How much do you think they make? - Page 2 - Toyota Yaris Forums

Chaad32 · 07-24-2006, 08:13 PM

I thought they paid to have them shipped....(destination cost). I didn't know that was profit?

costaricandreams · 07-25-2006, 07:16 PM

Destination charges are not profit for the dealer. Hell. The thing came over from Japan. It's the documentation fees that they make some $$$ with.

captainzerocool · 07-27-2006, 01:48 AM

The local Toyota dealer here in Huntsville, Al has their very own $399 processing fee and $1000 prep fee.

This is on TOP of the MSRP!

Chaad32 · 07-27-2006, 06:59 PM

wow...mine had a $179 fee for processing

Chaad32 · 07-27-2006, 07:00 PM

no prep fee

TRD_Yaris · 07-28-2006, 04:31 AM

again. kick them in the nutz. Ask again. repeat as necessary until you get ATLEAST MSRP or less...

seriousfun · 07-28-2006, 01:00 PM

My brother sells Toyotas for a living, a few hundred miles away from where I live.

He told me to buy it down here! He showed me just how much the dealer paid, and how much he would make on this one car. I didn't bargain at all with the salesman, but the finance manager probably walked funny for a while after I got done with him...

fnkngrv · 07-28-2006, 01:09 PM

Quote:

Originally Posted by captainzerocool

The local Toyota dealer here in Huntsville, Al has their very own $399 processing fee and $1000 prep fee.

This is on TOP of the MSRP!

dude...wtf is a prep fee????

Chaad32 · 07-28-2006, 05:07 PM

Quote:

Originally Posted by fnkngrv

dude...wtf is a prep fee????

I think it is a quasi-hidden fee that they charge to prep the vehicle. Most dealers I have seen don't have it and the ones who do usually take it off the price to make the customer feel like he talked them down.

makelikemorning · 08-02-2006, 12:34 AM

I signed the paperwork on a Barcelona Red sedan with the convenience package, automatic transmission and floor mats last night. It MSRPed at $14,100.00. I was initially told by the salesperson that they would not budge on the price; I was going to pay MSRP or not at all. As my fiancee was busy feeding our infant son, we couldn't just up and leave, and really, this worked to our advantage as we had an excuse to hang around for reasons other than interest in the car.

The salesman returned with someone else from his team: The negotiator. He handed me an invoice right off the bat. It was consistent with the one I'd pulled from Consumer Reports: $13,270.00 not including their $251.00 holdback (which was actually in the fine print on the invoice... I was impressed). In addition, there was a charge for advertising in the amount of $125.00. I understand from what I've read and Edmunds that this is legitimate and reflects an actual expense on their part. So, their invoice is $13,395.00. I took my time reviewing it. I asked a couple questions I knew the answers to already just to waste a few more minutes. I offered invoice. He immediately countered at $400.00 over invoice without even blinking. That's $13,795.00. I repeated myself: Invoice. I told him that he hadn't yet beat the deal another dealer had given me. This technically wasn't true as I hadn't discussed pricing with another dealer yet, but I was trying to save myself the trouble of going through this process more times than necessary.

The negotiator left for a few minutes - presumably to talk to his sales manager - and returned with a counter of $200.00 over invoice. I offered $100.00 over invoice. He steamed off, using an explicative. A few minutes later, the general manager himself showed up to play the good cop. I tried to haggle with him a little... I told him another $100.00 off and we'd have a deal. He wouldn't budge, so I walked.

The next day - the last day of the month - I get a call from the salesperson I originally talked to. I asked him one last time whether or not he could work on the price. He claimed he couldn't, so I accepted and signed the paperwork that evening.

Here's what I paid:

$13,595.00 + $195.00 "administration fee" = $13,790.00. That's $505.00 below their original asking price ($14,100.00 MSRP + $195.00 "administration fee" = $14,295.00).

Holdback considered, their cost for acquiring the vehicle was $13,144.00 (that's an invoice of $13,395.00 - $251.00). I'm guessing that 50% of the "administration fee" reflected actual expenses and the other 50% was profit, so let's add the $97.50 expense to that figure, making it $13,241.50.

So... $13,790.00 - $13,241.50 = $548.50 margin, but as someone else said, there are volume discounts and other hidden ways the dealers reduce their cost.

The point is: If you're asked to pay MSRP - and certianly if you're asked to pay over MSRP - keep searching. Shop on the last day of the month if you have to. Of the three dealers we visited, two would work with us (one even went $96.00 lower than the price I paid, but they only had black, which I really, really didn't want) and another wouldn't budge off of MSRP, choosing to let me walk instead.

tomjasz · 08-02-2006, 02:31 AM

Sedans are eay to get and there are quite a few on the ground here, liftbacks are sold BEFORE they are unloaded in Las Vegas. That being said my time is more valuable than pissing around with a dealer for a few hours over a couple of hundred dollars.

All things are not equal between regions!

makelikemorning · 08-02-2006, 07:51 AM

That didn't seem to be the case at all here. I've been finding two or three liftbacks on the lot for every sedan I could locate. At one point, I even suggested to my fiancee that we take one of those because they were so much easier to find, but we have a child, making the sedan a better choice. Furthermore, I had to buy my sedan sight-unseen - like you said, before it even unloaded.

I'm guessing that you're either independently wealthy or that you make at some outrageous amount of money to be able to state that a few hours' time isn't worth a couple of hundred dollars to you, but if that's the case, I'm wondering why you decided to invest in such an inexpensive car as a Yaris. Simple math reveals that it's many times over worth it for me; I would have sat there all day for a couple of hundred dollars. Besides, playing the game with dealers is a rush once you get a handle on it.

tomjasz · 08-02-2006, 03:04 PM

Quote:

Originally Posted by makelikemorning

I'm guessing that you're either independently wealthy or that you make at some outrageous amount of money to be able to state that a few hours' time isn't worth a couple of hundred dollars to you, but if that's the case, I'm wondering why you decided to invest in such an inexpensive car as a Yaris. .

I've worked very hard and am near retirement. I've had 9 Toyota vehicles in 15 years. The last, before the Yaris, was a paid for 2005 Tundra TRD 4DR. I decided I would retire at 55 and in order to do that and still be able to play and travel as I've become accustomed to, I'd have to downsize somewhere. When I ran the numbers I can save 3200USD/year just on gas by driving a Yaris. I still have another 9 months to work and I do get paid quite well, but I also work very hard at my craft. The hours that I would waste at a dealership could be spent on consulting jobs which earn a substantial side income. I actually moved to Las Vegas 22 years ago from the Caribbean and drove here in a Toyota Liftback sporting a ponytail. I intend to leave as I came, in a bottom of the line Toyota, but with a somewhat balding ponytail. Interesting how life progresses and regresses.... that being said I predict the Yaris will be the peoples car of the decade, and it's the right thing to do.

nough kids have died for oil!

tomjasz · 08-02-2006, 03:05 PM

Quote:

Originally Posted by makelikemorning

I'm guessing that you're either independently wealthy or that you make at some outrageous amount of money to be able to state that a few hours' time isn't worth a couple of hundred dollars to you, but if that's the case, I'm wondering why you decided to invest in such an inexpensive car as a Yaris. .

I've worked very hard and am near retirement. I've had 9 Toyota vehicles in 15 years. The last, before the Yaris, was a paid for 2005 Tundra TRD 4DR. I decided I would retire at 55 and in order to do that and still be able to play and travel as I've become accustomed to, I'd have to downsize somewhere. When I ran the numbers I can save 3200USD/year just on gas by driving a Yaris. I still have another 9 months to work and I do get paid quite well, but I also work very hard at my craft. The hours that I would waste at a dealership could be spent on consulting jobs which earn a substantial side income. I actually moved to Las Vegas 22 years ago from the Caribbean and drove here in a Toyota Liftback sporting a ponytail. I intend to leave as I came, in a bottom of the line Toyota, but with a somewhat balding ponytail. Interesting how life progresses and regresses.... that being said I predict the Yaris will be the peoples car of the decade, and it's the right thing to do.

enough kids have died for oil!

makelikemorning · 08-02-2006, 05:46 PM

Quote:

Originally Posted by tomjasz

I've worked very hard and am near retirement.

Yeah; it sounds like we're in radically different economic situations! Though, I was really surprised by how little time the negotiation process took me. We're talking about the time it took a four-month-old to consume a six-ounce bottle. I'm guessing that I just caught the dealer right where I needed them. They were busy as all get out, and it was month end. They obviously needed the sale, but didn't have the time to invest in getting the money out of me they wanted by jerking me around.

Congratulations on your purchase!

tomjasz · 08-02-2006, 10:13 PM

For a childless (by choice) couple feeding an infant COULD seem like an eternity.

Hope you and yours also enjot the ride. You've done very well!!!!

namaste

why? · 08-03-2006, 12:24 PM

Ok guys, an entire thread on this and no links? lol.

www.edmunds.com
www.kbb.com
http://www.nada.com/

All these sites will list "invoice prices."

After invoice, dealers get a kickback for each car they sell from the manufacturers, which is usually 2-3%. This money is usually kept by the dealership owner. Also, as was listed above, dealerships get bulk discounts of some type, depending on the manufacturer.

thefan · 08-04-2006, 09:20 AM

seems like no one got a good deal ut of a small car. I was told that to. Some of the dealers wouldnt budge except but when i told them i was serious about purchasing a car they just sat and listened.

YRX YARIS HATCHBACK AUTO 5 DR

car rrp 22090 down to 20081.82
metallic paint 195.45
mats 95

other
rego 259
ctp 335
dealer delivery 1540.90
stamp duty 657

07-24-2006, 08:13 PM	#19
Chaad32 Drives: 2007 Liftback Join Date: Jul 2006 Location: USA Posts: 334	I thought they paid to have them shipped....(destination cost). I didn't know that was profit? __________________ 2007 Liftback Blazing Blue Cold Weather, Convenience Package, Arm Rest, Floor mats, Weathertech vent visors

07-27-2006, 06:59 PM	#22
Chaad32 Drives: 2007 Liftback Join Date: Jul 2006 Location: USA Posts: 334	wow...mine had a $179 fee for processing __________________ 2007 Liftback Blazing Blue Cold Weather, Convenience Package, Arm Rest, Floor mats, Weathertech vent visors

07-27-2006, 07:00 PM	#23
Chaad32 Drives: 2007 Liftback Join Date: Jul 2006 Location: USA Posts: 334	no prep fee __________________ 2007 Liftback Blazing Blue Cold Weather, Convenience Package, Arm Rest, Floor mats, Weathertech vent visors

07-28-2006, 04:31 AM	#24
TRD_Yaris Yarii Hunter Drives: 2007 Yaris Liftback and S13's Join Date: May 2006 Location: Austin, Texas Posts: 437	again. kick them in the nutz. Ask again. repeat as necessary until you get ATLEAST MSRP or less... __________________ Thanks for all the help over the years, YarisWorld!!!

08-02-2006, 12:34 AM	#28
makelikemorning Drives: 2007 Barcelona Red Yaris Sedan Join Date: Aug 2006 Location: New Hampshire Posts: 28	Here's what I figure they made on mine... I signed the paperwork on a Barcelona Red sedan with the convenience package, automatic transmission and floor mats last night. It MSRPed at $14,100.00. I was initially told by the salesperson that they would not budge on the price; I was going to pay MSRP or not at all. As my fiancee was busy feeding our infant son, we couldn't just up and leave, and really, this worked to our advantage as we had an excuse to hang around for reasons other than interest in the car. The salesman returned with someone else from his team: The negotiator. He handed me an invoice right off the bat. It was consistent with the one I'd pulled from Consumer Reports: $13,270.00 not including their $251.00 holdback (which was actually in the fine print on the invoice... I was impressed). In addition, there was a charge for advertising in the amount of $125.00. I understand from what I've read and Edmunds that this is legitimate and reflects an actual expense on their part. So, their invoice is $13,395.00. I took my time reviewing it. I asked a couple questions I knew the answers to already just to waste a few more minutes. I offered invoice. He immediately countered at $400.00 over invoice without even blinking. That's $13,795.00. I repeated myself: Invoice. I told him that he hadn't yet beat the deal another dealer had given me. This technically wasn't true as I hadn't discussed pricing with another dealer yet, but I was trying to save myself the trouble of going through this process more times than necessary. The negotiator left for a few minutes - presumably to talk to his sales manager - and returned with a counter of $200.00 over invoice. I offered $100.00 over invoice. He steamed off, using an explicative. A few minutes later, the general manager himself showed up to play the good cop. I tried to haggle with him a little... I told him another $100.00 off and we'd have a deal. He wouldn't budge, so I walked. The next day - the last day of the month - I get a call from the salesperson I originally talked to. I asked him one last time whether or not he could work on the price. He claimed he couldn't, so I accepted and signed the paperwork that evening. Here's what I paid: $13,595.00 + $195.00 "administration fee" = $13,790.00. That's $505.00 below their original asking price ($14,100.00 MSRP + $195.00 "administration fee" = $14,295.00). Holdback considered, their cost for acquiring the vehicle was $13,144.00 (that's an invoice of $13,395.00 - $251.00). I'm guessing that 50% of the "administration fee" reflected actual expenses and the other 50% was profit, so let's add the $97.50 expense to that figure, making it $13,241.50. So... $13,790.00 - $13,241.50 = $548.50 margin, but as someone else said, there are volume discounts and other hidden ways the dealers reduce their cost. The point is: If you're asked to pay MSRP - and certianly if you're asked to pay over MSRP - keep searching. Shop on the last day of the month if you have to. Of the three dealers we visited, two would work with us (one even went $96.00 lower than the price I paid, but they only had black, which I really, really didn't want) and another wouldn't budge off of MSRP, choosing to let me walk instead. Last edited by makelikemorning; 08-02-2006 at 05:35 PM.

07-25-2006, 07:16 PM	#20
costaricandreams Raggamuffin Drives: Yaris Latchback 2007 Join Date: Jun 2006 Location: Raleigh, NC Posts: 41	Destination charges are not profit for the dealer. Hell. The thing came over from Japan. It's the documentation fees that they make some $$$ with.

07-27-2006, 01:48 AM	#21
captainzerocool CAMRY FTW! View User's Garage Drives: Camry LE V-6 (225,000+ miles) Join Date: Jul 2006 Location: Huntsville, Ala Posts: 108	The local Toyota dealer here in Huntsville, Al has their very own $399 processing fee and $1000 prep fee. This is on TOP of the MSRP!

07-28-2006, 01:00 PM	#25
seriousfun View User's Garage Drives: 2007 Yaris Liftback Black Join Date: May 2006 Location: SoCal Posts: 63	My brother sells Toyotas for a living, a few hundred miles away from where I live. He told me to buy it down here! He showed me just how much the dealer paid, and how much he would make on this one car. I didn't bargain at all with the salesman, but the finance manager probably walked funny for a while after I got done with him...

08-02-2006, 02:31 AM	#29
tomjasz Banned Drives: 07 Black Yaris LB, 05 Camry LE Join Date: Jul 2006 Location: Lost Wages Posts: 243	Sedans are eay to get and there are quite a few on the ground here, liftbacks are sold BEFORE they are unloaded in Las Vegas. That being said my time is more valuable than pissing around with a dealer for a few hours over a couple of hundred dollars. All things are not equal between regions!

08-02-2006, 07:51 AM	#30
makelikemorning Drives: 2007 Barcelona Red Yaris Sedan Join Date: Aug 2006 Location: New Hampshire Posts: 28	That didn't seem to be the case at all here. I've been finding two or three liftbacks on the lot for every sedan I could locate. At one point, I even suggested to my fiancee that we take one of those because they were so much easier to find, but we have a child, making the sedan a better choice. Furthermore, I had to buy my sedan sight-unseen - like you said, before it even unloaded. I'm guessing that you're either independently wealthy or that you make at some outrageous amount of money to be able to state that a few hours' time isn't worth a couple of hundred dollars to you, but if that's the case, I'm wondering why you decided to invest in such an inexpensive car as a Yaris. Simple math reveals that it's many times over worth it for me; I would have sat there all day for a couple of hundred dollars. Besides, playing the game with dealers is a rush once you get a handle on it. Last edited by makelikemorning; 08-02-2006 at 09:02 AM.

08-02-2006, 10:13 PM	#34
tomjasz Banned Drives: 07 Black Yaris LB, 05 Camry LE Join Date: Jul 2006 Location: Lost Wages Posts: 243	For a childless (by choice) couple feeding an infant COULD seem like an eternity. Hope you and yours also enjot the ride. You've done very well!!!! namaste

08-03-2006, 12:24 PM	#35
why? Only Happy When it Rains View User's Garage Drives: Yaris LB Join Date: Jan 2006 Location: harnett county NC Posts: 4,097	Ok guys, an entire thread on this and no links? lol. www.edmunds.com www.kbb.com http://www.nada.com/ All these sites will list "invoice prices." After invoice, dealers get a kickback for each car they sell from the manufacturers, which is usually 2-3%. This money is usually kept by the dealership owner. Also, as was listed above, dealerships get bulk discounts of some type, depending on the manufacturer. __________________ Colin Chapman disciple

08-04-2006, 09:20 AM	#36
thefan Drives: Yaris Join Date: Jun 2006 Location: Sydney Posts: 4	seems like no one got a good deal ut of a small car. I was told that to. Some of the dealers wouldnt budge except but when i told them i was serious about purchasing a car they just sat and listened. YRX YARIS HATCHBACK AUTO 5 DR car rrp 22090 down to 20081.82 metallic paint 195.45 mats 95 other rego 259 ctp 335 dealer delivery 1540.90 stamp duty 657

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