I need a little help.
I received this first response to an inquiry from a dealer.
Payment $838.00 plus tax with $3,697.00 down @10k miles per year
MSRP = $87,120.00
Selling price = $76,890.00
$4,000.00 Rebates
currently being driven by GSM w/1,500 miles
My response after plugging the numbers into the Leasehackr calculator was this…
Sorry, it’s still not penciling out for me -
MSRP 87120
76890 (12% discount)
Acquisition of $925
MF .00152
10k / 36 mo
$4000 rebate
Total drive-off would be $5862 based upon $3697 down payment
(which I would not do)
Reg / doc $630
Tax on rebate $739
First month $797
Payment should be $797 incl./ tax
By my calculations there’s a $90 discrepancy.
He simply posted the photo of the screen, which did not
clear things up for me. (attached)
That said…
I’m not sure I understand what the ‘total taxes’ are?
Or that the deal shows $9862 out of pocket instead of $5862.
I would very much appreciate any guidance on what I’m missing.
My understanding is that the only taxes I should be paying on a lease
are the 1st month payment, and the rebate.
Thanks Conan - but I’m in California. Taxes shouldn’t be paid up front - generally they’re paid monthly.
I’m sure it’s operator error - but I cannot seem to get these offers to link up with the calculator.
This is a horrible deal - it’s a demo vehicle and they are pricing it like a new car. Do yourself a favor and reach out to Greg Poland at Pacific BMW in Glendale,CA. He will give you a Great Deal without having any back/forth negotiation.
Greg Poland
Sales Manager
800 S. Brand Blvd. Glendale, CA 91204
p: (818) 254-1491 f: (818) 254-1491
e: gregpoland@pacificbmw.com
My only issue with your deal is the amount you’re paying in drive offs. Basically, if you were only paying lease acq, doc, tags, tax on rebate, & 1st mo = ~$2,400 and paying 797/mo, then I would say that’s a good deal on a demo.
I’d either push for more off that car than 12% OR order a new one for 10% off + incentives. Also, do you qualify for Corporate Fleet? You can use that on a new deal, but can’t on a demo.
Thanks - I don’t know how to get corp fleet pricing, and I agree - it’s a bad deal. I’ve already moved to a different vehicle with this dealer. He sent me this after I pressed for the numbers - "Respectfully, there is nothing more to “figure out” on your end as I use a program that calculates the monthly payment. Lets not get caught up in the amount off MSRP when the only thing that really matters is the monthly payment… Please let me know your thoughts as both of these vehicle are incredible deals and wont be here for much longer."
That said, I imagine we’re not going to have a meeting of the minds.
For Corporate Fleet, ask your CA to check if your or your spouse’s company is included in the program. Most large companies have signed up.
The first rule about leases is that you dont work towards a monthly number (or at least you never tell a sales person what you want your monthly number to be). You work down the sales price as much as possible and then plug in those numbers into a lease calculator to derive the monthly payment.
Thanks - yes, I do get that rule of thumb about monthly. They all push for it. One question - Can I trust the LEASEHACKR calendar? I’ve been using it extensively for all my negotiations and the dealers act like my numbers are way off. I would imagine a variance in fees +/- a few hundred, but not enough to move the needle that far.
They all say the same thing. They just want to be able to move any number in the equation and you are essentially taking that power from them by strictly negotiating the MSRP. Given that you also already know every single possible incentive that you are eligible for. GL
Century West is offering 20% off MSRP. I made an offer based upon that number, and the salesman sent back the attached deal. If I reverse engineered his numbers into the LH calculator - it’s still way off. Either the LH calculator is off, I haven’t entered the numbers correctly, or his worksheet has some hidden numbers in it.
Go to another dealer. LH Calc is fine. dealers that say it’s not are full of BS. I’ve been able to get within $1-$5 per month with it.
There’s so many weird things in the screen. How do you have a rebate of $3k and a cap reduction of $2,647, but the adj cap cost increases? Why is total taxes $3,329.93. What is that lining up to?
Just taking the sales price - Residual = $495/mo depreciation. That means $400/mo is MF / interest??? and the MF is .00152? No way.
I agree, the worksheet totally doesn’t make any sense to me, and I know this is by design. Trying several different configurations, I cannot replicate their payment - I thought perhaps I was missing something. Thanks for confirming that they’re full of it.
