How Much Should I Pay For The 2006 Gs 300?

[Richard Tyler]

I live in California, and the new 2006 GS 300 (Rear Wheel Drive) comes standard with the moon roof and high density lights.

I don't want the following options:

1) navigation system

2) upgraded sound

3) back up camera

4) upgraded wheels

I do want the following:

1) floor mats

2) trunk and cargo mats

3) wheel locks

I think the dealer also charges a few hundred dollars for "advertising fees".

A few questions:

1) What is the dealer invoice price for the 2006 GS 300?

2) Does the dealer get about $2000 rebate from Lexus for the car?

3) How much should I offer the dealer for the "out of the door price", before taxes, with the about criteria?

thanks.

[GuyTelefunken]

You're not buying a malibu. Don't you pay the nationally advertised MSRP for the car you are interested in? Hey, offer them $38,500 and see what they say. You should ask your dealer to throw in the mats and locks.

[SW03ES]

My guess is no dealer is going to be willing to discount the new GS yet, if they are then its not going to be more thank $1,000 or so.

AWD or RWD? I'll assume RWD.

1) What is the dealer invoice price for the 2006 GS 300?

The invoice is $38,402 and the MSRP is $43,550 base. There is no way you will get a new 06 GS300 for $38k, you MIGHT be able to get a left over 2005 for that but probably not. So, let go of that right now.

2) Does the dealer get about $2000 rebate from Lexus for the car?

No, Lexus typically doesn't do factory to dealer incentives and certainly not on a brand new model. Lexus does pay the dealership whats called dealer holdback, for Lexus its 2% of the base MSRP or $871. If you're wondering what the dealer will make on the car its AROUND the difference between invoice and the selling price, plus the holdback. The salesman gets a % of this amount. This is offset by the cost of rent and insurance for the time the car spent on the lot.

3) How much should I offer the dealer for the "out of the door price", before taxes, with the about criteria?

Don't offer the dealer anything, make them offer you a price. I think $1,000 off sticker would be a great deal on a new GS.

Like Guy said, its not a Malibu. Buying a foreign luxury car is different from buying something else, the price you pay is far closer to what the sticker says. Now, you can buy Lexus cars new that are older models for $500-$1000 over invoice but not a new GS.