What discount are you getting off MSRP? - Toyota RAV4 Forums
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post #1 of 55 (permalink) Old 02-26-2019, 10:35 AM Thread Starter
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What discount are you getting off MSRP?

I plan to get a 2019 Rav4 Hybrid Limited. I sent my local dealer the specs of the car I wanted and he found one in the pipeline that matched what I want and the car has a VIN. He wouldn't give me a price (said no pricing is available) but said if I gave him a $1,000 deposit, the car was mine. I told him I wanted to negotiate a discount off MSRP before I'd pay a deposit and we didn't need to know pricing to negotiate that discount. That was early yesterday afternoon. He hasn't replied.

Since this is a new model that is just coming out, what kind of discount off MSRP should I expect? I know folks are getting $1,000-$3,000 off MSRP for the non-hybrid version.
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post #2 of 55 (permalink) Old 02-26-2019, 01:42 PM
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In order to get the true negotiable dealer discount what we need from buyers is the following....


Factory MSRP including destination fee.
Sticker price for dealer add-ons, if any.
Factory (Toyota, not dealer) incentives/discounts given. This is important as they change all the time.
Net price paid after all discounts but excluding taxes, doc fees, title, etc which differ among dealers and taxing jurisdictions.
If you had a trade-in then it's probably best not to respond at all as they really muck things up.

If you paid cash or financed thru dealer/Toyota. If you financed thru dealer/Toyota then provide rate, term and significant fees. This is important as the dealers play games with price and rates/terms, especially with non-factory lenders. They get a cut of the interest.
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post #3 of 55 (permalink) Old 02-26-2019, 03:36 PM
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Quote:
Originally Posted by bertschb View Post
I told him I wanted to negotiate a discount off MSRP before I'd pay a deposit and we didn't need to know pricing to negotiate that discount.
Dealers get a "holdback" which is essentially a rebate when they sell a vehicle. That's why dealers can sometimes sell below invoice and still make a profit. Sometimes the holdback is the same for each vehicle, sometimes it increases if a dealer sells a given number of vehicles in a certain time frame.

Your dealer may be telling the truth. They may not know the holdback, if any, on the initial shipment. By the way, a dealer in Oregon told me the exact same thing.

One option is for you to put down a deposit if it is agreed that it is refundable if you choose not to accept the vehicle.

https://www.truecar.com/blog/2011/06...aler-holdback/
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post #4 of 55 (permalink) Old 02-26-2019, 04:48 PM
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Have you noticed that over the past few years the difference between invoice and MSRP is narrowing? The net result is invoice price is becoming meaningless. The only useful tool nowadays, imo, is how much savvy buyers are actually paying currently (exclusive of Factory and financing incentives.) That amount and MSRP gives the "negotiable" discount. If savvy buyers post that info here it will help everyone out.....except the dealers. btw, did you see that Truecar says that dealers are only discounting around $1,200 now? gimmeabreak! I've never bought a new car ($25-$35k) for less than $3,000 off MSRP. Did you know that TrueCar gets paid by the dealers as a lead-generation service? I am unsure if Costco gets something but I must imagine they do. I assume that prices will become more negotiable as supply starts backing up on dealer lots. Not sure when that will be though. But it seems like it might be starting. My local dealers have more available now than just a couple of weeks ago. I think buyers may be balking at the price but I really have no idea. I'm sure the dealers aren't yet ready to discount because this generation is still so new and they haven't been sitting on the lot for months. Will be interesting to see what happens. I think Toyota and the dealers are gonna have to discount them...eventually.
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post #5 of 55 (permalink) Old 02-26-2019, 05:15 PM Thread Starter
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Quote:
Originally Posted by Toyotommy View Post
In order to get the true negotiable dealer discount what we need from buyers is the following....

Factory MSRP including destination fee.
Sticker price for dealer add-ons, if any.
Factory (Toyota, not dealer) incentives/discounts given. This is important as they change all the time.
Net price paid after all discounts but excluding taxes, doc fees, title, etc which differ among dealers and taxing jurisdictions.
If you had a trade-in then it's probably best not to respond at all as they really muck things up....
Why would a dealer need all this information in order to quote me a discount off MSRP? I mean, he could just say I'll knock $250 off sticker. That's an offer. He sent me the spec sheet for the car (with the VIN) so he should have a really good idea of the MSRP anyway. I just can't believe he would expect me to pay a $1,000 deposit on a car without me having any idea what the purchase price is. Crazy!
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post #6 of 55 (permalink) Old 02-26-2019, 06:33 PM
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Quote:
Originally Posted by bertschb View Post
Why would a dealer need all this information in order to quote me a discount off MSRP? I mean, he could just say I'll knock $250 off sticker. That's an offer. He sent me the spec sheet for the car (with the VIN) so he should have a really good idea of the MSRP anyway. I just can't believe he would expect me to pay a $1,000 deposit on a car without me having any idea what the purchase price is. Crazy!
Your the first that I'm aware of getting VIN in the States.
I hope it is a real VIN!
It's really crazy the way Toyota sells cars - due in March? but loyal Toyota buyers can't figure out what the car they want will option out at nor put down money and be the first to get it?
Does not seem reasonable!
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post #7 of 55 (permalink) Old 02-26-2019, 06:44 PM
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Where are the first arrivals being built? At this rate it seems the 2019MY will have a short run.
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post #8 of 55 (permalink) Old 02-26-2019, 06:47 PM
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Quote:
Originally Posted by bertschb View Post
Why would a dealer need all this information in order to quote me a discount off MSRP? I mean, he could just say I'll knock $250 off sticker. That's an offer. He sent me the spec sheet for the car (with the VIN) so he should have a really good idea of the MSRP anyway. I just can't believe he would expect me to pay a $1,000 deposit on a car without me having any idea what the purchase price is. Crazy!
I understand your frustration but please re-read Toyotommy's post. He did not say the dealer needs that info. He said that we need that info to understand deals that forum members are getting and posting on line.

Also re-read my post: The dealer needs the holdback info to know what his cost will be. MSRP does not tell him that. Invoice price does not tell him that. You would think that Toyota could tell them that but they are not as of yet.

I was on the phone today with 2 dealers. Both could tell me exactly what vehicles (trim level, packages, accessories) they are getting in their first allocation but both said they could not negotiate on price until they get their price from Toyota. One said they will get that once the vehicles manufacturing is complete and the vehicles are in transit.

Like you, I am ready to make a deal but my local dealers are not. Mine are not offering to reserve one for me and therefore are not asking for a deposit.
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post #9 of 55 (permalink) Old 02-26-2019, 06:48 PM
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It's too new and not even in stock yet. There are none in SoCal's largest dealership yet. They won't negotiate until they have it in stock. And even then they won't know the demand until some time passes. If buyers rush in then they will charge whatever they can get...even if it is above MSRP. You do know they are not bound by MSRP? MSRP is "suggested." hahaha
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post #10 of 55 (permalink) Old 02-26-2019, 07:43 PM
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That's not the case everywhere for gas models, my local dealer has at least 20 on the lot right now, I checked them out this past week end, they've had some in stock since early December, they list 50 on their website and other dealers have many here as well. I'm not seeing the discounts that are available on the east coast here, but there are lots in stock, Koons lists 258 '19s and scrolling thru them, there are actual pics for a lot of them, so they're in stock and they show good prices compared to here.

https://www.koonstoyotatysonscorner....-anchor-year-0

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