Copy + Paste Instructions on How Can I get a Better Deal?


#1

Hello There:

This is a generic copy + paste answer to your question about how I can get a better deal.

# SELL PRICE SELL PRICE SELL PRICE.

Remember that dealers make money based on the following. (Sell price + Incentives + Holdback (look it up for each car sold the dealer gets around 2% MSRP) + Volume Discount (secret ask someone on the inside)) - (INVOICE). Check out the wiki for sites on what other people have paid including NADAguides. Again, that’s (Sell price + Incentives + Holdback + Volume Discount) - (INVOICE)= Profit.

For dealer holdback numbers: https://www.edmunds.com/car-buying/dealer-holdback/

Which sites do you use to do research? (Updated 08/10/17 Alt Lease Calc) [Library]

# INCENTIVES

These are programs made by corporate to give to dealers so they have more room to discount cars. Autobytel has lists for each make and model. However, make sure you are eligible before barging into the dealer demanding the moon. DO not let the dealer factor this into the sell price discount. They get reimbursed for incentives.

# MONEY FACTOR

This is the bank’s profit, or in other words, interest. Go to edmunds (again info on wiki) to find the BASE MF for your vehicle. Dealers will sometimes mark up the interest and pocket the difference. This is where Edmunds comes in. Don’t get got.

## MSDs.

Many carmakers allow REFUNDABLE MSD (multiple security deposits) to lower your MF aka interest. MSDs are simply monthly payments paid up at the beginning of the lease and refunded at the end of the lease. No questions asked even if the car is totaled (assuming insurance pays off the rest of the lease).

# Fees

Look up the lease acquisition fee for your brand and other user’s average standard doc fees. Acquistions fees may be marked up so for example: MB’s base acquisition fee is $795. Many dealers mark this up to $1095 which you then have to call them out on.

In terms of doc fees, for example NJ is usually ~$499 and Florida can get up to ~$1000. Remember doc fees are sometimes the finance manager’s cut so they can be negotiable. However, lease acquisition costs are usually not, but why not ask?


2018 Q50 3.0 Luxe
#2

Should’ve mentioned that acquisition fees may also be marked up by dealers. And it happens all the time.


#3

Thank you for the Insight. This is very helpful.


#4

Is there a good post any where on this forum about starting negotiations? I feel like that might be a good wiki addition. Like a general guideline sort of thing. At this point I feel really comfortable finding all the numbers avaliable to me and calculating a lease payment but I’m not really sure how to approach the dealer etc. Most people seem to suggest email/phone so I’ve learned that. I don’t really know what I should be doing though to start things out. Should I just straight up find a price I want that I know they should be able to do based on the numbers and throw it at them? Ask them for their best offer on the car im looking for and do the same with other dealers then try to get them to better eachother? Ask for their best deal and then slowly poke away at it till I hopefully get the deal I want?

Obviously there’s no cookie cutter way to do it I’m sure but a general post to give people some strategies that have been successful woud be great.


#5

Don’t forget the most important part

#certificate

ASk chrispbacon for 1k discount certificate :slight_smile:


#6

@bro1999 had a great post about negotiating. I’d take a look at his profile and look where it says top posts to find it


#7

Unfortunately all his deals are for GM cars and/or them fancy electrics BEV PHEV and watchamacallit.
Is bro a GM union worker or a member of Greenpeace?


#8

Don’t forget that other part

#FRAUD.