What was this point? That they should abandon their MF markup? Yeah that’s a hill they’d have gladly died on even in the good times. Managers eat into the selling price to make a sale; they don’t let anyone eat into their personal commissions.
Not sure how much good advice needed to be repeated in this thread while you kept pushing your futile strategy.
The dealership needs to stick to their guns. Unless exceptional, like they need a sale, once they offer you a non marked up MF, it will become the norm. Reduced margins. So they’d rather let a handful of folks walk than do it. And if all the dealers in the area do the same, you’re left having to pay to play.
Only option is to buy out of market, or buy another make that offers it. As others have said, I would give them their markup, but push them on the levers they will move on.
Who cares if the mf is marked up?
If they get to your target price, it doesn’t matter if the mf is marked up or not. If they don’t get to your target price, do you really care if they’re saying no, but doing it with buy rate?
You can’t force a lease if the dealer(s) won’t cooperate with your Monthly + $0 DAS target. That’s what you want, let them play games with the MF or whatever to get to your target. Looks like a lost cause.
Your OTD purchase price quotes seem good in this market. They won’t, but if they give you the 2021 OTD price on a 2022 RX then that would be an excellent. Run down and lock it up if they give you that quote and deal.
Depends on your goals for this deal and if you are set on an RX then check a broker (Mani is Kool?), go with the purchase, pay up for a lease or punt and look for a different model or a 2022 RX down the road a few months
I just leased a car yesterday from a dealer, not once I discussed money factor. It’s always drive-off (including MSD) and monthly. People see marked up m.f. and then they think there’s meat left on the bone.
Today I changed my strategy when I contacted to dealer C regarding lease. I proposed the offer like this:
36 months / 10k miles with Tier 1 Credit with MSDs
$519 per month ( including 6.5% sales Tax )
DAS: 1st Month Payment ($519 ) + 10 x MSDs ( $5190 ) = $5709
He responded to ask - what would be my offer without MSDs?
I responded with this offer:
$549 per month
DAS: 1st month payment
He then responded that we are too far away.
I asked him - how far?
He said - 4k
I figured out - it is roughly $120 a month far…
Most dealers whom I have contacted, their monthly lease payment starts around $660 range, and my target is under $540. How do we overcome this issue? My target price is based on the recent Lexus RX350 purchases in FL from other LH users in recent 30 days.
Please let me know if I need to take a different approach for leasing deals.
Thank you!
Your MSD amount is incorrect. You should make sure your calculations are achievable and correct before making offers.
Have you looked at the Volvo Subscription? Looks good on an XC40, and INCLUDES your car insurance for $625… and you can cancel it anytime after 5 months… drive it for a while until things settle down.
I probably wouldn’t care for marked up MF if they matched my target price. Unfortunately they are not meeting my target price.
I know that max MSDs were 7 in this case. But their sister dealership yesterday required 10 MSDs as they increased the MF. I was giving them some room to work on the numbers. Let me know if I made any other error with MSDs figure? Thank you!
Even if they raised the MF, you cannot do more than the max allowed with the buyrate MF. Your MSD dollar amount is also incorrect. MSDs for TFS/LFS are rounded to the next $25.
I really don’t have immediate need for the car. I already purchased 2021 RAV4 XLE Premium last month. I was just looking for this RX to lease/buy if the price is right. Thank you!
Then either find a dealer that will, or adjust your target price.
thank you! I will keep in mind for future.
Follow up question: JM Lexus sent me the proposal with MSDs. He said that MSDs down would be $4300 but I will get refund of $4375 at the end of the lease. Why is there higher refund?
For that monthly payment, 7 MSDs is $4375. It’s either a typo on their part or they don’t know what they are doing.
I already have texted @mani_is_kool regarding the Lexus few times, and havent heard back. I assume that he may not have Lexus deals available. I spoke to him over the phone in May, and back then he said he didnt anything for his Lexus inventory. I am not really set for RX350 only. I could look for other alternative as well if this RX thing dont work out.
I will try! My target and their target are quite far apart. They dont seem buzz on my lease target price. esp they do seem to find the people who would be willing to their asking price.
I was calculating the target lease price after getting the OTD and comparing the data from LH users purchase data in the last 30 days or so. When I requested the lease price, then they wiped out all the savings that they were showing on the paper. In this case, it looked better to buy cash and forget about this lease thing with these dealership.
I am confused. Is JM the original “Dealer A” in your original post? They are the world’s largest Lexus dealer and own SE Toyota Finance.
I assume you are also trying with Lexus West Palm (now part of Autonation) which is really pushing a rock uphill since they are a cash printing monopoly in Palm Beach County.
Either a dealer plays ball or they don’t. If you are happy with puchasing and your target is met then why keep forcing a lease target that doesn’t look like it is going to happen right now.
JM Lexus is not a dealer A/B/C/D - They are no haggle dealership, so no point to bring their deal here. I only used their price as reference point. At this point, lease target is no longer interest as dealerships are not buzzing on their numbers. I would rather pay cash and be done with this. I am satisfied with OTD price $45.5k. Just looking for right color combo. Hopefully I should able to close the deal soon.
Thank you!
