Why are people paying mark-up for a toyota?

Paid $31,200 OTD for my '16 AC TRD Sport 6spd. I think I got an exceptional price and was below MSRP by quite a bit.

 

Then your time is valuable, just like the rest of us good for you!

 

Agreed my time is valuable like I mentioned in my first post here. I'd rather not give a month of my time to a dealership when they could care less and are only trying to make their numbers look good. There is nothing wrong with a little up front negotiation regarding trade in and what not. They are obviously going to low ball at first. That's how they are, but I will not spend weeks and months. That doesn't make sense. Have a good day sir

 

People pay mark up because they want the truck NOW and are ready willing and able to pay full boat for it. Payment shoppers. Simple. Cash buyers like to hold on to their money and will negotiate longer to save a couple grand. At least thats how I operate.

Dealers get few vehicles over years that has the high demand the 2016 Tacoma has. People are ordering trucks and passing on those on the lots. No incentive for the dealer to discount an order when they have trucks they need to move.

In certain high population areas where there are millions of people and maybe only eight dealerships or so, people are willingly paying MSRP and more because the dealer knows they will sell every truck that comes in within days, Some dealers may make a few calls and do a little price fixing!

I paid exactly $500 over Invoice, (including all fees) Although I believe the Invoice numbers we have does not reflect the actual dealer cost for the vehicle and they still made 6% or more on the sale. Plus the 2% hold back.

I am a long time customer of my only local Toyota dealership. I bought three out of four vehicles from them So they know I will travel to get a deal and I have and had ALL my service done there. I had an at invoice offer from a dealer out of town so my dealer could have said go there and buy your truck but they didn't and are selling every TRD they get. My dealer doe not see me only when I have an issue. They see I pay for services I can do in my garage. But its a small cost to pay for goodwill and helps when buying a hot vehicle. We do the same with the CRV, and Mazda.

Bottomline, like homes, these trucks sell based on local comps which in some areas is MSRP. period. and others..... MSRP +++

People don't realize how a $2500 discount on the buy side really helps the private sale side when ready to replace or upgrade to a newer model. On the contrary people who pay more than MSRP have $2000 less equity although both vehicles will book out the same . That savings in the front end pays dividends on the back end.

Personally I would not have paid MSRP for my truck. I would rather have waited. The savings at the front end of any deal pays off for those of us who might step into a new one (or another brand) in a few years,

 

$500 over invoice means nothing to me. Invoices are a fabrication. Why isn't discounting off the Monroney sticker MSRP the standard used for these discussions? I realize that sticker is a USA mandate.

 

If anything msrp is fabricated. Plus then you get accessories, addendums, and the market adjustment

 

Well, the Monroney sticker is a standard list of stuff, and the retail price. It can't be altered legally in the US. Yes, it is fabricated by automaker marketing before product launch with built-in profit for the dealer channel.

 

Couldn't disagree more...

I NEVER negotiate down from MSRP. Much harder game to play and in the dealer's favor.

I Always go from below Invoice up. The invoice is real but does not reflect the ACTUAL cost of the vehicle like it did in the mid nineties.

That is why making an offer below Invoice is a good place to start. The invoice price STILL gives the dealer 6% -8% gross profit, So why not just offer a few dollars over Invoice? Most People who are negotiating from MSRP down will pay too much.

(BTW Addendum additions are included in the dealers MSRP price on the buyers order. 'THAT ALONE should make people start under invoice and go up. Dealers would LOVE for people to negotiate from MSRP down. Especially because MSRP does not include whopping Doc Fees and other "fees" they add in F&I

So they take $1000 off MSRP and the buyers jump for joy. Then they get to F&I and see an additional "Doc Fee" of up to $900 more in some states, which further eats into the discounted MSRP. making for a crappy deal .....

An Invoice up buyer would get a deeper discount. More like $2500. Because they are already adding in the Doc Fee in their offer below the makeshift invoice. If the dealer refuses what you already decided to pay before walking in......walk out, or pay the premium.

 

Yeah but invoice is always the best place to start. There is dealer cash and other incentives from invoice that have nothing to do with the sticker. I've worked in the automotive industry for 11 years, you don't have to take my word for it

 

Just another Troll stirring the "I woudn't pay what you pay" shitpot! 1st post in 3rd gen and doesn't own one. Add another one to the ignore list.

 

^ lol yup. IBTL!

 

I NEED HELP.

Ok guys, a lot of different opinions here. Im about to walk for the first time in my life into a dealership to get a new TRD Sport, I never bought a new car before.

What are the steps to NOT get screw over by a dealer?

My plan is to put 7k down and finance the rest in 60mo with a fair credit.

The 1st post its already a help, whatelse do I need to know?

 

Thanks...I will keep this in mind when buying my Taco

 

You're still considering buy ing a Tacoma even thou you think theres a lot of problems with it?

 

What ever you do dont appear to be desperate for the truck. From the moment you step on the dealership lot you are being sized up. Also I would advise that you shop around and use the internet for prices people are paying for that truck in your area. That is just a few tips. Some people on this thread have brought up some other good points as well.

 

Will wait fro them to iron out the problems. Not interested in paying over 40,000 to be an experiment.

 

Where you live plays a big part in how much you're going to pay. Here in The San Francisco Bay Area where an average 60 year old 3/2 house is over a million dollars, people have been paying MSRP for the trucks. The dealers know it, and will happily hold on to the truck and let you walk, because the next guy coming in will buy it.

No matter how much they make even $500 over invoice, they won't do it. They don't have to.

Sure I can look elsewhere and get a truck shipped, but I prefer to drive and look at the truck I buy it before I sign the papers. There's also the big thing of TIME. Most of us don't have that luxury.

Do I feel bad about paying $700 under MSRP, when folks in the East Coast are paying $2000 less than me? Not really, I am happy for them that they are able to get that kind of a deal.

 

Jeb Bush said last night on the debate that 65 percent of people in the US cant make a minumum $500.00 monthly car payment. YIKES. That is sort of hard to believe.

 

I believe it. $500 car payment seems very high.

 

When I bought my first truck in 1980 4x4 Tacomas were selling for over invoice. I called a dealer about several he had on his lot. I asked what he would discount off sticker and he said nothing so I said OK sticker is the price and he said no add $500. Back then we were talking about a truck that stickered at maybe $10k.