Car dealership doesn't budge

[feetastic]

I'm looking at a certified pre-owned Lexus RX350. There seems to be little room for negotiations. I've read that's common with brands that have solid reputations for reliability but also that most dealership are employing this strategy.

Any suggestions/tips ? Is $1,500 off the sticker price considered a good deal these days ?

Feetastic

 

[JohnnyWishbone]

I found even if you highlight stuff is broken and wrong on the car they still won't budge on the price. E.g. a couple of years ago I was looking at 'pre-certified' Toyota Corolla Sports Editions and they (3 of them) had clearly been in crashes according to my eagle eye...plastic thing in wheel arch was hanging off (didn't need eagle eye to even see that), side panels not put back properly (1 mm on side and 8 mm on the other side!), engine not mounted back properly (Car shaking like mad for a 1 year old car with 5000 on the clock) and different paint on the back....they said a couple of things "oh, you've done this before!"...basically admitting they'd been damaged and then they said they would fix the issues but only after I bought the car! I even had one sales guy show me a printed car fax report as clean...I go home and look it up and it was not clean. They guy had used a white eraser to erase parts of the report and then photocopy it and show me that. Anyway, just saying be careful and wary of these 'pre-certified' cars.

If you're not desperate I'd walk...if you can afford to buy brand new then just buy brand new...this 'pre-certified' crap is not worth it since they check it from a mechanical stand point only I think - based upon my experience

 

[thumper18474]

Sometimes $1500 is their profit ...so many wont budge.

 

[farquhar]

I'm looking at a certified pre-owned Lexus RX350. There seems to be little room for negotiations. I've read that's common with brands that have solid reputations for reliability but also that most dealership are employing this strategy.

Any suggestions/tips ? Is $1,500 off the sticker price considered a good deal these days ?

Feetastic

I think Dealers are still having difficulty getting new vehicles on the lot, which means people are buying more used.

The Dealer must certainly think that if they are not going to budge on the price of the car; if you don't buy the car, someone else will.

Then the so-called "Business Manager" will stick a bunch of crap on the Bill of Sale such as Rustproofing, VIN Etching, Tire Guard Warranty, Lubrico Warranty, etc. All of this is extra profit for the Dealer, and is their way of selling the car for above MSRP. And if you complain, they will simply tell you all these Dealer Options are "Mandatory" and you must buy them or they won't sell you the car.

Also, you have to take their Financing or they won't sell you the car (perfectly legal in Ontario BTW) - the Dealer gets a kickback on the Financing from the lender, but only if you don't payout the loan for at least 6 months (otherwise the kickback gets clawed back). This is where you should negotiate a discount on the price of the car to cover the interest charges for those 6 months (assuming you have the cash to pay for the vehicle outright).

And if you have a trade-in, most likely the Dealer is going to lowball you on that as well. Private sale is better.

 

[drstrangelove]

And if you have a trade-in, most likely the Dealer is going to lowball you on that as well. Private sale is better.

But don't to forget to factor in the HST you'll save by trading it in on another vehicle. You only pay HST on the net difference.

 

[feetastic]

Yeah there's no trade-in. It'll be my new daily driver.

So which strategy has worked best for your folks ? I haven't bought a car in 20 years and I imagine the tactics have evolved

 

[farquhar]

Yeah there's no trade-in. It'll be my new daily driver.

So which strategy has worked best for your folks ? I haven't bought a car in 20 years and I imagine the tactics have evolved

The Dealer makes very little profit on the used car itself.

Since there's no Trade-In for the Dealer to make profit off of through resale, the majority of the Dealer profit is going to be the Finance & Insurance (all those Dealer Add-Ons I mentioned earlier).

What is the sticker price of the car? I'm going to assume you are planning to Finance.

Don't let the Business Manager distract you with the amount of the monthly payment. The Business Manager wants to sell you on a 96 month loan and then bake all those add-ons into that monthly payment.

You need to focus on the the price of the vehicle.

The Dealer will expect you to pay a "Doc" or "Admin" Fee of a few hundred dollars - essentially to cover their Overhead. Very hard to get that waived.

You can't just drive around town and try to play Dealers off one another, since this is a CPO Lexus RX350, and there is only one of that specific used car, with that mileage, and options.

 

[feetastic]

The Dealer makes very little profit on the used car itself.

Since there's no Trade-In for the Dealer to make profit off of through resale, the majority of the Dealer profit is going to be the Finance & Insurance (all those Dealer Add-Ons I mentioned earlier).

What is the sticker price of the car? I'm going to assume you are planning to Finance.

Don't let the Business Manager distract you with the amount of the monthly payment. The Business Manager wants to sell you on a 96 month loan and then bake all those add-ons into that monthly payment.

You need to focus on the the price of the vehicle.

The Dealer will expect you to pay a "Doc" or "Admin" Fee of a few hundred dollars - essentially to cover their Overhead. Very hard to get that waived.

You can't just drive around town and try to play Dealers off one another, since this is a CPO Lexus RX350, and there is only one of that specific used car, with that mileage, and options.

I'm still figuring out my budget and whether new vs used is even worth it but thanks for the tips.

 

[wawa]

I have bought my last two vehicles through Trader.ca. I try to find a vehicle that says original owner. I then ask if they have the maintenance records. If they don't have the maintenance records I end the conversation. Before I make the call I research the vehicle I am interested in and I know the maintenance schedule. If they have the records I then ask for instance "When was the last time you had the coolant flushed out and refilled". If I get satisfactory answers then I go and see the vehicle. If I like what I see I then ask to take the car to my mechanic who informs me what it will cost to bring it up to manufacturers standards. I use that amount as a bargaining tactic. I know this may sound like a lot of work but it is worth it. The last 2 cars I bought are great and were well worth the money as I did my homework. If you don't do your homework buying a used vehicle is a mine field.

 

[Ceiling Cat]

Car sales are down, the population is not spending. The car dealers may have paid more for the used car than they can get for it at this time. If you can wait then make them an offer and sit back. Find 4-5 dealers with the car you want and tell them what you are willing to pay. If they have too much inventory they will call you. Even if you get an offer far away from where you live. This will give you an idea of what the situation is. You can use this info to buy closer to home.

 

[Nickelodeon]

I've never done it (yet) but there are reputable dealers such as PFAFF that don't negotiate, ie. the window sticker price is what you pay new or used. Most of their dealerships are high end imports, but they do have Honda, Subaru and VW dealerships according to the Pfaff Group website.

 

[Zoot Allures]

The Dealer makes very little profit on the used car itself.

Since there's no Trade-In for the Dealer to make profit off of through resale, the majority of the Dealer profit is going to be the Finance & Insurance (all those Dealer Add-Ons I mentioned earlier).

What is the sticker price of the car? I'm going to assume you are planning to Finance.

Don't let the Business Manager distract you with the amount of the monthly payment. The Business Manager wants to sell you on a 96 month loan and then bake all those add-ons into that monthly payment.

You need to focus on the the price of the vehicle.

The Dealer will expect you to pay a "Doc" or "Admin" Fee of a few hundred dollars - essentially to cover their Overhead. Very hard to get that waived.

You can't just drive around town and try to play Dealers off one another, since this is a CPO Lexus RX350, and there is only one of that specific used car, with that mileage, and options.

Exactly. With the internet people know the price of cars so dealers cannot rip you off anymore

Do not mention you will pay cash as then they will not budge and do not buy add ons

Search through manual for receipts then contact original owner.
Get used sar sale package of cars history,
Avoid cars from out of country or Quebec as
they do not disclose history so write offs are sold through Quebec dealers


The Automobile Protection Association (APA) has been helping consumers with their car-related issues since 1969.

 

[csmitting]

Lexus RX is the second most stolen vehicle in Ontario.

 

[csmitting]

Call your insurance company and get a quote before you decide what make and model you want to buy.

 

[drstrangelove]

Lexus RX is the second most stolen vehicle in Ontario.

True but we had 2 of them over the years and absolutely loved them. Both purchased used from a dealership with no hassles or complaints.

 

[Ceiling Cat]

Do not mention you will pay cash as then they will not budge and do not buy add ons

If you mention you will pay in cash they use to lose out on a bank referral fee, so make your deal like you want to finance. when you are about to sign, ask them if you will get a better deal if you pay cash. These days many car dealers have huge inventories that they have to pay to keep the cars on the lot. If they need cash they will give you a better deal

If there are already add ons on the car, tell them to get you a car without the extras. They will try to stick you with rust proofing, paint protection, car parts etching* and other things. If they can not get it off the car they might give it to you free. The rust proofing I buy at Canadian Tire for $10 a can. I have been doing my own rust proofing for 15 years. I apply the ceramic pain protection on my car myself for $20 a bottle. I bought my last car just before the pandemic in fall 2019, the car looks like new. I picked up a lady friend for dinner last week, she commented on how clean my car was. I did not was my car since fall last year. The ceramic stops dirt from sticking, just a little water or snow will slide the dirt right off.

If you have a trade they will always give you the minimum. You can negotiate to increase the trade in price as well.

*FIY - Insurance can be negotiated as well. My insurance company wanted to give me a special deal on to get car parts etching for $100. I told them that another insurance company was paying for the car parts etching and they matched the deal.

 

[csmitting]

True but we had 2 of them over the years and absolutely loved them. Both purchased used from a dealership with no hassles or complaints.

You might want to double check the insurance for them.

 

[csmitting]

True but we had 2 of them over the years and absolutely loved them. Both purchased used from a dealership with no hassles or complaints.

Check out face book market place, you can probably find a newer one for half of what the dealer is asking. Just don’t ask any questions.

 

[NotADcotor]

Lexus RX is the second most stolen vehicle in Ontario.

At Lexus they asked me about the RX. I told them I might as well write a check to the West Island gang in Montreal.

Insurance is about twice of the ES or UX. Most of that thieft.

 

[Jubee]

Why would you want a vehicle that's stolen, I think it's in the top 10?

If they're not budging, move on, find somewhere else, we're not gonna change their mind(s).