return????

[GB-man]

This thread is costing me money. I went and drove the LX today and also the mb gls.

[swils8610]

Incoming Tom!?


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[Tha Baron]

Originally Posted by swils8610

Respectfully disagree with the “cash” part of your statement. I’ve run dealerships for 25 years. Dealers do not like cash. They hate it. I’ve passed on car deals because the customer is paying cash. We make money when financing or leasing a vehicle. The bank/leasing company pays us “flats” for using them. Flats and be $250 up to $1000.


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You’re making my point... I don’t care if the dealership likes my deal or not. Leasing is generally more expensive to the buyer.

[GB-man]

Originally Posted by swils8610

Incoming Tom!?


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Alas idk. Surprisingly wasn’t elated with the GLS. Felt a bit more like a sports sedan than a luxury SUV. Local Lexus dealer couldn’t meet the numbers so I have to make a trip to NJ if I want to grab the LX.

[lig]

Originally Posted by GB-man

This thread is costing me money. I went and drove the LX today and also the mb gls.

[lig]

Originally Posted by Naples09

Great info in this thread.

I'll chime in as we own two RX's. Buy the last week of the year if you can wait that long. Best incentives from Lexus occur during the December to Remember event and dealers want to hit sales goals at month end. Start working with dealers about 2 weeks before year end on the car you want with the same options/msrp so you are comparing apples to apples. Then work them against each other the last week of the year.

If you plan to keep the car just finance it at the best rate - as the dealer will discount more. Then you can pay it off in a couple months based on what the hold period is in the contract.

Leasing and buying at lease end will usually cost you more in the end.

I like this play.

As a buy and hold kind of car owner it makes perfect sense. Apparently they have 0.9 for the 2019s and 1.9 for the 2020s and as long as there are no prepayment penalties we should be golden.

In terms of opportunity cost I’m sure I could work the money harder but a few points on $60-$65K aren't going to make *that* big an impact one way or another.

This has been a learning experience so far

[replicator]

I got like a $5k discount paying cash for RX for the better half, but this was a few years and it was a F Sport promotion.

One thing, don’t buy F Sport. Suspension is too tight makes for a bumpy ride. RX isn’t meant to be sporty.

[airchitect]

Originally Posted by lig

Agreed. In truth if we were to go with our hearts it would be the Velar. Absolutely stunning inside and out. Perfect lease candidate.



But not anything I’d want to own out of warranty. We are looking at the RX thinking it’ll be one of our “retirement “ vehicles as that is on the horizon.



OTOH our first Lexus just kept going and going until the next owner wrecked it. I bet it had around 200k on the clock at the time with just routine maintenance.



I think she’s made a rational choice that should be perfect for the job.



And I have my cars for entertainment purposes.

So let me give my 2 cents. As someone whose been through the Lexus search a time or two myself, let me recommend a GX460 instead of an RX. Why you ask? Because the GX is the platform mate to the Land Cruiser Prado and cousin to the Land Cruiser 200/LX 570, and even the 4Runner. All of these vehicles are still built exclusively in Japan. The drivetrain is a retuned version of that from the LS460, so it is silky smooth. And with the luxury package, it rides smooth as silk. Not to mention, the interior is drawing room quiet. On top of all of this, it is known for being insanely reliable. 300k+ miles on the odo isn’t uncommon..... I can go on and on as I’ve been through the same process.... we chose the GX because it’s an old school Lexus in every way, that just so happens to have legitimate off road chops, and can tow a boat all at the same time.... and yes, you get usEd to the barn door. Drive one if you haven’t.

[swils8610]

Originally Posted by Tha Baron

You’re making my point... I don’t care if the dealership likes my deal or not. Leasing is generally more expensive to the buyer.

No point to be made. In acquiring a new vehicle there are 3 ways to pay for it; cash, lease or financing. There is no rule that anyone is better than the other. It depends on what the consumer is looking for. Cash if great, however if 0% is available why pay cash when it can be invested? Often times there are deals with special financing and a rebate. Their currently is a deal to finance certain GMC products AND get a $2000 rebate. No rebate for cash buyers. Often there are lease incentives that make it way cheaper to lease. GM has a lease incentive currently on the Buick Encore that makes it $219 per month sign and drive. Why would you buy a vehicle that costs $27k when you can lease it for $219? It’s all about what the consumer is looking for. Cheers..


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[GB-man]

December to remember is on and incentives went up virtually across the board. Don't get bent over! Look for dealers slightly outside of major metros. There is more competition there. I am at 16% off on an 2019 LX or ES right now on the East coast but now my wife is attempting to beat sense into my head. aka I have a perfectly fine 2018 LC and don't need a 2019 LX.

[lig]

Originally Posted by airchitect

So let me give my 2 cents. As someone whose been through the Lexus search a time or two myself, let me recommend a GX460 instead of an RX. Why you ask? Because the GX is the platform mate to the Land Cruiser Prado and cousin to the Land Cruiser 200/LX 570, and even the 4Runner. All of these vehicles are still built exclusively in Japan. The drivetrain is a retuned version of that from the LS460, so it is silky smooth. And with the luxury package, it rides smooth as silk. Not to mention, the interior is drawing room quiet. On top of all of this, it is known for being insanely reliable. 300k+ miles on the odo isn’t uncommon..... I can go on and on as I’ve been through the same process.... we chose the GX because it’s an old school Lexus in every way, that just so happens to have legitimate off road chops, and can tow a boat all at the same time.... and yes, you get usEd to the barn door. Drive one if you haven’t.

Funny you should mention that. One of my best pals did that very thing. It was down to the 350L or the GX and they went GX. This is the wifeys ride so she gets what she wants. She’d rather have the RX a little smaller so I think the GX is out. Worth a drive though!

Originally Posted by GB-man

December to remember is on and incentives went up virtually across the board. Don't get bent over! Look for dealers slightly outside of major metros. There is more competition there. I am at 16% off on an 2019 LX or ES right now on the East coast but now my wife is attempting to beat sense into my head. aka I have a perfectly fine 2018 LC and don't need a 2019 LX.

I think I’d prefer the LC

Definitely appreciate your data points on the deals. Looks like we may be able to move sooner rather than later.

[mwatt65]

I picked up a Lexus 2020 NX300 F-sport last month, got about 11% off MSRP, without to much drama, was very happy with the experience.
Might of been able to get more, but I was very happy with how close the dealer is, that I was not a hard ass, like I normally be.