Automotive

New Car - Salesman gave me his cost price and "told me" to make an offer...what should i make him?

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  • Jan 13th, 2018 9:26 pm
[OP]
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Oct 17, 2010
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New Car - Salesman gave me his cost price and "told me" to make an offer...what should i make him?

So this is my first time buying a car.

I am "attempting" to negotiate a price for a 2017 toyota limited highlander.

im trying to get prices from 3 toyota dealerships and emailing this one dude and he just throws me his cost prices and tells me to make an offfer.

he tells me his cost price is 48,222 dollars with taxes in. he has 3278 dollars of profit in the highlander. pic attached

he says he obviously cant sell me the highlander for cost price as he needs to make money.

since most of you guys have more experience buying cars, what would you guys say i should offer him?
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Mar 24, 2012
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Response with $500 over their invoice price.
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2017 Highlander Ltd has $4309 markup, so I might question the honesty of this fella already.

That worksheet you have there isn't for a 2017 Highlander Limited though... It's for a 2017 Highlander XLE & the total profit is $3778.00

At cost, the vehicle should be $53,794.22 for the Limited and $47,614.25 for the XLE.

Edit: Removed edit - 4.29% is the lowest she goes through the dealer.
Last edited by xjesterxx on Nov 4th, 2017 11:52 am, edited 1 time in total.
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[OP]
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xjesterxx wrote:
Nov 4th, 2017 11:52 am
2017 Highlander Ltd has $4309 markup, so I might question the honesty of this fella already.

That worksheet you have there isn't for a 2017 Highlander Limited though... It's for a 2017 Highlander XLE & the total profit is $3778.00

At cost, the vehicle should be $53,794.22 for the Limited and $47,614.25 for the XLE.

Edit: You can also get a lower rate going through the bank - for the 2017 Highlander XLE you should be able to get 3.74 or 3.99% over 60 months.
Dumb question but, how do you know this? lol

I will email him back confirming if it is the Limited.
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thatsnazzyiphoneguy wrote:
Nov 4th, 2017 12:34 pm
Dumb question but, how do you know this? lol

I will email him back confirming if it is the Limited.
Hehe.

MSRP on the XLE is $43995

MSRP on the Limited is $49995

On the worksheet it's showing $43995
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Dec 29, 2013
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thatsnazzyiphoneguy wrote:
Nov 4th, 2017 12:34 pm
Dumb question but, how do you know this? lol

I will email him back confirming if it is the Limited.
If you want to know on new cars by Toyota, xjesterxx knows what he is talking about.
[OP]
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xjesterxx wrote:
Nov 4th, 2017 12:39 pm

Hehe.

MSRP on the XLE is $43995

MSRP on the Limited is $49995

On the worksheet it's showing $43995
MadMonday wrote:
Nov 4th, 2017 1:04 pm
If you want to know on new cars by Toyota, xjesterxx knows what he is talking about.
you were correct. he said he " made a mistake" and gave me a new work sheet thingy:

How much would you guys say i should offer?

i know another user on RFD here got a 17 highlander. got 1976 off and 3.99% rate.
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Jun 24, 2006
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OP you are playing a silly game with this guy. You don't make offers. They give you prices and you choose to buy or not.

Tell him to give you the best price he can sell it for and still make his satisfacory profit margin. Ask the same off the other dealerships and go with best one. Start negotiating from there with the cheapest dealership.

If you are willing to go out of town, I know someone that works in sales at the dealership in Cobourg. Sometimes a small town can offer better prices. PM me if you want their email.
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OP 2017 Highlanders are old. 2018's are already out. Definitely do not pay more than his so-called "showroom cost". Car has depreciated already.

Ask him to show you 2018 Highlander "showroom cost". It is afterall, only $650 more than the 2017.
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Gutty96 wrote:
Nov 4th, 2017 5:24 pm
OP you are playing a silly game with this guy. You don't make offers. They give you prices and you choose to buy or not.

Tell him to give you the best price he can sell it for and still make his satisfacory profit margin. Ask the same off the other dealerships and go with best one. Start negotiating from there with the cheapest dealership.

If you are willing to go out of town, I know someone that works in sales at the dealership in Cobourg. Sometimes a small town can offer better prices. PM me if you want their email.
Not typically the case unfortunately.. More inventory / volume typically = lower prices. If one guy sells 20 Highlander a month, chances are they can stomach a skinny deal. If another guy sells 3, it's highly unlikely they'll give the vehicle away.
kenchau wrote:
Nov 4th, 2017 5:38 pm
OP 2017 Highlanders are old. 2018's are already out. Definitely do not pay more than his so-called "showroom cost". Car has depreciated already.

Ask him to show you 2018 Highlander "showroom cost". It is afterall, only $650 more than the 2017.
Not necessarily wrong, but I would say best of luck buying a 2017 Highlander for dealer cost :)
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The salesman is using a very good tactic. Show dealer cost upfront so that you have to decide how much profit to give him. I would offer $500 above invoice and let him counter $1000, maybe even $1500. He may not even budge though depending on their motivation to move inventory. Toyota's are hard to negotiate.
Current Fido customer.
Ex Koodo customer. Beware of their tactics.
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The subject of invoice pricing has been discussed many times before. Basically, the invoice price is the cost to the dealership IF you don't count any discounts, rebates, incentives, bonuses, promotions or anything that will lower the price - it's the MSRP from the OEM to the dealer. In other words, no dealer actually pays that price for the car... they pay less and depending on their discount level, rebates, dealer incentives, and promotions, it might be a lot less - several thousands less than what you see.

The reason why they are showing you the invoice price is that they KNOW that the invoice price is already out there and other manufacturers are making a big deal about selling you at invoice so why not show you the invoice price and start from there?
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craftsman wrote:
Nov 4th, 2017 5:50 pm
The subject of invoice pricing has been discussed many times before. Basically, the invoice price is the cost to the dealership IF you don't count any discounts, rebates, incentives, bonuses, promotions or anything that will lower the price - it's the MSRP from the OEM to the dealer. In other words, no dealer actually pays that price for the car... they pay less and depending on their discount level, rebates, dealer incentives, and promotions, it might be a lot less - several thousands less than what you see.

The reason why they are showing you the invoice price is that they KNOW that the invoice price is already out there and other manufacturers are making a big deal about selling you at invoice so why not show you the invoice price and start from there?
No incentives on Highlander

And what you said is already known... invoice price is always exclusive of factory incentives that change monthly and stack on top of discount from dealer as incentives are from manufacture
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MrWhiteCoffee wrote:
Nov 4th, 2017 5:56 pm
And what you said is already known... invoice price is always exclusive of factory incentives that change monthly and stack on top of discount from dealer as incentives are from manufacture
Yes, I know it's already know; hence, I stated that it's been discussed many times and why I just summarized it.

I was just informing the OP and some of the other posters as they don't seem to know.
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craftsman wrote:
Nov 4th, 2017 5:50 pm
The subject of invoice pricing has been discussed many times before. Basically, the invoice price is the cost to the dealership IF you don't count any discounts, rebates, incentives, bonuses, promotions or anything that will lower the price - it's the MSRP from the OEM to the dealer. In other words, no dealer actually pays that price for the car... they pay less and depending on their discount level, rebates, dealer incentives, and promotions, it might be a lot less - several thousands less than what you see.

The reason why they are showing you the invoice price is that they KNOW that the invoice price is already out there and other manufacturers are making a big deal about selling you at invoice so why not show you the invoice price and start from there?
The invoice is the invoice on the Highlander.. nothing hidden here and the sales rep sent the correct information in the more recent offer sheet.

It’s a starting point, but going upwards and not downwards like you suggest.
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