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Discussion Starter #1
From observation, it appears to me most of you who are overly willing/eager to pay msrp for the car are of the younger age group; those who completely buy-in the (premature, dare I say) assumption or salemen's claim that everyone will fight for the car. The older age group in general take a more wait-and-see approach.
Not to disrespect the younger age group in general, but I have seen too many kids getting "jilt" by car salemen because they are gullible and inexperience in negotiation.
What I like to do here is to determine our willingness to pay msrp by age group. The purpose? Well, for example if only the 20 - 25 age group (which represent very small % of the target audience) are willing to pay msrp and most of the older age groups (represent majority of target audience) will only buy the car at below msrp, then we may have greater leverage to negotiate because dealers will have to sell most of their IS at below msrp, right?

Here the format:
Age group?
20-24
25-29
30-34
35-39
40-44
45+

Willingness to buy at msrp?
A. Willing, cus I got $ coming out of my Wazoo.
B. Willing, but only I have exhausted all negotiation efforts.
C. Maybe, but will consider other cars.
D. Will only buy at below msrp, at __ %
over invoice. Go w/ another car otherwise.
E. Other_______

Hopefully I can get enough responses (especially from the older age group) to form a sufficient sample.

Here's my demographic:
Age group: 25-29
Willingness: D, 5% above invoice, will buy the S4 otherwise.
 

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I will try my best to get it under MSRP. Because I already told a BMW dealer that "I might be back". I'll see how the payments are first before I make my decision. If I can swing financing it, I may do that too...but not likely. But like I said before, if the dealer isn't selling it under MSRP, and I can still afford the car, I'm not going to throw a fit over it.
 

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I am 25 years old
Choice C:
I will have to test drive the car and see from there. The only other car I may consider is a BMW 328 if I can get a good deal because of the new 330.
 

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29

B

I would like to have it under MSRP, but I'm cool with MSRP. Not OVER, though. My only other consideration is a BMW 328/330, but it will be over 40k if I want all the options similar to the IS300. MSRP is still a good price for me.
 

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Age 35 (old for this forum)

C - may consider car at MSRP but will look at other vehicles.

I have already checked out BMW 328i, Acura 3.2 CL-s, Audi A6 2.7t, MB CLK 320 and GS300.

May need to look at Audi S4 although shape is getting old. GS400/300 should have been my first choice except I never liked the shape.

My budget for my next car is fairly flexible but I need to feel I'm getting value for money. I intend to lease so all I care about is monthly cost versus amount of car.
 

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Benster, ditto your response. Right on the money! I'm 29.
 

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Me too pelucidor. I plan on leasing and I'm more concerned with monthly payments. I can afford to pay more a month than I could when I first got my Jetta last year. But I can afford to be flexible also. And oh yeah, I'm 22.
 

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Discussion Starter #8
Kim, I go thru a different decision-making process than yours. I can swing the $, but what's important to me is whether the price is fair or justified. I am too hard-headed to allow those greedy salemen to take the upper hand. I'd rather get another car instead before I let that happen. As I once mentioned before, I had gotten the S2000 already if it wasn't priced unreasonably by the dealers. I'll wait until end of Aug to try to get the price I am willing to pay, then I'll shift my target to the S4 instead.
To me, my decision is not based on whether I can afford or not, its based on whether if I get the value / bang for the buck.
 

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I am 23 years old and Im willing to pays MSRP because that is the price set for the car, Ill try to talk the price down but if I cant oh well, if I really want the car. One thing that you people seem to forget is that salespeople make their living from selling you cars. Its not like car salesmen are a big affluent group of people. I dont understand when it comes to Cars and Electronics people refuse to pay the price on the sticker. These companies are out to stay in business not to give their product out to the public for a little over what it costs them to make. These salesmen have bills to pay and families to provide for, what makes the end consumer so special that they shouldnt have to pay sticker price. Maybe because I spent a great deal of time in sales(not selling cars) that I have a sore spot for people that feel that it is their right to bargain down a price, that they shouldnt pay sticker price. When you go to buy shoes, clothes or food do you try to bargain down the price, probably not but that stuff is probably marked up more than anything. I have more to say but Ill cut it there. I just think the mentality that it is acceptable to bargain a price down simply becaus of what it is, is wrong.
 

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Good point Quez. I never tried to bargain down food at the grocery store. I go to The Wiz for electronics sometimes, and I've never bargained with the salespeople. I just looked for things on sale or things that I felt was worth the money. But I guess it's some people's nature to try to get the lowest price possible no matter what it is they're buying.
 

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Discussion Starter #11
Quez, I agree w/ you completely but one thing. The MSRP price was set to be negotiated, much like most large purchase items (i.e. house, boat etc.). If it wasn't, I don't think the MSRP would be set so high above the invoice. If they can present me a reasonable and honest price, believe me I like to save myself the hassle of haggling.
The dealers and their salemen are in the business to make $, I understand and respect that. But at the same time, I have to look after my own interest. I don't believe I intent to demonize car salemen. Thru out, I have use the term "negotiate" to get the price I am willing to pay, I didn't say I will bash the salemen's head until they agree to my price.
 

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Thats a respectable answer. I kept my job at the Wiz, which is an electronics store, (KIM I work at the one in Paramus, garden state plaza, stop in and say HI)for like three days a week. You wouldnt believe the nerve of some of these customers, wanting you to go below cost and give things for free, and they get mad when you cant do it. I just thought you were one of those types, and since Ive always wanted to go off like that on one of them Ive never been able to, not good customer service. So I figured Id take advantage of the situation. But I would like people to think about that the next time they go shopping for something.
 

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Discussion Starter #13
Quez and Kim, don't make a fool out of yourself by making poor analogy w/ food and cloths. Ask yourself if it is economically significant to talkdown 50 cents from grocery or few dollars from clothes. Then ask youself if you would post the lowest acceptable price if you were to sell your car or house. Lastly, humor me by naming a (non-customized) commercial product that has a margin of over 1500 and price not subject to negotiation. Grow up!
 

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D
$1000 over invoice

if not possible, will go for CL-S for $1000 over invoice, if still not possible, will keep current car.
 

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Benster, the POINT is bargaining down a set price NO MATTER what the item is. If a dealer is selling a car at MSRP and is NOT selling it for less, for whatever reason, then that's the price. Take it or leave it. Just like with anything else. Like Quez said, lots of things we buy are marked up from what the dealer or store or whatever paid for it. THAT IS HOW THEY MAKE THEIR MONEY. Quez is saying what's the difference if you go into a store and want to purchase a stereo or a jacket, or FOOD, or WHATEVER. How often do you negotiate price for those items? You look on the sticker or tag and that's the price, take it or leave it. I don't understand either why some people think they have to have everything BELOW sticker price. By all means, negotiate if you want, and the dealer may or may not give it to you for what you ask for. But if a dealer wants to sell a car at MSRP, I don't see anything wrong with it. If I don't like the price....see ya!
 

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Benster, I know you don't mean to disrespect the younger crowd, but when it comes down to it, it depends on the person buying. I have bought 1 new car and helped 3 others buy new cars. All of them paid invoice or less, which includes paying invoice for their options. It just depends on whether you do your homework before going to the dealer and knowing the demand. I am 26, and will go with option C. I want the car and will negotiate the best price i can, but if its msrp then i will have to live with it. I'll call around and see and be aware of the deals around, but if you really want it you'll have to pay the asking price. Remember they don't discount MBZ's, Bimmers that much either, unlike Toyota's, Ford's, Acura's etc.
 

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Whoa, Kim good lookin out.

From my calculations the mark up on this car is about 13.14% which is not that high of a mark up. A cig lighter adapter for your sell phone that you buy for 19.99, costs the store 5.50 thats a mark up of over 72% and belive me the mark up on clothes and shoes is well above the 13% mark up on this lexus. As for your point about buying a house, it isnt even in the same ball park as buying a car because there are so many intangible fators affecting the cost of a home and thus it is easily negotiable. Im sure if you were planning to sell your house you wouldnt calculate the cost it took to build the house, figure out a fair percentage to mark it up and thus set price. No you take proprty value of the area the house is in into consideration which is affected by so many factors that have no set dollar value, such as location to schools, education value of area, location to transportation and shopping, etc. There I think is your main different. I dont think There is any need to grow up, I think I have a good grip on reality.
as for attempting to give you an example of something marked up over 1500 that is non negotiable, im sure it may not exist because Im sure you will always be able to find someone willing to discount, but the one thing that I can think of that comes to mind would be some medical procedures. Very expensive I would like you to bargain with a doctor.
 

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As a future physician I will agree with you there Quez.. You never see signs advertising sales on Triple Bypass surgery, nor do you see patients bargining the prices down with their physicians....
Eric....
 

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Hey Benster - do you work for a marketing
company or something?

35-39
D: 10% over invoice max
If no dealers bite soon then maybe I go
buy a BMW instead...
 

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I don't believe the hogwash I am reading in here. Let's go over some elementary economics. Shall we?
1. <$ products = >% margins
2. >$ products = <% margins
Have some of you heard of this concept? We're not in Playa Del Carmen or Puerto Rico or the flea market, guys. Come on, the grocery store is the grocery store and the Wiz is the Wiz. You like the price, buy it. You don't like the price, don't buy it. But if anyone feels good about giving Lexus north of 20% for their margins go for it. You are simply wasting money...UNLESS you have fallen in love with this car and have to own it.
 
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