This is a general question I’ve had for a bit now and I’m looking for some feedback. In a situation where you are looking to sell a lease before the term is up, does it make sense to work a deal for a larger discount at the expense of them marking up the MF?
Correct me if I am wrong, but my thinking is that a deeper discount puts you at a better chance of positive equity but at the monthly expense of paying back more interest. So, if you end the contract early by selling the vehicle the remaining interest you owe on the “loan” isn’t paid by you and your cost of ownership is lower than if you took base MF and the discount they are willing to provide.
Yeah I’d take it any day which is what I did once. Matter of fact I’m facing the exact scenario right now again. Dealer A and B has offered equivalent deals but B is max MF with deeper discount, meanwhile A is at base MF but local and has the build I want. Trying to get A to do the same lol since I’m considering selling the lease. Not all dealers want to do it tho, not an expert on this but I guess it depends how they calculate their gross and what their focus is, but I figure it won’t hurt to ask. Maybe industry folks can answer this better.
It seems unlikely that they will go for it. I’m having trouble getting any to entertain the idea. They know how they make and lose money but like @FuzzyIBJ said its probably dependent on how they operate.