2021 Velar R-Dynamic Lease - dealership offer

Ask the Hackrs
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21

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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22

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.

23

Then you aren’t listening.

Here’s the point: setting a realistic target and holding to it gives you the guidance as to what is actually possible.

Right now, you’re both throwing shitty offers back at each other. Neither of you have came to the table with something that actually makes sense for either party involved. You’re both wasting each other’s time.

If you want an aggressive deal, your only value to the dealer is to be the quickest, easiest sale they have ever had so they can add to their volume numbers and move on. Going back and forth with unreasonable offers doesn’t achieve that. You’re both burning calories on something that isn’t going to happen.

Your negotiations with this dealer should be done. Take their phone number out of your phone. Delete their email address. The bridge has been burned. Start fresh with someone new on a foundation built to provide success.

You need to work out what is an actual, realistic target. Right now, the dealer is probably about $4k away from that and you’re probably about $6k away from that, based on what I recall seeing. Obviously, you should substantiate those numbers with some research rather than going off of my memory.

As for mf or discount… it doesn’t matter. MF mark ups are very common with LR dealers (although .001 is extra ridiculous), but frankly, you shouldn’t care. If the dealer is able to go deeper on a discount with a marked up MF, let them. It’s in your best interest. Likewise, if they’d rather go buy rate with less of a discount, let them.

Establish a solid pre-incentive discount target, normalized for buy rate and reasonable dealer fees, and plug in the current lease programs. Work out what your monthly/DAS should be, offer than, and let them decide how they want to structure the contract to get there. There are times where it’s beneficial to work through the lease terms specifically rather than give a monthly/DAS offer, but this likely isn’t one of them.

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24

If I could tip you for this response I would, it’s gold. Thank you for taking the time to assist.

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25

No prob, happy to help. When you put together your target deal, run it by us before starting to approach dealers and we can help make sure you’re set up for success.

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26

Make this the canned response :point_up:

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27

This actually explains a lot. Average Joe goes in with expectations based on nonsense “metrics” off the net like paying $125/m for every 10k of MSRP. In states where sales tax on leases is low, dealers can jack up a car’s price to hit that target

28

This is one of the numerous reasons why a blanket % of MSRP metric is completely useless. It’s not even applicable across a singular vehicle, much less as a general metric across all vehicles.

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29

Since you said you are set on car but in no rush, I’d join the American Equestrian Society, and tighten-up my relationship with Chase to see if a pin deal emerges later in spring. And/or: if there aren’t big changes for next model year, try to grab one closer to the end of model year (gambling with inventory).

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30

Well damn, its a $5200 loser according to them, better jump ASAP

/end sarcasm

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31

Horses require a ton of food on an indefinite basis. This plan could be short sighted.

32

You can join as a fan to receive the

:worried:
:point_right: :point_left:
Please give me 5-10% off code

:chocolate_bar:

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33

Your state sucks. This “deal” sucks. Those saying the % rule doesn’t work it does. Stop trying to invalidate it because this deal sucks.

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34

Except it doesn’t. Doesn’t hold up to any critical thinking whatsoever. It’s also completely unrelated to this deal being bad.

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35

No it’s like Dave Ramsey says: buy your fun, lease your car, rent your horse. I would personally join the ES and skip the :racehorse: all together.

36

I agree with you. I also think that if you measured the sentiments of forum members to a deal, you will see a strong drop off if the monthly exceeds higher than 1% of the MSRP. Perhaps we are too conditioned to it at this point.

37

I think if we asked the question without context, that’d be true, as it’s a conditioned response at this point. As soon as you start asking about specific deals, however, that goes out the window. It’s trying to assign causation to made up correlation that doesn’t even hold true.

Ironically, I don’t know of anyone that claims a deal having an lh score of 8.5 makes it a good deal or not.

38

I hope I’m not hijacking the conversation (full of very useful advice as-is): do any of these negotiation tactics/numbers apply to a custom Velar order? Does the dealer have any incentive to move an inch off the “MSRP + Tax” price, whether it’s by using MF, Chase PIN, or any other lever? Assume the car to be on the upper end of the price range yet with some atypical choices.

40

Sorry bubs

Which spreadsheet?

41

@caldwebs what is this spreadsheet - can you share it or is it proprietary?

@Bostoncarconcierge i’m very sorry, i got confused whose post that was. My apologies.