Incentives

J

jhgnag

New member
I'm in the market for an '05 or '06. I'm trying to figure out the incentives. Looks like $750 on an '06 or $3000 on an '05 V8. Fine.

I guess my question is, do the dealers receive an intentive on top of that? When I bought an Audi this summer, the dealer got $1000 back that wasn't published anywhere because Audi wanted the older '05's off the lot. The guy told me that.

Salesman today told me that they are selling '05's for less than invoice ("we're losing money on them"). Does he think I'm an idiot? I don't think they lose money on anything, it's just how much do they make.

Anyway, any insight or info would be appreciated.
 
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I'm not sure exactly how that works, I know edmunds has on thier website somewhere explaining this stuff.

But, I just wanted to chime in and let you know that in my area at least, those 2 deals you are talking about end tomorrow 11/30. New ones come out the 1st of the month. I know this because I just picked mine up last week. Maybe a better deal will come around next month though.

Good Luck
 
The stealer gets their percentage right off the top reguardless of ANY incentives. You don't think they are going to sell ANY vehicle and not make a profit!

Koz
 
Forget the % off the top. I just want to know if they really pay invoice and if they get any sort of kickback from Toyota (I'd be shocked if they don't).

If they offer me a vehicle at invoice, they must be making some money somewhere. I'm just trying to figure out where, and how much we are talking about.
 
Good luck on getting a a straight answer on this one. I beat this one up for a month and got nowhere. If you go to edmunds for example it will give you invoice for any toyota or other car as I'm sure your aware The strange thing with toyota VS other car manufacture's however is the numbers dont add up. For example. When you get the invoice price from Edmunds on a toyota and then go to the dealer expecting to pay a couple hundred over the published invoice before rebates you'll be in for some fun. They will tell you invoice is $1500 to $2000 more than Edmunds. The reason? Edmunds does not add in things such as holdback, regional marketing,floor plan assistance, financing allowance etc. When you get the invoice price of say ford or chevy from Edmunds you can go to the dealer and get that vehicle for a couple hundred dollars over Edmunds dealer invoice before rebates. And when you pay a couple hundred dollars over dealer invoice for that ford or chevy the dealer is STILL getting holdback as a percent of MSRP floor plan assistance marketing monies financing monies and rebates for year end month end and total volume sales. So it would seem that toyota is double dipping and making money on all of the above twice but every dealer I talked to said the same old story exactly that toyota does collect these fees on the front in from you and get them back from the manufacture later but they are not already built in to their invoice price like other car manufacture's. This seemed really weird to me but if you look at the Edmunds TMV price (what others are actualy paying) it is generally at least $1000 or more over invoice so maybe they are not all LYING. I never had to deal so hard or talk to so many sales managers in my life buying a car over this one. So good luck in your pursuit trying to find what they REALLY pay. I beat the Edmunds TMV by $1000 but I'm sure others out there did better than me.


Ron
 
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From what I've experienced Toyota stealers will except $1000 over invoice without incetives included (I did a little better). They will try to include whatever they can if your not on top of them. I got up and was leaving the showroom after they tried to include the rebate, at the time of the delivery signing. They got my vehicle out of my region so I knew they were not going to let me leave, but they tried. I even bought two other new vehicles from this salesman!

Koz
 
The dealer has a holdback on every vehicle they sell, regardless of the selling price. The dealer I bought my truck from even told me that the amount of the holdback he gets is 2% of the total MSRP. On my truck, that roughly equals $875. The price I am getting my truck for is $500 over invoice, so the dealer will clear $1375 on my truck.

Now, depending on the incentives available at time of delivery, I could get the truck for less. When I put the order in, they were offering $1000 back on V8 T4Rs. If that is still in place when I pick it up, I will have paid $500 under invoice, but the dealer still walks away with $1375 since the $1000 is from Toyota.
 
LSUMBA said:
The dealer has a holdback on every vehicle they sell, regardless of the selling price. The dealer I bought my truck from even told me that the amount of the holdback he gets is 2% of the total MSRP. On my truck, that roughly equals $875. The price I am getting my truck for is $500 over invoice, so the dealer will clear $1375 on my truck.

Now, depending on the incentives available at time of delivery, I could get the truck for less. When I put the order in, they were offering $1000 back on V8 T4Rs. If that is still in place when I pick it up, I will have paid $500 under invoice, but the dealer still walks away with $1375 since the $1000 is from Toyota.
Click to expand...

That is a great deal, I've never been able to get a deal below 2% over invoice before incentives and most stealers will not negotiate with the holdback, only the invoice. Are you related to the Owner? LOL

Koz
 
LSUMBA,

That's the info I'm looking for. I don't want to be unreasable, but I know that they have to making some money somewhere else.

It's so frustrating. You know they would take you for MSRP if they could (and in some cases, I'm sure they do). OUCH!
 
Some dealers may be willing to offer you H-Plan pricing that is available to employees of certain companies..(this discount is in ADDITION to any offered incentives) Mine (HP) is one of them -- but I've heard of dealers offering that type of price to folks who would otherwise not qualify for them -- and being that the SUV market has slowed, you might be surprised. Just mentioning the H-Plan might get them to divulge numbers and if they do that they may just sell the car for that anyhow, regardless of whether you actually qualify or not. Won't hurt to ask...
 
toyota

i used to work for toyota,
incentives work this way some times in the early stage they are small but by the end of the month or 2 month period they get real big always buy at the end of the month unless they prove you wrong..
1- example 4 runner msrp is 30k cost dealer 27k he can sell it for 27200 + if he has 3000 incentive he could give most of it to you depending on the market, trucks are not selling now like they were. so net cost could be 24,200 whick works out to 5800.oo off and they dont lose a dime, they still got hidden profit somewhere, my advice is to go to a high volumn dealer in your area not a small one , who will give most of his cash back to you to make deal.
also trick 2 have you finances in place before you buy , if not they can give you say 7k off new 2005 or 06 if the incentives are on both sometimes they are check edmunds.com or call toyoto of america,but will 7 + k off will no profit they put you in to finance and the finance guy goes 66 months witha warrantee and hold a xtra % of interest on you say 7.5 instead 6.5 over the term the dealer picks up another couple of xtra money 2-3 k cover all bases before you go to dealer
bob/philly
 
2 more things

hold back on american car is 5% on 2005 model also i worked for ford also and they have all these speical plan like xplan etc . when i got a customer with a good plan not all are the same it was way under cost, ford gave dealer back the loss some how..these are plans for long term employees that buy fords.forget this
find out how much over invoice will they sell car for #1
#2 how much incentive or rebate can you also keep
30k 2500 discount 2http://www.edmunds.com/incentives/RebateControllertid=.=
i justed checked the rebates now really suck on 05 and 06 models see if they have dealer cash, i would wait till end of the month the rebate might rize to triple
bob
 
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