Got this deal from a dealer today and as someone who’s leasing their first car I wanted to check if this is a good deal.Even though I’ve read a lot of tips from this forum I’m unsure if I was able to negotiate a decent deal.
Miles - 12000
term -36 months
Residual - 29168
MF - 0.000777
MSRP - $55035
CAP cost - $49424
Executive Shield - $399
Customer Cash - $2595
Fees - $1629
Tax - $166.56
Adjusted Cap cost - $49648.82
Monthly payments - $680
Create a target deal that you’re comfortable with based on steps below. How would it compare to this quote? Then you’ll have your answer.
It is practically impossible for us to tell you what a “good” monthly payment is for your specific lease as lease programs are highly dependent on region, personal qualifications, tax rates, etc.
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.
I’d verify your RV, MF and incentives on the Edmunds forum using your zip code. MF looks marked up based on what they are reporting. Should be 00017.
You should always work out what a good deal is before you ever talk to a dealer. You can’t effectively negotiate if you don’t know where you’re trying to get to.
This Q5 has “Executive Shield” added, that changes everything…
That is hard to find for only a $399 adder on a lease. I mean you can get Royal Armour and VIP Bubble Dome. But Executive Shield, wow!
Last question… What is Executive Shield?
Now that’s some peace of mind
The Executive Shield guy/image should replace the Inflatable Flappy Balloon Guys for Labor Day Weekend sales. How awesome would that be to see that in front of a dealership…
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