EAssignment Purchase of a New Lexus IS 250 4D Sedan The objective was to complete initial purchase inquiries online for a brand-new Lexus IS 250 4D Sedan. Preferred color is red. Only online contact could be made, i.e. via email or live chat. Targeted vendors were exchanges such a Carmax and Truecar, as well as bricks-and-mortar Lexus dealerships accessible to the Waldorf MD, Chantilly VA and Washington D. C. metropolitan areas. Price target was $38,000 or lower. Linday Lexus of Alexandria (VA) This dealership is located at 3410 King Street Alexandria, VA. Pohanka Lexus This dealership, located at 13909 Lee Jackson Memorial Highway, Chantilly, VA, stocked a brand-new 2011 Lexus IS 250 in red exterior and automatic transmission with just 10 miles on the odometer, for a list price of $40,685. Lexus of Rockville Located at 15501 Frederick Road, Rockville and at Derwood, MD.
Matched prices at Lindsay Lexus. Lessons Learned On the whole, the domestic car industry is currently buoyant and takes on the character of a seller’s market. There are two reasons for this. The Detroit Big Three attained a 10% year-on-year gain coming off the company reorganizations and Federal subsidies at the start of the 2008 recession.
Second, the summer travel season is always a favorable one for the automotive business in general. The assignment to negotiate the purchase of a Lexus confronts a totally different reality in the Japanese-import segment of the industry, however. In particular, the luxury marques of Toyota and Honda have let go around 2% of the total market each because of parts and components shortages brought about by the February earthquake in Japan.
This suggests a situation where even the busiest dealers of Japanese imports are facing an unaccustomed slowdown in sales. They should be more eager than usual to cater to a buyer’s market. Yet a fourth factor that influences price taking in this environment is the fact that the e-commerce model has invaded consumer investment goods. Internet portals and dedicated car exchanges make it easy for consumers to comparison-shop. Combined with offers to deliver virtually anywhere in the lower 48 states, this puts unprecedented pressure on Lexus dealers to convert the merely curious into real sales prospects before another dealer, near or distant, grabs the prospect. The upshot of all these considerations is that someone shopping for a brand-new 2011 Lexus is very much in control of the deal, notably if she indicates serious buying intent.
Buyer bona fides were established early on by holding out the prospect of an early schedule for the two most crucial stages of the sales-closing process: the test drive and spot cash purchase. As well, the hypothetical shopper clearly showed no interest in optional accessories or financing arrangements. The impression of a prospect eager to move forward with the sale and clearly already shopping for the best possible deal had the effect of a) separating the person from the objective; and b) expediting a response from Lexus dealers.
They were ready to talk business within minutes of receiving an emailed purchase inquiry. This was the advantage of dealing direct instead of through car exchanges like Carmax and Truecar. Salesmen being what they are, 2 of 3 contacts endeavored to obtain a contact number so they could bring their sales pitches to bear.
My counter to this was that I was constantly travelling and could best be reached by email. Yet a third sales agent attempted to “up-sell” me to the pricier Automatic variants of the IS 250 I inquired about. The only reasonable response to this was that I was interested in, and had the cash to purchase, the basic RWD Manual model. By insisting on my target model, I eventually received a serious offer that was $6,000 off the list price of $42,500 or just $36,500 with no frills or options. References Lexus of Rockville (2011).
New models. Retrieved from http: //www. lexusofrockville. com/ NewModelsPage. Lindsay Lexus of Alexandria (2011). New models: IS 2011. Retrieved from http: //www. lindsaylexusofalexandria. com/NewModelsPageDetails? model=is. National Automotive Dealers Association (2011). NADA data: August 2011 sales recap. Retrieved from http: //www. nada. org/Publications/NADADATA/. Pohanka Lexus (2011). New Lexus. Retrieved from http: //www. pohanka-lexus. com/inventory-results. aspx? standardmake=EQ, Lexus&standardmodel=EQ, IS%20250&&categories=new, preowned, certified-preowned&selectedcat=new&page=1.