Welcome R+F Lexus Qualifiers and Achievers!
My name is Amy Cudd and I’m a Rodan & Fields Elite Level V Lexus Achiever. I saved $5,636 getting the best possible deal on my new Lexus and I want to teach you how to do it too.
Note: Beginning in 2019, Rodan & Fields changed it's car program from Lexus to Mercedes-Benz. Here's what's new in the Rodan & Fields Mercedes program.
If you are reading this, that probably means your monthly sales volume is close to $125k and you are super excited about the prospect of earning a new car! Well, keep your foot on the gas and clear that 3-month qualification period. And while you’re doing it, take a few minutes to plan your car purchase so that you can maximize this great incentive.
My husband created this website to help new car buyers and when I told him I was close to earning my Lexus, he started reading everything he could. He figured out how the Lexus Achiever program works and what we should and shouldn’t do. We got a fantastic deal on a new car and I wanted to share all that I learned with my friends moving up in Rodan + Fields.
So let’s get started! First off, the most important thing to remember about the Lexus program is that…
The price you pay for your new Lexus matters
Rodan + Fields has created this wonderful bonus to reward us ladies for our hard work. However, it is very important to remember it is not precisely a “free car”. It is a generous $750/month bonus that must be used towards a new or slightly used Lexus.
The distinction is important because the $750 will be included as income on your Rodan + Fields 1099 at the end of the year. This means you need to earmark some of that money for taxes and budget how much you want to spend.
To find out the true, post-tax amount of your car bonus over 5 years (which is the typical length of time before you have to buy a second Lexus), let’s add up all the payments and subtract taxes. For simplicity, let’s assume a tax rate of 25%.
$750/mo * 60 months = $45,000 total bonus
$45,000 * 25% = $11,250 tax
$45,000 - $11,250 = $33,750 True value of the car incentive
Please note that you may be able to reduce some of your taxes by deducting vehicle expenses based on business use of your car. It’s a good idea to keep a record of all your mileage related to Rodan + Fields (driving around town dropping off products, meeting prospects for coffee, and training consultants will likely qualify). So talk to an accountant and get some advice before filing your taxes.
You can of course spend more on your new Lexus than the $33,750 from the example above (and most people do). But when planning ahead it is good to know the true value of this incentive.
Should I buy a new or used Lexus?
You may be thinking one way to save money on your Lexus is to buy slightly used. That’s smart and I don’t want to discourage you from doing this and saving money. However, you should understand that for every model year you go back, you will shorten the length of time before you must buy your second Lexus by one year. The table below from Rodan + Fields Road to RFX guidelines shows what I mean.
Buying used may save you some money in the short term, but you will need to buy your next car sooner. Assuming you continue to qualify for the program (I hope you do!), over the years you will have to buy new cars more frequently costing you more money in the long run.
And perhaps more importantly, by using the strategy on this website, you could easily save 4-5 thousand off the price of a new car like I did, essentially paying the same price as a similar year-old Lexus.
It matters when you buy your Lexus
After 3 months of qualifying for the Lexus Achievers program you will have earned your car (for full program details, sign into R+F Pulse and search for the Road to RFX under the Biz Dev library tab). Once you get confirmation from Rodan + Fields you should plan on buying in the second half of month four. There are a few reasons why this timing is critical.
- Technically the 15th day of month four is when you officially find out if you qualify, although Rodan & Fields will probably let you know earlier in the month.
- Buying a car at the end of the month is always the best time to get a deal.
- Most Importantly, if you wait till month five to buy, you will lose out on your first $750 bonus payment. There is no way to get this back if you miss this window!
How to get the best deal on a new Lexus
Because you do have to buy your new Lexus yourself, you should try to get the best possible deal to save money. DO NOT assume you have to pay full price! The best way to get a deal is to get Lexus prices from several car dealers and make them compete with each other. It’s a straightforward process that’s explained in great detail in this guide.
My husband and I used this process for our Lexus RX350 which had an MSRP of $46,563 and we were able to negotiate the purchase price down to $41,200. That’s a savings of $5,636 off MSRP and about $3,000 below the initial so called “best offers” we received.
Are you interested in Rodan & Fields? Or just have questions about the Lexus program? Reach out to me at AmyCudd.com.
In closing, you earned this car and you should be proud of your achievement. Enjoy this exciting time, but also remember to get a great price on the car of your dreams at the same time. If I can help answer any questions for you about the program, please reach out to me and be sure to share this site with your friends! -Amy Cudd