Ther others above have said it best. I you havent done your homework and go in asking to hit a monthly, you run a high chance of getting taken to see George Jefferson (he owns the cleaners).
As for dealers reading posts here…of course they do. Many of them may not know their own rebates, models names, or MFs, but most know how to use the “Googlemachine on the Internets”.
The 2nd option will, as far as I can see, will pretty much always be better for the buyer. Ive tried to concoct a scenario where it wouldnt be, but I cant think of one?
This is a great input - I observed dealers doing what you said but could never connect the dots. Somehow I felt MF was more of a finance function and not a sales function, and sales guys don’t benefit from the MF changes.
Yes, this is one way to do the deal but make sure the monthly and DAS are very well researched - meaning use these LH,Edmunds forums to get to the competitive number. And do showcase in your email that you have done your due diligence.
It also depends on the dealership. Many times I’ve made a reasonable offer and the dealers just accepted. No math breakdown needed.
Others you’ll show them all the numbers and you’ll never meet. It’s not because they’re not understanding the math, because they are. They know those number well but they may not be willing to give base money factor, or the discount you think you deserve
Well, sometimes the dealers give you this kind of message even though our offer is reasonable. “if you are able to get a signature model CX-5 for several hundred less per month than what I quoted you, I would drive to the dealership immediately and purchase. Please let us know who it is as well so that we may purchase from them too.”
Not every dealer is going to be willing and able to meet your numbers. Nothing wrong with that; just move on to someone that will.
This is where it’s important to have your numbers be well researched so you know that your ask, while aggressive, isn’t completely unreasonable. You need to have the confidence in your numbers to recognize that a statement like that is as much a sales pitch as it is them declining your offer.
Good point.
It’s all about how you approach them imo.
In all my past personal deals, being upfront has worked well for me. I lay out everything cleanly, MSRP, Discount Pre-Incentive, Incentives, MF, Residual, Monthly, DAS Amount, etc.
I then simply tell them that if those numbers are acceptable I’ll either be in today to sign or will leave a deposit/credit app immediately (just depends on whether the deal is close by or 4 hours away).
It doesn’t always work on the first try, but it has never failed me ultimately. It’s how I wound up with that $676/mo Macan 2 years ago.
Those kinds of responses are always hilarious! I have gotten a few of them as well.
Another variation on that response was received one time when I was actually looking for two cars. I made an offer that, if the dealership accepted, I confirmed to them I was willing to come down and sign on two cars at the same time.
Their response was “We would lose $X thousand dollars selling you a car at that price. We don’t have any interest in selling you one car at that price, never mind two!”
This is word for word my approach. I find it particularly useful when F.O.L.P. (fear of low payments) shows up with the dealer.
There are other times when just giving a monthly/das works as a negotiating strategy, however, I personally have had better luck breaking things out. My last several leases were negotiated in two emails this way.
Yea you have to just move on sometimes. What’s reasonable to you doesn’t mean it’s reasonable to the dealer
Big time…I totally avoided this approach two years ago when the possibility for extremely low payments was possible. Many of the dealers hadnt yet seen how the various things could stack so they were caught off guard with the possibility of a $200/mo $50k car and they thought I was joking.
Yup. Had that happen with my Volvo s90 that had not only really low payments, but also was cheaper on a 24 month. Got the usual “there’s no way you can get anywhere near that price and 36 months is always cheaper.” I told them to run it with 24 months and had them come back with a “well I’ll be damned.”
At least they didn’t steal the car out from under you!
I think I mentioned in some other thread a while ago about how I was scooped on a car by the sales manager. They had two of the same model left that we had deals worked out on, in the end they only sold me one😎. The other one was mistakenly “sold” prior so not available to me. I found out afterwards that the sales manager himself bought it after he saw how my lease calcs worked out.
I’ve had a sales guy I am friendly with order a 330e once after showing him a calc on a 330e I was after, haha.
Just to echo what a few others have said here. Do your research to find out the base mf, residual, & incentives. Use your own (or the brilliant LH) calculator. Find the car on the dealer’s website and give them the stock number. Present to them the amount you want to pay at signing as well as your monthly payment including tax.
A smart or seasoned salesperson will know if your offer is legitimate (even if it is on the low end). The less work they have to do, the better. The sales person can go into their boss and say “I just got an email inquiry on stock #X. The guy wants it for $X DAS & $X per month including tax and will sign today, take delivery this week.” An easy sale to punch. I agree that I don’t care how they meet your numbers, as long as they meet them.
Some of these crazy deals will take a lot more hand holding and time on your end and the sales person/manager’s end.
If you are a season vet when it comes to numbers, lease structures, AND have the time, I’d personally entertain this dealer to see how they can finalize your already prepared target offer.
If you are not versed well in the numbers, lease structure or do not have the time then this is just a rabbit hole you want to run away from. The dealer is hoping for a clueless, naive payment shopper who just wants to feel like they “stole” the deal of the century and tell all their neighbors how amazing of a negotiator they are.
I did enjoy the “we have two levers” honesty, “I’m one of you” bit.
Leasing mystery cars is always a tough go
One more thing: What else should I look for before signing - is there something that the dealer can sneak in to the paperwork that I wouldn’t know about (tire insurance, disposition fee, etc) or is everything spelled out and accounted for in either the monthly or DAS?
Btw, love the replies and collective wisdom in this forum. Thanks, all! I have my backup numbers, so I’ll start with a reasonable, but aggressive monthly and DAS, and see where that goes, and if they are curious I’ll show them my calcs and tell them to structure the lease as they see fit as long as it meets my monthly and DAS.