Are you a car dealer? I am not in favor of a business sector that regularly and unapologetically takes advantage of people who may not be as informed as others, or aren’t accustomed to haggling. There is a reason why carmax and Tesla are doing well and it’s not the cars
In rare cases, a dealer goes to town with a clueless buyer (crazy adds, full sticker, MF markups, etc on a run of the mill car) but it takes only a little bit of common sense to avoid those. In general, the more informed you are, the better the deal you get because you can create and justify an offer. The less informed the worse deal you get and the more likely you are to accept said deal. And its not hard to be informed, or hire a broker.
Returning to the (somewhat) original discussion.
We’ve also never seen a global semiconductor shortage that cripples new car inventories for several quarters.
If the deal is bad, the onus is on the consumer to not bite.
No, I am not. I do not work in the industry at all.
Supply and demand is a two way street. We all love when it works out in our favor and facilitates aggressive deals but everyone complains when the same idea doesn’t work out for them.
Dealers that behave unethically should be called out, but giving expensive quotes because they aren’t discounting isn’t that.
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The “no-haggle” experience actually hurts consumers and they operate based on fear (just watch their commercials). CarMax has the highest profit per car compared to any other auto group with about $2100 per car sold.
On the new car side, Tesla is tough to compare since they operated at a loss until recently. And even then, Tesla adjusts their pricing numerous times over the year. I don’t believe that their one-price model is the main draw anyways. It is the cars, but with them being a piece of tech rather than a vehicle.
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Tesla isn’t a car company. Their money making product is clean air credits. The cars are just a manufacturing step for generating their real product.
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7% of revenue is clear air credits, certainly a high percentage in an industry with lower margins. But at the same time they are expanding rapidly and are not structuring their business to survive on the credits. I look to AMZN and how they for years set their investments so that they break even (+/- a few percent) on a quarterly basis while they were rapidly expanding. Tesla is investing in economies of scale for battery manufacturing which should pay off for them quite well in the future.
(I was long TSLA until the stock went crazy and I sold… but sold way too early)
With whose money though?
I don’t think it matters. They were pretty smart IMO to raise cash by selling shares when the stock popped to absurd levels (still there).
The have first mover advantage and they should absolutely be using all means necessary to expand rapidly before others catch up.
At these terms (payment and duraton), OP is better off financing the Macan than this so-called Lease… For a simialr payment you will build around 20-30k equity in the car vs just turning it over after the lease…
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Let’s try to stay on topic please
Well thanks to this forum and it’s members I high tailed it out of the Porsche dealership. IMO a fair monthly lease payment would have been between $600 to $650 for the Macan I was considering. They were trying to push $820, which is bonkers. They also stated that for the next year or so production levels will remain low and they are getting an average 10 to 15 Macans in every month so good luck trying to get a good deal.
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Curious as to how you came up with that number for a $64k Macan.
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Can you substantiate how you came to that target price?
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Well yeah I mean I read like 2 posts on the forum. Saw 1% was good, but I don’t know where that came from. Decided it’s a car that hasn’t been updated in 10 years, real shit car ya know, so I took off 40 then added back 50 to the high end range, and clicked post. It’s big brain shit.
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1% is not a useful metric for determining what a good deal is.
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 (EDITORIAL | 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.
I thought the sarcasm came through, guess not. tough day for me.
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Sorry, missed that you weren’t the OP. Saw the J emblem on your icon and assumed. It’s unfortunate that your post is totally in line with what I would expect someone to post.
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Lmaooooooo
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I did the same thing and did a double take on the username.
Still curious as to how OP got that number though. I can’t get there even using the best of times numbers without a huge down payment. Maybe OP is still talking about $6100 DAS, which would make more sense but still a stretch depending on tax/fees.
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The original deal is $60k total lease cost for 42 months for a 60k car which is atrocious. Did OP get a new offer? I didn’t see it.