Lease Cash -Expert help needed

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Can someone help me understand how lease cash works when negotiating the sales price? I understand that lease cash is incentivized cash passed on to the dealership to help promote sales. My question is - do dealers factor this in when quoting a price? For example- If I am looking at a 50K Acura MDX - this month there is 7200 lease cash available on this in Florida. Do I first negotiate a price of say 45K and then say - oh I want to now deduct the lease cash from that to get it down to 37,800? Or will the dealer already consider this cash when they originally are discounting it from MSRP? Any insight would be appreciated. Thank you

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Yes, they do. You negotiate sales price before incentives first and always make it clear to them and confirm that this is the case when you get a quote

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Thank you but this is still a little unclear. So if the dealer knows there is 7200 cash to negotiate with on a 50K MSRP vehicle and he quotes 45K (considering the 7200) how could I take 7200 off of 45 when it was already baked into the 45? Does that make sense?

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Let me see if I can break this down for you. As Ursus stated, you should always ask for pre-incentive pricing.

Well if the dealer includes the $7200 dealer cash without any dealer discount on a $50k car, the “sale price” will be $42,800. Hence, it is always prudent to ask for a pre-incentive sale with a breakdown of all other incentives and fees. This is where a lease sheet is helpful.

If a dealer is not being transparent, move onto another dealer who will provide you with all the needed info to make an informed decision.

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Thank you both - this makes a lot of sense.

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Or you can skip this step and just make your own offer

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As @max_g mention it will be easier to email dealers around you with a realistic offer on a specific car in their stock.

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As others mentioned, you should know what is the reasonable % discount off MSRP before incentives and add all incentives to the total discount. Then you can make your own informed offer or you will know if dealer’s offer is any good.

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