I’ve really enjoyed reading all the info on this forum… though it pains me that I seem to have missed the best of the Stelvio deals.
I’m trying to work something out right now… the dealers in my area (SF Bay) are not terribly eager to discount as much as, say, LA. (One of them said he just flat-out couldn’t match the discounts some of the LA dealers are giving.)
So right now one of the Stelvios I’m looking at, and the current deal on the table, is as follows (it’s one of the earlier production models.)
Stelvio Sport
24 mo/10k mi
MSRP $49,685
dealer discount: $3478 (plus something they’re referring to as “rebate” of $3250.) total: $6728
“bonus cash”: $1750
Net price: $41207
“down payment” (which actually includes tax/doc/acquisition/first month, which is $1116, so basically I’m putting down $1304, which I’d rather not do!) monthly payment (pre-tax) $535
The discount on the car looks pretty good, but I feel like something’s getting lost in the lease equation, and this deal could be a lot better, even given the residual drop. I’d love your thoughts/suggestions; I’m looking to try to work something out today. Thank you!!!
Obviously you haven’t been here long enough, with rising interest rates… everything can get worse. Look at the Guilia, it used to be cheap. That being said, the above deal can be improved upon.
Exactly… I definitely missed the sweet spot as far as residuals, interest rates, etc. But I have a good offer to sell my current car today, so I’m trying to see if I can make this deal a little better, at least. Thank you!
Because the fed is raising interest rates bit by bit…that alone will start causing MFs to creep up year over year. Too many used leases hitting the market will lead to captives lowering residuals to slow the flood…
Rising interest rates will make borrowing money a lot more expensive and there a bunch of lease returns, that manufacturers have no idea what to do with.
We’ve seen many auto-makers programs continually get worse over the past three years.
Namely, BMW, Mercedes, Lexus, Infiniti (contrary to popular belief) and Volvo. Granted, Alfa is a new brand so there isn’t much historical data to look at pricing. However, what we’ve seen with the Giulia, is that it has gone up. What makes you think all of a sudden prices are going to go down?
Before you start giving people advice and taking people’s hard earned money, I suggest you read up about the business you are trying to operate in.
This is spot-on. 2 years ago, BMW had a sub-1% interest rate with MSDs because the Fed Funds was around 50 bps. At 2% Fed Funds, even a bought-down BMW interest rate is 3.14%. That’s a sizable difference in payment.
Other thing hasn’t been touched on here is that there is a flood of post-lease, CPO cars that are now not worth the residuals they were sold at (i.e. the 66% the 3 series used to have and the 67% the 5 series used to have). As a result, manufacturers have had to adjust by dropping their residuals, which has added to monthlies. Incentives have gone up a bit to compensate for the price increase, but has obviously not been enough.
The threat / actionability of President Orange’s tariffs will also contribute to increased cost of leasing.
The free market works exactly as intended. If there’s a glut of preowned, and new cars are too pricey then people will buy discounted preowned. Manufacturers will need to discount their inflated pricing( yes 0% rates led to them increasing prices) or cut back on supply. Regardless there will always be a deal somewhere.
They manufacture way to many cars to sit on inventory. If rates continue to rise, so will incentives.
The only entity to blame here is the private federal reserve.
There will always be a deal relative to what the market is trading at. However, if the market rises those ‘deals’ are also going to rise in price. This is just from my ‘limited’ experience in selling cars.
Don’t put all your eggs in one basket then. Tough times are gonna be ahead for you parasites if rates keep rising. That’s just from my limited market experience.
Need to get that down!