Did I get a good deal on my purchase of new T4R?

Hi, I'm new to T4R.org, just purchased my first ever Toyota (I've had four German cars in my lifetime) and first ever truck (SUV, truck, whatever - after only cars it feels like a truck to me... takes some getting used to I guess). I had to do it, I moved to the mountains.

So, after the typical misery of dealing with negotiating a good deal (even with internet or Costco or pre-set pricing one wants to negotiate further IMO), I'm left wondering if I got a good deal?

I thought with the economic climate, and the price of gas and all, that I'd do better, but none of the dealers near me in Salt Lake seemed so interested in selling at a smaller margin. Here's what I was able to get:

4WD V6 Limited
Only mandatory options:
TO - towing pkg
QV - Value Package (sunroof, X-REAS, spoiler, etc.)
EJ - JBL
CF - floor mats
RL - running lights

MSRP: $39,459

My math:
Invoice (Edmunds): $33,374
less 2% (of MSRP) holdback: $797

True dealer cost: $32,577

Add acceptable 4% margin: $13,030
Add destination: $685

Taget purchase price: $34,565 (before tax, title, tags)


Well, the first dealer wouldn't budge from $35.5. His floor was packed, one needed to take a number just to get helped - so the "economic downturn" and "Did you see the auto numbers report just out" arguments didn't fly.

So, I took his written quote to another dealer (one I had visited when considering one of their late model but too much mileage used T4Rs), and they offered $35.1k. I went all the way to the manager of the manager and that was the best he'd do. I told him I'd come back.

Then, I called a third dealer, told him that my offer was actually $34.9k, and if he'd beat it I'd come in and buy. He said yes, but when I arrived I quickly got to the GM and it changed to "wow, our rep shouldn't have done that, that's too low, let's see what I can do".

My final deal was $35k and $100 in a department store gift card and $100 in a service work credit and $80 in another credit on a non-Toyota merchandise that I needed to purchase anyway.

So, should I have gotten well under invoice, like a lot of what I read online, or was my $34,720+++ (but sales tax calculated off of $35k) a good deal?

Thanks!

I am going to say NO not a good deal, not for an 08 model. There should have been a hugh cash back rebate of $3000 to bring it to $3K below invoice. More info and spreadsheet on my website.

JA-
There is a $2,500 or 0% financing (up to 48 months) Toyota offer, so I took the 0% over 48 months. Sorry I forgot to mention this.

So, given that my price was before an optional $2,500 cash back, do you think I did OK?

Thanks,
Leo

leo said:

JA-
There is a $2,500 or 0% financing (up to 48 months) Toyota offer, so I took the 0% over 48 months. Sorry I forgot to mention this.

So, given that my price was before an optional $2,500 cash back, do you think I did OK?

Thanks,
Leo

Click to expand...

Ok, understood, the price may then be in the correct range. Though I may be a little bored here at work, I cannot do the full calc for you. Head over to the excel spreadsheet on this page and input into the blue cells your information, adding or deleting rows for various options your specific vehicle has as needed. Let us know the results, I am curious to see how you did. Any specific questions I'd be happy to answer.

The main thing is if your happy with the deal. you did your homework and went to a few Dealers. Thats what about everyone does. So if the deal seemed good to you then thats all that really matters.:

For a Limited, yes I think you got a good deal. Drive on. Be happy and Welcome!!

After re-reading my post, I see some errors I made in the "math" section, here it is corrected:

My math:
Invoice (Edmunds for base, plus options): $34,747
less 2% (of MSRP) holdback: $789
less 1% financing/flooring: $395

True dealer cost: $33,705

Add acceptable 3% margin: $1,011
Add destination: $685

Acceptable dealer cost: $35,400 (before tax, title, tags)


So, I paid a little less than $500 below cost. One friend tells me I'm an idiot, that given today's environment I should pay thousands below not a few hundred below. And, I've read online that this is true. But, my experience with the dealers told me it's not true, so I assumed I did alright, but needed some real data to confirm.

RR, that's the point of the post - I can't be happy until I know if I paid a fair price... no matter what I actually paid.

JA, great website, I just purchased a set of Husky liners.

Thanks!

leo said:

RR, that's the point of the post - I can't be happy until I know if I paid a fair price... no matter what I actually paid.

Click to expand...

The bottom line is that you did do the research and went out to many different dealers to haggle...so, your friend is an idiot to assume things so fast! You did do a good job and the price seems good.

leo said:

After re-reading my post, I see some errors I made in the "math" section, here it is corrected:

My math:
Invoice (Edmunds for base, plus options): $34,747
less 2% (of MSRP) holdback: $789
less 1% financing/flooring: $395

True dealer cost: $33,705

Add acceptable 3% margin: $1,011
Add destination: $685

Acceptable dealer cost: $35,400 (before tax, title, tags)


So, I paid a little less than $500 below cost. One friend tells me I'm an idiot, that given today's environment I should pay thousands below not a few hundred below. And, I've read online that this is true. But, my experience with the dealers told me it's not true, so I assumed I did alright, but needed some real data to confirm.

RR, that's the point of the post - I can't be happy until I know if I paid a fair price... no matter what I actually paid.

JA, great website, I just purchased a set of Husky liners.

Thanks!

Click to expand...

Many Dealers have a habit of adding a few details to their 4Runners like tinted glass, Pin Striping, Under Coating, They also upgrade Wheels and tires. The pricing they claim on their invoice is far higher then the real cost to them.

Also I have seen Dealers add on the destination charge twice in a hard to understand way.

So no matter what they tell you they never are giving you a deal at a few % above their cost.

They already have been given a discount from Toyota that you don't see and if you let them do your financing they really get a nice kick back from the Bank caring the paperwork.

The URL BlueBook Auto/Truck pricing gives you what people are paying on any Auto/Truck this is pretty close.:

If your close to the listing your good to go.

leo said:

So, I paid a little less than $500 below cost.

Click to expand...

I was thinking you were around $1000 below invoice, as your numbers didnt include consideration of Advertising or WFR, either way you did good considering you had to forego the cash back in lieu of the 0% financing. Good Luck and congrats.