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Prices Paid: Buying & Leasing Experiences Lexus ES 350 Prices Paid and Buying Experience
2239 messages, Last post on Dec 03, 2009 at 8:50 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: ocautoseeker (Nov 26, 2007 10:38 pm) Again thank you
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Replying to: rcole714 (Nov 26, 2007 8:08 pm) can you tell me dealer im in nyc and your deal looks good thanks you canemail me at nbty  aol.com
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Replying to: shaker58 (Nov 27, 2007 6:48 pm) |
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Replying to: espo1 (Nov 27, 2007 2:38 pm)
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Replying to: rcole714 (Nov 27, 2007 4:53 am) Here's how this works... The dealer pays the full amount of the invoice and then is credited back the Holdback and Financial Reserve (typically on a quarterly basis) once the car is sold. The easiest way I can describe this is... it's like a security deposit that the dealer pays the manufacturer. The manufacturer has use of this money (interest free) until the car is sold. Dealer's look at it as an expense since they pay it upfront, but in essence, it's nothing more than "profit." However, a lot of dealers will claim that their holdback is used for overhead costs... "keeping the lights on." That's a fair assessment. Since it's not an incentive per se, I don't recommend bringing up their holdback unless they refuse to get down to a price that you think is fair. For example, $500 over is more than fair on this particular vehicle, but if they claim they can't/won't do it, just politely let them know that they've got about $1000 in holdback and really have a net $1500 deal. When a dealer needs to get aggressive, especially at month-end when their trying to reach a sales goal, they may very will dip into their holdback and sell below invoice. Plus, the number of people who simply roll-over and pay too much for a vehicle even out their margins. The big 3 and Toyota definitley have the highest holdback at 3%. As for their ad fee (TDA), very doubtful that they'll budge on that. Like I said before, anything you see on a factory invoice is legit. The things you want to be aware of are additional costs that are typed onto to your purchase agreement. Many dealers claim that they don't play games in this day and age, but always keep your guard up. Get eductaed, be polite, but be firm and you will get a great deal. |
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Replying to: rcole714 (Nov 27, 2007 9:06 pm) In regards to the money factor and residuals... that is true, they are set by the bank. The dealer cannot lower what the published buy rate is... however, they can raise it, and thus make a profit. If you have good credit, you deserve the buy rate. Call and ask for a finance manager or a sales manager and ask them what the current residuals and buy rate money factors are based on the length of term and mileage allowance. 95% of the time, they'll give you the exact residual, but could fudge a bit on the money factor. That's why forums like this can be very helpful.
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Replying to: ocautoseeker (Nov 28, 2007 2:25 am) Once again, thanks. |
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Replying to: ocautoseeker (Nov 28, 2007 2:32 am) |
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Replying to: ocautoseeker (Nov 28, 2007 2:25 am) Thanks, George
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Replying to: geo123 (Nov 28, 2007 12:13 pm) Thanks,
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