Thanks for your continuous input. I also received a Truecar email about a $3250 military incentive, which I may qualify for, which may offset any negative equity on the BMW.
That doesn’t offset anything. The trade in equity is independent of the incentives on the bmw.
Not directly, but indirectly they both impact the overall monthly payment.
If you’re interested in evaluating the deals, evaluate the deals. When you start trying to bookkeep it in weird ways, you end up conflating the deal. The target price on the bmw is the same with or without the trade in, and then you get to eat the negative equity. Your net cash flow may be the same, but you’re mixing a sunk cost with the cost of the new vehicle, which doesn’t allow you to properly compare.
2 Likes
This is what I was able to get down to. How would you guys rate this deal (taking the trade in out of the equation.)
MRSP: 91,745
Discount: $7,340
Rebates/Incentives: $3,500
Final Price: $80,905
MF is .00082
Reisdual is 52%
DAS: $1,778
36/10 @ $1,152/month
There is an etiquette of sorts on LH. Users are certainly welcome to ask for assistance and opinion on various deals, but we are not here to do your work.
Please read Leasing 101 and learn to use the LH calculator. It will not only make sure that you understand how your deal is structured, but also much easier for others to provide feedback. You will also be able to quickly manipulate the variables to see how it changes the monthly, total, etc. Driveoffs with and without rolling in acquisition fee, $0 DAS, etc. It takes some time to understand where taxed and untaxed incentives go, and it really reinforces- focus on the pre-incentives discount 1st. It will only help you in any other future car deals as well.
It’s also helpful for yourself (and other here for comments/analysis) if you get your buy rate MF and regional incentives from Edmunds forum and re-post those numbers in your ask for feedback post here.
In addition by doing this ‘research’, you will begin to see the different tactics different dealers will take.
Just listing the raw numbers in your deal isn’t nearly as useful for yourself or for those you are asking for analysis. We all have other jobs so at least for me personally, I’m not here to do your work for you so I can’t comment on your proposed deals.
Lastly, if you’ve done your research and know what a ‘good’ deal is- present it to the dealerships what you are looking for. Work with SM/GSM/GMs. There are plenty of posts on this subject. If you’re grinding and doing it in person-IMO- that’s not how it’s suggested/purpose of this group. LH is suppose to be easy-to-do deals where you don’t put yourself in harms way during COVID-19 and get worn down by the sales people. Time = $. Or hire a broker.
And leave your trade out of the equation- do that after you’ve gotten the deal you are happy with and it only confuses the deals. Dealers may give you more on your trade, but then lower your discount on the new car. Don’t give them the chance.
Days of going in and ‘negotiating’ the best deal is an antiquated idea.
Good luck in your quest
3 Likes
If everything else checks out, you’re at 8% pre-incentive. How does that compare to previous x5 deals/broker deals you’ve found here?
I’ve seen it range range from 5% to just above 10%. Given the negative equity being rolled in, I’ve aggressively asked for 10%. As I said before, I don’t absolutely need this, but would entertain it given the right numbers…
Your negative equity is inconsequential to the pre-incentive discount (unless they’re under or over offering on the trade in and hiding it in the discount bookkeeping, which is really the whole point in keeping things separate).
If everything goes smoothly, I should be picking up the car tonight. Attached is what the calculator is coming up with.
You’ve got the default values for all the fees in, which aren’t correct, and the incentives lumped into the discount, which makes it difficult to compare deals and gives incorrect tax information.
Good catch. Didn’t scroll down. These are more in line with what I’ll be paying.
In a complete turn of events, I got (what I think) an incredile offer from another dealership. To sweeten the deal, they even offered me $1000 more for my trade in (which I know is not part of the calculation, but still worth noting)
Below is the calculator. How do you guys think I did for my first lease negoatiation?
Why are there no .gov fees listed? Weren’t you talking $3500 in incentives before not $2k? Did the difference go away or are they rolled into the discount now?
That was a different dealership, and they were putting $3,500 in incentives when they shouldn’t have. That incentive total was only if purchased instead of leased, which they only later told me. Bait and switch tactics.
I grouped the .gov fees all under dealer fees, but when separated, it actually comes out to a better score.
What an odd calculator artifact. Apparently it doesn’t factor .gov fees into the total lease cost. How bizarre. @michael
Does $2k check out with what edmunds gave you?
Yep, they gave me every possible incentive that I qualified for in November…
Thank you all who contributed to the discussion. I knowsome of these questions were repetetive and newbish, but even after reading all the ins and outs, it’s still challaging to capture everything when doing your first lease alone.