After reading hundreds of posts over the past couple of months, my initial observation is that a lot more folks expect dealers/sales people to offer them a unicorn-type deal on their first try of negotiation.
I am going to use BMW deals as an example. From what I have read on LH and by my own research, the consensus is that a 10-12% pre-incentive discount can be easily had on a new car, 15% on a new car that has been sitting on a dealer’s lot for a while, and up to 20% off on a loaner. Does it mean everyone is going to get the same discount? Of course not.
What some folks tend to forget is that dealerships are in the business of maximizing their profits. However, some don’t want to do the legwork to help maximize their savings.
To all newbies out there, make an effort to understand how leasing works. There is a ton of information on this forum. A simple search and review of past deals will provide you with a baseline of what is possible. However, remember that incentives, residual value (RV) and money factor (MF) could change from month to month. Hence, when comparing deals, take all these factors into account.
There are a lot of factors at play to help achieve a great deal, some of which include:
Finding the “right car” (instead of just payment shopping)
Timing (end of the month/end of the quarter/end of the year)
Dealer’s motivation to move a particular car
I am curious to hear what some of the industry folks and brokers have to say. Have you (brokers) noticed an uptick in prospective car buyers asking for an unreasonable % off on a car, just because “John” got that unicorn deal at the end of the month/end of the quarter?
I am looking for a healthy discussion.