Hi everyone-I have a general lease negotiation question for the community. I am interested in leasing a BMW iX xDrive 50. I know the residual and MF from LeaseHackr. I know the incentives that BMW is currently offering on this car. To negotiate the best deal, is it better to disclose that I am leasing the car and negotiate the capitalized cost , or would it be better just to focus on the price of the vehicle (discount off MSRP), and only later reveal to the dealer that I want to lease the car after we have agreed on price. Thanks in advance to the community for your advice. (If this question would be better posed on another thread/forum please let me know which one.)
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Spell it out for the dealer. Tell them the specific stock number of the vehicle you’re interested in, the required discount off MSRP, etc. From my experience, better to lay it all out up front and be specific so you can get to “yes” or “no” quickly.
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i do find it ironic that dealers need you as a consumer to sign the dotted line, but you have to work for it and not them lol. Easier to just go through a broker imho
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Thanks for the advice. I will spell out all the terms of the lease (cap cost, residual, MF, expected manufacturer incentives, dealer fees, etc) in my email to the dealer as you suggest.
People make the process way, way more difficult than it needs to be. There’s no need to play any games.
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But then you have dealers who get hurt feelings when you are too blunt, you can’t win-win anymore, the dealer model needs to die and go in the way of Tesla, Lucid, Rivian ect ect. Everything is straight up front calculated nicely on a website, what you see is what you get, no B.S.
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Yeah, but with the exception of Lucid Mania a couple of months ago, manufacturers that sell direct to consumer are typically a terrible value compared to comparably priced traditional brands.
I think you also missed Rivian Mania, Polestar Mania, VF8 mania, Fisker-ehhh nevermind.
Msrp to msrp to a legacy mfg, they still do well without the dealer b.s.
Biggest issue I run into right now in negotiating a car like an RS E tron GT is the continued b.s. about how the car will sell (nah man…its been sitting there for 3 months, along with your other 4 on the lot…).
You don’t get that sales pitch and get a competitive lease price with a Lucid, and only after haggling/negotiating with a traditional dealer would you get a comparable price.
May not apply though for cars like Nissan Aria etc etc where dealers do get and accept that they arent selling.
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Who cares? You can be direct in your offer and polite. If they don’t agree, just move on.
The games only go as far as you entertain them.
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Definitely not me, dont entertain them by any means, just wish the process was easier, especially considering when you are trying to pick up a car thats been sitting for months and inventory couldn’t even be moved after like $32.5k in lease credits. Just find it ironic
I’ve always had the absolute best luck doing the following:
- Find the exact car you want on a dealer’s lot.
- Find a similar/same car on a neighboring dealer’s lot (so they’re competitors). The most important part here is that the cars have the same or very similar MSRPs.
- Make sure you know exactly what rebates, etc. you qualify for and exactly what price per month you want to pay all in.
- Email dealer 1. Let them know the exact car you’re looking for and the exact price you want all-in right up front. Let them know you’re looking at the same car at dealer 2, and while you know the price you’re asking for is aggressive, you are ready to sign that day if they agree to your price.
- If dealer 1 says no, try dealer 2.
I’ve had to go to dealer 3 before by pushing out my geographic search area, but that strategy has worked well for me in the past. At the end of the day, your goal is to be easy, laid back, and ready to buy same day.
GL
You need to have done your homework before contacting the dealer and know what you want, including adding the Stock and VIN# so there are no misunderstandings. I asked on the Edmunds forums what was the Residual Value, Money Factor, and Incentives for the type of car and trip I wanted. I found that information to be very accurate by the way. Then I would present my offer to the dealers in the same way it would be presented to you on the lease agreement (as seen on example attached). You need to understand how the math is done to have the upper hand. The back and forth mind games is greatly reduced when you present the numbers in a clear and logical fashion… less wasting time. But yes, it all starts with the agreed sales price under MSRP.
Solterra Touring 2024.pdf (214.3 KB)
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@delta737h - this user is giving your lease proposal a run for its money. Unlike your sheet he has a field for the buy rate money factor… ooooooo
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Man I could have swore your older sheet didn’t have the MF spelled out.
Nope. I always strive to be very thorough. Many of these idiot dealers will ask if I’m planning on making a cap reduction or how I plan to handle upfront fees. I tell them to READ my lease proposal. Everything they need to know is in the proposal. All they have to do is transfer my numbers to the lease contract (lol).
I agree laying out all your cards on the table is best. Tell them you’re ready to do business TODAY, and lay it all out.
I get what you mean, but the discounts on those don’t necessarily make them a good value, they just make them cheaper.
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looking forward to the rebuttal from @z0lt3c