What are you paying for 2020 Tacomas?

Not trying to discredit your still great deal either, lol.

 

I've had little/no real progress finding dealers willing to work with me. I keep getting dragged around dealership to dealership and they keep refusing to work something out.

 

So if you were to put a finite number on my deal, where would you put it in terms of percentage off MSRP as that is the standard we’ve been using? On all the Tacoma’s that you’ve had, do you usually trade them in? What do you usually get on trade? As far as actual value I feel like getting one stripped down with absolutely no options above the base price as real value. I know it does with me because I definitely don’t want any of that stuff and it’s almost impossible to find one without any of it.

 

wait a min... it has a LED package and MSRP was only $40k, I usually see them at $43k or $44k... maybe those has more accessories.

 

Nope LED's are a $485 option, you can get it on a bare bones TRD.

 

As you know it gets complicated when you talk trade, I've had so many but I can tell you I usually dont take more than a $2-3k loss and get close to KBB private party, plus the 10-13% off MSRP. When I negotiate I do it in pieces and then take the best bits from each dealer to compete against each other, so dealer A gave me this much on trade, can you match it, well dealer B is offering this much on the new truck, etc. So for my last deal I paid $37k for my 2019 TRD Sport fully loaded (sticker was $43.2k), I traded it with 6k miles for $35k on my 2020 (they sold it for $36.3k certified a week later), tax credit netted me no sales tax due and paid $279 in dealer fees and reg and new 2020 at $39.1k after only the $500 rebate with a ($44.8k MSRP), so just about 13%, this was prior to COVID in Feb, with few of my config available (LED, cement, TRD, tech / prem) in the region, so for me it was alot of work and back in forth between 3 then 2 dealers.
As far as your deal, I would say the fact you are getting close to $500 over KBB private party and $3000 over trade in you are making up for that loss and there isnt much left for them in the deal, the reason for only 9.7% off MSRP and a very low optioned truck, so not much profit padding for the dealer either when it comes to invoice. Given the situation I would see if you can't get closer to 12% off MSRP along with your current trade offer, but may take some more work on your part and as you mentioned its circumstantial based on where your located and the config. Should be attainable if you use the rebate since the dealer doesnt lose on that and is given back from Toyota, but the 0% maybe better for you too. Always a numbers game. For me chicagoland region had plenty of toyota dealers, same with when I lived in AZ.
Good luck!

 

This is all well and good until financing dries up, which is happening right now. The banks are starting to hemorrhage serious cash due to auto, house and credit card delinquencies. In turn, their lending standards are increasing dramatically. JP Morgan just raised their minimum FICO for a house loan to 720. That just shut out tens of millions of potential borrowers. "Back on the market" is a common theme for used houses now. Cash will, once again, be king. The easy money is going away. No more fog a mirror auto loans.

 

He didn't say it had Premium package, which is probably the highest cost one and where the price differential is.

 

One thing that's kind of annoying that some dealerships do is to limit their own discount as the Toyota incentive goes up, so the purchase price is essentially the same as before the Toyota incentive increase.

 

I don't think financing is drying up, especially with all of the money that the feds are injecting into the system. Banks are/will just be more selective who they lend too, as you have witnessed.

From what I understand, 720 is the minimum for tier 1 credit. If you're below that, especially in this market , maybe it's not a good time to take on an additional $30-40k debt.

 

Which means LESS DEMAND. What part of that did you miss?

 

The plants are closed, so there is also less supply. So dealers are willing to sit for a bit. When the plants do open, they can also regulate demand by building less Tacomas.

Also, dealerships love money and they get additional profits other than profit from the sale price when a buyer finances.

 

Just the breakdown of their offer. Most dealers won't give you a copy (see top where it said "internal use only"), so I take a pic as I'm "texting the wife" or "researching interest rates" and use that as leverage at the next dealer if needed. Seems like I'm buying a new vehicle every year of so...it usually ends up being from the 3rd or 4th dealership that I visit. This offer is from a Jeep dealer when my wife got a wild hair and wanted a wrangler for about 3 seconds. I used that as a starting point (mainly the trade-in value) and ended up getting a great deal on a 2020 VW Atlas Cross Sport for her, 2 dealerships later. She can't keep a car very long...at least she hasn't traded me in yet!

 

So picking up my new Taco in the morning didn’t get an extended warranty on the current one I own. They offered me one, no deductible, 8 years, 100 thousand miles for 1995. Wondering weather to do it or not. Hoping I could get them at least below 1600 but I don’t even know. I have had an 18 for two year 32000 miles and not one problem and havent heard really any complaints about them. I’d hope to make to to 100 grand and not have issues but I’d definitely hate to have something major die and not have it. Any thoughts?

 

Hey, there. I tend to agree with you. Toyota will manage supply and that will help with demand -- which will help prices stabilize. Not saying there won't be deals to be had but I think that is the most likely scenario.

If you look at what Toyota is doing it is clear they are making moves to prepare for that scenario now:

1) Cutting production -- ie managing demand:
https://www.nasdaq.com/articles/toy...world-markets-continue-coronavirus-slump-2020

2) The are preparing to weather the storm by getting access to massive amounts of cash:
https://www.nasdaq.com/articles/toy...-sumitomo-mitsui-mufg-bank-kyodo-2020-03-27-0

3) Keep in mind, they have a ton of cash on hand (granted, that is a slightly older article but I couldn't find the most recent one I was reading):
https://www.bloomberg.com/news/arti...36-6-billion-in-cash-after-dumping-securities

In general, of course we are heading for a massive auto loan financial crisis but I would say that applies to the broad market and not the niche area where trucks are still going to be strong. So it is entirely possible we will have two parallel markets -- one where auto loans blow up and banks are in trouble and one where a segment of the population can still buy and highly sought after products (such as Tacomas) stay reasonably stable and by reasonable stable I mean compared to, say, GM or Jeep. Here is the difference. Toyota nudged its cash back from 1,500 to 1,750. Jeep has some models offering 0% for 84 months (!), no payments for 90 days and a free hooker and bottle of scotch if you order by the end of the month, apparently.

In any case, I appreciate the respectful conversation ... I guess I should stop adding to it though ... so people can focus on deals ...

 

Yup, basically what I was thinking. We’re at the last stage of negotiations where I’m “running it by my wife who really doesn’t want me to do it” so I’m sure I’ll get a bit more.
I was actually telling her about it today. She said don’t you feel bad? I said would they have felt bad if I bit on the stupid ripoff initial offer that was 10k over this? Or when the gave me 5,500 trade for a 13k truck?

 

Haha, oh yeah, that one. Definitely works.

 

I’m finally throwing the towel... think ima join the wait and see what happens crowd . Feel like the deals out there now can be had later even if things turn around ..

 

This is so laughable it's almost hard to read. As if the people who buy Tacomas are somehow some special breed who are impervious to the current financial collapse. Seriously...