FWIW - spelling out a fair deal on a Toyota Venza 6 cyl with "Preferred Premium Accessory Package"...
MSRP = $30,142.00
Invoice = $27,386.00
"True Market Value" for Pleasant Grove, AL (per Edmunds) = $27,773.00
The "True Market Value" shows a regional adjustment for Pleasant Grove of -$207.00, which is already reflected in the price above.
Elgin, IL would be less than $100.00 more because of regional adjustments.
I would not pay a dime over what Edmunds is saying is the TMV - it's year end closeout time and the dealer will still be getting his holdback. I'd probably be looking for a deal at invoice - based on the current sales slump by Toyota nationwide.
And before you start feeling sorry for the dealer - he's making much more than what appears to be a $300.00 profit on the sale at TMV because of the dealer holdback.
If you are not familar with dealer holdback's - from Edmund's:
Quote:
Now the twist: with the introduction of holdbacks some years ago, most manufacturers inflated the invoice prices for every vehicle by a predetermined amount (2-3% of MSRP is typical). The dealer pays that inflated amount when it buys the car from the manufacturer. But later, at predetermined times (usually quarterly), the manufacturer reimburses the dealer for that excess amount. This is the "holdback," so named because funds are "held back" by the manufacturer and released only some time after the vehicle is invoiced to the dealership.
Why the sleight-of-hand you might ask? Because holdbacks can benefit dealers in three ways:
1.Dealerships borrow money to finance cars based on an invoiced amount that includes the holdback. So the higher the invoiced amount, the more the dealership can borrow from its lender.
2.Inflating the dealership's "cost" can have the effect of increasing profit, since sales personnel are paid commissions based on the "gross profit" of each sale. Holdbacks have the effect of lowering the gross profit and thus the sales commissions.
3.Holdbacks enable dealerships to advertise "invoice price" sales and sell their vehicles at or near invoice and still make hundreds of dollars on the transaction.
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Toyota holdback is 2% of invoice - so the dealer would make around $550.00 selling this Venza at invoice.
My Dad spent 45+ years in the car business. I am very familar with how the system works.
Edit - I thought you'd posted a price of $30,000. The above info was meant to answer your question in detail. Build your exact car at edmunds and check on the results for TMV and Invoice. Offer invoice.