Thanks! I actually came across that offer this morning and then when someone on this thread mentioned his name I decided to contact him. He’s on the case!
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The $8500 is dealer cash, so it’s not taxed. You should put it untaxed incentives or more accurately for this situation, include it in the sales price.
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Just double-checking: Do your parents really need 12K miles a year? I had a dealer give me a quote for 12K when I specifically told him 10, so I’m just making sure. I’m retired and the last lease I had was 7500.
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In theory, I agree, but, for most people, it would help clarify the true dealer discount by putting it under untaxed incentive.
Thank you so much. Despite knowing what the drives the lease price, this still took a day or two to sink in. After reading over your comment and one or two others, and looking at how you adjusted the MSRP and where you put the incentives made it clear.
So yes, the average selling price in my area for the middle trim is actually $45,017, which is almost 14% off of the factory MSRP. The advanced trim level sells at only 10% off.
Plugging those numbers in for the trim level I want gives me this:
Am I on the right track here?
Thanks!
I don’t think any way you will get 14% off before incentives on this. Also as said above, it should not be in taxed incentives
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@Nexo917 is right. The $8,500 should be in untaxed incentives. I just barely updated the calculator in the link I posted yesterday. Like I said, I don’t know the market very well on MDXs, but above 10% pre-incentives could be hard to negotiate.
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Do you know if Edmunds TMVs average market price for an area is pre or post incentives?
Edit: Given what I’ve pasted below, does it sound like the $8500 in untaxed incentives fall into what is described in the first paragraph (below) or the second one? Thanks.
The fine print of Edmonds says:
“ TMV prices will take into account any incentives and fees that may affect the transaction price, including manufacturer-to-dealer incentives (such as dealer cash), destination charges and advertising fees (when applicable).
However, TMV prices will not include incentives and fees that are typically applied after a transaction price has been determined. These include manufacturer-to-consumer rebates (such as bonus cash), sales tax, DMV fees and dealer documentation (“doc”) fees. Here’s more about new-car fees.”
I would expect it to fall in to the first category. That 14% number you’re seeing surely includes in. But it doesn’t really matter if an average deal is 14%. Are you looking for an average deal or a great deal?
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I obviously want as good a deal as possible. I actually have bostoncarconcierge working on it for me. I’m just trying to understand it better. I understand what drives the monthly payments up and down, but how and where to factor in incentives on the calculator is messing me up.
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Hey before I forget, I wanted to thank everyone who has come on this thread to help me. Like I said earlier, Im started to get a handle on it, at least the math. Much appreciated.
TS98 - Thanks for taking the time to do the calculator for me.
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This unfortunately gets a little more confusing on the MDX as the bulk of the incentives are direct to dealer, so they’re somewhat hidden from you.
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This is the mindset that keeps people from the top. If it’s not worth 400 an hour now it never will be. I make this mistake often, but the less I try to do on my own the more money I make
Thinking your time is worth $400 an hour is not equivalent of it actually being worth so. I would argue that people thinking their time is worth more than it actually is, is the more prevalent issue.
I charge my clients over $500/hr but once you factor in rent, insurance, downtime, and all overhead, the net return is quite a bit lower. Once you factor in payroll, state, and federal taxes, your post tax money is worth quite a bit more than you’d think.
Unless you’re making upwards of 1.5M on an annual basis and are turning away opportunities to make additional money, your time is not worth $400/hr on a post tax basis.
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