OP
OP
PaunchyPirate
Thinks s/he gets paid by the post
OP here. For better or worse, I've agreed to a deal with my local Toyota dealer for a 2021 Highlander Hybrid Platinum edition with several add-on accessories that I wanted.
It's clear the times are different for buying a vehicle right now due to the chip shortage. My dealer has virtually no new cars on the lot. I test drove a similar (but not Platinum) that was currently being leased by one of the sales people. The dealer was very firm in pricing and wouldn't budge. I'm not the best negotiator, but I'm usually able to get at least one round of back-and-forth to squeeze out another thousand or 2 from the numbers they offered. But the dealer made it clear the market is such that they aren't currently doing much of any negotiating.
Here are some metrics that some people who have been replying on this thread may be interested in.
My trade-in is a 2020 Ram 1500 Limited edition with a few add-ons. It's a high-end vehicle for that model.
Kelly Blue Book estimated value for my Ram (if purchased by a dealer as trade-in) was between $54,683 and $59,035 with $56,857 being the "target" spot in the middle.
Edmunds valuation came in at $54,334 as it's target spot.
Carvana's offer was only $47,152.
CarMax is too far away to easily get an offer right now.
The dealer offered me $53,000 for the Ram. So better than Carvana by a lot, but not up to KBB's low end. They would not budge on that, try as I may.
The Highlander I want is not currently on my dealer's lot and not currently in their expected "allocation" from Toyota. This means they have two routes they can pursue. First, they are trying to get one from another dealership. No other dealership in a reasonable area has the one I want on their lot currently. There are a few lower level models in the area, but very few Platinums and none with the feature set I'm looking for. However, a dealer in Philadelphia area (complete opposite side of the state) has one just like I want in it's September "allocation". This means Toyota has already allocated it to them and it should be built in August/September ready for delivery in September. My local dealership is now trying to negotiate a deal with the Philly dealership to get that allocation re-directed to NW PA for my purchase. But in order to get that, my dealer has to trade from their own allocation and it has to be something that the Philly dealer wants to have in their allocation. Otherwise, the Philly dealership doesn't have to agree to the reallocation. That is being worked on today. If that works out, I would get delivery of my new Highlander sometime in September. At this point in time, they could still re-direct the shipment directly to NW PA and not have to drive the vehicle from Philly.
If the 2 dealerships can't reach a trade of allocation, then my dealer will have to order it and get it into the next available allocation slot from Toyota. This will mean my delivery time would likely be in October or possibly November. Basically, they are currently running 2-3 months for this approach.
For the new Highlander, because of the chip shortage and demand they also were not willing to budge on anything lower than sticker price. Perhaps I'm just not convincing enough, but I couldn't get them to move. This dealer does include lifetime safety inspections and tire rotations and they threw in oil changes, routine maintenance, and roadside assistance for 4years/45,000 miles. But I'm guessing everyone gets that anyway just by asking for it.
I will receive any Toyota incentive that is in place at the time I take ownership. Right now, that would be $750 cash back. But that could go up or down or away.
Soooooo.... We are essentially doing an equal value trade. The good news is that this means I don't pay any sales tax. After they add in the usual registration and dealer fees, I will owe them $370. If the factory incentive is still $750 at the time of deal closing, they will owe me $380.
For better or worse, I'm happy. The price I paid for the Ram was more than $53,000 and it is fully paid for. I look at the difference as my cost of driving a vehicle for the last year. I get the new car I want without having to write a big check and may even get a few hundred dollars for gas money. Of course, my happiness is contingent on me actually getting the vehicle I want in the next 2-3 months.
It's clear the times are different for buying a vehicle right now due to the chip shortage. My dealer has virtually no new cars on the lot. I test drove a similar (but not Platinum) that was currently being leased by one of the sales people. The dealer was very firm in pricing and wouldn't budge. I'm not the best negotiator, but I'm usually able to get at least one round of back-and-forth to squeeze out another thousand or 2 from the numbers they offered. But the dealer made it clear the market is such that they aren't currently doing much of any negotiating.
Here are some metrics that some people who have been replying on this thread may be interested in.
My trade-in is a 2020 Ram 1500 Limited edition with a few add-ons. It's a high-end vehicle for that model.
Kelly Blue Book estimated value for my Ram (if purchased by a dealer as trade-in) was between $54,683 and $59,035 with $56,857 being the "target" spot in the middle.
Edmunds valuation came in at $54,334 as it's target spot.
Carvana's offer was only $47,152.
CarMax is too far away to easily get an offer right now.
The dealer offered me $53,000 for the Ram. So better than Carvana by a lot, but not up to KBB's low end. They would not budge on that, try as I may.
The Highlander I want is not currently on my dealer's lot and not currently in their expected "allocation" from Toyota. This means they have two routes they can pursue. First, they are trying to get one from another dealership. No other dealership in a reasonable area has the one I want on their lot currently. There are a few lower level models in the area, but very few Platinums and none with the feature set I'm looking for. However, a dealer in Philadelphia area (complete opposite side of the state) has one just like I want in it's September "allocation". This means Toyota has already allocated it to them and it should be built in August/September ready for delivery in September. My local dealership is now trying to negotiate a deal with the Philly dealership to get that allocation re-directed to NW PA for my purchase. But in order to get that, my dealer has to trade from their own allocation and it has to be something that the Philly dealer wants to have in their allocation. Otherwise, the Philly dealership doesn't have to agree to the reallocation. That is being worked on today. If that works out, I would get delivery of my new Highlander sometime in September. At this point in time, they could still re-direct the shipment directly to NW PA and not have to drive the vehicle from Philly.
If the 2 dealerships can't reach a trade of allocation, then my dealer will have to order it and get it into the next available allocation slot from Toyota. This will mean my delivery time would likely be in October or possibly November. Basically, they are currently running 2-3 months for this approach.
For the new Highlander, because of the chip shortage and demand they also were not willing to budge on anything lower than sticker price. Perhaps I'm just not convincing enough, but I couldn't get them to move. This dealer does include lifetime safety inspections and tire rotations and they threw in oil changes, routine maintenance, and roadside assistance for 4years/45,000 miles. But I'm guessing everyone gets that anyway just by asking for it.
I will receive any Toyota incentive that is in place at the time I take ownership. Right now, that would be $750 cash back. But that could go up or down or away.
Soooooo.... We are essentially doing an equal value trade. The good news is that this means I don't pay any sales tax. After they add in the usual registration and dealer fees, I will owe them $370. If the factory incentive is still $750 at the time of deal closing, they will owe me $380.
For better or worse, I'm happy. The price I paid for the Ram was more than $53,000 and it is fully paid for. I look at the difference as my cost of driving a vehicle for the last year. I get the new car I want without having to write a big check and may even get a few hundred dollars for gas money. Of course, my happiness is contingent on me actually getting the vehicle I want in the next 2-3 months.
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