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Rebates are just one more tool in the great shell game of car sales. Sometimes they amount to a straightforward factory discount, other times they are as misleading and gamed as zero-percent financing.
Never let the razzle-dazzle distract you. The tendency is to give something shiny with one hand while taking back something in subparagraph C.
yup! the shell game indeed!.
Instead of actually Being transparent :
Example: True Cost to Dealership: 15,200. But lets mark it at 24,000. By saying "Suggested Retail". Then we'll promote the good ole 3000$ rebate. making the deal at 21,000.
Come on folks you really think they aren't making money off this strategy?
I worked book keeping at a dealers....It always amazed me when the invoices came in and the additional Dealership Discounts were applied. If a sales person sold even ONE car a week that was MORE then I made in two weeks!
Pretty sure it's because society has gone nuts overdoing the looking rich thing and the actual rich aren't afraid to flaunt their wealth anymore so a Lexus is just not on the radar anymore.
Generous? More like excessive and the vehicles just aren’t selling without them....oh how times have changed with the Koreans really upping the competition, Lexus has lost its identity.
Lexus looks like they have upped their rebates
It's called marketing and sales.
The buying public is fickle. Some want a practical car while others get seriously into styling. And bragging rights. Got to have a "cool" car. To show off to family, neighbors, and friends.
Automotive News publishes "Days Supply". The number of vehicles in the pipeline waiting to be sold. If the number is high - then incentives will enter to get the pipeline numbers down. Incentives come in many shapes. Dealer incentives and general public incentives such as rebates, customer loyalty, cash back, etc.
It costs the same to make all automobiles. Other then the cost of more steel and more glass. Add in leather seats and more electronic gizmos. So the higher priced cars do have more wiggle room in price as the markup is higher.
Just look at the styling of the current crop of vehicles. Some are quite beautiful while others are bad ass ugly. BUT beauty is in the eyes of the beholder.
Is it over the years Ford, GM, and Chrysler were always known to have cash rebates on some or all vehicles. Always made a big deal about it how old Honda and especially Toyota never succumb to this. It’s like things have changed drastically given the current state of Toyotas and centers in order to move cars.
Honda offers low APR financing, but hold their value better cause Toyota is always having to offer subsidized leases and huge cash rebates to keep sales moving.
I remember the days when people often said if you wanted the best reliable and quality automobile or truck you had to buy a Toyota. Boy how things have changed as people don’t seem to be having that mentality any longer and Toyota is continuing to have to increase cash incentives, something that they used to laugh about GM or Ford doing.
Nothing new. It moves inventory before the new models. The 2020 offerings include many all-new models.
Not to mention the fascination with the year.
That definitely is a possibility as Toyota and Lexus cash rebates are on the rise.
Funny are the days when people said Toyota and Lexus cars are superior.
There's not much differentiating Toyota's and Lexus's mechanically. Toyota royally screwed themselves by not sticking to their conservative bread and butter formula. Why buy a Toyota when it'll have Lexus problems without the Lexus customer service, and if you can afford the Lexus, why buy the Lexus when the Toyota's are just as good.
That definitely is a possibility as Toyota and Lexus cash rebates are on the rise.
Lexus sales have dropped 15% since they introduced those grilles.
The issue with "fixing" it is Toyota is perfectly capable of making it even worse.
See the new Avalon as Exhibit A.
There is a large market for conservative luxury.
GMC Denalis are a good example of it. They're largely owned by wealthy people that don't want to show off.
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New car sales are down pretty significantly, as expected by analysts. Last year 17.1 million new cars were sold in the US. This year they will be lucky to sell 14 million. Most new car buyers have zero money, and with interest rates rising they can't afford to buy. Basically, it's harder to buy a new car when you're broke.
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