Chevy Traverse 3LT with Premium Package

The opposite is true, they get an additional $600 in gross profit for using a supplier. If they say they can’t go below supplier they’re lying. Pre-incentive discount is weak, should be closer to 5k off at base MF.

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Yeah you are right, I see on the sheet it shows $894 as a supplier incentive that they get kicked back.

It just blew my mind that they are trying to charge me 3x thale base MF. First lease so maybe they think I wouldn’t do my homework.

They can mark up MF by .001 - I do it on most my deals to keep F&I happy. They aren’t ripping your head off, this is an average deal by non-LH standards. You have to realize the majority of deals in this forum are extreme net losers and aren’t the norm for dealers.

Just counter them with the payment you want after doing your homework on where you should be with strong pre incentive discount and base MF. Doesn’t really matter how they get there :+1:

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Also helps not to be demanding or quote MF and RV with the dealer. They’re more inclined to do the deal if you play dumb and tell them it’s the payment that works in your budget. Even though it’s achievable, most desk guys won’t do the deal for a demanding customer purely due to ego lol

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Most people don’t realize what’s variable in a lease deal, or don’t care enough to figure out how it works. I’m certainly not going to put down all dealers since ultimately their job is to make money. You are playing three card Monte against them though. The best way to play this game and win is to politely kick over the table and tell them what kind of deal you are willing to agree to, being as specific as possible in your terminology without sounding like a lunatic. It is a delicate balance.

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Lol! I wasn’t just playing dumb, I was dumb (hadn’t done my research) so I think they were just thinking that they just had another nice and easy deal in the bag.

From your opinion at what delta is the breaking point for F&I. Like I am sure they never even blink at the .001 markups. At .0005 mark-up F&I still happy with you?

I rebuilt the deal, again they aren’t ripping your head off. They’re making a whopping $390 if they have a similar pack to my store.

Again, not saying that a better deal isn’t possible (it definitely is) but don’t think the deal they gave you was them ripping you off by any means.

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I have to agree with this, especially if you are just getting your feet wet. Most people negotiate a car lease every three years at most and they don’t frequent a forum such as this. My Baneposting with dealers doesn’t always work in my favor.roz7rklqcxf11

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Idk why but based on the responses I feel like this is how its going to go down with this dealer lol

download

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The deal I structured is pretty much right in line with everything you were saying, so it should be doable.

Think you were using the wrong info. Below is my offer from them.

10k miles / 36 months. I am thinking it is a bad deal with a lease calculator score below 8. My my wife is trying to get me to move quick.

MSRP: $49,015
Invoice: $47,349
Selling Price: $43,182

I have GM Supplier Discount apparently included in this price as I have the discount from my work.

Trade in allowance of $3k down

Monthly payment of $552.

They are using a Money Factor of .00156

RV Factor he said that they are applying is 58% and I am in NJ with Tax of 6.625%

Posting for D Solomon
They just called back and said they were quoting tier 3 Credit at that Money Factor. Updated MF at .00098 using Tier 1.5 Credit (He said can’t do Tier 1 due to demand… I have 800+ credit). Payment now at $500/month.

He’s full of shit. He’s feeding you a line to justify marking up the MF.

I have no problem with a dealer marking up MF. I do have issues with them giving BS reasons about why they’re doing it.

Of course, this is all resolved by not asking the dealer how much they want you to pay and to instead do your research, put together your own target offer, and offer that.

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Lol. the demand for Traverse LS’ are just off the charts nowadays :lying_face:

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I think there’s some miscommunication here because of the topic. It should have been a new topic to avoid that. The Traverse @Dsolomo was looking at was a 3LT. I’m not sure who this other person is or why they are posting on their behalf, unless they hit a post limit for new members?

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Is that including the trade still?

Asked him why I would not get Tier 1 MF if I qualify for Tier 1 Credit. Waiting to here back from him

If you’re not getting buy rate mf, despite qualifying for tier 1, it’s a simple reason; they are marking up the MF to make money on the back end.

That’s fine… you just need to make sure that your discount amount is commensurate.

You do that by establishing your target deal based on the current programs and making an offer of that amount. You shouldn’t care if they decide to write the contract with a marked up MF or not. There’s actually a good argument for wanting them to mark up the MF as much as possible with a larger discount than doing the deal at buy rate.

This should be your target deal not including the trade. Tell them you will sign today for 451 with zero due at signing without the trade. Or 358 if they are truly offering you $3,000 above payoff for it. I still think you are better off having them write a check for it instead, regardless of who you sell it to.Have you checked to see what Carvana or anyone else is willing to pay for it?