Hi there, I’m first time poster, and very new to learning about leasing, so sorry for being a total noob.
I started out looking for a mid size SUV about 10 days ago, but then decided to look at EVs over the weekend (Ariya, Blazer EV, Mach-E) when I heard about the rebate deals going on. I specified a $0 DAS after taxes and fees.
Since Monday, it appears that a lot of the offers for $7500 EV rebates to be used towards CCR have expired. Are offers such as these likely to return at some point, and is anyone else thinking about waiting for that with all these EVs in over-supply?
Surprisingly, the first offer that included the $7500 CCR on Monday was actually higher than that on Tuesday with just $2500. I suggested to the dealer that if they had applied the same RV and MF to the first offer, my costs would have been lower and I would have signed that day. He told me that “rebates are never applied to leases.” Are dealers likely to get more aggressive towards the end of the month?
I have had both Chevy and Ford dealers pull out their paperwork showing me that their invoice price is the same as the MSRP, so “there is no room for negotiation”, and “they can’t sell for under invoice”. My understanding was that these dealers get additional rebates from the manufacturers at the time of sale, which helps to pad their bottom line. Is that correct?
Stop asking dealers for quotes. Stop letting them dictate the discounts. Stop relying on them to tell you what incentives are available.
Which vehicles have you seen the EV credits go away on? Chances are what’s happened is you’ve looked on the first or second day of the new programs and things aren’t reporting July programs yet. This happens at the beginning of each month.
Dealers can go under invoice. They’re lying to you if they’re saying they can’t. Doesn’t mean they will, but they certainly can.
Thank you for this response, It’s really helpful to hear it put that way.
I’ve been more proactive with reaching out to dealers with a proposed lease structure. No bites yet, just a lot of “GM is not giving the $7500 discount to leasees.”
Yeah, I have found your point to be the case. Hyundai is giving a $7500 rebate but the MF and residual were terrible. Whereas for the Blazer EV, there was little in the way of discounts, but the residual and MF were better, so the payments were better.
I’ve reached out to some dealers a little further from metropolitan areas to see if I can get a better EV deal there. I’m going to keep trying. I’m hoping that I can get some better dealer discounts on EVs at dealerships in the country.
I’ve seen signed contracts for an effective monthly payment in the sub-$300 range. I’m just not sure if it is realistic to expect that I may be able to nail down something like that.
There’s a fundamental misunderstanding going on here if you’re having that conversation.
You shouldn’t be talking to dealers without a target deal put together, which includes knowing the rv/mf/incentives for whatever vehicle you’re discussing. If you’ve put together a target deal on a GM, you would know that GM doesn’t offer the $7500 incentive, so it shouldnt ever be coming up in discussion.
Longer answer - when you were looking 10 days ago it was the end of Q2. Sales teams have incentives that cause them to be more flexible at the end of the month or the end of the quarter.
You will see the best deals in the “near” term at the end of September (end of Q3), and then at the end of each month.
GM/Chevy IS giving the $7,500 to leases, just not in the way that most customers (and some dealers) are used to seeing and comprehending. They are using it to increase the residual value of the car on paper, which allows it to be a more attractive lease deal if structured properly. This makes it a bad choice for someone looking to do an immediate lease buyout but for someone who is looking to lease a car and keep it to term it’s the same effect as a cash rebate. Thanks to the high residual value and the conditional rebates available, when they are paired with a sizeable dealer discount the Blazer EV can get pretty cheap over a 24 month term.
I prefer having the $7,500 packed into the inflated RV, because if it was an incentive (in my location) I’d have to pay 7.5% sales tax on it ($562.50).
Someone else’s payment isn’t your target. That’s like taking a new job and instead of negotiating total comp you negotiated the previous incumbent’s change in net worth.
Your target should be their calculations but changed to your specifics for conditional rebates, taxation, etc etc.
