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I've never owned a luxury car so I have no experience buying one. I've been told the ability to haggle on Lexus, Mercedes and BMW is impossible and you have to settle on whatever price they dealer provides because the demand is so high and supply is low. How true is that? And would anyone recommend any books or websites for one to read before going into a dealership and being taken advantage of? I plan on buying a car in the next 3 months.
If you want a luxury car there is no reason at all to buy new.
Why do I say this?
You have to consider the market this type of vehicle is sold to... well to do more mature owners who will not tolerate bad quality. That means these vehicles are better engineered, better built and way more reliable that the run of the mill cars. All of these features make the excellent choices in the used car market if you are the second owner not the third or fourth etc. since the first owner will have taken car of the car as well as taken the hit for depreciation.
As an example.........
My son just bought a 2003 Toyota Avalon ($30,000+ CAR) that had very few miles for a 1/3 of the new retail price! Now since luxury cars styles don't change much year to year it's hard to tell this 7 year old car from a new Avalon unless you know what to look for. This car is every bit as reliable as when new because the quality was there when it rolled off the assembly line. This is a common thread in the luxury car lines of all makes.
My neighbor drives a 1996 Lexus that is rock solid and comfortable as new. So this is IMO the best place to shop for a luxury car.....in the used market.
(Note: make sure you are the second owner to get max value)
I think the OP needs to decide which car he wants with what options because a BMW M3 is a totally diffrent type car than a lexus LS even though they are both luxury cars once you need to decide what model and what options then you can go from there and start getting quotes from dealerships to see what type of deals they will offer you. If i were looking I would be looking at and M3 as it more of a sports car thats made to be driven hard and has lots of feedback but it rides stiff but is one of the best handling cars out there so there is kind of a trade off of ride quality for performance...
I've never owned a luxury car so I have no experience buying one.
I've owned Merc, BMW, Lexus and absolutely you can wheel and deal on a new one. It's not exactly like people are standing in line these days to buy one. All 3 are hurting and it's my guess their dealers are hurting worse. If it is on the lot, then they will deal with it and especially this time of the year. On the other hand, if you order something to be built in the factory expect to wait a long time for it and to pay full price for it.
Wow, I think this is most helpful and mature forum on citydata. Thank you so much everyone. I do have a few more questions if you have a second
1. Internet Sales Fleet - when I bought my Toyota, I bought it through an internet sales fleet division at a dealership. I guess dealerships have salesman that only handle internet sales and they don't stand around in the showroom greeting customers like traditional sales reps. I got a really good deal this way and there was much less pressure. Do luxury dealerships have this?
2. The Dealer Invoice - I've heard the dealer invoice isn't exactly what the dealership paid for a car. I've heard they pay less than that. So even if you get a car at invoice, the dealership still makes money. Is that true. And where do you start negotiations for these type of cars? Do you ask for invoice and does the dealership go up from there. I've heard one trick is that dealers deal from the top and not from invoice.
3. Financing - I've heard the best thing to do regarding financing is to arrange it in advance at a bank before walking into the dealership because they will use financing tricks to entice you to settle for their price.
1. Almost all dealership have an Internet department these days, even for parts department. This is one of the easiest way to work with the dealership during your "homework". Make sure that if you are working with someone like this, you are talking about a specific vehicle when dealing with pricing. Know the specific VIN so that you know all the option on the car before taking a trip there to find out that you have the price worked out but there is additional charges for dealer options. They make lots of money on dealer options.
2. Dealer are still going to make money selling you a car at the published invoice. It differs with car manufacturers.
3. Financing is not always best if you go through a bank or credit union. That does not mean that you shouldn't work out all the finance options prior to going to the dealership. This is part of the homework. You can get a loan outside of the dealer but uses the manufacturer financing if they offer an incentive. For example, BMW currently offers a $2500 credit if you use their financing. Their financing rate is 4.9% at this time.
I have narrowed my search to Lexus. I like the ES and LS, the cheapest rear wheel drive models. If I buy the ES, I will get the luxury package (Blue tooth, navigation screen etc) which is 40K based on the Lexus website 'create your own feature'. I also like the much more expensive LS which is about 67K but I will get the cheapest package with it since many features are standard on it.
Next year, I will be doing a lot of highway driving (over 100 miles each way) so I prefer the smoothest and quietest ride possible and I feel like the Lexus is the best for this ideal. I want something reliable, with a great soft ride. I personally think BMWs and Mercedes are more stylish and have more clout but for the type of car I want, they are out of my price range when you account for the all the options and features.
My only issue with the ES is that it is a smaller car and I wonder how comfortable it will be driving long distance every weekend. Do you think getting the bigger LS will make a difference in comfort and safety?
3. Financing is not always best if you go through a bank or credit union. That does not mean that you shouldn't work out all the finance options prior to going to the dealership. This is part of the homework. You can get a loan outside of the dealer but uses the manufacturer financing if they offer an incentive. For example, BMW currently offers a $2500 credit if you use their financing. Their financing rate is 4.9% at this time.
How would I find out what the financing options are prior to going to a dealership and getting that information there?
Do you think it's best to get financing approved at a bank first and then use that as leverage to get a better terms through the dealership/manufacturer
Quote:
Originally Posted by ShelbyGirl1
And remember, there is always another dealer....we have gone out of state more than once for the "right" deal.
When you went out of state, did you actually travel there or can you call them on the phone and deal that way? Is there a way to go about doing this?
Quote:
Originally Posted by ShelbyGirl1
Absolutely on the Internet sales. In fact, we have bought most of the Exotics that way. If they are a reputable dealer, they will gladly share all the paperwork with you even before you walk in the door. Dealers
How did you contact their intenet sales dept? Last time I did it was through yahoo autos which redirects you through cars.com. Then some of them contacted me through e-mail but that was for a Toyota. I tried this route for my sister who lives in Chicago and I got ignored completely. Is there an easier way to contact an internet fleet salesman directly?
Quote:
Originally Posted by golfgod
I'd suggest edmunds dot com in addition to the other sites listed. People on there exchange info regarding specific dealers and deals. A few years ago we bought a new Lexus in Austin for about $3500 off, yet the dealers in San Antonio and Houston absolutely would not come off more than about $1500 and $800 respectively.
Is it worth buying out-of-state and then shipping it to your location? I live in Phoenix.
1) Go to Edmunds.com, and go to the True Market Value pricing.
2) Build the car you want.
3) At the end, it has a little column that says "What others are paying". This is usually pretty accurate.
4) Email each dealership where you are willing to go (go to their website and lick "contact us"), and tell them what you are looking for, and offer them halfway between the TMV price and invoice price.
5) Arrange your financing before you go in, but let them try too, as manufacturers often have subsidized rates no bank can touch.
6) Whatever dealership emails you back the fastest, and that sounds the most pleasant, go there and buy it.
7) They will probably try and sell you a warranty, GAP insurance, etc. It's their job. There is no reason to get mad about it. If you want it, buy it. If not, politely decline. Personally, I buy warranty and GAP. Invaluable products.
I have bought extended warranties and they are totally worth it. I bought an extended warranty for my Toyota. It was an extra $1200 but it was a 7 year or 90,000 mile bumper to bumper warranty. It brings peace of mind if anything.
The ES is most definitely not a RWD model, it is a fancy FWD Camry. The IS, GS, and LS are all very nice cars though.
Sorry if this is an ignorant question but what is wrong with front wheel drive? Is the drive not as smooth. Thanks for the input btw. I too had concerns that the ES is a glorified Camry.
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