I read and understand that you need to negotiate your final sale price without adding any incentives/rebates added. Now I have found a 2016 Malibu limited 1LT that the dealer is willing to discount by about $3,845 due to be a Demo car.
The question here is:
Should I request than the cost to lease first and after they present the numbers provide them the $1000 Private offer, or it doesn’t really matter when it is presented.
The lease incentives for the Malibu limited lt is $4080 + $1000 for private offer total $5080
Now the private offer it not clear if it can be used for a Malibu Limited, don’t see the word “LIMITED” there
• $1000 allowance on eligible Malibu, Equinox, Express, Impala, Camaro,City Express, Volt, SS Sedan models
Here is my math:
MSRP: $24,660
Sales Price: $20,815
16% off MSRP
Taxed Incentives: $5080 total ($4080 + $1000 Private offer, Assuming I can add to the private offer to the Incentives)
Net Capitalized Cost: $16,330
Residual: 62%
Months: 24
Miles/yr: 10,000
MF %: .0004
Monthly Payment (Excl. Tax): $56
Any clarification on the time to present the Private offer and if it is valid for the Malibu Limited would be highly appreciate.
Your math looks right. I saw on the other thread that someone bumped up their MF a little to .0009 (I think) to avoid paying the acquisition/bank fee. I don’t know how much Chevy charges for the bank fee but if my math is right it seems that if the bank fee is more than $380 you’re better off to bump up the money factor to cover it. On short leases the bank fee becomes more significant and it’s pretty cool that chevy apparently has a work around for it.
I don’t know about whether the private offer is valid on your trim level. I’d wait until after they agree on a sale price. The $1,000 is almost certainly coming from Chevy, not the dealer so they should not care.
Lastly, can you provide some details about how you got the private offer to pop up? How long ago did you get it. What part of the country are you in (I think it might be regional)?
Bump the MF by 0.00055 (.00095 total) based on A1 credit to waive the $595 Acq fee. Your payment should come down slightly, everything else looks good. If you have a non-GM lease in household you can get $1500 instead of your $1000 private offer.
I don’t think the acquisition fee is in the payment the OP has calculated now. So if the OP puts it in (by either increasing the MF or adding it to the capitalized cost) the payment will go up. But the op would clearly be better off with the bump in MF as opposed to paying the acquisition fee because of the short term of the lease.
You should be fine on the private offer. I used one on a 2016 Cruze Limited and the offer only said “Cruze”. The Malibu and Cruze are new for 2016 so GM added the “Limited” for the old body style. The dealer has to enter the offer code into their system, so they will know immediately if it works or not. Just make sure you negotiate the discount BEFORE private offer is considered. You can tell them about it up front, just make sure they add it to the incentives.
I can also vouch that the MF should be .00095 to waive the $595 bank fee and it saves you about $7 per month, as your numbers are very close to the Cruze Limited I leased in November. Great deal you found there, by the way!!!
Here are the number from last night negotiation: Based on my credit score of 670 - Tier A2
2016 Malibu Limited 1LT
24 months - 10k/year
MSRP = $26,085
Selling Prices = $21,600
Private offer $1000 + (Not sure what else was added) = $1,900
Residual = 62%
Mileage at Inception = 3450(This is a demo car)
MF = 0.00207 (very high due to credit score)
Acq fee = $595 (Would not waive the fee)
Payment = $95.91 (Without tax)
Paying for tax + first month on delivery.
The deal I believe is fair, since my credit score is not very high, but any suggestion here?
If you need the car, then do the deal. If you don’t need it, work on improving your credit score! What kind of options does the car have to get to $26,085 on a 1LT? What state are you in?
You could say that you’ve been shopping around and received a lower quote from a dealer a bit further away. However, if they’ll match, you can come in today to pick up the car.
That said, it looks like a great deal already. Even with 6.5% taxes on the selling price of the vehicle, it averages to $154/month.
Sometimes dealers offer a huge discount (looks like the case here), then make up for it by marking up the MF.
Tag, Registration and dealer fee are not rolled into this payment correct?
Otherwise based on your credit score pretty good I’d say. Last I went was supposed to be around $78 per month (cruze ltd) but for some reason came to $128 so yours for a malibu does look ok.
Finally signed the papers and got the car today!
Found the dealer closer that accepted my offer.
Malibu Limited 1LT
24m 10k
MSRP $ 26,085.0
Selling Prince $ 22,019.97
Rebates $ 5985.00 (4080 +Mabilu + 900 Gm Lease + 1000 Private offer)
Acquisition waived
Paid for taxes + 1st payment.
Monthly payments $79.49
Was offered another Malibu Limited 1LT
MSRP $26,135
Selling price same as above
Payments with TAX $140. (no money down, nothing)
Will probably go back tomorrow to buy this car for wife
Thanks everyone for the help. If wasn’t for this site I would have not done it.
Not sure what it is but it shows automatically when I was presented the offer at 2 different dealer! If you select the car from a dealer chevy online and go through the lease estimate process, it will display the $4080 + $900
