Last post on Apr 27, 2009 at 6:07 PM
You are in the Toyota Tacoma
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Toyota Tacoma, Toyota, Car Buying, Truck
#38 of 95 What's the cost is a valid question
Dec 22, 2006 (3:55 pm)
Im in the market to but a Tacoma V6 4x4 Access cab, TRD package, trailer towing package. To start my search I contacted Costco's auto buying system which ended up with a saleman calling me in the Kern county area of California. At first I hesitated to call back since the last thing I wanted to do was talk with a salesman. After about 5 messages I called back to see what they could do. I was a bit surprised as the saleman was very honest with what models he had in stock. He also gave me the low down that he would sell for $100 over dealer invoice. He went as so far to quote me some figures over the phone.
OK so I go down to the dealer and see him face to face. He actually has the exact 2006 or 2007 model that I want. He lets me know buying a 2006 means $750 cash back and it's also a bit less expensive. Even even goes so far as to check on financing for me (my request not his). 7% interest on 60 months was not that bad via Toyota direct.
OK so here are the figures which might be helpful for those interested in this sort of truck:
Access Cab V6 4X4 2006
Base Retail $23690
Trd Package Retail $3755
V6 Tow package Retail $650
Carpet Maps R3tail $170
Destination charge $605
So the total Dealer Invoice as im told is
$25266 plus then tax and license.
While the dealer invoice costs may be what you find in guides, websites and books im sure there are costs, incentives etc. that the dealer still gets. The small issue I have is the OTHER extras the dealer wants to charge for.
Gasoline $10 Im told this is what the dealer has to pay
Dealer Holdback $473
Whsl. Financial Reserve $236
Plus the $100 over invoice makes the total.
So I have another $1082 that the dealer wants to tack onto the so called invoice.
So normally the retail would be $28870 w/destination and options. My price with the extra tack ons is $26348
Plus regardless of retail of the discount price Toyota has a
$750 rebate till 12/02 so that brings my total to
$25598 The dealer offer via Costco
There is still sales Tax and registration fees.
If anyone has done better then this it would be nice to know. I think this is the only way to see how low dealers can go is by comparing deals.
#39 of 95 Re: What's the cost is a valid question [ddiggler]
Dec 30, 2006 (8:39 am)
DO NOT PAY THE HOLDBACK !!! The dealer's holdback amount is an amount that they will be paid by the local Toyota Distributor...it is basically automatic-built in profit to the dealership from the manufacturer/distributor. I don't know where you live, but in the southeastern states, the distributor is Southeast Toyota LLC, who distributes the vehicles from Toyota to the local dealerships (sorry, but I don't know all of the states involved in this scheme), but what SET does, is they add, as you may have read in other posts, the Toyoguard or Toyoguard Plus packages to the vehicles they distribute at a non-negotiable cost of $600-$700 per vehicle. The basic Toyoguard Package is undercoating, Scotchgard Fabric protector, paint sealant(read: overpriced wax job), and a bottle of Toyoguard paint sealant cleaner (bottled mineral spirits). The Toyoguard Plus adds roadside assistance, rental car coverage, and your first oil change FREE (yeah, right...) Many times, SET will charge an additional charge for floor mats of various sorts (which I believe Toyota is the only car maker that doesn't include them from the factory), as well as a $20-$25 fuel surcharge. Mind you, these MANDATORY package prices are NOT NEGOTIABLE and are in addition to the manufacturer's non-negotiable destination charge from the factory. Southeast Toyota has got a great (for them) money-making racket going on here. As for the original note about holdback, holdback is an amount that MOST manufacturers pay a dealership for selling their vehicles. This amount is generally 2%-4% of base MSRP (not including destination charge). Also, any decent dealership should fill your gas tank before you leave their lot (if this what the $21.00 gas charge is for), though it may be a fuel surcharge from the delivery company. Hope that heps answer some of your questions, but whatever you do, do not pay the holdback charge....the dealer is trying to double-dip you to make up for the "$100.00 over invoice." Besides, you will never know the dealerships true invoice price. No matter what you've read, or what the showroom shark tells you, you won't know their true invoice price. The reason for this is that are frequently factory to dealer incentives that the dealer nor manufacturer is obligated to tell you about (and this ends up as a direct discount to the dealer), as well as holdback amounts, and the fact that a dealership's sales volume affects their new vehicle allocation and cost. Basically, the more vehicles they sell, the more vehicles they can order and for a lower cost per vehicle. So good luck getting the true price, but the best thing you can do is negotiate as low as you can until you feel you've made the best deal possible. After all, even if a dealership says "this price is $100.00 over invoice," he still has to pay a commission to the showroom shark, dealer principal, sales managers, power bill, water bill, lot porters, detail people, that beautiful showroom, property tax, etc. Note: parts and service personnel are generally paid from their own departments, hence why I did not include them). The dealer can't cover all of these expenses (let alone earn a profit) at $100.00 over invoice. Just when you think you actually bought that shiny new truck and the dealer only made $100.00....think again.....they probably made at least $800.00-$1000.00 in one way or another.....they're not going to sell a vehicle unless they make a decent profit off of the deal. Just get the best price you can, if you can drive away from the dealership and feel good and confident that you got a good deal, then leave it at that. Good luck to you...
Jan 01, 2007 (9:05 pm)
Avoiding this package is a good way to save $$$ if you can live without the cosmetics--yes, I realize that many functional options come with these packages, but I actually like the utilitaian look of the base model, and Toyota really I don't even need power locks or mirrors(something else to break)--my X-cab V-6 auto came with floormats--that's it..I am going to have cruise retofitted to it for about $200, other than that, it will do nearly as well at anything else as a $29000 Taco will.......
#41 of 95 Re: What's the cost is a valid question [03gtiturbo]
Jan 02, 2007 (9:54 am)
"DO NOT PAY THE HOLDBACK !!! The dealer's holdback amount is an amount that they will be paid by the local Toyota Distributor..."
How do you avoid paying it though...will the dealer accept it if you insist you won't pay it? Great post, btw. I found this chart of various holdback percentages from various dealers: http://www.safecarguide.com/gui/neg/holdback.htm
#42 of 95 Re: What's the cost is a valid question [03gtiturbo]
Jan 05, 2007 (5:41 am)
Why on earth would anyone be against a dealer making a profit? Last time I checked they're in it to make money. I don't work for, nor am I affiliated with any dealer, but there is tremendous value in the tacoma even at invoice price. I paid 24,700 +TTL (2300 off invoice) for an 06 DC 4WD with SR5 package #2, LSD, carpet mats (these mats are cheeeeaaap), and some other port add ons.
Anyway, the dealer isn't ripping anyone off. They sell good products at competitive prices. Do your research and you should pay somewhere around invoice. You'll be happy, the dealer will be happy and you can rest assured that you've purchased a fine product.
#43 of 95 Re: What's the cost is a valid question [marcusx]
Jan 06, 2007 (6:04 am)
In most cases you probably won't ever know that you're paying it or not. I should have been more specific that if the dealer is itemizing holdback amount on the contract, then I would dispute and refuse to pay that amount. The only problem is that the dealership will always make up their extra profit in one way or another. But I would lower my offer by whatever the holdback amount is because it is an itemized amount that the dealer is already going to be paid by the manufacturer.
#44 of 95 Re: What's the cost is a valid question [tacoviva]
Jan 06, 2007 (6:22 am)
I have absolutely nothing against a dealership making a profit, that's why they are in business. I worked for auto dealerships for approx 10 years. The problem isn't in the fact that they make a profit on every vehicle sold, but a matter of HOW MUCH profit they make. First off, the invoice price that you think the dealership pays is NOT what they really pay for that vehicle. The dealership makes a HUGE profit on extended warranties, financing(dealers sometime get a kickback for lenders for locking purchasers into loans), pinstriping, window tinting, the base vehicle you purchase, the options on the vehicle you purchase, GAP insurance, vehicle replacement coverage, and the list goes on. The biggest money maker, most times, is the resale of your trade-in vehicle. If you trade in a decent trade, the dealership stands to make several thousands of dollars on the resale of your trade that they may have low balled you on. The biggest problem with the auto industry is that there is no need to legally disclose all forms of profit. Remember the days before darn near every dealership charged "Documentation Fees?" This charge is nothing more than recouping profit lost in selling you that vehicle at invoice price. Dealerships did not used to do that (and some still don't), because that is a cost of doing business. We would probably be pretty upset if we shopped at Wal-Mart, read the receipt back..."Hmm...dozen eggs, AA batteries, gallon of milk, tax, cashier interaction fee, receipt preparation fee, greeter smiling fee, cart usage fee..." It's all the same thing of "What else can we charge the consumer for?" We would certainly complain at Wal-Mart about these frivolous charges, but car dealers are allowed to do this and get away with it. Again, I have absolutely nothing against a dealership earning a profit...they have to, but it's the ways that dealerships do it, and the lying and deceptions that are an issue. When the salesperson comes back to you and says "I'm sorry, we can't sell it for $500.00 less." Don't believe it....they most certainly can. They're simply not willing to make $4000.00 profit on your trade-in instead of $4500.00. It's all a matter of juggling numbers.
#45 of 95 Re: What's the cost is a valid question [tacoviva]
Jan 09, 2007 (10:57 pm)
wow! you bought yours at $2300 below invoice??. I thought I got a good deal by getting $100 below invoice. They also tried to make me pay for a VIP package which wasn't listed on the invoice but I refused and they accepted. I'm pretty happy with my deal but
Can you explain more on how you got that deal?
#46 of 95 Re: What's the cost is a valid question [mamulan]
Jan 11, 2007 (12:26 pm)
Im in California, you can contact me directly from my profile and I'll give you the dealer info to get a similar deal. It appears that in some cities in Cal the Tacoma is not as hot of a seller and there for some dealers are more open to discount the truck.
#47 of 95 Re: What's the cost is a valid question [ddiggler]
Jan 15, 2007 (1:27 pm)
That explains it. I'm from Seattle, WA and I had a hard time just looking for the exact model and color truck I wanted. Only one dealer had it. Most dealers close by were also out of V6 manual trans. so i think its just a hot seller around my town. I'll check farther cities next time i shop around.
thanks for the info!