I don’t really have a question, just wanted to to let out my frustrations.
I am looking at a gle 63 suv, long story short, I told them I am completely fine paying MSRP if we do everything electronically and you can deliver the car to my house, but out of principle I won’t pay above the buy rate.
They lowered the MF a bit but are still not close to the buy rate. I am getting frustrated because what could have been an easy deal that could have been completed in a couple hours is now going sour.
I am sure if I shop around, somebody somewhere will give me MSRP with the buy rate. They are bound to know this, so why make this so hard? Yes these cars are “limited” at the moment but there are at least 15 on lots in this area.
By the way I did give them the option of lowering the price and keeping the mf to match the payment, or give tax credits to match the payment, but they didn’t care for that either.
This is a principle that really doesn’t check out. If given a choice between paying buy rate or a marked up mf with a commensurate discount, the marked up mf actually works in your favor by adding equity to the deal (at any given point, your lease buy out is lower than at buy rate/no discount).
Sounds like the bigger issue here is just that they don’t want to discount the vehicle.
Yea, a better strategy would be “out of principal I won’t pay above $XXX/mo with $YYY DAS” because that is my target deal and I couldn’t care less how the dealer gets there.
If they won’t do your target deal then time to move on to the next dealer. A GLE63 is certainly rare but at the end of the day I doubt you’ll have too hard of a time finding a dealer that will lease you one at full sticker with base MF.
You can pay down the MF with MSDs. But you can find a GLE63 on Rodo at base MF and 7% off MSRP. One click and it’s delivered.
They must know that they have enough customers who will walk in off the street, not ask any questions and sign on the dotted line. I’ve experienced this recently had a few MB dealers, they have no problem sitting on inventory for 1 or 2 years to get the margin they want. Just not a gross operator clearly.
You got my attention so I signed up on Rodo. Where are you seeing these prices?
Edit - - - I see the red car with a $9k discount but there is no way that payment is with base mf. That being said if I wanted a red car, I would do that deal. Better than my payment above.
I like the idea of this site, but it’s way to vague. It needs many more details about the car and the deal.
If you click on the vehicle you can then click “Review my order” and it will show you all the parameters of the transaction. If you “watch” the vehicle, and then goto “My Showroom” you will also be able to “Make an offer” to try and negotiate a better discount. Here is the deal review for the Red GLE 63 S (MSRP $131,500)
Edmunds is sketchy on the standard MF rate. I see .00142 and I also see .00153 where-as the Rodo deal is at .001550 – but all of the dealers on Rodo are at this MF and I’ve never seen a Rodo MF marked up, but I guess there is a first for everything.
Sometimes it is. Sometimes you get different banks by region. Could also be that that’s what the local dealers mark up to.
This is all resolved by doing your research and setting a target deal based on the current lease programs. Then it’s just a matter of comparing your monthly/das and not worrying about how they get there.
Yes could be, but I just applied with the dealership today and was top tier. Not sure what rodo can get with a soft pull credit check. Below is from rodo though.
Different users may be offered different prices for the same vehicle “based on various factors such as location, credit, applicable discounts, timing and more”.
Not trying to be an ass, but dealers mark MF for two reasons.
Inventory is very limited, so that they HAVE to make some kind of profit.
MF is judged by the credit score. In fact, I had a customer the other day, (Not a LH customer) that I had to mark 2 point above the buy rate because the Bank didn’t approve the buy rate that I submitted for. I ended up marking a point above the buy rate to make the deal, but because the customer had 3 open autos with 1 mortgages at the time of leasing another SUV, the bank approved differently.
From what I am guessing, you are categorized on #1, not #2.
If you don’t like their response, just move on. Plain and simple!
You don’t have to go back and forth for couple of hours and call them stubborn for what they think they are doing it right on.
I get why dealerships mark up MFs. Even the semi-educated consumer who knows you can negotiate the sales price on a lease isn’t gonna know the buy rate MF. So you can give them a big discount and make it up in MF mark up. But doing it that way only makes sense to me if you are trying to make the price of a car opaque. Why not just raise the sales price?
To be clear, I’m not arguing dealers shouldn’t make a profit. Just that I don’t see a transparent reason they do it via marking up the MF versus raising the sales price.
It’s often about how the individual is compensated. They’re not making much or possibly anything at all by raising the sales price but they’re making commission on F&I revenue.
