Okay, I’ll take the bait, with one comment, which is, regardless of these 3 pieces of information, I wouldn’t go forward without the other pieces.
That being said, yes, I would pick 3, just based on the info supplied.
Yes, I was pretty active on your post because I was considering a Hornet. I have to look back, I don’t recall if you showed any paper work, but I think you did.
I do know areas have different incentives though, so I can’t say if what you could get is the same as what I can get.
Yes, and I was able to get a similar deal for another friend at a different dealer (original dealer sold out of Hornets after I shared it with people) by using this same strategy.
Doing the “email dealers an offer” strategy requires you to know what an optimal discount off MSRP is, which you don’t know. You may leave money on the table, even if you know each part of the deal in minute detail.
Wrong answer. The first one was the cheapest of the three.
Deal 1 has all the taxes and fees capitalized, so while it has the higher gross cap cost, it actually is thousands of dollars cheaper than the others because of the much larger discount.
Deal 3 is actually the worst of the three. While it has the same discount as the second, it requires significantly more due at signing in both cap cost reduction and upfront dealer add-ons.
Moral of the story? Looking at cap cost is useless when trying to negotiate a deal since it is a very easy to manipulate figure depending on the lease structure.
It’s only a gimmicky game when you go in unprepared and let them be gimmicky. It’s really simple if you do the legwork up front.
It doesn’t matter what they use to get you there, but it very much matters in establishing what the total lease cost should be before you talk to them.
Right. I’m basing my numbers on discount from MSRP, incentives I qualify for and money rate to get to the total lease cost.
This is what I always negotiate on leases and have “best of forum” deals from it.
I’d believe that you negotiate to a monthly/DAS amount, but if you go and ask a dealer for an OTD price, that’s a singular line item price that references a cash-sale purchase price before any financing.
Ok, I consider OTD to equal DAS + Monthly on a lease, as thats my outlay to get the car out the door. It means all taxes and fees included, and gets out of the way that there are no dealer add ons, or if they are added on, they are included in the OTD deal.
If this isn’t allowed or frowned upon, please let me know and can take down.
But for clarification, these are the 2 videos I had watched focused around leasing and negotiations.
Just trying to give context. I may have butchered the nomenclature, but as I joked earlier, I knew what I meant LOL!
I only looked at the first video.
At 0:22 he talks about taking numbers to the dealership to negotiate.
At 0:42 he mentions going into a dealership to talk to a salesman.
At 0:55 he talks about getting a quote from the dealer and working it down from there.
In less than sixty seconds, this is how you lose the game.
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Ya, the 2nd one he says he uses email way more and isnt going into the fealership until he is signing. But I appreciate the feedback.
I’m trying to figure current incentives and will be putting emails together tonight.
I typically have success with writing a short email that says, are you interested in doing this deal. Then I customize the deal info and VIN so they know I’m not a bot. Example:
| VIN | YV4H60PF7S1306683 |
|---|---|
| MSRP | $81,765 |
| Discount | 14% |
| Discount Price | $70,318 |
| Incentives (Costco) | $2,000 |
| Incentives (EV) | $7,500 |
| Incentives (AMA) | $2,000 |
| Incentives (Lease Cash) | $3,750 |
| Sales Price | $55,068 |
| MF | 0.00309 |
| Term | 24/10k |
| Zip Code | 37209 |
| Mileage | 0 |
| DAS | $0 |
| Payment | $472 |
95% of the time it works every time!! (Although I was late to the game on the XC90s (signed 11/29) and I had very few dealers that were interested in negotiating!)
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for me its a small price to pay to not deal with the headache of negotiations. plus they usually get you a better deal. im assuming they have relationships with multiple dealerships?
Have you ID’d a car that’s a good lease hacking candidate within your budget?
This is the best thing to do. Use the forum and rate finder to build a solid deal out. Find your data points for what a good deal is. Don’t complicate it with the proposals. Most sales managers will brush it off and think you’re a headache incoming who’s going to sit in finance for 6 hours and read every line of the contract. You can create the best deal using the numbers but your email should be this simple:
Hi Mr Manager,
I am looking at stock # A and stock number B on your website. My budget is xyz at signing and xyz a month assuming a 9.5% tax rate for a 36 month lease and 12,000 miles a year. I qualify for this rebate and this incentive. If this is a deal you can do, I will come sign at 4pm today.
Have a great day,
Your name here
This is an easy way for you to copy and paste the same message to 25 dealers in your local area and maybe get someone to bite. Even if they discount the car 99% and mark the rate up 500 points, who cares if the numbers are where you want them to be. It’s a lease. You are making payments, if the payments are on par or better than market, who cares about how you get there.
Sometimes it’s less about a broker negotiating a discount for you and actually already having a pre negotiated deal that’s a hefty loser that a retail department will not do. It’s less about knowing “the tricks” and more about the relationship brokers have with these stores after doing business with them for years.
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If that’s what they mean, that’s what they should say.
We don’t have to assign a meaningful interpretation to a nonsensical word salad.
This is where a lot of people trip up. They aim to replicate someone else’s outcome, often with different rebates and different taxes etc.
They don’t do the legwork of replicating their pre-incentive discount and then stacking only the rebates they qualify for and adding their own DMV fees.
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I love this but i guess I am not certain on doing this exact break down. I just joined and subscribed but i havent had a chance to sit down and really drill down on the calculator.
For popular deals, just grab the calculator from other posted deals and tweak it based on what you qualify for and what terms you are targeting. I rarely build from scratch.
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