dealership markups, what are they making?

Hey all,

I'm shopping for a 2020-2023 4x4 long bed and there aren't many around. lots of DCSB.

The range seems to be
$35-40k for TRDOR low miles (<30k) Gold Certified
$33-35k for SR5 low miles Gold Certified
$30-33k for higher mileage (40-60k) Gold Certified
$27-30k for similar specs from private sellers with 50-90k miles

The last dealer I visited offered to 'waive $150 off the doc fee' for a truck that's been sitting since October 1st. The guy also said 'last day of the month is a great day to make a deal' when I walked in. lol

2022 SR5 DCLB 4x4 with 21k miles, floor mats, and bed light. Asking $34,500. $150 off is a joke, I've never been presented with a smaller % discount on anything, I'd have preferred to be told 'no'. I really wanted it, but I said I would sleep on it.

Do I really have no chance at getting a good deal? Has anyone negotiated for a CPO 3rd gen? With how reliable these trucks are, do I even need Gold CPO? Should I just assume asking price is always firm at Toyota dealerships?

 

You’ll never know what a dealer is making on a used car unless they show you their internal cost screen. Even then, 99% of dealerships “pack” their used and new inventory. Basically adding additional cost to the vehicle to pay for overhead costs, but really it’s a way to screw the sales staff, and keep money in the owners/GM pocket

example:
Take a 2022 Tacoma TRD OR on trade for $34,500.
Add $1,200 for pack before it goes into shop.
Safety inspection including LOF $250
Detail $200
Crappy tires $800 (note service makes money off of sales on this transaction)
Wiper blades $40
Add nitrogen to tires or insert crappy pre-load for $299 (dealer cost less than $30)
Now they are in it just over $37,000 when all they really did was put $600 tires on it. Goes on the lot for $38,991, sell it for that and sales guy makes 25% if he’s lucky, puts around $450 in his pocket but should really be making commissionable gross from $35,700 or roughly $800.

 

do you want a 3rd gen tacoma or a bargin?
you can only have one

 

So you're saying they are paying $35100 ($34500 + $600 tires), but calling it $37000, and selling for only $1900 profit?

This makes me feel like there really actually isn't much wiggle room. I guess I'm expecting too much from them. Even if you look at true cost and remove the BS, they have $4000ish to play with. $150 discount is still insulting. Just say no discount.

 

I don't believe in buying used just because it's "gold certified" or "my grandma approved". Have s serious look at any possibilities. Narrow choices to only ones that fit all your wants. Make notes. Suggest left side of paper for good points and right for bad. Look at least 3-5 serious possibilities. Narrow it down to 1 and take a long test drive over various distances and road conditions. If it seems like a yes then ask to take it to an independent shop for a thorough inspection. If they refuse then walk. Make an offer 10% less than asking. Be prepared to walk if price is not right. Don't get suckered into things like long term warranty, paint protection and undercoating from dealer. Have all agreements and conditions written and initialed on contract. Always worked for me when I bought used. Good luck.

 

The dealers for the most part advertise their best price on used vehicles. People used to shop for vehicles by visiting the dealerships within driving distance. People may still do that, but all the dealerships list their used vehicles for sale on their websites. They list the best price because you can find a similar vehicle with the click of your mouse. The local to you dealerships now have the internet to compete with. New vehicles are different due to some dealerships selling high volume, and getting more cash back from the factory. Dealerships get incentives from the factory, and also receive a "hold back." The holdback is a percentage of either the manufacturer's suggested retail price (MSRP) or invoice price of a new vehicle that the manufacturer repays to the dealer.

 

$150 off the doc fee; I would jump all over that deal!

But seriously, what they are making on the deal is kind of irrelevant to you is it not?

 

Well, there goes their argument that doc fees aren't negotiable, they're just something they have to do.

 

OP......You said you are in the PNW, this one is in the Seattle area and just posted. Unreal low price really , especially with only 29k miles. Guy could get thousands more.
https://seattle.craigslist.org/see/cto/d/seattle-2020-toyota-tacoma-double-cab/7823248069.html

Joe

 

I would strongly disagree with the assertion that an advertised dealer price for a used or new vehicle is their “best price.”

 

it's a really good price, but it's a double cab short bed. OP is looking for a double cab long bed.

 

Pull the trigger man. It is what it is.

 

Just made up numbers. I’m telling you how any given dealership more than likely operates and why they have hundreds, not thousands to work with on advertised prices.
Dealers also work on a 60/90/120 day floor plan depending on dealer. If it’s not sold in that time it goes bye bye. Usually dealers will drop price to what they can get at auction within the final 7-14 days.

 

I don't care much about what they are making. I realize that people that work there need to get paid, and are offering a service. I just don't want to ask them to discount it $1500 if it's not going to happen. Though after realizing the truck has been there for months, and working as a merchant myself, I'm thinking they should sell it even if its break even before they have it for 1/2 a year.

 

most times it makes more sense to buy new vs the $5k you may be saving & have a boat load of miles & lots of un-knowns associated with it...
My post isn't to start the 3rd vs 4th debacle.....
but theres more wiggle room in the new ones vs used, & lower interest rates associated with new cars compared to used...
Different story if youre looking at a 10 year old truck....

 

The days of bargaining with your dealer are largely behind us. In my experience the most you’ll get is a few hundred off.

I have found that online prices will sometimes be better than the sticker price of the same vehicle on the lot.

You’ll be lucky if you don’t have to beat them up over the BS dealer add-ons that nobody wants but add another $3k to the price.

 

I say make an offer for what you like and if you can't get the deal you want then walk.
Cars and everything else are the same. There's always more to be had.
Just do what you need and want and don't let forums decide for you.

 

If it's taxable its negotiable! Of course doc fees can be negotiated!

 

So you want to know if dealers can and will discount vehicles from advertised pricing? That all depends on the dealer. But I can tell you a story from last weekend. I was looking at an Avalon that a dealer had just traded in and listed on their website. It was listed at $16k which worked up to $18,100 range out the door. I drove the car and sat there thinking and then asked the salesperson if he could do any better on the price. He acted like maybe a couple hundred bucks but of course the normal gotta go talk to the sales manager thing. Well he came back and had a new sheet (manager came back with him) with the car totaling out at just over 17k. I hemmed and hauled around and didn't commit and they asked what I would pay but never gave then a number and said I needed to think about it for a couple days. I hadn't left the dealership 10 minutes before I got a new sheet txt to me with a new total just below $15K including all their taxes, fees. I didnt bother going back to get the car but would have probably bought it if they had been quicker with those last numbers

 

You mentioned you are located in PNW in other thread. This is the reality. Deal with it.

..and if you missed today's news.. you better get on