James Willis

OK, well I am not familiar with how Lexus works, but they have a massive markup between invoice and MSRP. For example a well-equipped IS 250 AWD has an MSRP of $39,630 and an invoice of $34,690, thats a whopping $5000!!!!! Compare that to a BMW 325xi MSRP $40,145, invoice $36,825 difference = $3,320. That is $1,690 difference between the markups on those cars, and you don't think Lexus has more room to come down? Even better if we look at Audi A4 2.0T Q with an MSRP of $39,635 and an invoice of $36,747 a paltry difference of $2,888, that is $2,112 difference between the markup on the Audi and the Lexus. I am more familiar with German cars and in a standard situation (not an M3, not within the first 3 months of production) where each dealer has 25+ cars sitting on the lot and there are 6 dealers within 35 miles they are more than happy to make a clean $1000 (+ any secret dealer cash they are making). I'm not sure why so many of you are opposed to the idea that you can bargain on your cars to get a better deal. yes if you bought your IS car within the first 90 days of production you probably paid a premium, but if you are telling me that the $5000 markup on these cars is not negotiable than I don't understand. They guy who offered me $2000 off anything he had in the lot or incoming knew he would still make $3000 profit, that is more than an A4 at sticker.

Believe me you could get an 06 3 series for $1000 over invoice with almost no effort at all. As for the Lexus, the fact that I have already been offered 2k under MSRP (which is about $1500 over invoice) makes me believe that $1000 over invoice is getting closer day by day. Maybe these prices are in Chicago because it has a lot of dealerships and they are more competitive. Go on the BMW forums and check out what people are paying if you don't believe me.

Not around here. Audis maybe, and definately C class Mercedes (you do realize that car is nearly 6 model years old right?), but BMW dealers would laugh you right out of the dealership if you asked for a deal like that. The IS is an all new car, and you can't expect them to offer the same deals as Benz does on an ancient model like the C-Class. Remember that the demand varies market by market, that may be whats happening in your market but its not in mine and we have 5 fairly local dealers for competition. I personally find $1,000 under invoice impossible to believe on any Lexus, let alone the new IS. Do you mean $1000 under MSRP? I was talking about $1000 over invoice. And I have already been offered $2000 under MSRP on an in stock IS as an initial offer. As for BMW, you should be able to get a 3 series for a $500 over invoice if you work hard enough, but $1000 over should be pretty straightforward.

The first dealership I talked to here in Chicagoland mentioned about 2k off MSRP of 40k

The packages are a little confusing. We have AWD and Nav but no Mark L system. When I first read the package descriptions we bought I thought we had other options also included. I think Lexus could improve the the explanation of the specifics of each package. We love the car. I think in part because they are so new even our Lexus rep seemed unsure of some of the details. Also note that the packages you get offered on the website vary by region. Try putting a different zip code in and you will see different options. It's pretty odd.

What size wheels do you have? Doesn't the factory tire warranty cover that issue?

Maybe Lexus are different from every other car manufacturer out there, but I imagine when the initial demand has slowed there will be plenty of vehicles available for well under MSRP. I would never pay more than 1000 over invoice, and if they can't do it for me I will buy a different car, I'm not so in love with it that I will pay over the odds for it. Saying that I have already been reading about people getting deals under $1000 over invoice on the new IS. I think they really want to get some decent volume on this car. As for getting a better deal for a car on the lot, that can really go both ways, of course a dealer wants to sell a car they have clear it off the lot and get the cash that day. On the other hand a factory order is great for them because they increase sale numbers, make some money and have 0 days for that car on the lot which of course reduces cost for them. Generally speaking you can get just as good a deal on a factory order, unless they are trying to shift a lime green car with weird options that they just can't shift.

Hi, I sent the following email to a dealership but have yet to hear back, perhaps you guys can shed some light. Greg, I spoke with you on Saturday about the IS 250 AWD which I also took for a test drive. I was impressed with the car but I have a couple of questions that perhaps you can help me with. I am a little confused with the options available. When I visit the lexus.com website and try to build the car it offers me the following choice only: 1: Lexus voice-activated DVD Navigation System with Additional Option $2,645.00 Lexus voice-activated DVD Navigation System includes Lexus voice-activated DVD Navigation System with backup camera and Bluetooth® technology, AM/FM radio and CD-changer with 13 speakers. Additional Option: - All-weather floor mats 2: Lexus voice-activated DVD Navigation System with Additional Option $2,744.00 Lexus voice-activated DVD Navigation System includes Lexus voice-activated DVD Navigation System with backup camera and Bluetooth® technology, AM/FM radio and CD-changer with 13 speakers. Additional Option: - Preferred Accessory Package (includes Cargo net, Trunk mat and Wheel locks) 3: Lexus voice-activated DVD Navigation System with Additional Options $4,949.00 Lexus voice-activated DVD Navigation System includes Lexus voice-activated DVD Navigation System with backup camera and Bluetooth® technology, AM/FM radio and CD-changer with 13 speakers. Additional Options: - Luxury Package - Preferred Accessory Package (includes Cargo net, Trunk mat and Wheel locks) 4: Lexus voice-activated DVD Navigation System with Additional Options $5,044.00 Lexus voice-activated DVD Navigation System includes Lexus voice-activated DVD Navigation System with backup camera and Bluetooth® technology, AM/FM radio and CD-changer with 13 speakers. Additional Options: - Luxury Package - Preferred Accessory Package (includes Cargo net, Trunk mat and Wheel locks) - All-weather floor mats Does this mean I cannot buy the car with the luxury package without also getting navigation? Could you send me the MSRP for the following configurations if they are possible? IS 250 AWD IS 250 AWD with luxury package IS 250 AWD with nav and luxury Also I know you mentioned that they are currently in short supply. Do you have any idea when this will change. I do not need to purchase immediately and I would rather wait as I don’t relish the idea of paying MSRP just to be one of the first to get one. Thanks for any help you can offer. James Willis

Well restricting production actually means that the customer is not setting the market. Lexus can choose to sell a few at a high profit or a lot at a smaller profit. If demand is outstripping supply then Lexus are effectively following the first route. I hope at some point the "new" factor will wear off and they will have plenty of stock to sell. Most car dealerships produce more cars than they can sell and then sell the remainder off at the end of the model year. But I can certainly walk into most dealers and choose from 50+ cars of the model I want on the lot. Are you suggesting that Lexus is not going to do this? Are they trying to keep the numbers low or will the lots be full of them in 4 months?

I understand that, and it is in pretty short supply. But MSRP for this car is (in my opinion) not competitive. Of course while they get 2 cars a month they will be selling them without probem, but assuming they want to sell a lot of cars at some point I assume they want to try and pull in a German die-hard like me. I didn't even want to drive the Lexus, but my girlfriend liked it, and I have to admit it was nice, if not a little soft on handling. I like it but, and this is not intended as a flame, I don't like the sound of I drive a Lexus as much as I drive an Audi, BMW, Mercedes... I only keep my cars for 3-4 years/25k miles so reliability is not my number 1 concern. Again I am not trying to insult anyone, I was pleasantly impressed by the IS 250 AWD I drove and it certainly has a lot of toys. It definately thrust itself into the running.

This may be the case with Lexus, but in general you can buy an Audi, BMW, Mercedes Benz for at most $500 over invoice. I test drove a MB C class on Saturday, very first thing the sales guy said to me after the drive is that he'd give me any car for $500 over invoice. I am interested in the IS 250 AWD which I also drove on Saturday, but Lexus will lose my business if the price doesn't settle down closer to invoice within a few months.