Working on my first non-Prenegotiated-Deal here and wanted to see if this was a standard practice. I got an email on Friday from DGDG advertising this:
I reached out to a sales rep at the dealership to inquire about the VIN that was listed, citing the deal. His response was, “That monthly payment is not including any of your regional government fees based on where the vehicle gets registered.” Since I only live about 15 minutes away from this dealership, so I didn’t expect much to change, but I gave him my residential ZIP and asked him to run the numbers. This is what he came back with:
With these new numbers, it seems that I’d effectively pay about $1000 more over the life of the lease than what I estimated from the original ad. Does that seem reasonable? Is it standard practice to recalculate the actual monthly payment like this? I walked in thinking the advertised price is what I can expect, especially since I’m already local. Curious how I can ask to improve this deal. (I do also see that somewhere along in our conversation, he lowered the Due At Signing, and I’m wondering if that’s what’s offsetting the monthly payment from $229 to $281/month over 36 months.)
That’s not how it works, these dealer ads typically include zero taxes or license/tag/DMV fees, so you could live in the basement of the dealership and your actual deal would still be ~$2k higher than the advertised deal once they add the taxes and gov’t fees in.
If you add your $2k of taxes/fees to the ad it becomes basically $229/mo with $8k DAS (~$16k total). They quoted you $281/mo with $5k DAS (~$15k total).
So their quote is actually $1k cheaper overall than the ad, which is not surprising since these dealer ads are usually garbage.
