I have been lurking on these forums and trying to learn enough to get myself a decent deal. I’d love if someone could please check my numbers to make sure I’m doing this correctly, and to tell me whether I can expect to actually land a deal close to this.
About me: 36 y.o., Married, Pennsylvania, CK credit score of 780+
Looking for 2020 Kia Sedona LX.
First, I checked truecar and CarGurus, and I found one close by. It lists “Dealer Price” at $25,672 and “MSRP” at $31,560. It also says, “Pricing estimates include $4,000 deducted for current cash-back incentives (valid until Mar 2, 2020)”
Next, I went on Edmunds and asked for the MF, Residual, and Incentives for this model for a 36/10 lease. Someone kindly responded that the MF was .00183, the residual was 49%, and there was “$3900 lease cash”
Finally, I entered these number into the lease calculator. I included the $3900 lease cash as a taxed incentive. I didn’t play around with the Fees, Taxes, and Rebates. Here are my numbers:
This gives me a Monthly Payment with taxes of $284.
Now for my questions:
Was I correct to add the lease cash into the taxed incentives, or was that already wrapped up in the “Dealer Price” I got from the website?
From this point, do I correctly understand that I should be trying to negotiate for a lower Dealer price? If so, what do i base this negotiation on, and how low can i hope to go?
From a dealer perspective, how likely would it be for me to get the exact calculator numbers?
Am i missing something else?
You’re double dipping on the incentives, that sales price includes incentives. With what you put in it would be about $410 without double dipping. It’s irrelevant what numbers you come up with if no dealer is willing to do it. Need to start getting actual quotes from dealers
Thank you for the response. I understand that these numbers are a guideline, but i was hoping to also understand (generally speaking) how close to these numbers a dealer is typically willing to go.
Man I wish all first posts by people showed this much attention to detail and evidence of having actually done some research.
No worries. It happens.
Now what you need to do is start getting an idea of what a good target price pre-incentives is for the vehicle.
I was thinking the same exact thing.
And you posted before you signed a deal, so many times people come here after the fact and they got an awful deal.
yeah… how do i do that? that’s one answer i havent seemed to find yet. (sorry if this is super obvious)
An easy start is to reach out to several dealers near you and ask them their pre-incentive sales price. Unfortunately, you’re not going to find a bunch of deals on sedonas on here to price compare to.
One way is to take that dealer ad sales price you saw and add the sales incentive back into it. Another is to find a KIA forum and see if they have a “Prices paid” thread for that specific vehicle and see what others are paying.
i THINK i’ve had a good track record so far… Our last 5 vehicles were leased. we put $0 down and paid less than $250/month for each of them. GMC Terrain, Honda Civic, Buick Encore, and Jeep Compass. But - who knows? I couldve gotten better deals?
Either way, i want to have a clue what’s going on this time around
Something worth keeping in mind is to not just look for ones close by. Open your search up, particularly when getting pricing, to further away dealers and for vehicles that are similar but maybe don’t exactly meet your requirements. (different trims, wrong colors, etc).
At this point, you’re gathering pricing data, not actually trying to find the car.
Sorry, i don’t follow - Do you mean - essentially the “double dipping” that i already did?
Frankly, i’m not married to the sedona… But i wanted to provide a concrete example with real numbers and a real vehicle so that i could know if i was understanding everything correctly…
thank you so much for all of your help!
Yes, the sales price in that ad is actually $29672 before the $4k cash-back incentive.
When you back out the $4k purchase rebate, you’re at 6% off MSRP
That’s the biggest place to negotiate
Aim for 10% before incentives, you sound like a savvy negotiator, so just fire off the emails and grind away!
It doesn’t matter if you got it wrong because you haven’t signed anything. The one thing that peeves most of us here are people who sign a terrible lease then come here and try to defend their “deals”.
You’re off to the right start. If you’re not married to the Sedona, you should start searching for deals on here that you would be willing to lease. Once you narrow it down to a make and model, the grind will begin. With all the resources here, you can nail a pre-incentive price and negotiate with your area dealers. Make sure you’re not afraid to cast a WIDE net.
Got it… So if MSRP is $31,560, i should be shooting for ~$28,400 before the incentives
Again - thanks to everyone for the help! Whatever happens, and whatever vehicle i go with, i’ll probably report back with new deal check post before i sign