Hey guys, this is my first time leasing ( or buying from dealers in general, I usually buy from private parties), and what initially caught my eye was the lease deal being run for the LT1. I’ve been reading up as much as I can on leasing and finally found a car that is somewhat near me that isn’t being marked up. The first thing I see is that they are marking up the MF by almost 100%. So that set of some red flags from me, I called them but the sales manager wasn’t in today and will be calling me back tomorrow. I’ve attached below the lease calculator as well as the Vehicle and its options.
I’m currently looking for a 39/10k. I would love to hear your thoughts and any advice you can give me! I’ve been searching for a while, and everyone else was giving me prices from 470-600 with 6k DAS.
I’m sorry I forgot to mention I am getting the GM Student Discount of 500, but it is not applied here. Right now my monthly is 370 with 6k Down (Including all fees, taxes, AND with the current marked-up MF). My credit score is a 750, no auto loans but multiple previous mortgages.
Why is the money factor 0.00089 and not 0.00045? I think it should be 0.00045
If I were you, I would go for as little downpayment as possible. Get the money factor to around 0.00045 and then get the selling price discounted by at least 6% to make the effective monthly payment be around $400. But then again, that would be a difficult deal to get given the current market.
I know leases in general aren’t what they once were, but this still seems high for a 38k msrp. I’d recommend not putting any money down on a lease because if it gets stolen or totaled, that entire 5k is gone with it. Taking that away puts you over $500 effective on current terms.
I would ask them to bring the MF down to standard rate (.00045), or if they want to keep it at their marked up rate, to provide a discount off msrp to offset it. Base rate MF with no discount puts you at $469 effective, which I guess isn’t horrible in this market, but not great.
TL:DR don’t put money down, and shoot for a discount off MSRP to justify the marked up MF or just base rate MF.
Yeah no one is discounting these cars below MSRP, it was difficult enough to find one not marked up. The thing is, I’m willing to travel or ship a car, but with a small % discount it basically makes it not worth it. I’m going to try and get tbe MF to base
I normally wouldn’t want to put anything down based on everything I’ve learned, my situation is a bit different since I have a relative who is willing to put the money down towards a car but not give me the money to make higher monthly payments. I explained to them how leasing is different when it comes to money down but they said they’d prefer to do it that way.
Unfortunately it looks like you don’t have a vehicle to trade to offset this crazy market. Do you qualify for anything else? Maybe conquest? I think GM has a conquest now.
Also GM might offer 0% for 48 months or so, I know this is leasing forum, but maybe run numbers for buy. With 4-6K down and 0% might be worth it to buy.
Oh, I am quite aware. That’s why I find it amusing when people give you advice that was good maybe 2 years ago, but clearly have no idea what the current market is like.
Unfortunately the only thing I qualify for is the student discount. I just moved down to Florida for dental school so I only need a car while I am here since I am not sure where I will go when I am done. The reason I am not going with purchasing is because in 3 years after I am done with school and I consider selling the car I will likely be stuck trying to move it quickly and taking a loss and then cover the gap with the loan. I am also assuming car prices will go down by then which will make my loss worse
That the best term to look at generally speaking (the best combo of RV and MF), so you are off to a good start.
The keys to getting a good deal on one of these are simple, but not easy (as it will take some good old fashioned digging around).
You need to find a dealer with an LT1 on the lot, or incoming (with a foreseeable ETA).
You need to obtain a GM Supplier code. Beg and plead with anyone to give you one who may have one!
Now…you need to hope/convince the dealer(s) who have the cars to do a GM Supplier deal. Honestly, most right now wont. But, a number of them will. And, some folks have gotten very very lucky and found a dealer to do GM Supplier pricing WITHOUT a supplier code. But, I wouldnt bank on this.
Ideally, youll also find a dealer that honors the sub $75 doc fee that is supposed to be part of the Supplier program. Most wont (esp in FL).
Lastly, and youve already figured this out, you need base MF (or a larger discount to account for a marked up MF).
A sample for a straight up supplier deal at base MF and no dealer fee is linked below.
Keep you eyes peeled here for the latest RV and MF info. The mods at Edmunds have access to this data and are awesome. I believe the current RV/MF on a 39/10 is 61%/0.00045. These have degraded some lately.
And check here for incentive info, filter under “LT1”, NOT “1LT”.
I’ve reached out to as many people as I knew, and no one is really in the space where I could get the supplier pricing, I tried through Costco as well but all of the Costco dealers did not have an LT1 in stock or any on the horizon. The best “deal” I had gotten was on a completely bare-bones one in Michigan which was 4k DAS and 350 a month, but after I accounted for bringing the car here through shipping or flying and driving, it made more sense to get this one.
Also this is an Auto-Nation so I don’t think they’d give me straight supplier, I’ve tried pretty hard to get something discounted but no one is really doing it, and I do kind of need a car. I’ve been looking since mid December and it’s been pretty stressful.
Another issue I am worried about, is if I wait till February and end up with worse RV and MF.
Without any other lease/conquest rebate, youll be down $1500 right off the bat, so you have to account for that in leveling your deal vs others. Theres no way around not qualifying for that one (unless you had a co-signer who would qualify and who would also sign on your car).
With supplier, there is also an additional $750 rebate as well, in addition to the supplier pricing, so you can see how this stuff stacks up. Very few folks (outside of a rare few who have gotten true employee pricing) have gotten anywhere on one of these without Supplier and the stacked rebates.
Yeah, Florida has been really tough everyone is marking them up and there’s only like 15 at any one point in the whole state. Unfortunately doesn’t seem like I qualify for much but compared to all the other cars I have been shopping for. Like I was getting quotes for a corolla at 4k down 390 a month, a sentra 2k down 500 a month, a malibu 5k down 370 a month. Which was insane for the amount of car I was getting. That s why I am so set on this car now
All I am saying is run the numbers. This deal you will pay over $2K in finance charges, plus $695 acquisition fee not to mention whatever dealer service fees are for $799.
Since you don’t qualify for any lease incentives, it may be better for you. You might just find a dealer to do a straight up MSRP deal without the BS fees and get the GM financing.
Plus in 3 years if you want to get out to a company like Carvana or such, you don’t have to worry about third party buyout bullcrap.
They won’t budge at all on the MF or offer me a discount to compensate for it. This is an autonation, I’ve been reading a few other posts and it seems that Autonation standard practice is marking up MF. They told me straight to my face, that we won’t go down past this price if you don’t want it it’s fine. This is the second cheapest one in all of Florida, so I think I might have to pull the trigger since I need a car.
Holy shit though I can’t believe the balls on these dealers lately, they’re just 100% willing to forget about you in this market. They are really ruining their reputation during this pandemic, just when it was starting to get a bit better too.
