You lose the $7500 when you finance, you know
Edit : Not the Eletrified GV70, this is the gas one.
1 Like
There’s no $7500 for a lease or finance GV70 2.5T
oh ugh, didn’t notice the 2.5T part
Thought it was electrified
Thank you! I am guessing here, but KBB said it would depreciate by $29,233 over 5 yrs. I had a little trouble with the starting price as this model is 44,700 but it also has +$6K for Advanced Pkg and +575 for paint. I updated the numbers and subtracted the depreciation amount ($29,233) from the sticker price ($52,670) which is = $23,407.
After updating the Calculator with those numbers and fixing the dealer fees and guessing the Selling Price, I get the following…
In layman’s terms, can you help me interpret this? The total cost jumps out at me…and that is with a pretty high interest rate of 5.46%. Am I correct in understanding this as a Lease = spend $31K over 3 yrs vs. Finance = spend over $37K over 5 yrs. And if yes, does this explain the reason why people say that they don’t lease well? Thank you! mllcb42
Nothing magical about the number 6. It’s just a number that’s easy to reach across a number of OEMs that offer a warranty or extended warranty that long. So it’s more apples:apples in comparison to leasing, vs getting into the weeds of ownership cost on older cars out of warranty
Steepest part of depreciation curve is the first three years. Cycles longer than that are the best way for most new car consumers to save money, while enjoying the benefits and predictability of new car ownership. 5-6-7 year cycles also tend to be the model change cycles for most OEMs.
2 Likes
Does anyone have an example of an email or the content that they might send to a salesperson when they ask you to come into the dealership. Should I just point them to the vehicle we are interested in (VIN/Sticker), make them aware of the incentives we qualify for and let them know our credit tier and then ask what is their best offer? Also, should we elude that we are speaking with the other dealerships in the area?
It would be good to see what has worked for others. Thanks!
Move to a strategy of making offers.
Plug the following into the LH calculator after MSRP of the vehicle you’re looking at:
Selling price based on % pre-incentive discount found by searching Shared Deals and Marketplace sections of this forum.
RV, MF and incentives (lease cash) from Rate Findr. Add any extra rebates you qualify for (college grad, etc) under incentives.
DMV fees and taxes based on your state’s official website.
Voila! Now check the box to make it $0 DAS and offer the resulting monthly payment*
- preferably rounded to a multiple of $5 or $10 to make yourself seem more like a normal person
2 Likes
I appreciate your response @max_g . I have the LH finance calculator here and a total of $2K incentives from Genesis that I qualify for (top tier credit) but I am unsure how to enter it correctly. Do I subtract the incentives from the MSRP or leave MSRP and enter the $2K into the MANUFACTURER’S REBATES line? Or both? Here’s the window sticker if that helps. PS - Many on LH said these don’t lease well, so I am looking at financing instead. I have all the other details your mentioned in the LH calculator linked above.
Also, as you can see, we know this is the vehicle we want, we just want them (or another nearby dealer) to give us their best price.
The MSRP never changes. You would enter the incentives on the “taxed incentives” line.
Thank you @mllcb42! I see that for the Lease side, but I guess I am curious if you know what to do on the Finance side? Same thing? Leave the MSRP and then just add the total of incentives ($2K) to the Manufacturer’s Rebate’s line?
Yah, on the finance side they’d go in the manufacturer’s rebate section. The important thing for your shopping/target deal purposes is that you differentiate between dealer discount and incentives/rebates.
1 Like
Holy mother of necros, batman!
I’m sorry if I want to get it right. That, or I don’t understand your response.
OG thread was 5 year old. Please don’t necro old threads, if you still have a question, its better to create a fresh one, rather than bump up threads that old
1 Like
Ok…understood. Will do…actually, I already did (linked here) but found this one on a slightly different topic. Thank you. @RustyDaemon
1 Like
Do you see any red flags or changes I should make as I try to begin negotiating over email? Below is part of an email that I crafted (but haven’t sent) in response to a junior salesman asking me to come into the dealership and speak with his manager…
"It is unlikely that I will be able to come into the office until we work out some numbers over email or over the phone. We are motivated to make a purchase of the vehicle I included in the first email I sent and can share any additional details you need to help make that happen.
Listed below are some details/questions that perhaps your Sales or Fleet Manager can help with?
- I’m aware of the average dealer discount in this area for this vehicle and wondering how much of a discount from the MSRP will your dealership offer?
- What is your out the door price? I’m aware of all of the taxes, fees, bonuses that would influence this number.
- Your dealership is among the top choices due to the positive impression my wife had during her visit and test drive.
- My Credit Tier - top (score 800+)
I understand your time is valuable, and I genuinely appreciate your prompt attention to this matter. I look forward to receiving competitive pricing from your manager and any additional information that could enhance the overall value of this potential purchase.
Best Regards,"
Sounds like a great “delete” button candidate.
Which part of making offers did you not understand?
The whole idea behind making a realistically aggressive offer is that someone chasing volume makes a quick, easy sale even if it’s not much profit.
Your response should say
"I am interested in stock number xxx. For $xxx/mo with $xxxx due at signing for a 36/10 lease, based on tier 1 credit (subject to approval), x% tax for xxxxx zip code, and these incentives, I can be there in 2 hours to take delivery. "
5 Likes
@max_g - Understood and I appreciate your original suggestion. I have been working on that very thing with all of the tools available - almost all day even. Also, there isn’t much in the Shared Deals/Marketplace sections for this vehicle.
So I was following advice on this forum that says to get offers from dealers to serve as a baseline before heading moving forward. I’ve since checked Edmunds and found some helpful numbers. Thank you for your perspective…it will most likely make me do as you and others have suggested now that I have some reference to discounts in my area.