I have a 2019 MDX Tech leased which will be expiring in December but I went to dealership to get my safety recall service done and also to check and how much 2022 A spec mdx is leasing since its new model. Dealer appraised my current vehicle ( ~ 17k miles) and gave below quote after l negotiated a little bit with him. Please check this out and tell me what I am missing here and I know there should be some discount but apart from it this deal looks good ?
$500 per month / 36 months / 10,000 miles ( incl FL tax)
**$2000 down ( not including first month payment) - Taxes and other fees included ** Also dealer provides paint protection + oil changes free
Your buy out on your current vehicle, with tax, is $31k. The dealer doesn’t have to pay tax, so their buy out on it is roughly $28-29k depending on local tax rate.
Kbb value is $36k. $36k-28.5k=$7500 in equity they’re gobbling up. That’s obviously worst case, but even if the number is $5k instead of $7500, it’s still rough.
This is a full msrp deal and the dealer is eating up all the equity.
Thanks mlcb42 , could you help how can I negotiate on this deal or rather buy my current vehicle outright and then look for 2022 MDX now or later and may be any other vehicle since I could trade in with $36K in hand ?
Your beat bet is to work out your target deal on this vehicle, independent of any trade. Just pretend it doesn’t exist.
We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.
Read Leasing 101 (Blog | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
Pick a specific vehicle that you want to target
Gather the current MF, RV and incentives from Edmunds forums for your zip code
Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
Plug your numbers into the LH calculator (CALCULATOR | LEASEHACKR), and use a pre-incentive discount similar to what you have seen
Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.
With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.
Then you can get buy out quotes from the major players to actually purchase your vehicle (carvana, shift, vroom, etc). There are threads discussing all of them on here. You can also take their purchase offer to the Acura dealer and ask them to match after negotiating the new vehicle.
So I used calculator and also included $7500 ( best case scenario for me) in rebate ( in exchange of my current MDX) so its coming out to be $487/ month ( incl tax) and DAS - $2300 which is not very far current quote from dealer.
Also I adjusted selling price with $1000 ( loyalty) which I should be getting anyways. KBB for 2022 MDX for A -Spec is ~ $57K. MF and Residual cant be changed as per my understanding and please correct me if I am wrong.
I got your point bro , let me check with the dealer and see if he is ready to negotiate the deal without trade-in first or else I will go to next dealer. Currently not much discount these days on 22 MDX looks like worst time to buy/lease cars.
yeah man but after reading all your pro hackers comments I have realized the best way to go is to negotiate lease deals first and get best quotes around town and then talk about trade-in with them.
I am thinking to wait out until my lease expires in December and may there is chance of getting more discounts or deals towards end of the year. I hope my trade-in value wont go down much in 5 months or so with additional 4000 miles approx. ( estimating total ~21K by end of 36 months)
The used market right now is insane. I wouldn’t count on that continuing for months on end.
With that said, it only makes sense to sell your current vehicle if you don’t end up eating up all the equity on the new vehicle.
I’d start by working out exactly what you can get for your current vehicle and exploring the actual costs for a new vehicle. Figure out where you’re really at and work from there.
Thanks , I will check with carmax as well the only thing I am not sure is about leased cars selling to carmax. I know caravana has an option for lease cars but need to check with carmax.
Vroom is giving me more money than caravana ,does anyone know about vroom accepting end of lease cars and paying customer with difference directly? I didnt see that option on website.
