Paying Cash in hand - Under Invoice?

I just bought a new Prius with package #5 and I find that your $2000-2200 price range is not very reasonable.

MSRP on this vehicle is $26075 without floor mats (usually required) while the invoice is $23991. And the invoice pricing does NOT include any dealer profit.

With the current price of gas, the Prius is going to command even higher prices than usual invoice plus a few hundred dollars profit.

You need to re-evaluate your pricing options.

 

Cash deal or credit deal when purchasing a vehicle will result the same outcome. Trying to squeze the dealer to take a lost and sell you a car, that's impossible.

In additional, paying cash to purchase car also brought you some attention too. There are many reports that terrorists member purchase automobile with cash and use it for terrorist activities. Also carry this much cash around your area will not be safe.

Anyway, good luck with your hunt.

 

<div class='quotetop'>QUOTE(whitespider @ May 15 2007, 11:33 AM) [snapback]442433[/snapback]</div>

Just figuring the 5% over invoice brings the car to about $25,200, well over your estimate. I'm sure you may be able to cut that slightly, but you will certainly not be in the $20,000-22,000 ballpark.

 

<div class='quotetop'>QUOTE(chinalfr2 @ May 15 2007, 11:36 AM) [snapback]442438[/snapback]</div>

This is not correct. I gave my dealer a written offer for $20790 for package#2 and he bettered it by $50 (plus had less dealer fees). That is more than $1300 below invoice. The dealerships are competing to reach the highest volume of sales per month. They WILL take a loss per vehicle even if they end up making $$$ in the end.

 

<div class='quotetop'>QUOTE(ystasino @ May 15 2007, 12:18 PM) [snapback]442459[/snapback]</div>

The dealers also make money on financing. They make a little here and a little there. By paying cash, you actually cut their profit.

While I think they will be happy that you Qualify to buy a car, they won't care if it is cash.

 

<div class='quotetop'>QUOTE(priusmaybe @ May 15 2007, 01:27 PM) [snapback]442523[/snapback]</div>

Dealers make a profit on the loan. If I were paying cash, I would keep the fact quiet until after the price was negotiated.

~S

 

paying cash or writing a check usually doesn't give you any extra negotiating power. You're young and will be taken advantage of, I'm serious. I sell cars (toyotas). I'm also 22, and know how hard it is to get financed. Do you have any vehicle to trade with the dealership? If so, you may reach your goal if it's worth enough. Otherwise, I'm afraid you may have to find more money, or finance the difference. The promotion you heard about/saw on TV isn't because Toyota's trying to sell off all the Prii, but rather because they are now widely available without waiting lists. There are no rebates on package 5 at the moment, either. There is, however, a 300 dollar dealer holdback in addition to the MSRP discount.

I hope that helps.

 

<div class='quotetop'>QUOTE(whitespider @ May 15 2007, 10:07 AM) [snapback]442414[/snapback]</div>

No they're not. These cars are selling better than ever. Stop believing what the media and Prius bashers are telling you.

 

A year and a half ago, I paid cash for my 06, PKG 6 and got no special deal. It was sticker + $500 added dealer convenience (profit) package. Maybe times have changed, but it didn't help me one bit, except saving the interest payments to have the cash.

 

I just purchased my 07 Touring Edition Prius with Package # 3 with mats, first aid kit and cargo net for 24800.00 out the door. I was going back and forth with 2 different dealerships and neither will go below the invoice price. I finally purchased it from the dealer that offer $200 less then the other. Honestly with the rise in gas prices these prius's are selling and dealers know this so I don't think your gonna get one at that price. Also, I have been seeing alot more new prius's driving around here in the Seattle area. Good luck to you.


Wayne

 

The dealer gets his money quickly enough with financing that they don't really care whether you finance or pay in full. Even if they didn't make a few bucks on the loan origination, they don't care. Certainly the salesman doesn't care.

And, chinalfr2, when he said "cash," he didn't say "a big bag full of money." The term "cash" can also mean "payment in full at once."

Maybe everyone in Boston is as loopy as the Keystone Kops?

 

I just picked up my new Touring (07) package 6. I had initially ordered the magnetic gray but the dealer got the wrong car. Long story short I got the red (and actually find that I like it more than the gray).

I had negotiated price for over a month. I used Edmunds and Cars Direct to get online quotes and they showed quite a range, most just under MSRP and a couple closer to invoice. I obviously played them against each other and also looked for dealers further a field (being in the Chicago area, there are a lot of dealers).

The final price I got was $25,600 (pre tax , trade in, doc fees, title e.t.c). I received 2 other quotes for $150.00 less than what I paid, but the dealer I bought from was closer to my home and had been very honest and upfront in the negotiations.

The advice I would give is:

While the Prius is in demand but it is possible to close to invoice – so try to go low, but be prepared to settle above the numbers you are looking at.

I paid cash (wrote a check) – this had no positive bargaining power. In fact the finance guy was fishing to see if I wanted to pay via loan offering discounts on the extended warranty.

I found the Consumer Reports car facts to be very helpful and well worth the $14 or so dollars I spent. It gave me information that Edmunds did not (e.g. invoice price on the package) and allowed me to quote those numbers to the dealers during negotiation. I knew exactly what profit the dealer was making.

Good luck.

 

<div class='quotetop'>QUOTE(whitespider @ May 15 2007, 11:07 AM) [snapback]442414[/snapback]</div>

First, the dealer doesn't care if you pay cash or finance, he gets his money either way. In fact, he would make more money off the back-end if you finance with him because he has the opportunity to rip you off with an artifically high interest rate, over-priced extended warranty or maintenance pkgs.

Second, Invoice for that Model and Pkg is about $24,400. That's about $2500 below MSRP. Dealer might be willing to go a very hundred below Invoice. Why would he consider going several thousand dollars below his cost, which is what your offer would be.

Last couple of months have been slow with this car and dealer inventories have increased. Now is the time to get a good deal on a great car, but I think your offer is not gonna fly with anyone.

All too often it seems folks on this forum mistake or misuse the term Invoice, to mean MSRP or "Sticker" price. Invoice is basically what it cost the dealer to buy from Toyota, MSRP is the MFR. window sticker price. Sometimes dealer will attached yet another sticker with all their money making add-ons.

Buying below Invoice means below dealer cost. Not below Sticker or MSRP......which should always be a given IMHO

If one is willing to pay over sticker, one wants it too badly, and one is getting ripped.

 

My $20740 was with no obligation for financing or extended warranty, or service contract, or anything like that.

So the dealer LOST $1350 on the vehicle but probably earned $ from Toyota on number of cars sold.

The dealer definitely earns by selling so many vehicles at MSRP price from uninformed customers.

 

<div class='quotetop'>QUOTE(priusmaybe @ May 15 2007, 12:27 PM) [snapback]442523[/snapback]</div>

I very much admire you being so young that you saved so much money on Prius. I hope you get a good deal. Don't forget to calculate the tax, title and lisence fees. That adds up another $1500 or more. I personally recommend you go into the dealership with somebody who is male in their 40, 50s.

I just bought my Prii (hasn't delivered yet). I am paying by cash but I tried not to mention about it during the negotiation. I pretended that I was financing from them and then, price dropped to $300 below invoice. They make money on financing. So I agree with Priusmaybe.

Toyota increased the Prius production that's why you see more cars on the lot. That car is still selling very well. Right after I signed for the car, someone else also bought the Prius.

If you want to do the real homework, I recommend this website:
http://www.carbuyingtips.com/carintro.html

 

Muy wife sells hybrids at a Toyota dealer. Ultimately, the "dealer" will usually make money on the car, regardless if you get it for invoice, under invoice, or at a markup. The salesperson however will make diddly on an invoice ornunder invoice sale as they usually only get a small percentage of the amount over invoice you pay at most dealers. So basically by paying invoice you may be getting a good deal but if you beat up the salesperson they will spend a lot of time trying to please you and get basically nothing in return. It is a tough job. Sure they are also rewarded on the number of units sold but they always have to make a high quota usually just out of reach to make it worth their while.

The finance guys usually make money off the financing plans and extended warranties. If there are a lot of cash sales in an area it is tough to keep a good finance loan person as they can't earn a living. The dealer again is first in the food chain in regards to back end commissions and spiffs from the finance companies.

 

Visit the site Carrie directed you to. E-mail, fax or call the Internet Sales Managers. At least take a friend with you to play devil's advocate. You will be emotional because you want the car. Your friend is a disinterested party and so can be "the voice of reason". Buying a car is a deadly serious game. The people at the dealership are pros. You are an amateur. Guess who wins? You do hold a trump card. If you don't like something, threaten to walk. If it can't be negotiated to your satisfaction, walk. Happy hunting and welcome to the site.