GM Employee pricing web site for the same features on a new car with all discounts is $52056- the demo price of $49102 is $2954 less. That to me seems a bit low and I was expecting more like $4500 or 7.5% due to just being a demo. Any experience here?
Is your selling price before or after those incentives? You have them itemized in your write up but they appear to be rolled into the discount on the calculator.
Separating them out allows you to compare pre-incentive discounts against other deals to help establish the quality of the deal.
Price is after incentives.
Cadillac is offering 10% off some NEW (not loaners) when including the lessee and the VIN discounts. For the loaner, I was comparing the 10% to the 18.4% off that is now including the employee discount.
GM Employee pricing web site for the same features on a new car with all discounts is $52056- the demo price of $49102 is $2954 less. That to me seems a bit low and I was expecting more like $4500 or 7.5% due to just being a demo. Any experience here?
There are only a couple 2021 XT5 deals across the forums and they were not loaners so they do not help me on the expected discount for demo.
If I go here: How to Price a Demo Car
iand then extrapolate, I should probably be at a $4500 discount just because it is a demo w/60K MSRP.
I’m waiting on paperwork of the vehicle history to know how many months it was in service and any other aspects I should be alerted to.
Well, they at least give you a foundation to start with. For example, if you find that 10% pre-incentive is a solid target discount for a new vehicle, you wouldn’t go less on a demo. I know we’ve seen several come through here at 10%+ on a new car, so $4500 off on a demo doesn’t make sense.
I’ve seen that carbuyingtips site mentioned a few times here and every time I see it the information is wrong.
I’m sorry for not making my posting clearer. I already have the dealer offering a total of 17.2 % off the MSRP. (see calculator) The GM Employee pricing for a brand new version of this car is 12.2% off the MSRP. This means the dealer is giving me 5% ADDITIONAL off MSRP because it is a demo.
What I did not know is if I should be pushing to get closer to 8% discount off the MSRP because it was a demo instead of the additional 5% discount that the dealer is offering.
If I were buying instead of leasing, a demo drops in value faster than a brand new car as soon as you drive it off the lot. So I want the sale price to be set as low as it would be if I were buying it as a demo outright. Pricing should be set by value to the market and not by value to me because I am leasing.
Your calculator does not concur with them giving 17.2% or 12.2% pre-incentive. Post, perhaps, but not pre. If the GM employee pricing is locking you into a worse deal than is otherwise possible to start with, don’t use it.
Right now, your calculator shows you at about 11% pre-incentive on this demo, based on the incentives you have itemized out next to your selling price. If others are able to get 10+% pre-incentive on a new one, why would you go to a demo at 11%?
The incentives need to be pulled out of the selling price and added to the taxed incentives. Which if I read your post correctly, that means 4500, and $479/mth, which takes the purchase price at 53602 and a 9.6% discount, you need at least another 5% on this.
0 tax in NH is making this offer look better than it actually is. In NY for example this is $500+ including taxes. I have no idea why anyone would pay that much for this car. There are much better values out there.
Like didn’t someone just pay $350 including tax in MA which makes it $330-ish without for a Highlander hybrid?
Before someone jumps in with “it’s not a luxury car” well neither is the XT5.
I have not seen any XT5 deals that show 10%+ pre-incentive. Best I have seen here is 11-14% post incentive and includes incentives that I don’t qualify for. (If I had had the foresight to see the $1500 Costco incentive I would spent the $60 to get a membership before Jan 1th 2021.)
I’m at 17.2% post-incentive on the demo now. I think I want to get to 19.5% post-incentive on the demo to be at an excellent deal.(squeezing another $1400 out of the dealer)
To me, in a non-tax state, incentive dollars are not fungible and are kind of meaningless on their own- the only amount that matters to a lease is the post incentive sale price -the valuation of the vehicle minus any incentives.
Valuing the vehicle higher and then using the incentives as a down payment will not change the monthly lease cost rather than putting all the incentives into reducing the sale price. In fact, I would think States would want to tax the pre-incentive sale price to collect more tax.
You’re totally missing the point here. Separating the incentives out isn’t just for calculating taxes, it’s for normalizing the sales price for comparison across markets/periods and for distilling down to the knobs that you can actually negotiate on (the pre-incentive discount) and the ones you can’t (the incentives).
No one is saying anything about valuing the vehicle higher and then applying the incentives as a down payment, etc.
Hi max_g,
Can you point me to a deal with approximately $60K MSRP for a Highlander hybrid with leather- heated/ventilated seats, full tech package that leases out at less than $459 pretax?
