I’m looking into leasing a 2024 Subaru Solterra Touring. Edmunds is giving me this information:
RV = 53%
MF = .00090 (2.16% APR)
$7,500 lease cash
$2,500 dealer cash
Question: The dealer is offering a discount of $4,470 (8.10%) from an MSRP of $55,209, which seems to be much higher than the $2,500 that Edmunds mentioned above. So what is this $2,500 dealer cash? is that an additional dealer incentive?
I ran the numbers and I’m getting $461.99/mth (including only acquisition fee of $295, but not TX Sales Tax and other fees). This is with no money down.
If I add TX Sales Tax it would go up to $552.94/mth.
Is this a reasonable deal? Could I get a better dealer discount than the 8.10% they are initially offering? Solterra Touring 2024.pdf (214.3 KB)
Dealer cash is an incentive, not a dealer discount.
Edmunds is a useless source of information for what a good dealer discount is. You’re better looking at marketplace listings here.
Since you’re in TX, you really should be trying to target vehicles that have TX sales tax credits.
There are also so much better EVs available for $550/mo than a solterra. The bz4x and solterra are pretty much the worst EVs on the market currently. Pricing needs to be WAY lower than this for them to ever be considered IMO.
So, if the dealer passes along the incentive to the lessee, how and where is it disclosed in the lease agreement? I’ve seen situations where the dealer discount included a manufacturer to dealer incentive.
That’s why it’s important for customers to question dealer discounts. They need to know the TRUE dealer discount BEFORE dealer incentives that are passed along.
If the sales price on the contract is listed as MSRP and there is a $2500 dealer cash incentive, then the pre-incentive sales price would be $2500 OVER MSRP so that the post-dealer cash incentive adjustment makes it show as MSRP.
This is why it’s important to not waste time asking a dealer how much they want you pay. Make an offer that clearly delineates between discount and incentives, and you never have to give this a second thought.
I’ve never seen that done and believe that this is a hypothetical on your part.
Which is exactly what I always do. For example, I will determine ALL rebates and incentives (dealer/customer). I’ll also determine an appropriate dealer discount for my market so that the targeted sell price is…
I would say it’s very rare and certainly not one that I would ever accept. I wouldn’t put myself in that situation. Dealer has my lease proposal and would be very foolish to counter with such an offer. I would think that they would know better.
Dealer discount = 0
Even if SP = MSRP - 2500 dealer cash, dealer disc is still 0. And one that I would not likely accept.
If it helps, there’s the contractually listed selling price, aka “agreed upon value”, and the actual selling price, as defined by the MSRP less the dealer discount, in this conversation.
As stated above, giving a lease proposal avoids these shenanigans. We’re talking generally about the kind of offers they propose, not how things are if you’re controlling the negotiations. I have no doubt we’re talking about a situation you would personally avoid.
You’re hypothesizing that “If the sales price is equal to the msrp…” if if if if if if if … ad infinitum. This is a hypothetical. AGAIN, the dealer incentive is TREATED as a dealer discount BUT is not strictly a dealer discount… it’s not coming out of their pocket.
No, it’s not. You claim…
So, if 2500 is not a dealer discount, why would -2500 suddenly become a dealer discount? The dealer discount is clearly ZERO. They’re getting the 2500 incentive from the manufacturer (i.e., it’s not coming out of their pocket) and, therefore, have no skin in the game … ZERO.
We’re not getting anywhere. You’re not making sense, and you seem to talk in circles. I swear you make things up as you go (lol).
If the sales price is equal to the msrp, and there is $2500 dealer cash, the dealer must be marking the price up by $2500, as their mark up (aka a negative discount) is offset by the dealer cash incentive.
The dealer cash is being used to obfuscate the actual sales price, where the sales price is the msrp minus the dealer discount, and the contractual “agreed upon value”.
This happens all the time. Dealers present incentives as discounts to make people think theyre getting a better deal that they actually are. Sometimes they do it with all the incentives, sometimes they do it with just dealer cash.
We are literally posting in a thread where the very first post contains a dealer offer where the dealer discount has been obfuscated by including the dealer cash in the discount number.
