This is my first experience with net cap below rv. Texas dealer wisconsin buyer. Dealer first said he would gross up sales price by 5k in order to get it funded with GMF and cut me a check back for 5k at signing. Then came back and said he would leave orig sale price as is and take 5k from 8250 rebates line but will still submit all the rebates for reimbursement. So he will only show 3250 rebates in the lease deal but submit 8250 and when he gets the check in 30 days or so from manufacturer will send 5k to me. I asked for a “we owe” and he said no problem. I was a bit leery going out of state that far and leaving with “we will send you a check”. Any thoughts here - am I overthinking this? Dealerrater score is 4.7 they look honest by all acccounts.
Absolutely not! You are at a distinct disadvantage as they’ve shifted the burden to you. They have you over a barrel. You are the customer, and they are inconveniencing you. I would insist that they increase the sell price 5k and cut you a check. It’s a 100% certainty that they’ll get their money from GMF. Can you say the same about the dealer? Think about what it would cost you if you had to file a claim in a TX court. I don’t know how difficult it would be to litigate a “WE OWE” promissory note. Seems like a slam dunk but I’m not so sure. Frankly, I don’t trust anyone today. People aren’t always as they seem.
By how much does the RV exceed the Net Cap? Look at how the lease is structured. Consider the following to see if it eliminates negative depreciation…
- How much is the cap reduction, if any? Rebates can be treated in any one of two ways: (1) Allocate a portion of the rebates to cover some or all of the lease inception fees with any remaining balance used as a capitalized cost reduction (CCR) or (2) Use the entire rebate as a CCR.
- Capitalize some or all the upfront fees.
Play around with the rebates/fees until Net Cap > RV, if possible. Feel free to post a review copy of the contract so we can make recommendations. Be sure to redact sensitive information.
Rv exceeds net cap by 4700. I will look at shifting around things but not sure we can get there.
Good luck! ??? Let me know.
When you have it signed, share please what are you leasing. Sounds like a unicorn-territory
Sort of - it benefits from a GM employee code = 4000. But yes will do.