Hoping for some feedback on deals I am trying to work on right now. The incentives in Colorado now are so high on a couple of EV’s that sales price less incentives is less than the residual. I am being told that the deals won’t fund if that’s the situation on a one pay or traditional lease. Is this true or just a negotiating tactic?
They have advised that we could close but I would have to apply for the $~5K state tax credit next year which is a pain and not worth it for me.
Most banks mandate that the adj cap cost is 500 above residual.
That is correct, it will just be kicked back and denied. No exceptions or ways around it unfortunately.
Work deals on higher MSRP vehicles.
Just add a payoff check to customer.
For example:
Sales price 38000
residual 40000
Check back to customer for 2500
NEW sales price 40500
Residual 40000
That deal should fund with no issues
Problem is getting controllers or dealers in general to sign off on that lmfao
Have acq, doc, DMV fees etc been added to the cap cost?
Increase the miles even if you don’t need them to lower the RV if necessary.
Is this allowed/legal? Genuinely curious.
Curious if a single pay lease would solve this residual less than sales price-rebates issue?
One pay or traditional results in same issue according to the dealer I am working with. This originally came up as I was trying to get to final terms on the one pay.
Rebate can be paid to customer up to the amount of the rebate. Dealer cash cannot.
So to clarify, in a scenario where the deal has $3,000 in rebates as cap cost reduction, resulting in negative depreciation - the dealer could remove the rebate from cap cost reduction, resulting in a higher adjusted cap cost - and then just cut the customer a check for $3k from the dealership?
Does this work out the same for the dealership at the end of the day?
Yes, taxes, $699 dealer fee and $650 acquisition fee.
Even at 15k miles, incentives of $13,350 place it under the residual at their discount.
Not really?
Hi I have damage on my current XYZ lease. I would like to include the damage taken care of in this new lease. Please cut me a check back for $x,xxx.xx. This way I can take care of the damage myself.
My controller /GM would trust me to have that setup correctly as long as the deal still “made sense” with it included-
Getting them to sign the check request is not so easy- I could easily see GMs and controllers setting up a policy to “forbid” the practice.
GMs are ok signing MULTI THOUSAND DOLLAR bird dogs to brokers and have an issue with a customer taking the rebate money?
Thats so weird.
So then increase the adj cap cost until it’s above RV.
My dealer group WONT sign those 
All across long island there are brokers getting $2500-$5000 per car…
I’m doing it wrong!