Year, Make, Model, and Trim: 2019, Honda, Accord, LX
MSRP: $24,650
Monthly Payment: $235.23 + 7% tax ($251.70)
Drive-Off Amount: $251.70 (includes new tag, all inceptions capitalized)
Months: 36
Annual Mileage: 12,000
MF: not sure, think it’s .00102 (I believe the national rate is .00056, but have also read .00090 in other forums for my market) seems to be marked up with an 833 EQUIFAX FICO, I know, I know…
Residual: 13,804
Incentives: $750 dealer cash included in numbers above, (maybe more, waiting on copy of purchase agreement from dealership, they conveniently left that out, only have lease agreement with Honda. It was rumored that Honda extended the Labor Day weekend sale cash of $750 through October for dealers impacted by Hurricane Dorian)
My basic forumla for the last 20 years has been pretty much the same.
MSRP
– Edmunds TMV discount
– holdback
– rebates, dealer cash, etc
++ actual cost of license plate
= cap cost
You will never know exactly what additional discounts the dealer may be able to offer for meeting their sales goals. When I backed out my number I saved another $400 beyond the formula above.
Be confident. The sales person goal is to caste doubt and poke holes in your position to maximize price.
Dealers will put meaningless installed equipment, dealer fees, marked up tag agency fees, etc. I leave these addons completely out of my calculation. I only focus on the bottom line. However they get there is their business.
If you try to fight every number on the purchase contract you’ll drive yourself crazy.
Like I told @Alexforthewin negotiate your cap cost with all the inceptions capitalized and the payment will solve itself.
Doesn’t quite work that way. Any dealer will just laugh if you walk into their dealer saying “I saw this post on this site, and I want that deal.”. Deals are dependent on location, timing, amongst many other factors. You’ll need to do some research on your own, reach out to many dealers, and have patience. I’d also start by reading this, it’ll get you on the right path.
