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You are in the Prices Paid - Buying & Leasing Experiences
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Toyota Sequoia, SUV
#1752 of 1843 Re: RE: Price for 2008 or 2009 Sequoia SR5 4WD 20k miles
Jan 21, 2010 (7:31 pm)
I am a Sequoia LTD owner, and I can tell you that 52k or 54k (out the door) for a LTD sounds ridiculous. That's just me, but keep in mind that Sequoias aren't moving like other models. Case in point, Toyota never released a 2009 model (only 2008 and 2010 were released). These dealers must be trying to hose you w/ a cost of 50k plus. Try contacting the "Internet Manager" or the fleet manager directly, and avoid the floors sales reps at all costs. You could also try contacting a more senior sales manager directly, as they may be more interested in moving inventory and getting the factory incentives rather than risk losing a sale and paying out a commission to a floor rep. Here's I how worked this...My technique was to email the Internet or sales mgr's directly -- don't use the Edmunds email form tool, as they do not take that as a serious offer to buy, so send a personal email -- and I told them that I was ready to buy immediately and wanted a LTD in color X for price $Y. Then the calls came flooding in. That put me in a really good spot to negotiate and play off of the various offers. Long story short, I got them below invoice by over $1K. So this strategy is at least worth a try!
As for warranties, I'm sure there's a totally separate thread for this topic, while this is a personal decision, the odds are stacked in favor of the house (i.e. the dealer/factory). These contracts are very expensive, and one of the biggest profit centers for a dealer. They look even more expensive when you factor in the time value of money or opportunity costs here. You're essentially paying now for something that MAY provide some benefit more than 3 years from now. It is not comparable to something like life insurance (as previous post alluded) in terms of the cost v. benefit. Even reputable 3rd parties like Consumer Reports advise against these. Remember, you're buying a Toyota, which generally has a good rep for long term quality, not a VW Jetta or some other lemon. FYI, I have 2 other Toyotas with over 120K miles each and they're still going!
And regarding magesh's question above about why dealers don't offer the extended warranty only after the factory warranty expires instead of upfront like they typically do at point of sale, there is a good reason for that. Simply, a customer is more likely to make an impulse purchase upfront when bundled with something else. This is textbook consumer behavior. You're less likely to make that warranty purchase once you walk out the door. Also, if they only offered the warranty after the factory one expired, the company would be subject to adverse selection (i.e. mostly people who need the warranty [due to repair-prone car, etc] would buy at that time), which would drive up the costs to everyone.
Paint protection? Really?
Just trying to help. I have a lot of experience negotiating with these folks over the years, so I hope some of this is helpful and keeps more money in your pocket as opposed to their's.
#1753 of 1843 Buying below invoice
Jan 22, 2010 (8:27 am)
I have seen a couple of posts of people buying a Sequoia $1,000 or more below invoice. This price is without any dealer cash incentive.
Using overstocked.com price on a 4x4 Platinum lists retail for 60,355 invoice is
$55,381and true cost $53,745. List price $55,381 minus $1000 =$54,381
$54,381 minus true cost 53,745 =$ 636.0 or profit made on the deal for Toyota
and the dealership.
Congratulations to anyone who can negoiate a deal this good.
#1754 of 1843 Re: RE: Price for 2008 or 2009 Sequoia SR5 4WD 20k miles [mconra129]
Feb 09, 2010 (7:08 pm)
Mconra129: I've done some research and have found that the factory invoice for a LTD Sequoia is $46,677. Once you factor in Destination and Advertising ($950+$959=$1909) your at $48,586. And then there's 6% sales tax. I'm thinking $51,500 OUT THE DOOR is a good deal. This would be the first new car that I buy so I haven't had much experience with this negotiation process. The MSRP on the vehicle is $52,625. That's the current deal I have on the table for a "standard" Limited Sequoia; no extra options. In fact, I've had to special order my vehicle of choice because Toyota is now build ALL LIMITEDs with Navigation and I don't want the Toyota Navigation System. Additionally, the deal includes the RED ROCK interior which is not an option for the LIMITED but the Dealership believes they can get toyota to build it. Again, do you think $51,500 is a good deal out the door? If not, given the numbers I've provided, what do you or anyone else out there believe would be a good price to pay for the aforementioned vehicle. It will be another 4-6 weeks before the vehicle arrives and my $500 deposit is FULLY REFUNDABLE. Thoughts?
#1755 of 1843 Re: Price for 2008 or 2009 Sequoia SR5 4WD 20k miles [jose263]
Feb 09, 2010 (7:51 pm)
I just special ordered a 2010 LTD Silver Sky Metallic with Red Rock interior. My OUT THE DOOR PRICE is $51,500. I "believe" that is a good deal considering the factory invoice was 46,677, and that is what I paid prior to adding 6% sales tax, $950 for Destination and $959 Advertising. I'm still waiting on final approval from Toyota as to if they are going to build the vehicle since RED ROCK is a higher end leather and I don't want the navigation which is being added into every 2010 Sequoia for $1500. According to the Gen. Mgr, subtracting the Nav is not a problem but adding the RED ROCK may be more challenging. However, they believe they can get TOYOTA to make the modifications. If the build is approved I could have my Sequoia by Mid March. Cross your fingers!
#1756 of 1843 Re: Buying below invoice 
Feb 10, 2010 (4:30 am)
Hi - I thought I got a very good deal buying a 2010 LTD for factory invoice in Dec.
So, how much value has been lost with the quality/safety issues- seems like anyone wanting a new Toy should be able to buy very low??
#1757 of 1843 Re: Buying below invoice [jose263]
Feb 10, 2010 (12:45 pm)
I ordered my Sequoia SR5 4x4 back in Oct and paid $730 over invoice .The price has been going down since the order was placed. Timing is everything and you bought at the right time. You got a great deal and the price you paid is what Over stocked .com lists for a limited today.
I suspect the quality/ safety issue may bring the price down even more depending opon the amount of unsold inventories for this model. The inventories for this model were low before the last round of recalls so only time will tell how this affects the inventory level.
Do you have any second thoughts about buying the vehicle due to the recent recall on this model ?
#1758 of 1843 Re: RE: Price for 2008 or 2009 Sequoia SR5 4WD 20k miles [damos516]
Feb 10, 2010 (12:52 pm)
That's not too bad out the door, though not great (just my opinion though). Granted, I bough my Sequoia LTD just over a year ago, but that said, given all of the "issues" Toyota is having lately, I'd think they'd be awfully hungry to make deals. Nobody is buying Toyotas.
I was able to buy my LTD for $1000 below invoice period. The only "extras" I paid was a doc/DMV fee at the dealer (which was maybe around 200 bucks?) - plus sales tax -- that was it.
If your current dealership won't move, then you can always try another (assuming you live in a major metro area).
Also, the red rock interior is pretty cool, so if you're mind is set on that and they're able to get it for you, then don't let me get in the way of your happiness.
Lastly, have you tried speaking to the "Internet Manager" at a competing dealership? You could tell him/her that you're ready to buy now and will buy from him/her TODAY if he can give you the truck for $XX.
#1759 of 1843 Re: RE: Price for 2008 or 2009 Sequoia SR5 4WD 20k miles [mconra129]
Feb 12, 2010 (8:53 pm)
Thanks for the insight. The dealership just informed me that Toyota rejected my special order request because of the Red Rock. They resubmitted the request today and believe they will have feedback by sometime next week. I did think about going to other dealerships again, but in all honesty, I'm a little tired of this process. However, I may take your advice and try to speak with the internet/fleet manager and see if I can get a better deal. My only concern with going to another dealership is the the fact that I won't receive the following benefits:
Free Oil changes for life
Guaranteed engine for life
Free 24 hour roadside assistance within 50 miles of the dealership for life
Free pickup and delivery of my vehicle with a scheduled appointment for life (pickup and delivery must be within 50 miles of the dealership)
Free loaner vehicle for life whenever I have a scheduled service
10% of all service and accessories get store away and credited toward my next vehicle (up to $2500 can be used toward my next vehicle)
Parts and service guaranteed for life
and a couple of other smalll items. You just don't get these types of benefits from every dealership. However, this family of dealerships gives all this stuff free of charge as part of the sale. If Toyota rejects it again, I'll more than likely wait until March 1st to get a 2010 Limited off the lot. Hopefully, they'll have some incentives in place starting in March. We'll see!!!
I do have a question for you. You stated you were able to get you LTD for $1000 below invoice plus Tax. If you don't mind, what was invoice or what price did you pay prior to TTL? Please fill me in. Perhaps I can be a bit more agressive in getting my price decreased especially with all the quality issues.
#1760 of 1843 Re: RE: Price for 2008 or 2009 Sequoia SR5 4WD 20k miles [damos516]
Feb 13, 2010 (5:23 am)
Damos - I found it much less hassle dealing with the internet/fleet mgr - I didn't meet him til we drove 50 miles to pickup the vehicle -everything was email - local dealership wouldn't match their offer. My deal was invoice price - if you can do better great. Of course invoice already has holdback and other added costs that guarantee a profit. I suspect a hungry dealership can shave off the invoice price. below is a list of the items...
Mfg Base Price:
Total Factory Installed Options:
Total Locally Installed Options:
Base Vehicle Holdback:
Dealer Added Options:
Fleet Price Protection:
1% Financial Reserve MSRP:
#1761 of 1843 Toyota Is Said to Discuss Rebates, Warranties to Lure Customers
Feb 13, 2010 (1:14 pm)
Toyota Is Said to Discuss Rebates, Warranties to Lure Customers.
I found this today on Bloomburg.com.
The article stated something like, "Ideas being considered include warranties of as long as 10 years and rebates of thousands of dollars per vehicle that would start in March, said three executives from retailer groups with Toyota franchises. They declined to be identified because the discussions are private."