What is buy rate?
I particularly like how somehow they’re “losing” $5000 on a vehicle they’re selling for $4000 off.
I suspect that back end gross is actually + 3866.45 in marked up MF, which would be a .001 MF mark up. .00075 is about in line with what edmunds is showing buy rate to be for several of the velar trims.
That’d make this a full MSRP deal. Yuck.
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I take it back… over MSRP deal with this BS right here.
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Edmunds shows 39/12 - .00076 and 56%
That is completely false.
Either you made a mistake or the dealer is blowing smoke.
Number literally not possible
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No, but with a .00100 mark up, a positive $3866 back end is just about right.
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The smoke is a blowin’
Haha I appreciate you all, all of the comments are extremely helpful and provide much needed insight. Haven’t signed anything yet. Going to dealership on Saturday to “finalize”
Sounds like you should spend Saturday talking to different dealers instead. You’re thousands of dollars away from a reasonable deal here. That gap is very unlikely to be closable if their opening salvo is over MSRP, shrouded in as much smoke as they can blow.
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That’s the issue. If this deal is bad, the 3-4 other dealers I’ve dealt with have been much worse. Talking 67k msrp with price ending up around $71k.
Then cast a wider net or move on to a different vehicle.
The velar is nice, but it isn’t $1000 per month for a 4 cyl nice.
Rather than talk to any other dealers, start by working out what this actually should cost. You need to know where you’re trying to get to so you can see the smoke blowin’ from a mile away.
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The back gross on that screen is in comparison to the default the computer will show.
Not the true back end gross of the deal.
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I’m curious how it even determines that. Maybe a “default” mf that isn’t actually tied to reality somewhere in the system?
That’s where I started (I think). Edmunds shows 39/12 - .00076 and 56%, and my first response to their offer was Edmunds numbers and 10k off of MSRP. They started at $1k off MSRP, .00175 mf, and now 4k off MRSP, same money factor. I’m set on the velar, but in no rush whatsoever to make the purchase. They clearly don’t want to touch the MF, is it typical for RR dealers to budge here, or do I need to focus on additional discount (or wait for a LR incentive)? Thanks in advance. @Bostoncarconcierge
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Thank you, this is helpful.
That’s spot on.
It’s based on much higher than the max you’re allowed to markup before hitting the ceiling.
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It’s almost like they texted you a picture of a dungeon and you decided to walk into it.
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What did you base this number on? 14+% pre-incentive on a velar is unheard of. Your opening salvo to them was as ludicrous as their response.
I know there are people that subscribe to the “shoot for the moon so if you miss, you land somewhere among the stars” philosophy and give out a really high number in hopes of negotiating to a middle ground.
In my experience, if you significantly over shoot reality, all you’re doing is making yourself out to be a non-serious customer. You’re lucky that your offer didn’t end up in the trash. I tend to see it as “if you shoot for the moon and miss, you’ll burn up on re-entry”.
I’d suggest stepping back a bit and doing a bit more research into what a realistic pre-incentive discount target actually is before approaching any more dealers. You want to be able to go in with an aggressive, but realistic, offer that makes for an easy sale for the dealer. Right now, you’re not offering that value.
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You’ve been extremely helpful so far, and I am extremely appreciative of the knowledge I now have as a result. However, this response isn’t helpful.
- They started with 1k off MSRP, inflated mf.
- I responded with 10k off, edmunds MF (didn’t reveal this to them).
- They responded with 2k off, inflated mf.
- I revealed that I knew the edmunds mf and now they’re at 4k.
So far we have 10k off is ludicrous, but 4k and inflated MF is bad.
So my question is still the same. If you’re set on the velar, there are no LR incentives, are the dealers more likely to budge on the money factor or discount, both? Or would you wait for an LR incentive. Thanks.