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Modesto, California Lexus Car Dealers

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Re: 2010 Lexus RX350 AWD [luckycards]
by low_ball_88 on Mon Sep 28 16:13:37 PDT 2009
Hi Lucky, Valley is in Modesto, CA right? Did you purchase through the internet sales manager or any particular person there. Please PM me if possible. I am interested in a 2010 RX350 FWD with Premium Package I (the one without the cargo net, cargo mat & wheel locks) with MSRP of $41,845
Re: RX350 in San Francisco Bay Area (Northern CA) [dys]
by dys on Sat Jul 28 21:43:25 PDT 2007
Just got my RX350 today. This board has been very beneficial and I thought I can give back some by posting another data point so others in the market for this car can have a baseline. San Francisco Bay Area (Northern California) 2008 RX 350 2WD Base + PT + HH + FT + C1 + WL (Premium plus, 18 inch wheel, heated seat with rain sensing wiper, cargo mat, wheel lock) No navigation MSRP $41496 Invoice (based on CostcoAuto.com web page) $36692 Invoice (according to the dealer) $37160 I assume the difference is caused by the exclusion or inclusion of the TDA. Final negotiated price $35750 I emailed all dealers in the bay area including some in the central valley as well as southern CA. Putnam Lexus in Redwood City was the one that gave me the best offer with the colors I wanted. (Seems like navigation is on most of the cars on the dealers' lot, so the color selection is a bit limited for cars without navigation.) May not be the absolute lowest price one can get, but it was a generally smooth and overall pleasant experience. Two dealers (Concord and Valley Lexus in Modesto) said they cannot match to the offer from Putnam's offer and passed it. Pleasanton Lexus told me they would match any offer but that was after the fact. (Their best offer over the phone was $100 below the Costco's listed invoice number) Steven Creek Lexus was very firm and was unwilling to negotiate price at all and almost a bit rude (at least the tone of their internet sales manager's message). After all the researches and finally closing the deal, I still have a question: How does the dealer make money? I am not naive or sympathetic, just curious. The dealer holdback will be 2% off of Base MSRP, combined with the 1% wholesale financial reserve, a total of 3% of Base MSRP will be about $1244 for this car. So, is the true cost to the dealer: Invoice (based on CostcoAuto.com web page) $36692 - $1244 = $35448? Did I give the dealer a $35750 - $35448 = $302 profit? If I was able to push the price to $2500 below invoice (as suggested by an earlier message, which I did not see when I made the deal), who is paying for that part?

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