Austin Texas- Have been looking for a lease considering Tahoe and XC90 (Different reasons for each).
Working on negotiating the XC90 from the advice I got on the Tahoe forum, but thought I would just ask you guys directly about this one as well. Any and all advice/feedback is appreciated! Thank you!
Starting Place is:
2021 xc90
MSRP: $52890
Discount: $1586
Sale Price: $51304
Customer Cash: $775
Total Rebates: $3250
Total Cash and Rebates: $4025
Doc Fee: $175
Advanced Payment: $774.58
Total Cap Reduction: $3250.42
Residual: $31,205.10
Annual Mileage: 10k
Monthly Payment: $775
We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.
Read Leasing 101 (Blog | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
Pick a specific vehicle that you want to target
Gather the current MF, RV and incentives from Edmunds forums for your zip code
Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
Plug your numbers into the LH calculator, and use a pre-incentive discount similar to what you have seen
Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.
With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.
And once you do all of that, how do you go about getting to the place you want?
For the record, I did think this was “atrocious” but considered it a starting place. It sounds like you are saying after researching and having a “target deal”, to not see what they put together, but rather have them put it together under my own predetermined criteria?
Definitely don’t consider myself a “lease hacker” but do think the more informed and better deals people are able to advocate for helps the whole, so thanks for helping!
If you have more feedback, please don’t hesitate to share- and likely how they are able to get away with numbers like this is because people like me, have small bandwidth when it comes to time and can’t research all that you mentioned to advocate for a better deal.
I email the dealer about a specific stock number and make them an offer of my target deal. If they say no, I move on. Never once do I ask them for a quote.
The problem is that you have now started the negotiations on their terms, so everything at this point is baselines in those numbers. By going and getting offers without being prepared, you’ve established a foundation for the process on their terms.
There are different thoughts on this. You can specify a monthly and a das amount or you can break the deal down in greater detail. Either way, it’s imperative that you have your numbers actually correct. Too many people put together an offer based off incomplete information and get it thrown straight in the trash.
Got it. Well, do you have experience with XC90s? Do you know what they are leasing for? Tried to find a thread about what deals people have gotten, but couldn’t.
Please let me know if you can point me in that direction and thank you again for giving your input.
No, you should already know what the incentives are if you’ve done your homework.
Don’t look to the dealer to provide you anything beyond a “yes” or a “no” to your offer. No numbers, no incentives, nothing. You want to work out everything before talking to them.
Having current, accurate information for residual value, money factor, and incentives is important in understanding your deal. As such, going directly to a source that has access to that data from the captive banks is your best option. The forums at Edmunds are where we go to get that information, as they have direct access to it from the captive banks. You’ll want to post of the model specific thread for the vehicle you’re interested in and request the most current numbers for your zip code. It is often easiest to find that thread by searching Google for “Edmunds lease” followed by the model of vehicle you’re interested in.
