Gx pricing leaked

[TexasHusker]

I certainly understand supply demand as someone who works in selling my own services as a consultant . Gouging may be a good short-term profit approach and will undoubtedly make the dealer lots of $$$ but it not a recipe a long-term, repeat business customer relationship. I certainly don't do that to my clients, while I'm almost never the cheapest, I provide a reasonable cost that's not gouging and provide them with good service. That's resulted in mutual trust and lots of repeat business where both sides are happy.

We waited months to get our Highlander Hybrid from one of your local Toyota dealerships and paid "only" $500 over MSRP. They could have charged an easy $5K over MSRP and sold every single one they were allocated by Toyota. Needless to say, I'll continue to use that dealership going forward for just about everything Toyota (they also have really good parts prices).

Yeah I guess it all depends on how you define "gouging." If you want to see gouging in action, visit your local hospital, where a $8,000 implantable is marked up 1,000 percent. Or Starbucks, where that cup of coffee that costs them $.13 is marked up to 5 bucks.

I'm not in the car business, but I have been. We all hear stories about dealers making too much money, but we never hear about the customer that brings in a Dodge Durango for trade, telling us that there's not a thing wrong with the car, only to find 2 days later that the transfer case is glued together by JB Weld. Or that Toyota Camry they steal off our lot and we find it two weeks later, three states away, totaled and we owe $1100 in towing and impound fees. If you think dealers are dishonest, you ought to meet some of the customers. Unbelievable.

 

[M1911]

Or Starbucks, where that cup of coffee that costs them $.13 is marked up to 5 bucks.

Like any coffee shop, Starbucks has significant real estate costs (lease, build out, maintenance, utilities, etc.) in addition to significant employee costs (salaries and benefits). Those likely cost far in excess of the coffee beans. So it costs them far, far more than $0.13 to make that cup of coffee.

 

[TexasHusker]

Like any coffee shop, Starbucks has significant real estate costs (lease, build out, maintenance, utilities, etc.) in addition to significant employee costs (salaries and benefits). Those likely cost far in excess of the coffee beans. So it costs them far, far more than $0.13 to make that cup of coffee.

And the same goes for that Lexus dealership that has a $20 million RE outlay, and $6 million of inventory sitting around, and a $500K bi-weekly payroll. Yet everyone is mad at the dealer if he has a chance to lop off an extra 10% on a vehicle for a very limited time. Whoopty do.

I wanted an LX really bad, they were marking them up 20%, and I simply told me salesman "Hey I understand. Could you give me a ring when things settle down?" He did, and I bought. Not a big deal.

 

[TheLCProject]

At least the barista doesn't ask you how much over the price on the board you're willing to pay since that's the last cup of coffee they're making that day.

Or ringing you up for the cup insulator and napkin they give you.

 

[TexasHusker]

This thread makes me realize how happy I am not to be in the car business any longer. I was always the bad guy.

 

[ILuvMudAZ]

Nah these are false equivalences; the consumer is better off buying directly from the OEM instead of going through a middleman. I’m a capitalist as much as anyone but the “services” rendered by dealerships are nothing to feel warm and fuzzy over. There’s a reason the NADA is one of the more powerful/well-funded PACs, and it’s not because it’s operating with public interest in mind.

 

[Wildcat Walker]

And the same goes for that Lexus dealership that has a $20 million RE outlay, and $6 million of inventory sitting around, and a $500K bi-weekly payroll. Yet everyone is mad at the dealer if he has a chance to lop off an extra 10% on a vehicle for a very limited time. Whoopty do.

I wanted an LX really bad, they were marking them up 20%, and I simply told me salesman "Hey I understand. Could you give me a ring when things settle down?" He did, and I bought. Not a big deal.

3 years and going strong is NOT a "very limited" time, hell it's not even a limited time. The time dealers can gouge is only limited by how long customers allow them to perpetuate their lies and artificially prop up covid-like market conditions. But wait, the production is limited!!! Production has always been limited, to how much the factory can produce. Toyota/Lexus produces to the pace of sales! The entire culture behind TPS is to eliminates waste, one of those being Muda (Overproduction).

Toyota/Lexus targets a very specific market when they design, build, and offer a vehicle for sale. Their intent is to deliver monzukuri and value to the customer while improving the quality of life for the customer, their employees, and their respective communities. By pricing the target market out, dealers are circumventing Toyotas design and cultural intents. In other words, the product, the experience, and customers quality of life are stained by American greed and ignorance.

It's disrespectful to your customer to ask for a markup, and disrespectful to your community to pay it.

 

[Rednexus]

Yeah I guess it all depends on how you define "gouging." If you want to see gouging in action, visit your local hospital, where a $8,000 implantable is marked up 1,000 percent. Or Starbucks, where that cup of coffee that costs them $.13 is marked up to 5 bucks.

I'm not in the car business, but I have been. We all hear stories about dealers making too much money, but we never hear about the customer that brings in a Dodge Durango for trade, telling us that there's not a thing wrong with the car, only to find 2 days later that the transfer case is glued together by JB Weld. Or that Toyota Camry they steal off our lot and we find it two weeks later, three states away, totaled and we owe $1100 in towing and impound fees. If you think dealers are dishonest, you ought to meet some of the customers. Unbelievable.

The flipside is definitely choosing your customers and doing your due diligence . Ones that don't pay bills, beat you up on price, or try to pull a fast one should be avoided. That's probably a lot easier for me as I'm not dealing with the general public and am working behind a contract with negotiated T's and C's. Either way, it's always best to walk away from a bad deal.

 

[WkndProject]

And the same goes for that Lexus dealership that has a $20 million RE outlay, and $6 million of inventory sitting around, and a $500K bi-weekly payroll. Yet everyone is mad at the dealer if he has a chance to lop off an extra 10% on a vehicle for a very limited time. Whoopty do.

I’m not going to feel bad for a dealer whose business model is built upon sales under MSRP. They don’t need to charge ridiculous “market adjustments” to stay in business.

At the same time, I’m not going to get worked up over trying to maximize profits at the cost of relationships, if that’s how they choose to run their business. I’ll just shop elsewhere, even if that means a longer wait.

 

[MotoDave]

3 years and going strong is NOT a "very limited" time, hell it's not even a limited time. The time dealers can gouge is only limited by how long customers allow them to perpetuate their lies and artificially prop up covid-like market conditions. But wait, the production is limited!!!

I feel like my local Toyota dealer was/is using markups to make up for a couple of real bad years at the beginning of COVID when inventory went to zero. When supply was really limited I could sort of understand - same deal as what;s happening with the housing market - but they've kept it up on anything that's new and still not widely available, which sucks.

 

[stridertexas]

Lol yeah I bought my 2019 TRD Off Road Premium 4Runner w/KDSS for $37 in 2019—it seems like the 550 and to a degree LC250 are basically just more updated/powerful 5th gen 4Runners to the point where I’m starting to talk myself out of making a switch.

Interior of the Overtrail doesn’t scream high quality (or +$70K) to me and dimensions are very close to my current truck. Even the 2nd row seems super 4Runnerish.

Dk if that makes sense but hoping hands-on reviews of production vehicles and ownership experiences shared here will enable the irrational financial move in upgrading. Only complaint I have with the 4Runner is the tight cabin and lack of power.

My 2020 TRDORP was $42k with predator steps.

That same car now is like high $50s with all the addons.

It’s a whole new world.

 

[stridertexas]

Yeah I guess it all depends on how you define "gouging." If you want to see gouging in action, visit your local hospital, where a $8,000 implantable is marked up 1,000 percent. Or Starbucks, where that cup of coffee that costs them $.13 is marked up to 5 bucks.

I'm not in the car business, but I have been. We all hear stories about dealers making too much money, but we never hear about the customer that brings in a Dodge Durango for trade, telling us that there's not a thing wrong with the car, only to find 2 days later that the transfer case is glued together by JB Weld. Or that Toyota Camry they steal off our lot and we find it two weeks later, three states away, totaled and we owe $1100 in towing and impound fees. If you think dealers are dishonest, you ought to meet some of the customers. Unbelievable.

My father owned a wholesale lot back in the hay day. He valued and got trade-ins from dealerships all over when it was a relation business to know the GMs.

People’s cars were complete pieces of crap usually that required new brakes, tires almost always. Not to mention other cosmetic or interior issues.

It was actually rare to find a cream puff well taken care of car that was traded in.

He spent so much money reconditioning vehicles to get them sale worthy to other dealers and note lots.

 

[TexasHusker]

It's disrespectful to your customer to ask for a markup, and disrespectful to your community to pay it.

Sorry I was disrespectful. Sure like my truck though.

 

[Rednexus]

My father owned a wholesale lot back in the hay day. He valued and got trade-ins from dealerships all over when it was a relation business to know the GMs.

People’s cars were complete pieces of crap usually that required new brakes, tires almost always. Not to mention other cosmetic or interior issues.

It was actually rare to find a cream puff well taken care of car that was traded in.

He spent so much money reconditioning vehicles to get them sale worthy to other dealers and note lots.

I suppose that is why dealers offer such bottom-basement prices on trade ins . I've never traded a vehicle and never will - it's worth a few hours of my time to sell it myself and get 20-30% more out of the deal (pretty awesome hourly return on investment). A dealer did offer me $7K as a trade-in for our old Outback. I sold it easily myself for $9,500.

 

[stridertexas]

I suppose that is why dealers offer such bottom-basement prices on trade ins . I've never traded a vehicle and never will - it's worth a few hours of my time to sell it myself and get 20-30% more out of the deal (pretty awesome hourly return on investment). A dealer did offer me $7K as a trade-in for our old Outback. I sold it easily myself for $9,500.

100% it's worth your time. People just usually didn't want to deal with it, and they would trade a vehicle in once it usually needed major service done, or right after an accident.

So many times he would value a car over the phone b/c during those days he had to give a value without even seeing it. Him and the GM would "walk around" the car together. It was a major gamble a lot of the time.

Once the wholesaler went away, prices for trade-ins dropped further, b/c dealers began using on-site auto auctions. So the dealership would low-ball you even further, cause then they wanted to flip the car to a "wholesaler" or other dealers and make a profit.

Now dealers are better at self evaluating trades, but they want to make a much larger margin.

So totally worth your time to clean the car up, provide receipts and hold firm in your fair value, and don't let them take your sales tax savings for themselves.

 

[M1911]

Here in MA, the lemon law applies to used cars, including cars sold by private parties. So I don’t want to deal with it. I realize it costs me money to trade in, but I’ve heard way too many horror stories about lemon law lawsuits after private sales.

 

[Surf123]

And the same goes for that Lexus dealership that has a $20 million RE outlay, and $6 million of inventory sitting around, and a $500K bi-weekly payroll. Yet everyone is mad at the dealer if he has a chance to lop off an extra 10% on a vehicle for a very limited time. Whoopty do.

I wanted an LX really bad, they were marking them up 20%, and I simply told me salesman "Hey I understand. Could you give me a ring when things settle down?" He did, and I bought. Not a big deal.

As you did it is best to let those who cannot wait for anything to overpay to get the first ones off of the assembly line and suffer through any issues from being the early adapter. I want a new GX, but will wait until the demand peels off and there are plenty on the lots to pick from.