:twisted: Just received a phone call from my local Lexus dealer (Putnam, Redwood City, CA). Informed me that if I want one it will cost $10K above list. I have been on the waiting list for over a year. I told them to get real, I did not pay extra for my Prius from the same dealer last September.
Lexus Rip Off
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I delivered 6 prius for Putnum Toyota Prius waiters last month !ajwilkas said::twisted: Just received a phone call from my local Lexus dealer (Putnam, Redwood City, CA). Informed me that if I want one it will cost $10K above list. I have been on the waiting list for over a year. I told them to get real, I did not pay extra for my Prius from the same dealer last September.
Yes it is a bad news but I think most smaller dealers are going to
tack on the "Market adjustment addendum sticker" way, way over list.
Toyota is going to do something about that !
Oh, what a feelings to offer a honest deal for the "HH" waiters !
So how does the relationship between Lexus and Toyota work anyway? Does Toyota have any say over Lexus dealer behavior. Does Lexus have the same policies as Toyota? Since they go after different market segments, is there more or less aversion to "market adjustment" in the Lexus segment compared to the Toyota segment?C.Rickey Hirose said:. . . Toyota is going to do something about that ! . . .
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Re: Lexus Rip Off/ Addendum Sticker
In this case: RX400h or the "HH" . Traditionally, Lexus division is _with_in
Toyota governance. Lexus as the "luxury" brand within Toyota and commands a higher premium retail price for their vehicles. I believe there is enough dealer margin in its cars for them to be very profitable. In another, the Toyota vehicles are marketed with much less margin and therefore, Toyota dealers do add additional higher asking addendum sticker to their vehicles. ( If is too hot segmented ) As in the Prius.
Toyota can not tell the dealers as to how to market their products. There is no _set_ rule to sell at premium or way down to "Invoice Cost"
However most larger volume turning dealers do not use the "Market adjusted addendum Sticker" In the past, the higher asking price for any
vehicles be it domestic or imports were implemented to _offset_ or to
make a easier transaction for selllers to make the deal. For instance:
your trade-in is worth only $12.000 but your payoff loan amount is $15.000 so the $3000.00 _Negative_ net worth of your trade-in were absorbed by using the "Higher" let say _$3000_ asking price for the merchandised marketed. In another words, The dealer has reaped a sizable profit without discounting the price!
So to make a long story short, Toyota can not control its dealers how to run their business. therefore the "Market Adjusted Higher than MSRP
addendum sticker price " Sigh.... I will not do it though no matter how hot the "HH" is in the Market !
Oh, what a feelings to be able to market the "HH" at MSRP !
Toyota does not see, nor tolerate the " Market adjusted Higher retail Price"RSnyder said:So how does the relationship between Lexus and Toyota work anyway? Does Toyota have any say over Lexus dealer behavior. Does Lexus have the same policies as Toyota? Since they go after different market segments, is there more or less aversion to "market adjustment" in the Lexus segment compared to the Toyota segment?C.Rickey Hirose said:. . . Toyota is going to do something about that ! . . .
In this case: RX400h or the "HH" . Traditionally, Lexus division is _with_in
Toyota governance. Lexus as the "luxury" brand within Toyota and commands a higher premium retail price for their vehicles. I believe there is enough dealer margin in its cars for them to be very profitable. In another, the Toyota vehicles are marketed with much less margin and therefore, Toyota dealers do add additional higher asking addendum sticker to their vehicles. ( If is too hot segmented ) As in the Prius.
Toyota can not tell the dealers as to how to market their products. There is no _set_ rule to sell at premium or way down to "Invoice Cost"
However most larger volume turning dealers do not use the "Market adjusted addendum Sticker" In the past, the higher asking price for any
vehicles be it domestic or imports were implemented to _offset_ or to
make a easier transaction for selllers to make the deal. For instance:
your trade-in is worth only $12.000 but your payoff loan amount is $15.000 so the $3000.00 _Negative_ net worth of your trade-in were absorbed by using the "Higher" let say _$3000_ asking price for the merchandised marketed. In another words, The dealer has reaped a sizable profit without discounting the price!
So to make a long story short, Toyota can not control its dealers how to run their business. therefore the "Market Adjusted Higher than MSRP
addendum sticker price " Sigh.... I will not do it though no matter how hot the "HH" is in the Market !
Oh, what a feelings to be able to market the "HH" at MSRP !
Last I heard, Toyota would not get involved with dealer rip-offs.
If Toyota really doesn't tolerate markups, how come dealers do it, and if they did, what recourse do we have, other than walking away? Will Toyota get my money back? I doubt it. Will they take the dealer's franchise away? I doubt it.
If Toyota really doesn't tolerate markups, how come dealers do it, and if they did, what recourse do we have, other than walking away? Will Toyota get my money back? I doubt it. Will they take the dealer's franchise away? I doubt it.
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will not benefit for the good of business in a longe run.
The Franchise can become in jeopardy if the dealer neglects their customer satisfaction index measured and compared with national
CSI "customer satisfaction inquiry" go beyond National Average.
The CSI has three level, _Red _Yellow_Green ! All manufacturers expect
a "Green" from their vehicles owning end users but it all depends how all the customers that has purchased that product will respond to their purchase experience.
If customer buys that Lexus RX400h at $10K over
MSRP and is happy with that then when they receive the CSI response it
can be favorable but most of cases, they are not happy ! So they probably
will answer the survey with bad comment or worse ...
Despite the delaers knowing that by marking the price up will not retain
customer favorable survey turned back to Lexus, but still, they go for the higher profit now and worry about the survey later.
It is like Detroit Bean counters at the "BIg Three" short term profit, we need profit now, forget the longer term profitability plan of Japanese Auto
Makers. Hybrid R&D not good for our balance sheet.. ! We need proifit now ! Let over charge and if no sale, incentivise with $$$$ and throw in
the 0 % finance that will take of our short term profit. Sad indeed.
The Big Three does not realise that...... Oh I'm way off topic here.
No, The factory can not tell the dealer what to do. They do warn and suggest that by adding a supplementary addendum higer price stickerDanMan32 said:Last I heard, Toyota would not get involved with dealer rip-offs.
If Toyota really doesn't tolerate markups, how come dealers do it, and if they did, what recourse do we have, other than walking away? Will Toyota get my money back? I doubt it. Will they take the dealer's franchise away? I doubt it.
will not benefit for the good of business in a longe run.
The Franchise can become in jeopardy if the dealer neglects their customer satisfaction index measured and compared with national
CSI "customer satisfaction inquiry" go beyond National Average.
The CSI has three level, _Red _Yellow_Green ! All manufacturers expect
a "Green" from their vehicles owning end users but it all depends how all the customers that has purchased that product will respond to their purchase experience.
If customer buys that Lexus RX400h at $10K over
MSRP and is happy with that then when they receive the CSI response it
can be favorable but most of cases, they are not happy ! So they probably
will answer the survey with bad comment or worse ...
Despite the delaers knowing that by marking the price up will not retain
customer favorable survey turned back to Lexus, but still, they go for the higher profit now and worry about the survey later.
It is like Detroit Bean counters at the "BIg Three" short term profit, we need profit now, forget the longer term profitability plan of Japanese Auto
Makers. Hybrid R&D not good for our balance sheet.. ! We need proifit now ! Let over charge and if no sale, incentivise with $$$$ and throw in
the 0 % finance that will take of our short term profit. Sad indeed.
The Big Three does not realise that...... Oh I'm way off topic here.
Why complain about addendums, when you dont even pay sticker anyway? 99% of people dont pay sticker price on their car, so why complain about it being there? I think the real issue is that the dealers can get away with marking the HOT items up, and you have no choice but to pay it. If you want the HOTTEST items pay the premium. If you dont, buy a corolla.
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