I’m located at SoCal zip code 92037 and looking for leasing recently. I’ve got two offers and I’m not sure if they are good deal and if I should take them. looking forward to your advice!
A220:
MSRP $44340 selling price $40340 they don’t have any incentives this month
RV 58%. They didn’t tell me the money factor. For 36 month 10k per year
Monthly payment ~$580-$590 after tax. 0 DP
Due on delivery : $1421
X1
MSRP $36945 selling price $35445 RV 57% they have $2k incentives
Money factor 0.00133
For 36 month 10k per year
Monthly payment $537 with no drive off and 0 DP
If you’re already soliciting quotes from dealers without having a clue what a good deal would be then you’ve gotten way ahead of yourself.
Right off the bat I can tell you the BMW has a fully marked up MF so that’s essentially a full sticker deal with that meager discount. Paying full MSRP for a $36k X1 is a horrible deal. And on the Benz it’s impossible to tell as you don’t have all the info.
I’m sure a Trusted will be along shortly to give you a step by step guide on how best to proceed…
You should work out your target price on these vehicles before ever talking to a dealer. Forget these offers exist and work out where you’re trying to get to before moving further.
It is practically impossible for us to tell you what a “good” monthly payment is for your specific lease as lease programs are highly dependent on region, personal qualifications, tax rates, etc.
We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.
Read Leasing 101 (Blog | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
Pick a specific vehicle that you want to target
Gather the current MF, RV and incentives from Edmunds forums for your zip code
Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
Plug your numbers into the LH calculator (CALCULATOR | LEASEHACKR), and use a pre-incentive discount similar to what you have seen
Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.
With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.
Both of those are atrocious. Save yourself the time and effort, and just pick up what one of the brokers is offering in the marketplace section. That A Class is deep into C Class money.
Thank you guys! Yes I also feel it’s not a good price. But when I go to the dealership they just tell me the car is in high demand and they cannot offer something just like 300-400 per month for A220. And I checked the forum for incentives there is 0 for Mercedes Benz… I’m not sure where else can I start to negotiate the price…? I just got Amex offer for auto purchasing and they provide 10% off on X1. And about 9% off on C300 and 4% off on A220. Probably I can start from there?
I don’t think I’ve bought or leased a car in the past 20 years that wasn’t in “high demand” according to the dealer.
In all seriousness by soliciting quotes like that, in person no less, all you’re doing is asking the dealer how much they want you to pay. Without doing your homework you’re dead in the water on arrival, with no idea what a good or bad deal would be you have zero negotiating leverage and are instead just throwing random numbers at them like $300/mo for an A class.
Your time will be much better served by doing your research and making the dealer an aggressive (but realistic) offer rather than just going around and asking them how much they’d like you to pay or giving them random payment targets with no basis.
And if you don’t want to put in the time or are not comfortable with numbers or how leases work no worries, just hire a broker from the Marketplace as mentioned above.
