Hi Delta,
Thank you for your thoughtful and objective response—it aligns with my thoughts as well.
However, regarding #4 (dealer discount), I noticed something that might differ. There’s no explicit dealer discount in paragraph 11; instead, it seems to be included in 10(c)(1) as a manufacturer rebate. Could you clarify how this setup typically works?
I appreciate your insights!
Thank you. That make sens. Assuming the dealer want’s to cut me a check for $2,500, do you still think it’s a bad deal?
When manufacturers advertise lease payments, they always include a down payment to make the payments look more enticing.
Never put money down on a lease–its only purpose is to reduce car payments; however, if the car is totaled or stolen, the lease ends immediately so you’ve reduced lease payments that no longer exist and that money is forfeited.
I don’t know the Defender market but it seems like it’s a car that is easily discounted nowadays.
As others have said, unwind the deal and start over again.
It’s not accurate. They changed it a couple of months ago. Chase doesn’t allow it to be marked up.
OPs problem is not a couple of hundred dollars on an Acq fee anyway.
Manufacturer rebate comes from the manufacturer, not the dealer. It’s crystal clear to me that the dealer is not providing you with a discount… they have no skin in the game. The agreed upon value is defined as the sell price and is numerically equal to the MSRP.
Also, as @JMMZKDTH stated, never put cash down on a car. If the car is totaled or stolen, you may lose all or part of your down payment (cap reduction). Remember, a car is a depreciating asset, not an investment. $7500 down is a lot of horse shit. If your credit is good, no need to put anything down.
I would target a $4-5k discount + buy rate money factor.
I think you are better off starting over with a new dealer
Just for reference
Yes, your deal is bad since you are getting $0 in dealer discount as others have stated.
- Just drop the car off and get your money back.
pay to play vehicle. these dont lease well and 10k down…sheesh
That is actually no context at all.
Look through Signed Deals & Tips — no one is referencing OEM advertisements
Incentives and dealer discounts are not interchangeable. They are different things. Having one does not negate the other.
Couple of important terms for you to be aware of as you hunt your next deal:
-Lease cash/manufacturer rebate = applicable to everyone and it comes from Land Rover. In this case, the $2,500.
-Dealer discount = the individual dealer’s contribution to the selling price of the car. This is dependent on the store you are working with and your ability to negotiate the best % off sticker, before manufacturer rebate.
-Base money factor = the interest rate on the lease which is set by the finance company. The dealer has the ability to mark up this rate up to a certain point. Some compensate for a deep discount with an elevated money factor. Others, as in the deal you previously had, try to get away with a mark up and no dealer discount which is effectively an over-MSRP transaction. This should be a nonstarter on a car where brokers are advertising base MF and 6% off sticker.
-Cash down/down payment/cap cost reduction = how much $$$ you are putting into the lease upfront to bring down the payment. This blurs the line of what you are actually paying every month on the car. As others have said, you should always do $0 cap reduction on a lease to avoid losing it in the event of a total loss.
The last thing you want to do is rush through the process of leasing if you are unfamiliar with the ins and outs. Reaching out to multiple dealers with a well thought out target price on an in stock unit is the proper course of action. If you are in a rush, you should definitely find a broker that will skip through the BS for you and get you the best possible deal for what is a nominal fee.
Hi Jay,
Thank you so much for your thorough and thoughtful answer. I’ll be honest, I’m aware of most of the things you pointed out, but I’ve had a tough time recently and hadn’t closed a deal in a while. I just wanted to get the car, which led me to rush into the process. Thankfully, I had the opportunity to back out, and I’m relieved that I did.
It’s truly exhausting dealing with dealers—they seem to have unlimited time and know how to wear you down! Your suggestion about working with a broker makes a lot of sense, and it might be a great way to cut through all the hassle. I actually found a car on a lot that could work for me.
Where would you recommend I start looking for a good broker? And what’s a typical fee for their services?
Thanks again for your guidance—it’s really appreciated!
You should really be structuring the deal on your own before reaching out to the dealers. They will wear you down if you present yourself as someone who is wanting them to give you a price versus you telling them how much you are willing to pay for said vehicle, based on information readily available to you on Rate Findr if you become a Super Supporter here.
You might just be a great candidate for working with a broker. In which case, check out the Marketplace - FORUM | LEASEHACKR and select your region, filter out by tag to find LR brokers that service the area. Fees are usually anywhere from $500-$1000
Ok, so what do you think about this one?! I think it looks promising.
So 5k down and $825/month for 36 months? Why are you attached to this car?
Just love the Defender. I know it’s pretty crazy price for a lease, but Defenders are pricey.
Is that a broker deal or was that dealer pricing?
Working with dealer.
Decent discount on paper. But the rate is marked up so net effective discount is likely half of what you see there, which makes this a bad deal. And again, it looks like you have a cap reduction in the $5k down which we have repeatedly said is not a wise move.
P.S. the $2,500 that you had on your original contract. Was that for loyalty?