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Hi, I am newbie here, and this is my first post. I am going to look at '05 RAV4's today. I am curious about how much others have paid above invoice for their '05. Hopefully with any luck, I will get the deal I'm looking for.

ScottyDaug
 

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Remember that most so called invoice prices don't reflect the approximate 2% withhold that the dealer gets after the sale. Plus in the Southeast USA region the Toyota SE Distributor charges the dealers about $600 over the true invoice. Most dealers then add this fee to the invoice they show potential customers. Never believe the dealer printed invoice figure that they show everyone. Get them to show you the invoice that has the Toyota logo and looks like a true invocie document. Most dealers will not let you see this document.

So if you are paying the fudged "invoice", then the dealer is making about $1000 or so.

Use Edmonds and Kelly Blue book for a start. Kelly actually shows the SE Distr fee and since Toyota USA references Edmonds info don't let them tell you tell you Edmonds is too low.

It is the end of the model year and the last of this model RAV4. You should be able to get a very good deal on a vehicle on the lot. You should be able to get under the fudged invoice that they show you.

Go to carbuyingtips.com for a great spread sheet that you can complete to prepare you for negotiations.
 
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cars.com, edmunds.com, fightingchance.com all offer information on true factory invoice pricesfor cars and their options

Toyota has a 2% holdback & a 1% wholesale financial reserve, allowing the dealer to make 3% off of MSRP price.

Follow equation:

True invoice price of car & options - 3% of MSRP of that same car - any incentive + dealer profit (usually what youre willing to give, maybe $300) + destination fee of about $540

If you're more than $100 or so over the price you calculate with the above equation, you're paying too much. If you get below the price calculated above, which is possible, it's probably a good deal.

Also, remember to check for customer rebates or dealer incentives. You can check the toyota main webpage for regional incentives. If there is anything for 05 rav4 in your region, subtract that from the factory invoice price of your car at the same time you subtract 3% in the equation above.

Good luck!!
 

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We paid $18,500 for my wife's '05 Rav around Christmas time last year. Automatic, keyless entry/alarm, tinted windows. Which was below invoice according to Edmunds.
 

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nouse4aname said:
We paid $18,500 for my wife's '05 RAV around Christmas time last year. Automatic, keyless entry/alarm, tinted windows. Which was below invoice according to Edmunds.
Sounds like a good deal, certainly the dealer was working to hit those year end numbers to give that good of a price. Good for you!
 
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