The amount you should pay for a new Lexus depends on the specific model, trim level, optional features, and current market conditions. However, understanding the difference between the Manufacturer's Suggested Retail Price (MSRP) and the Invoice Price is key to negotiating a fair deal.
Understanding Lexus Pricing: MSRP vs. Invoice Price
When purchasing a new vehicle, two critical figures to be aware of are the MSRP and the Invoice Price:
- MSRP (Manufacturer's Suggested Retail Price): This is the "sticker price" – the price the manufacturer recommends the dealer sell the vehicle for. It includes the base price of the car plus standard equipment, destination charges, and sometimes a gas guzzler tax.
- Invoice Price: This is the price that the dealer paid the manufacturer for the vehicle. While it's often considered the dealer's cost, it doesn't account for dealer holdback (a percentage of the MSRP or invoice that the manufacturer pays back to the dealer after the sale), incentives, or rebates.
A good target price for your new Lexus often falls somewhere between the Invoice Price and the MSRP.
2024 Lexus RX Pricing Insights
For those considering a new Lexus RX, here are the MSRP and Invoice Prices for some 2024 trims:
| Trims | MSRP | Invoice Price |
|---|---|---|
| 350 F SPORT | $58,550 | $54,832 |
| 350 Luxury | $59,080 | $55,328 |
| 350h Luxury | $61,230 | $57,639 |
| 500h F SPORT Performance | $64,100 | $60,336 |
Please note: These prices are for the base models of each trim and do not include additional options, packages, taxes, registration fees, or dealer-specific charges.
Negotiating Your Purchase Price
Knowing the Invoice Price gives you a powerful tool for negotiation. Here's how to approach it:
- Start Your Offer Just Above Invoice: Begin your negotiation by offering a price slightly above the Invoice Price. This acknowledges the dealer's need to make a profit while showing you've done your research.
- Be Prepared to Compromise: Dealers need to cover their overhead and earn a profit. A reasonable profit margin for the dealer is typically a few percentage points above the invoice price.
- Factor in Additional Costs: Remember to account for sales tax, title and registration fees, and any dealer documentation fees. These are separate from the vehicle's selling price.
- Consider Financing and Trade-ins Separately: To avoid confusion, try to negotiate the vehicle price first before discussing your trade-in or financing options.
Factors Affecting the Final Price
Beyond the MSRP and Invoice Price, several other factors can influence what you ultimately pay:
- Optional Features and Packages: Adding premium audio systems, technology packages, or aesthetic upgrades will increase the final cost.
- Market Demand: If a specific Lexus model or trim is in high demand, dealers may be less willing to negotiate far below MSRP.
- Regional Pricing Differences: Prices can vary slightly depending on your geographic location.
- Incentives and Rebates: Manufacturers sometimes offer special incentives, low APR financing, or customer cash rebates that can significantly reduce your out-the-door price. Always ask about current offers.
- Dealer Fees: Be aware of common dealer fees such as documentation fees, preparation fees, or advertising fees. Some of these might be negotiable.
By understanding these pricing dynamics and conducting thorough research, you can confidently approach a Lexus dealership and aim for a fair purchase price for your new vehicle.
