Here is what I been told by the sales person:
MSRP: 39530
Sale Price: 35,229
RV: 25,299.20 (which i think is 64%) so i added that to the lease calculator
MF: .00107
Miles: 12k year
Down: 0
DAS: 0
No incenstives
Tax (9.5 cerritos,ca)
Monthly: 425.75
acquisition fee: 595
State Fee: 548
Tire: 8.75
Did I do this correctly on the calculator? Also what do you think of this deal? I can wait till sep 12th when new incentive appear or go with this.
You need to make some tweaks. You should review the Calculator 101 instructions, its all in there.
Honda’s go-to-market strategy is a little different than most car makers. Honda’s lease program features direct-to-dealer incentives - the kind of incentives that give buyers the impression that the dealer is giving them a huge discount. The buyer is in fact getting a welcomed discount but it’s not all coming from the dealer. Confused? Good - confusion gives the car dealers the upper hand. Often, dealers are not forthcoming about how they come to the discount they offer you. If you want a great deal - you must break-down the dealer’s total discount into its parts and know how each component contributes to a great deal.
The challenge with direct-to-dealer incentives is it masks the discount you are getting from the dealer and the discount you are getting straight from Honda. When you get an offer from an Honda dealer you need to break down the discount your getting into two parts: i. how much is the dealer discounting the price and ii. how much is Honda discounting the price.
i. Dealer Discount: the dealer should reach into his pocket and give you a discount - this comes from the dealer’s potential profit on your deal. Unfortunately, this is the win-lose part of the leasing game. Dealers may use the lease cash Honda gives them to cut down on the discount they need to offer you to get your business. It’s business, not personal. A dealer may raise or lower his dealer discount in response to the current Honda incentive.
ii. Direct-to-Dealer Incentive. Each month Honda gives dealers funds to discount the price of new cars. This varies by model and it varies by trims within a model. You can find this information on Edmunds. Dealers may consider withholding some of the incentive from you to improve their deal profit. Your goal is to know it’s there and reflect it ALL in your selling price offer - plus the discount you want from the dealer.
How to use the LH calculator:
Selling Price input. You only input the dealer discount here. MSRP minus DEALER DISCOUNT. Do NOT input msrp minus dealer discount minus direct-to-dealer incentive here.
Untaxed Incentive input: This is where you reflect the direct-to-dealer discount.
Taxed Incentives input: This is where you reflect your direct-to-consumer incentives: loyalty, conquest, college grad, etc.
Example with Dummy Figures:
$40,000 MSRP
$31,000 Selling Price Offer from Dealer
$ 9,000 Total Discount
So now I would have to figure out how much of a dealer discount I should be targeting. However, in SoCal we don’t have many AWD passport barely 5 when i checked CarGurus. So i don’t have the upper hand here to even negotiate much.
Glad to see you are connecting the dots, happy to help.
Yup, you won’t find many Passport comps on here. But you will find many Pilot comps - they are your next best pre-incentive comp. Make sure you check out comps from @GarganoP, @HackrAPRrentice, @Sea_Wolfe and @ctnyc.
Also, just saw @Jeff_BeachCitiesAuto reply. I hear good things, consider reaching out.
