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Pricing and DealersDiscussions that are specific to vehicle pricing, preferred dealer pricing, current incentives, rebates, and experiences.
This is a discussion thread titled "What price were you Quoted on 2007 Tundra?", within the Pricing and Dealers forum, part of the Marketplace Forums category.
I think it will take some time in Canada to convince the dealers to sell for less then MSRP. I was told by one dealer because Toyota Canada has reduced the MSRP's, and the demand for the truck, there won't be any room for negotiating on price.Toyota has priced these trucks to be very competitive in the market, and as a result have taken away the need for dealers to have room to bargain on price. And it is true! The MSRP for 2007 Tundra is around $3,000 - $4,000 lower then for a 2006 in Canada
I'm glad that I don't need a new truck immediately! I'm also waiting for the CarcoastCanada pricing report which isn't yet available. I will then see what an associated dealer is asking for.
I just randomly picked 4 trucks and depending on how many options you have will determine what the percentage of profit margin their is. I found that a stripped truck only had 8% mark up in it but the majority of them had 9.3 to 9.7% mark up. But like I have always said, just have them present the invoice or get to stepping
So is that 9.3 to 9.7% over MSRP? If so, a $33,000 vehicle costs the dealership between $30,192 and $30,082 - that's not right. Also, is this gross or net profit margin? I would think interest (1% of the cost of the car per month) and overhead alone would eat that small margin up in a hurry. Isn't invoice usually $2500 - $3000 less than MSRP, and holdback $500-$1000?
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3 out of the 4 at the local dealer are still sitting there, but I wouldn't touch them even for invoice as those 3 trucks have already been beaten on during test drives, I was literally smoked by one at a stop light in my 2001 Tundra. I don't street race......seeing as how I am a 32yo going on 50 at this point, but the guy on the test drive lit it up pretty good.
I think some people are gun shy at this point, especially knowing that a comprable domestic can be had for a song at this point.
MY BAD..... I was thinking hold back and writing invoice. Invoice is usually a 10% figure on every brand.
Hold back is what Toyota gives the dealer after every quarter on every vehicle sold. So 2% kicked back....
Average price paid is 4-8% over invoice on new vehicles.
As for early adopters its a fact they pay more and get less. I'm not sure what statistics bear out , but if you buy a first year anything or first model anything the recall rate is higher.
Toyota usually bucks this trend with superior engineering, but not always.
3 out of the 4 at the local dealer are still sitting there, but I wouldn't touch them even for invoice as those 3 trucks have already been beaten on during test drives, I was literally smoked by one at a stop light in my 2001 Tundra. I don't street race......seeing as how I am a 32yo going on 50 at this point, but the guy on the test drive lit it up pretty good.
I think some people are gun shy at this point, especially knowing that a comprable domestic can be had for a song at this point.
I agree. I'm waiting to get a look at the CrewMax and my hope is that the time between the initial launch (Reg. and doublecab) and the CrewMax will give dealers time to realize they need to start discounting these trucks in order to move them. I don't see them flying off dealer lots in my area, either. There's no way I'm going to pay MSRP and then tack on destination, sales tax and title on top of that. That's a budget buster for me. If Toyota won't work with me, I haven't ruled out a Titan LE, which I know has a lower MSRP for the same trim, and Nissan dealers will cut a deal with you.
I'm sure that with the CrewMax, as well as the other trucks, there is some initial pent-up demand that will move trucks at MSRP. Let's say something like 6 times the usual monthly demand for these trucks. After that, real competition among Toyota dealers and among all truck makers will occur. It should happen fairly rapidly when it does, as the factory pours out these vehicles. The best way to measure this is inventory both on dealer lots and other holding facilities. So, let's keep the inventory counts going.
Judging by the last week of activity, it appears that there is plenty of pent up curiosity but maybe not “demand”.
Let’s be honest here, even if the Tundra is the best ½ ton out right now, the others are all very capable trucks. Therefore, for someone who is truly neutral with regards to brand etc. it becomes a value question. You can get a truck nearly as good, but not quite as good for $10K less or you can pay through the nose to get the Tundra. Tough choice? Not really.
Any shopper that is going for bang for the buck will not be buying a Tundra right now, maybe not at all.
Me, personnally, am going to wait until after the first year model. I know that toyota makes a great product, I have owned 7 tundras, but I also know the first year model of a total redesign will have querks and flaws. And normally these problems are minor and are adjusted the next year model. Take in for instance when the first body style tundra came out, they had problems with the brakes. I had my 01 in for that recall. So I will definitely wait, and buy one next year, by then rebates will come out and dealers will start selling closer to invoice.
Cash vs. financing will make no difference on bottom line price. Dealers offer financing just so they can sell the vehicle.
Toyotas in the first model year rarely can be had for less than MSRP, too many people want them and they come out slowly. I know, I've bought 5 new Toys and only managed to get a break when going thru a broker and a small one at that.
Unlike the domestics, Toyotas don't offer huge incentives unless they're trying to get rid of an obsolete model, e.g. 2006 Tundras with a $2500 cash back.
$10k under invoice on a Toy is make-believe!
FJ's were selling for $2-4K over MSRP when they first came out, I bought one, (thru a broker), for MSRP less about $400 in dealer prep and I was happy.
Whatever you pay for your Toy you'll do better than the domestics down the road on resale and, hopefully, Toyota will continue to offer the best service in the industry.
If you're accustomed to buying Ford's and Chevy's forget what you learned when trying to deal on a Toyota, the mark-up simply is not there but the demand is and Toys are usually worth the asking price in my experience.
You can wait till demand goes down on this Tundra and you might be surprised when the price goes up, that can happen too. IMHO the $42k asking price for a LTD with 5.7L and NAV is hell of a lot of vehicle for the mula!
the sticker price on an 07 SR5 TRD i checked out yesterday was $31,000. it had the 5.7, bouble cab, white, but it was only 2wd. but the salesman i had said i could get a 4x4 NON-TRD for the same price. they also had a limited, but that one was about $34,000
Cash vs. financing will make no difference on bottom line price. Dealers offer financing just so they can sell the vehicle.
Toyotas in the first model year rarely can be had for less than MSRP, too many people want them and they come out slowly. I know, I've bought 5 new Toys and only managed to get a break when going thru a broker and a small one at that.
Unlike the domestics, Toyotas don't offer huge incentives unless they're trying to get rid of an obsolete model, e.g. 2006 Tundras with a $2500 cash back.
$10k under invoice on a Toy is make-believe!
FJ's were selling for $2-4K over MSRP when they first came out, I bought one, (thru a broker), for MSRP less about $400 in dealer prep and I was happy.
Whatever you pay for your Toy you'll do better than the domestics down the road on resale and, hopefully, Toyota will continue to offer the best service in the industry.
If you're accustomed to buying Ford's and Chevy's forget what you learned when trying to deal on a Toyota, the mark-up simply is not there but the demand is and Toys are usually worth the asking price in my experience.
You can wait till demand goes down on this Tundra and you might be surprised when the price goes up, that can happen too. IMHO the $42k asking price for a LTD with 5.7L and NAV is hell of a lot of vehicle for the mula!
If what you say is true, then I am headed for another brand very soon. I've long been a Toyota loyalist, but there is no way I'm going to pay that much more when I can get the same thing in another make. Yes, I am a believer in Toyota quality, but I'd be a fool to think it's worth paying thousands more for a first-year production truck. Let's not forget that Toyota just had a major recall (steering) on the previous Tundra style. They are NOT infallible, so why on earth would I be willing to throw good money away?
There are lots of potential Tundra buyers out there just like me. They are willing to buy a Tundra if they feel there is a fair deal to be had. If not, then we'll take our money to the Nissan dealer (or I'm sure in some cases Ford, Chevy or Dodge). The week before the 07s came out, my local Toyota dealer offered me a brand new 06 Tundra Limited for $5,000 below sticker price. That was standing in the lot as a first offer (from the dealer). I wasn't serious about an 06 so who knows what kind of a deal I could have gotten. That shows how much markup is in these trucks and what the dealer CAN do, if he is willing. Those of you willing to be the ones they call 'suckers' back in the break rooms, go right ahead. Not me.
I would call my paying MSRP a "legend," because it simply will not happen. There are too many other good trucks out there to be had.
I agree, The local dealer had 3 last week and when I looked at them they were being test driven as fast as the Salesman could corner customers ,I never got to look at the one with the 5.7 they were waiting to test drive it .
Passed the dealer yesterday he now has about 6-10 out front so I think there is a lot of interest ,till you look at the difference in price ,here they are discounting the H@ll out of the domestic's .
Quote:
Originally Posted by River19
Judging by the last week of activity, it appears that there is plenty of pent up curiosity but maybe not “demand”.
Let’s be honest here, even if the Tundra is the best ½ ton out right now, the others are all very capable trucks. Therefore, for someone who is truly neutral with regards to brand etc. it becomes a value question. You can get a truck nearly as good, but not quite as good for $10K less or you can pay through the nose to get the Tundra. Tough choice? Not really.
Any shopper that is going for bang for the buck will not be buying a Tundra right now, .
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If what you say is true, then I am headed for another brand very soon. I've long been a Toyota loyalist, but there is no way I'm going to pay that much more when I can get the same thing in another make. Yes, I am a believer in Toyota quality, but I'd be a fool to think it's worth paying thousands more for a first-year production truck. Let's not forget that Toyota just had a major recall (steering) on the previous Tundra style. They are NOT infallible, so why on earth would I be willing to throw good money away?
There are lots of potential Tundra buyers out there just like me. They are willing to buy a Tundra if they feel there is a fair deal to be had. If not, then we'll take our money to the Nissan dealer (or I'm sure in some cases Ford, Chevy or Dodge). The week before the 07s came out, my local Toyota dealer offered me a brand new 06 Tundra Limited for $5,000 below sticker price. That was standing in the lot as a first offer (from the dealer). I wasn't serious about an 06 so who knows what kind of a deal I could have gotten. That shows how much markup is in these trucks and what the dealer CAN do, if he is willing. Those of you willing to be the ones they call 'suckers' back in the break rooms, go right ahead. Not me.
I would call my paying MSRP a "legend," because it simply will not happen. There are too many other good trucks out there to be had.
I agree about the mark up in toyota but as you said with the discounted prices of the 06. I got a heck of a deal on 2 06's A double cab that stickered for 32000, I got for 24976.98 and an access cab v6 with decent options, I got for 1400 below invoice. MSRP was almost 26000. Dealers are in the market to make a buck. It is the laws of supply and demand that works against the consumer. Look at our gas prices. 3 years ago gas was 130-160 a gallon and now we are shocked when it drops to 210 a gallon. The demand initially for these trucks are going to be high but give it some time, the dealers will be begging for customers to come in with incentives and dealer specials. Oh and I better get my 06's in for that recall
So is that 9.3 to 9.7% over MSRP? Isn't invoice usually $2500 - $3000 less than MSRP, and holdback $500-$1000?
Not what I said, I said there was a 9.3 to 9.7% markup in the trucks. Meaning, between invoice and sticker. So yes the invoice is around 2500-3500 less than msrp depending how much the truck is and how many options on it.
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Cory Ellerbee
Truck Manager/Internet Sales Manager
San Francisco Toyota
(415) 395-6364 or corye@sftoyota.com
If so, a $33,000 vehicle costs the dealership between $30,192 and $30,082 - that's not right. Also, is this gross or net profit margin? Isn't invoice usually $2500 - $3000 less than MSRP, and holdback $500-$1000?
Your own math answered this question already. yes a 33k truck cost the dealer about 30k, about 3k in profit margin if sold at sticker. plus any hold back they get if it is their truck originally. One of the reasons, dealers like to sell them fast is so they dont pay interest on them.
far less profit in vehicles for the dealers then you think. Big money at dealerships is the profit in service not in sales
__________________
Cory Ellerbee
Truck Manager/Internet Sales Manager
San Francisco Toyota
(415) 395-6364 or corye@sftoyota.com
Re: What price were you Quoted on 2007 Tundra?
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