This is the dealer’s opening proposal on a CX-5 touring AWD in the Philadelphia area. I think the price is too high. Any suggested strategies for negotiating?
You are correct, the price looks high.
There isn’t a magic negotiation technique. Arm yourself with as much information as possible before you start negotiating and you’ll be in a far better place. Do your research, put together a target deal based on current lease terms and researched pre-incentive discounts, and stick to your guns.
If you’re asking the question “I think this is high?”, you haven’t done enough research.
Thanks for your input. You are right I didn’t do a lot of research. Deal is for a friend who asked me to post it. I looked around at what some brokers posted for the cx-5 to determine it is too high. I think I am having trouble understanding why it is so high. In the pic on the right it says cap cost is 27XXX. So I am thinking the dealer jacked up the MF maybe?
Edit. : in PA sales tax is calculated on the monthly so I didn’t use the dealer total price when I was looking at the calculator.
What you really need to do here is get mf/rv/incentives from edmunds and mf from the dealer so you can identify.
It’s about a 7% discount assuming no other discounts rolled in which isn’t amazing.
What % off MSRP would be considered great? I know RAV4 is about 10%, what about the CX-5?
@nyclife looks to be about $25 less a month versus the deal that you have on the table
The dealer said the money factor is .0012. I can see that most brokers have posted their deals on cx-5’s with lower money factors.
What did Edmunds tell you
The Edmunds reply was " .00012 MF and 56% residual
$1220 lease cash incentive available" So the dealer did calculate the proposal with a higher money factor.
**I just received the following lease offer in Philadelphia, have not signed:
BASE MODEL: $28,075
Packages and Options: $1,375 for Touring Preferred Equipment Package
Manufacturer Destination Charge $1,100
Dealer Discount -$961
Dealer Price: $29,589
Manufacturer Rebate: −$1,220
Term 36 months
Annual Mileage 12,000
Residual Value (56%) $17,108
TOTAL DUE AT SIGNING $2,500
First Payment waived
Capitalized Cost Reduction $728
Estimated Registration & Fees $883
>MONTHLY PAYMENT $307.61
Registration & Fees include $389
Documentation fee $38
Electronic filing fee
$55 processing & handling fee
$396 DMV fee
$5 tire fee
Security deposit waived. The capitalized cost of your lease is the Dealer Price plus $650 lease acquisition fee
Good. It’s a really bad deal. That discount is horrible.
@mllcb42 Thank you, what do you think is a realistic target on a CX5 Touring w/ Preferred Package? I have not seen any offers lower than this from dealers throughout Philadelphia and New Jersey and the broker I spoke to could not come up with anything better. This is likely being driven by very low inventory yes? @AutoLeaseNinjas what do you guys think?
Shoot me a PM I’ll help you out
HELP! I asked for 36months/12k/0 down. Tier 1 credit.
They’re essentially give you no discount on that CX-5. Sure, they show a sales price of $23500, which on the surface sounds an awful lot like a $2635 discount, but then they claw it all back with those add ons.
I’m guessing a marked up mf too.
Best thing to do here is to walk away from talking to dealers for a bit, spend some time reading through the leasing101 section, gather the important info from edmunds, and put together a target lease. You gotta figure out what this should lease for before reaching out to dealers. Then you’ll have something to compare to and target.
Thank you for your reply!
From edmunds- .00001 MF and 55% residual
$55 lease cash.
Curious how I put a target lease together. I used the calculator and got $300/month, but like. you said the dealer has all these add on fees.
You put it together without those added extras you don’t want and when you go to negotiate to get the deal you want, you say no to those. They’ll either work the deal without them or you move on to a new dealer that will.
Okay and how do I know which ones I can negotiate or not? I figure lic, doc are set and stone…But all the others ones (VIP,VTR,tint,smart shield) I can ask to be removed. Thank you again!!
You’ve got it right. If it’s crap they’re adding to the car, get rid of it.
Thank you so much! My pop recently passed away and he would help me with this stuff. Just hate to get screwed over and miss anything! appreciate it