Deal Check - Velar 2020 lease (Los Angeles)

Longtime lurker / first time post. Would appreciate any thoughts and feedback from you, the experts.

Been negotiating with a handful of dealerships near Los Angeles. Shocked at their aggressive pricing and unwillingness to negotiate the 2020 models. This is the best deal I’ve gotten so far. There has to be room for further negotiation — my goal is to get a decent deal (in the context of leasing a Velar, understood from this forum generally Velars don’t lease well).

Model and trim: 2020 Velar, P250 S with black pack, Byron blue - LOANER with 8200

MPRS: $63,392

Sales price: $54,990 (as listed on the dealership website)

Residual: $32,474 (dealer sent this #; Edmunds has residual of 57% for the new S, but I have to confess I haven’t figured out how to adjust the residual for 8200 miles on this loaner)

MF: 0.0001 (Edmunds has 0.00001, and this MF is the best one I’ve gotten from any dealer, so I’m OK with this MF markup)

Lease term: 39 month, 12K miles (I’m definitely pushing back and asking for 36 months)

Down payment: $2500

Monthly (including tax): $685

Haven’t been able to back into the numbers the dealer provided, both my spreadsheet and the Leasehackr calculator have me closer to $600 per month.

Here are my thoughts on where there is room for negotiation:

  • 36 months (vs. proposed 39)
  • also plan to push back on the down payment amount, so need to negotiate other factors to keep that monthly payment down
  • negotiate down the listed sale price of $54K - how aggressive can I get here with this loaner?
  • need to sense check the residual (3% drop with 8200 miles?)

Thankful for any reactions, feedback and advice!

The downpayment amount is not a negotiation point. You tell them how much you want to put down (or not). The monthly will change to reflect, but don’t think of the downpayment amount as something any different than just a lease term that you set.

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Fair point, appreciate the clarification. I should have been more clear that I am not looking to do a down payment of more than $1500 or so (first month included). Obviously lowering the down payment increases the monthly payments, and so does changing the lease term to 36 months from 39. So looking for advice on reasonable ways to keep that monthly payment down.

There’s really only two choices… Either lower the mf or lower the selling price.

8200 miles is a lot of miles for a loaner, so you’re getting hit pretty hard on the mileage penalty. When you have looked at deals here on non-loaners, what have you found for target pre-incentive discounts?

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Based on my research, Velar discount off of MPRS for non-loaners is at most around 10%. Read some posts that $4-5K off a new model S is a good deal since JLR dealerships are notorious for playing hard ball and not moving much on price. I asked for slightly below 10% off MPRS on R-dynamic Velar the other day and the dealer pretty much told me to have a nice life.

Don’t think I have much room to push back on the MF of 0.0001 further. It is marked up but is still a good MF (especially compared to other dealerships).

So you are right, the main negotiation point then has to be the purchase price, but I’m not sure what’s appropriate for this loaner. I also wanted to sense check the RV since I wasn’t able to figure out the math on my end.

Separately, FYI I checked on Edmunds the other day and there are no lease incentives for the model S Velar in my area code.

Well, then let’s use that as a comparison point with this loaner. The MF mark up is equivalent to about .5% of MSRP and then you’re getting hit with another 3% RV reduction. That would suggest that you’d only need to get about 5% pre-incentive on a new one to match this deal. If that’s the case, why go with a loaner?

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Again very good points, thank you. But here are my reasons for considering a loaner:

  1. Have a preference for a Byron Blue Velar. At least in Southern CA, the Velar inventory seems to be very low and most dealerships even don’t have any blues available. One other dealership has a new Byron blue model S without the black pack (MPRS $59K), but the best I got from them was $750/ month, $5K down, MF 0.00101. That deal smelled like trash.

Note: Not married to this color, also looked at other color options (such as white, a lot more white ones in dealerships’ inventory) and found similar push back in negotiations. So figured I’d devote my energy to negotiating the car with the look / package I love.

  1. Read in a bunch of forums that looking at demo / loaner Velars is the best bet for getting a good deal with a Velar.

This is not to say this one specifically is a good deal (thus my post), just think there is potential here to negotiate a good deal (I think?).

Got more details on this loaner from the dealer this AM. The MPRS of this loaner is $63,392, so they’ve offered up a discount of $8.5K. I think there should be more room for negotiation given it’s got 8200.

Two additional questions for the experts:

  1. Because of 8200 miles on it, the RV took quite a hit and is at 51% based on numbers the dealer provided (vs. 57% for a brand new model S). They are assuming a 39 month lease and 12K miles. Does that sound right? 6% drop in RV? Have searched this forum but haven’t been able to figure out the math on Velar loaner RV calculations. Even rough estimates / sense checking would help. Please help if you know!

  2. The dealer is including in the amount due $5k+ of taxes, which is the tax on the full purchase price of the car. This is CA and tax is paid on monthly lease payments, not on the full purchase price up front. Am I missing something here? Didn’t expect taxes to be a number that dealers change to squeeze more money out.

  3. They also included $630 in DMV fees. Since this is a loaner, this car should be registered already, so this should be a much lower registration transfer fee, right? Learned this from reading your posts, but wanted to confirm.

Thank you!




I salute the effort but I would just approach them with the deal I was looking for and see what they say. I really like the Velar but a 4 cylinder loaner with 8k miles on it probably is not going to be good value in the current market. You would need a huge dealer discount to counteract the mileage and they’ll know they probably don’t need to go that far as someone else will pay more. Waiting towards the end of the month and going for a take it or leave it might get you a better deal.

For anything over $600 pm I’d be going for an SQ5 in the current market.

Pretty sure that’s just their typical printout which shows both purchase and lease options. Post a pic

You’re probably right that it’s just the typical printout. But I’m still scratching my head how they get to the monthly numbers based on this info and MF of 0.0001. Both my spreadsheet and leasehackr calculator get me to around $590 per month with tax. Emailed the dealer to figure out the discrepancy, he’s been fairly transparent with me.

If you post your calculator, we can take a look and see if there’s an obvious issue.

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As a start, your DAS amounts don’t match. They’re showing $2500 DAS and you’re showing about $3500. You’ve also removed the acquisition fee, which needs to be included, and placed the gov fees in its place. Your MSRP also doesn’t match their offer (not that $100 here will make a big difference).

This is closer (although still doesn’t match)

I’d verify that their sales price they’re advertising doesn’t include any financing only incentives and I’d triple check the MF.


Thanks, super helpful, and appreciate your flagging the issues. I’ve also reached out to the dealer asking him to help me understand the discrepancy. We’ll see what he says.

Dealer sent an update. Apparently they gave me the wrong MF. They are saying since this is a loaner, the MF is 0.00059 (vs. 0.0001 they gave me for a new car), so that gets us closer to $685 / month. Getting hammered on the MF and RV with this loaner.

Hear all of you reasonable folks that the wise thing to do is to check out other cars (Audi, BMW, etc.). But for those of us irrationally drawn to the Velar, it may be a matter of trying to avoid getting bent over really badly…

Can I ask you how you got to the 1048 down payment number you plugged into the calculator? Just trying to understand how I should break down the DAS properly.

Bull sh#t, it’s 200% a markup for profit.

Yes it is. The best ever velar I’ve had come through my desk was 530/month, 530 das at 62.5k msrp. 39/5k/year.

That was over 16% off, taking markup, etc into account.

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