Total newbie - I hope the calculator attaches! This is for Philadelphia. MSRP of $30,280 with USAA price of $28,492. Conquest offer of $750. Paying acquisition fee at signing. MF is .00137 and residual of 63%.
Loyalty / Conquest is a taxed incentive, unless PA treats it different which I doubt. There is $500 dealer cash on crv. Aim for an additional $750 to 1k discount including the D.C. excluding the conquest.
But also depending on remaining 2020 inventory in your area, they might not entertain it easily.
They don’t.
202020
What the tax part ? or inventory part lol
Clarifying that you’re suggesting I should get $500 dealer cash + $750 Conquest AND try to get an additional $750 to $1,000: yes? And I didn’t find D.C. in the lingo section — what is that? My closest dealer has 3 cars on the lot and it’s tough in this area. Doesn’t help that my wife dumped this in my lap this week & must turn her Subaru in monday morning…
Thanks! Local supply isn’t great. As I told Mani_is_cool it doesn’t help that I’m pressed a bit since my wife handed me this with the pressure that she turns her Subaru in monday morning.
No, Aim for an additional 750 to 1k discount to sales price including the D.C - Dealer Cash of $500.
The $750 conquest will should then be applied separately (which you already have on your calc)
You can always call them and ask if they can give you a month extension or a 10 day grace period if that is offered.
Doh: DC as in dealer cash. How is dealer cash handled? Put under taxed incentives? What’s the best use - to apply to cap cost? To reduce amount paid at signing?
No sir. its for the dealer. Already included in sales price.
Honda uses a direct-to-dealer incentive pricing strategy; which means Honda gives its dealer’s directly a certain amount to discount their offer price to you (varies by model, can change each month). You don’t get to see this incentive unless the dealer tells you OR you dig it up yourself on edmunds.com (hence why you always see hackrs tell posters to go get info from edmunds). You goal is to know how much the dealer is getting from Honda AND ask for a good pre-incentive discount from the dealer ON TOP of dealer cash. Here is a recap of @mani_is_kool advice:
$30,280 MSRP
$27,475 Your Counter Selling Price
$ 2,805 Total Discount
$ 500 Honda-to-Dealer Incentive
$ 2,305 Pre-Incentive Discount from Dealer (+$1,000 more than current offer)
7.6% Pre-Incentive Discount
Plus you want Honda-to-consumer incentives:
$750 Conquest Cash
In your calculator here are your inputs:
Selling Price = PRE-INCENTIVE Selling Price
Tax Incentives = $750 conquest cash
Untaxed Incentives = $500 Honda-to-dealer cash
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Very helpful! I’m obviously noodling around the wrong part of the Edmunds site, since I didn’t see the $500 dealer cash. So my suggested counter is $27,475 and when the balk from the dealer follows, I mention the $500 DC that they got? Or Don’t mention it and stick to my guns, moving on if I need?
To mention doesn’t make any difference. As said above, its a dealer incentive so included in the discount. As long as you know about it, just work with it on the sales price you are aiming for.
Don’t mention dealer cash in negotiations. DC is only meaningful in YOUR evaluation of the selling price. You want DC + a reasonable pre-incentive discount. This math is only valuable to you.
Read this:
Fight the good fight. Approach as many dealers as you can with your offer ($27,475 at the buy rate MF plus conquest). Stick to your guns and see who gets the closest. Pick the best offer if you like what you see.
You are negotiating in a market where the dealer does NOT want your business IF you hold out for an aggressive deal that you can get in a normal market (your offer is NOT aggressive in a normal market). Dealers are waiting for buyers/lessees that will pay up given today’s tight inventory market.
I also suggest you reach out to a local broker on here (I read shipping costs are crazy right now so don’t go national) and see if they can get you what you want at a fair price (like your offer). Brokers are built for this kind of market - find you a car with the specs you want at a fair current market price.
Good luck.
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The world needs to know about LH - and I’ll do my part! What an education. Your suggestion, 824, was spot on: broker HersheySweet not only steered me to a dealer just over 1.5 hours away, but also helped me realize I have more options than I knew about for the end of our Subaru lease. Revised Honda CR-V EX numbers are looking like this: leasehackr.com/calculator?make=Honda&miles=12000&msd=0&msrp=30280&sales_price=27979&months=36&mf=.00137&dp=0&dealer_fee=389&acq_fee=595&taxed_inc=750&untaxed_inc=500&rebate=0&resP=63®_fee=120&sales_tax=9&demo_mileage=0&memo=%24750%20%3D%20Conquest%20Offer%20(have%20a%20Subaru)&acqFee_check=true&monthlyTax_radio=true
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I figure you’ll know this cold: HersheySweet found a dealer who’ll offer a 7.6& discount from the MSRP — namely $27,979. HersheySweet said my calculator was off b/c I had mistakenly put the $500 DC under “untaxed incentives” when in fact the $500 DC was already figured into the MSRP discount. What should I be seeing that I’m not?
HersheySweet won’t steer you wrong.
Everyone prepares their LH calculator a little differently; and it is prone to jerry-rigging tweaks. With that said, per LH calculator instructions your calculator selling price should be PRE-incentives. This means, the selling price in your calculator should NOT include the $500 dealer cash.
But you need to put your $500 dealer cash somewhere in the calculator. LH calculator instructions say put DC in untaxed incentives.
You can read here:
Here is the important part - you are NOT asking the dealer for a 7.6% discount.
Recall, dealers do NOT talk pre-incentive discount + dealer cash.
Recall, @mani_is_kool guided you to a $2,805 target discount, or 9.3% (2805/30280) discount from MSRP. This is the discount you discuss with a dealer.
You should NOT discuss pre-incentive discount with a dealer. You use a pre-incentive discount target plus dealer cash to set your TOTAL discount you want to ask from your dealer. Do not conflate TOTAL discount with PRE-INCENTIVE discount - these are two different but related concepts.