Advertising Charge from Lexus ??

I just told the local Lexus dealer to stuff it. I was all set to buy a new ES330 at cost + $1,000 and then he showed me the invoice with an advertising charge that was from Lexus USA for $539. I got pissed, stormed out, and walked across the street and bought a new Honda V6. I later checked on the internet and found that this charge WAS from Lexus. If they want to raise their prices in mid-year, then do it, but don't ask the customer to pay for the ads on TV, as a surcharge. Bob

Reply to
Bob
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More importantly, don't negotiate a "final" price from the dealer only to have him "suddenly" remember all sorts of "fees" that are "required".

Always, always, always negotiate an out-the-door selling price. Know what you want to pay, including taxes and whatever fees you think may be appropriate.

Hell, just know what you want to pay for the car, add your county's sales tax, and present that as the "out the door" price you'll pay. Period. It's that easy. The salesman can allocate that amongst his little four-square boxes and whatnot all he wants.

Of course, he may cackle a bit, knowing that there was room in there to come down more. So be it. You should know what you want to pay, what you feel is a fair price. Offer to pay that much, and no more.

And the only way to do that is to offer it as an out-the-door price, period. You want to hand over that much cash (in some form; you may go somewhere to get a loan, but that's OK, as long as you don't buy the money from the same guy who's selling you the car) and drive off the lot with that car.

Reply to
Elmo P. Shagnasty

They didn't raise their prices in mid-year - regional and national advertising surcharges have been there for Lexus for years. They're common on virtuall all cars, including that new Honda you just bought.

That's the problem when you strike a deal at "invoice plus whatever" - you then get to argue with the dealership over what "invoice" is - does it include advertising charges? Does it include holdback? Does it include rebates and dealer cash incentives? In this case, they cut you a pretty good deal and couldn't absorb the advertising fee in the profit you were allowing them.

Focus on the best price, not on the discount or the amount over some nebulous "invoice" number.

The buyer for a car has ALWAYS paid for the ads. Whether it is paid through a line item over invoice or as simply part of a bigger profit margin, the buyer still pays for it, one way or the other.

- Mark

Reply to
markjen

Reply to
larry barrios

LOL IDIOT, you must be a salesman! :-@

Reply to
Jsmerk

LOL FUCKHEAD, you must be a FUCKHEAD! :-@

Reply to
Cloud Burst

Why is that dip doodle, because I still believe that corporations should deal honestly with consumers? 8-) Oh yeah, you must be a sales type with the language you use. With a handle like "Cloud Burst" why don't you just go rain on yourself? :-P

Reply to
Jsmerk

Knowing that Invoice + $1,000 was just a so-so deal for the Honda, and knowing that I still was working with another Lexus dealer across the state. This is what I did. I offered them Invoice +$1,000 for an in stock car. When they agreed to that, I then showed them my trade in (which they offered me $500 more than the Lexus dealer). Then I told them that I wanted the spoiler wing for $475 ($699 retail) as they were $375 + shipping and installation on Ebay. I also asked that they include at n/c the rubberized (aftermarket, I think) floor mats and standard floor mats. That was it. I probably could have worked them down a bit more, but I have to say that this was the nicest dealership I have ever had contact with. The first general manager that wasn't a jerk I have ever known. The interesting point was that the Lexus and Honda dealership were owned by the same local man. I am presently writing him a letter. Bob PS. Maybe this isn't the proper board to say this, but considering the (around $8,000+) differance, the Honda beats the hell out of the ES330. I am really impressed with the car.

Reply to
Bob

No, because I don't appreciate the name calling, dip shit.

Oh yeah, and you must be Sherlock Homos, the famouth thleuth.

Do you know how much the second layer of paint costs? Do you know how much it costs to press a piece of sheet metal into a fender? Gee, I guess the big bad corporation is not dealing honestly with you if you don't.

With a handle like yours, just remove the "sm". It fits you better.

Reply to
Cloud Burst

My word, that's exactly what they do with MSRP. It is the CUSTOMERS that are demanding to see the "invoice" and negotiate the price as an amount over invoice!

- Mark

Reply to
markjen

Reply to
SgtRich

I love when car salesmen make arguments like this. I remind them that they don't build the car, they simply sell it. And if I don't like the price, I'm free to buy the same car at another dealer. So much for paint and sheet metal.

This whole little discussion turned flame misses the point.

The price of a car is determined by the marketplace. From the consumer's perspective, the invoice price is simply a reference point. It's powerful knowledge to help you avoid getting price gouged which dealers are trained to do if you're not smart.

If a car is hot, then it might sell for more than sticker. When I bought my 1987 Acura Legend Coupe, it was out for three months and was just voted Motor Trend Car of the Year. It was selling for sticker. Period. I heard that in some places, it was seller for $3,000 over sticker. I also understand that Hondas sold for over sticker frequently in the '80s.

So much for paint and sheet metal. A car dealer will charge you as much as they can get away with. If you think that's not the case or if you think that your car salesman is different, you've probably been had. If you question this message, there are a few book by former car dealers. Go buy them and read them.

Reply to
David Z

It ain't so.

There are numerous debates on the Internet comparing the Acura TL and the Lexus ES330. That's probably a fair comparison. But since the Acura TL is a premium version of the Accord, the above comment should not be taken seriously. If the guy said, he turned around and bought an Acura TL, it would have made sense. Because of the transmission issues, that's exactly what I've been considering. But at the end of the day, I prefer the ES330, even with the sluggish transmission.

Reply to
David Z

Yeah, but "Cloud Burst" just can't seem to understand that! Or maybe it's "Clod Buster"? ;-)

Reply to
Jsmerk

Your point is well taken, you don't like name calling. So what do "FUCKHEAD" and "dip shit" constitute?

8-)
Reply to
Jsmerk

Warning! I drive the way you do!

...and that's what I did. Very immature on my part.

I declare Peace. Not Victory, just Peace.

Reply to
Cloud Burst

You folks are missing my point. If you read my original post you will see I was agreeing with you all that it was a mistake for Lexus to tack on the extra charge.

All I was saying was Lexus was making a bad move, business-wise.

Maybe Clod Hopper would be better. I used to march in a band by that name when I was a kid...

Reply to
Cloud Burst

As several of us have said, Lexus would have been happy to negotiate with you from MSRP down and no charge would have been "tacked on". But it sounds like you requested to do the deal from the invoice up. When you request a business to negotiate on a cost-plus basis, don't you expect they'll tell you what their true costs are? This advertising charge is a legitimate per-car expense and has been there for years. It is negotiable like everything else, but it is a legitimate cost that must be paid either as an separate item or by an increased margin.

I'm guessing that the destination charge was a "tacked on" line-item that you were willing to pay over invoice. This advertising charge is really no different.

- Mark

Reply to
markjen

Sorry Mark, but you just don't get it. Advertising is a line item charge that is included in the General Expense of an Income Statement. This is no different that labor, plant, equipment, leasehold, legal etc etc. The advertising charge that I am referring to is an ADDITIONAL charge from Lexus to the dealer to cover the local and regional advertising, and is not a global charge. This is like me running an ad in the newspaper and then saying at the bottom that I am adding a surcharge to each item to cover the cost of the ad that they were reading. This is a SURCHARGE, an additional charge that the customer may, or may not, want to pay. The destination charge is also a surcharge, but a legitimate charge that I expected, and was willing to pay, but not this BS. I choose to vote with my feet and go to another dealership. End of story. Caveat Emptor Bob

PS. You say they have been doing this for years. Well I didn't pay this surcharge when I bought my 2000 GS. Maybe someone else did, but not I.

Reply to
Bob

How much did you pay relative to sticker and/or invoice for your 2000 GS?

Reply to
David Z

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