Trying to evaluate this deal. Started by focusing on sales price and the dealer came down to $25k, but in lease paperwork, they up’d it to $26k stating that the finance/cash deal price and lease price are different, which I think is BS. Not sure how to address that with them. Also, I told them my FICO score was 715 but the fine print says I need 800 for this deal. Have reached out for MF and RV.
Your residual is on the build sheet 62%. You need to confirm the MF you are being charged. You can confirm the base rate on Edmunds. The MF does look marked up.
They are discounting the acquisition fee? Seems like a good thing…
This is my preferred package and the best overall selling price I’ve been able to get so far, but I’m a bit confused on the Cap Cost Reduction in their quote of $722.28 - can’t tell if they are deducting this or adding it. If I add it I can get to their monthly payment, if I deduct I have to really up the MF to get to their payment. Thoughts and TIA.
Year, Make, Model, and Trim: 2021 Hyundai Sonata SEL Plus w/Tech Package
MSRP: $32050
Selling Price:29488
Monthly Payment: $433.85
Drive-Off Amount: $450
Months:36
Annual Mileage:12000
MF:?
Residual:19871.00
Incentives:2562
Region:NorCal
Leasehackr Score:7 years
Leasehackr Calculator Link:CALCULATOR | LEASEHACKR
Thanks for the help. So when I asked what the MF # was they told me it was based on a credit score of 740 (even though I mentioned before that my score is 715) and that if I want to know the MF I need to let them run my credit. I’m not interested in having my credit run a dozen times. Thoughts? Is this common or are they playing hardball.? TIA
Edmunds will give you buy rate mf for tier 1. If you don’t qualify for tier 1, it’s likely to be higher and they would need to know what you qualify to say for sure. It’s not as simple as just what your score it, so they would need to do a credit pull to definitively say.
I get that and expect to have my credit pulled, but is it common practice to refuse to disclose the MF until you’ve had your credit pulled? Also, all the deals I’ve gotten so far have claimed to be Tier 1 MF, but they have been more like .00180 and above.
The sales prices have been ok, but then they show me a build with inflated MF and I’ve gotten 4 dealers so far refused to talk to me or disclose the MF after I’ve asked. Just trying to set my expectations appropriately. Thanks.
So Edmunds provided a MF of .00107 for this model in my area code for June. I’m having a lot of difficulties figuring out if I’m getting a good deal with all these variables. So far all the monthly amounts are way to high and way higher than the mfg advertise. I could negotiate just on price, but it seems I don’t have a leg to stand on since none of them have come with $50 of what I think is fair. Ugh.
Be sure when comparing against advertised prices that you include everything left out with the asterisk. Most people look at a mfg advertisement and neglect to factor in that it says tax, title, fees, and dealer add ons extra and then are surprised when it’s $150 more per month than what was advertised.
As for determining what a good price is 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 (EDITORIAL | 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.
Thanks for the feedback, I have done all the things you have suggested and where I’m running into blocks is that I’ve literally had 7 dealerships ghost me when I asked for specifics about the numbers, They simply just never respond. I’m running out of dealerships in my areas and am going to have to look at ones over 100 miles away. I know now isn’t a great time to buy but I don’t expect it to get better in the coming months. Never had this much trouble getting a new car. Very frustrating, but thanks again for all the feedback.
The step by step instructions I gave you are what to do before talking to a dealer. There isn’t anything you need from the dealers for working out your target price.
I just leased a $50k Volvo for effectively around that (in SoCal). Deals are few but there are some out there, maybe look at Volvos, get more bang for your buck. And I think A4s are still leasing pretty okay, so maybe there too.
I do love the new Sonata but not for $500/month. In the mid-$300s if you could get it there I think solid value considering the marketplace.
