How to Negotiate for a New Lexusby Jule Pamplin
Negotiating for a new Lexus is a process that will take preparation and the will to execute a plan. Executing the plan will require that you completely follow through with each step. Buying a car is a business transaction. Regardless of the many hours you may spend in the Lexus showroom or the countless friendly gestures the staff extends to you, their goal is to sell you a car at the highest price they are able to achieve. You must be as determined to get a fair price.
Get to the total cost of the Lexus before arranging the terms. Dealers will "tie you down" to a down payment and monthly payment range, then adjust the length of the contract to fit their bottom line price goal.
Ask to see the dealer invoice. The dealer invoice is not the cost for the dealer from the manufacturer, and there are already profits built in to the invoice price. Starting from dealer invoice will give you a better understanding of how much space is between the invoice price and the manufacturers suggested retail price. Aim for a price in between the two numbers.
Ask for other features or services once you are unable to move the dealer's price any lower. In effect you are still negotiating the value versus the cost by attempting to get more for the same price.
Negotiate a fair trade value if your are trading in another vehicle. Have with you the Kelly Blue Book trade-in value for your car as well as an itemized list of aftermarket components that you may have added since purchasing your vehicle.
Leave. The dealer will offer you the lowest price you discussed another day (even though a common tactic is to say that you can only receive the deal if you sign "today"). Inform the dealer that you are interested in buying the vehicle but to do so would first require that you make sure that you are getting the fairest deal. If you do not intend to leave, a seasoned salesperson will be wise to your bluff.
Offer your own price. Choose a price that is fair (as determined by your research and calculations regarding your trade-in) and inform the dealer that you would be willing to purchase the Lexus at the price you propose. Do not allow the salesperson to divert you from price by redirecting the conversation to terms. Their goal is to make the cost as small as possibly by only discussing one month at a time. $600 sounds more manageable than $40,000. Stick with the final price. The terms (down payment and monthly installments) are nothing more than arithmetic.
- Once you are negotiating (after the sales presentation and test drive), avoid rehashing the features and benefits of the Lexus. This "stroll down memory lane" is a tactic used by salespeople to inject emotion into the discussion. An emotional buyer is less equipped to negotiate effectively. Maintain your focus on the financial agreement.
Items you will need
- Kelly Blue Book