Why are people paying mark-up for a toyota?

Go online and request a quote via internet sales. Or go through one of the main outlets such as SamsClub/Costco to try to get a discount. At this point you may not get much off MSRP. Wait until Sept and it may be better.

 

So OP how many current 3rd gen owners paid MSRP or over? ...I'll wait...

 

Jeb Bush said....ok....I'm out

 

Set YOUR price in stone. Don't ever use payments to determine what you can afford. Buy the truck not the payments, Find the invoice or your set up (attached price list) and know what their "Doc Fees" are before making an offer. Then work up from invoice until you hit your price or the dealer blows you out. Unless you are in dire straits and have nothing to drive I would seek high and low for your price. I know its easy for us retired guys to put the time and effort in to get deal. But you should make time to determine what the truck is worth to you,

Realize the Invoice numbers attached still leaves 6% profit for the dealer. So asking to purchase at Invoice today is fine. The dealer is still making money. I never forgot what my Honda dealer said when we leased our SUV. "We could sell at Invoice all day long and make money" Its no wonder since the spread between Invoice and MSRP has HALVED since 1995. TrueCar is no longer the deal they were years ago, I won't use them. as long as I can find an Invoice price I can construct my own deal. I can and will walk to save a thousand or three.

All my accessory adds cost me $1500. That's STILL about $1000 less than MSRP of the total cost.

 

I would say well more than half.

 

OP, why would anyone ever buy new? That's the real question. You're talking about saving hundreds when you could save thousands. Or a couple thousand where you could save ten.

Buying new is financial stupidity.

 

Unfortunately as I mentioned, your formula would work in some parts of the country but not all. Dealers around me are perfectly happy selling them at MSRP, and no amount of haggling will change that.

 

MSRP is just what it says...MANUFACTURERS "suggested " RETAIL PRICE.
There is little magic about the price in negotiating other then having a bearing on the taxes you pay on the vehicle.

 

I somewhat disagree. First post for me so be nice. I am in the process of trading in my 2011 TRD Sport DCSB for a ordered 2016 black TRD Sport DCSB and they are giving me 24,000 for trade in. I have had it for almost 6 years and will get 5,000 less than I paid. On most American cars that drop in value like crazy that makes sense though. I realize Tacoma's have one of the highest resale values in the industry. Super excited.

 

That means little with all due respect.. Dealers have a neat way of giving you a great trade in on a vehicle with an inflated price. Negotiate difference, not the trade in value without respect to the asking price. Negotiate cash price first then bring th trade in value in. You will get a better idea what they are actually giving you for your truck. Will it then be $24k ?

 

Because ...

 

I did

 

Uh- don't pay a market adjusted price or MSRP for a Benz or Lexus either.

 

Generally speaking, you're right about this when it comes to buying a car; however, buying a used Tacoma is not so easy, especially when you're looking for a particular model like the TRD Sport or Off-Road. People hold on to these trucks and most folks don't want a 10+ year old truck. There's a reason why these trucks have such a high resale value.

 

And the difference was ?

 

There are lots of reasons to buy new. The most important one is
I WANT A NEW TRUCK AND I CAN AFFORD IT. And, no other reason is necessary.

 

Yea just last week I was at a Ford dealership used trucks. I saw a deck out 2013 Ford 150 4x4 dbl cab all the upgrades with 46,000 miles on it for 29,900.00 I also saw a 2011 Tacoma 4x2 dbl cab SR5 with upgrades with 48,000 miles on it for 29,000.00. You are right these TACOs hold their value

 

I got 1800 of MSRP. About 500 over invoice. With the trade in I brought blue book printouts. They did try and lowball me at first. I told them I was going to go home and think about and then they budged.

 

Generally speaking, it's tough to determine what the trade in value comes from for some dealers. We tried to trade two Toyotas, on year apart. One, a 2005 RAV, which brought much more money then a 2004 4Runner in excellent shape and fewer miles. Why ? Because in our area, regardless of the book values, the RAVs sold so much faster then 4Runners in general and the book values are thrown out the window. So, we traded the RAV and sold the 4Runner privately. Everyone was happy.

 

Agreed. I used to get a NEW Tacoma every 2 years, but in my old age I'm slowing down a bit. I got $27,000 for my 2012 TRD Sport DCSB and $2800 off MSRP on my new one. For me it was a decent deal and I could afford it. As a Paramedic I know how precious life can be. I'm gonna enjoy it while I can.