Hi- working on this deal currently and l’m looking for a little feedback. Incentives came in this month but they jacked the buy rate MF substantially. Calculator attached. It’s basically 7k off selling price, 4500 incentives, buy rate MF of .00180. I know the vehicle itself it a bit of a dinosaur, but I have it’s dressed down sister the 4Runner and love it, so I know what I’m in for. Thanks in advance.
MSRP: 59278
Sales Price: 52278
12% off MSRP
Money Factor : .00180
Money Factor after MSD: 0.00180
Taxed
Incentives : 4500
Residual: 59%
Sales Tax: 8.75%
Monthly Payment (Excl. Tax): $528
Monthly Payment (incl. tax): $528
Drive-Off: $3,073
1st month payment: $528
Down payment: $0
Registration and doc fee: $480
Total Tax: $2,064
No, if you click on the calculator you’ll see. That would have been the same garbage deal that everyone starts by offering. Good luck with your search.
Thanks! I’m definitely new to this but am currently looking at a premium GX460 lease. How can the dealer afford to sell a car at less than invoice (I’m assuming the invoice is about $5k less than MSRP based on KBB)? That seems like a great deal if you would then get another $4k off that.
Thanks again for the info. I do have a few more questions if you’re willing to answer? In an attempt to talk me into a lease, they mentioned some way to set-up a 36 month lease, then trade-in after 12 months and start a new lease - essentially at no additional cost and the same monthly payments. That way you can get a new car every year. Is there a penalty for ending your lease early? They seemed to elude there wasn’t. I suppose I can somewhat see the numbers based upon the base monthly payment paying down the principal. The trade-in value would roughly be what the remaining principle is if you were able to get a good deal. Have you ever heard of this tactic?
Yes, it’s called a subscription service.
It’s a new type of auto leasing because you subscribe to it.
It’s not a traditional lease.
A well known ones are: Volvo and Audi.
Volvo has the new XC40 on subscription that people went wild over - $600/month but that did not include insurance.
You have to pay their insurance premiums thru their insurance of choice - you don’t get to choose.
The insurance part really hurt a lot of people because it was thru Liberty Insurance.
Maintenance is usually included as well.
Advantage is they will let you lease their cars and you can change out the vehicle earlier than a typical lease.
It’s pricey but for those that have to change cars every year or couple of months might be the way to go.
Interesting. I certainly don’t NEED a new car every year. It seemed like a good idea since they pitched it as being able to get out of a lease at anytime. Not sure if I want to commit to the 2019 GX for 3 years, especially if a new body style is coming next year.
For those individuals with >$1M in a brokerage account at Morgan Stanley, the MS Reserved Living and Giving certificate is worth $3000. [Last year was $5000 in Nov and Dec.]
Out of curiosity, would a dealer be able to sell (not lease) a GX for 13% off MSRP? Are there any other incentives they use to bring down a lease purchase price?
Thanks everyone for your help. I was just able to get this offer from a competing dealer - very legit in my opinion - 7k off msrp, 4k lease cash, MF 0.0018, zero down, monthly payment $548.
Also, they did elaborate on the buyout option. You don’t do anything different on your lease, but if your car holds its value well (like the GX), then it should usually work. You allegedly can go to the dealer and ask for your buyout amount. If it’s worth that, then you get out of it, no strings attached. If it actually has equity, then you get to pocket it. He stated he (and many other employees) does it all the time and I would be able to as well. Thoughts?
