Can someone explain this “inception fee”

Ask the Hackrs
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1

South Florida

I am working on pricing for a 2020 Equinox LT1. So far I have these numbers from the dealer. I am not understanding what they are referring to here?

MSRP: $30,740
Selling Price: $29,775.04 (covering the inception which is not being put down. Inception is $2528.89)

Monthly Payment: 340
Drive-Off Amount: 0

Months: 39
Annual Mileage: 12k
MF: .00023
Residual: 57
Incentives: $1000 for Lease loyalty
Dealer fees: 995
State Tag and Reg: $550
Elec Filing fee: 379

Their explanation of the inception fee is below.

Inceptions on this vehicle shows as $2,528.89. My selling price to cover the inception is $29,775.04. If you take that amount and minus the inception it comes to a selling price of $27,246.15. That is a 10.5% reduction in cost of the MSRP, $30,740.00. The markup on this vehicle is $850.

Is this correct or BS? Thank you in advance!

2

It doesn’t matter how you slice it or what line items your dollars go to. $340 for an Equinox? Pass.

3

Yes right off the bat $340 for an equinox is crazy just wasn’t sure how truthful the explanation was. Thank you for the reply. That was the first offer I received for the car.

4

Basically they are padding it 6 ways to see if you notice and will ‘remove’ one fee you discover.

5

NEW 2020 CHEVROLET EQUINOX FWD LT

Chevrolet National Lease Offer . Ultra Low-Mileage Lease for Qualified Lessees.

Lease for $239/month * for 39 months.

  • For Everyone: $2,269 due at signing (after all offers).* $0 security deposit.

  • For Eligible Current Lessees: $1,269 due at signing (after all offers).** $0 security deposit.

  • Tax, title, license, and dealer fees extra.

  • Mileage charge of $0.25/mile over 32,500 miles at participating dealers.

  • Take new retail delivery by 11-30-2020.

6

Ask for lube next time

7

Sounds like what OP got.