Lexus "Loyalty" program

I saw on the Lexus website a mention about a Loyalty program for repeat buyers of Lexus products. My wife owns one that was financed through Lexus Financial and is looking to buy a new one. Has anybody used this? Is it for real? What benefit, if any, did you see with this program?

Reply to
Road Rage
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We have bought a couple of little lexi, the 300ES series - 93 and 00. When we bot the 00 the salesman mumbled something about repeat buyer discount and gave us a big discount - about $50 off MSRP as I recall. Perhaps it was a bit more, but Lexus is overpriced and really does not like to discount so they are hard to bargin with. Definately try the Loyalty program discount.

Reply to
mcbrue

It's all marketing gimmick, just like the Lexus certified pre-owned crap. Bottom line is that "certified pre-owned" is still a used car, and Lexus is still a car dealer, which predisposes them to a certain type of behavior. I will say that my experience with the Internet sales team at Nalley in Roswell, GA, was spectacular. No pressure, good price, very relaxed experience. Just don't believe all the marketing crap that corporate pushes down.

Reply to
Rumple Stiltskin

Yeah we visited out closest dealer today (Lexus of South Atlanta) about an IS 350 and got very little from the Loyalty program. They're going to work with us a little on the price, and I mean a little. The loyalty is calculated on how much you use their service. In other words, if you do your own oil changes like I do then it's not much help to you. With the popularity of the IS it's fortunate we get anything off the price. We'll know soon.

Reply to
Road Rage

I like the changes they put into the new IS. I had considered the IS300 when I bought my 02 ES300, but it looked too much like a kids' car. The new version looks more like it could compete with the BMW 3 series, it has a more professional stylish look. I'd be curious to know how responsive it is, with regard to all the tranny problems I, and many other, ES owners have reported.

Reply to
Rumple Stiltskin

The wife drove the new IS and I was in the back seat. I love it, and have the same feelings as you about the earlier models. The back seat is cramped for a full size man, I'm 6'2" 220Lbs, but very comfortable. Wifey fell in love with it, she has the '02 ES which I'll be taking as a daily driver once she pulls the trigger. The paddle shift option is pretty nice and I was impressed that Lexus finally dropped 300+ hp in a smaller car. The options are a good combination and perfect for her. I'm a V8 big horsepower guy myself but if I were in the market for a ricer I'd opt for the Lexus experience. She's got her eye on the GS as well, she's still feeling them out.

As for the tranny issues of the ES, I know all about this, just got the latest flash about a month ago. I can deal with it but this was the main reason the wife wanted to look at another model.

Reply to
Road Rage

Well, you were right. Loyalty schmoyalty. Wife took a week to do her research and crunch all the numbers knowing what the dealer gets, etc. and was armed for battle. She went to see the salesman that demo'd the IS 350 for us last weekend at Lexus of South Atlanta. For a little extra motivation she placed a blank check for guaranteed funds on the desk so the guy could see it while the "deal" was in the works. Not to mention she's pre-approved by Lexus. Virtually a banker's dream.

She offered 4% over invoice, the salesman took 2 trips to the "secret office" and finally came out and said they couldn't do it. She stood up and thanked them for their time and left. The guy was begging for ways to make it work and finally asked her what she'd do now. Her response was "there's

2 more Lexus dealers in Atlanta I can go to", he then asked if she'll leave the Lexus brand if she doesn't get the deal she wants and her answer was "I guess so, there's only 2 models I like, the IS and GS, and I'd never pay that much for a GS or any other car even if she had Bill Gates' money", the salesman didn't say another word.

So, no IS. Yet.

Reply to
Road Rage

On Fri, 14 Apr 2006 21:26:43 GMT, "Road Rage" graced this newsgroup with:

your wife's biggest mistake was showing she already had financing. The dealer is willing to deal more if they think they'll be able to recoup what they gave up in the front end by charging a higher interest rate on the back end.

What you effectively did was show your hand before all the cards were dealt. Big, big mistake.

Reply to
kegler

Considering the interest rate offered by Lexus was about the same as third parties I don't see how that hurt. Besides, she got 3.9% on her ES and Lexus stated up front there's no way they'd be able to match that again.

Reply to
Road Rage

You got THAT right!

Good move.

A little over-dramtic for my taste.

Not necessarily. They make money on the financing, too.

Sounds pretty generous to me. Do you know what the going mark-up is? Check out the

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forums.

They would if another dealer was offering the same or similar deal. That's the only way to get their attention. Their job is to maximize their "take" on the deal. That's what they do for a living. They don't MAKE the cars, ya know. :-)

That was her best move. Don't be surprised if they call her in a couple of days. They know there's a live one out there.

Talk is cheap. She shouldn't have mentioned the othe dealers until AFTER she's been their and has their best offer. In fact, the rest of the negotiating can all be done over the phone.

This is just unnecessary chest pounding. Shows weakness, not strength.

Not yet, but soon.

I disagree. They're not that dumb. Remember, this is what they do for a living. Nothing else.

Reply to
David Z

On Fri, 14 Apr 2006 23:21:12 -0400, "David Z" graced this newsgroup with:

true, but they're not in the business to give cars away. There's a process to go through and skipping over most of it puts the buyer at a disadvantage.

Reply to
kegler

On Sat, 15 Apr 2006 01:07:35 GMT, "Road Rage" graced this newsgroup with:

but *they're* not making the profit off the interest if you come in with check in hand.

..even a less bargaining position for you. You basically told them up front that they'll have to make all the profit off the sale and won't be able to recoup with bumped up interest on the financing. If they didn't know she had already arranged financing, they could of offered you a better deal. Once they offered their best deal, you can THEN tell them you don't need financing. You told them too soon so they already KNEW they had to keep the sale high enough to meet their margin.

knowledge is a very good thing. Knowing when to apply it is just as important.

Reply to
kegler

So, let's say someone tried your approach. What's to stop the dealer from saying "sorry, if you're not going to finance the car with us, we can't sell it to you at that price?"

Reply to
David Z

On Sat, 15 Apr 2006 15:19:14 -0400, "David Z" graced this newsgroup with:

absolutely nothing. What are you looking for guarantees or better odds at getting the best price? They not mutually inclusive. If you want a guaranteed price, buy a Saturn.

Reply to
kegler

You call that a negotiating strategy? I call that junior league!

These guys will eat you for lunch.

The only way to get their attention is with a bona fide offer from another dealer. These guys are professional car dealers. They've seen every trick in the book. And they have an answer for each one.

Reply to
David Z

On Sat, 15 Apr 2006 21:54:08 -0400, "David Z" graced this newsgroup with:

actually, most of them aren't nearly as good as you give them credit for. It's more of the lack of negotiating skills of the buyer.

I've bought and sold many MANY cars. My latest car, my LS430, I purchased at 2.5% interest and $4K below their "best offer". I know how to play their game but with all due respect, you apparently have given up before the fight has even begun.

But hey, if you want to just lose all hope and give up because they're "pros", more power to you. I know better.

Reply to
kegler

And I paid $500 over invoice for my 2004 ES, which was $2,500 under their best offer. I paid cash and I don't think that the little 3-card monte game you insist on would have yielded me a better price. In fact, it probably would have made me look like a less serious/savvy buyer, which inevitably yielded me an inferior deal.

I suspect that you're probably very good at negotiating for cars. But not so good at advising others how.

Reply to
David Z

On Sun, 16 Apr 2006 10:25:03 -0400, "David Z" graced this newsgroup with:

...actually not. You pretty much summed up exactly what you did wrong and honestly, you didn't get as great a deal as you thought. But the dealer did a hell of a job convincing you that you did.

...and you may be right. But from what I see, you're absolutely convinced that your technique is more savvy, when in reality that's exactly what the dealers are hoping you think. Believe me, the dealer got exactly what he/she wanted out you or you wouldn't of left with the car. They weren't crying over how much money they lost on your deal when you left. Not only that but just about *every* customer thinks they got a great deal, even if they didn't. It's the salesman's job to make you feel like you got one over on them. What matters is that YOU think you got a good deal. Knowledge is always power. And, as I have already mentioned, knowing when and how to use it is just as important.

I've found a *really* good article on Edmund's.com. An Edmund's employee went undercover as a car salesman for several months to learn the trade. It's a fascinating article. It outlines several of the topics I've already discussed.

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Now, I WILL say this. I do NOT like negotiating for a car. I wish it were as simple as buying groceries and the prices were reasonably set. I'd rather dig under my fingernails with a razor blade than buy a new car.

But as long as anyone can remember, it's involved a LOT of horse trading and can burn up a lot of hours sitting in the showroom bantering back and forth on the final price. I HATE THAT. So, anything I can do to close the deal at the price I'm willing to spend (notice I didn't say monthly payment), I'm going to do. I've literally bought new cars at the price I wanted in less than 20 minutes. Was it a great deal? It was to me, and that's all that really matters. And remember, the Internet is your friend when it comes to finding out all the information you can on the car that you want. Research first, know what the car is worth, including your trade in. Know what your credit score is and what interest rate you can expect to pay. Know what the bottom line is and stick to it. Most salesmen are not Internet savvy and hate it when you come in informed. The less informed the buyer is, the bigger the advantage the salesman has.

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Reply to
kegler

OK help me out. I determine the cost with the options I want of a new GS300 from the internet (edmunds, KBB, Etc.)

Is that the maximum price I should pay or should I offer a lower amount (what Pct. lower) or should I expect to pay a reasonable amount higher (what Pct. higher)?

Regarding my current car should I insist on what KBB, NADA, Edmunds says it's worth as a trade in if they offer me a lower price?

Thank you advising this helpless soul.

Reply to
Bob Smith

It varies based on geographic location, time of year, model, demand, etc. Check out the pricing forums on

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That's the best way I know of to find out what the going rate is for the car you desire.

Reply to
David Z

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