I’ve been reading up on everything and trying to understand the whole process, and maybe there are some nuances I’m missing. It seems a lot of newbie questions end up getting a lot of “hire a broker” answers but I’d rather learn a skill than just have somebody do it for me. Yes, I know brokers do this 1000 times more than I’ll ever have to, but it’s a skill I’d like to gain and I may be able to help friends and family with it.
So far I’ve tried a handful of local dealers, and it seems like a lot of them aren’t budging much, if at all. It’s probably just a lack of experience, but I got two offers on Crosstreks that I’ve plugged into the calculator and come out with deals that end up in the high 300s:
Maybe I’m asking for too much here, and that’s also entirely possible. Either way, I do have some specific questions that I’m not quite understanding as I get started:
Does age on the lot really matter? I’m seeing cars that have been on the lot for over a year and the only Dealer Price I’m getting is the standard Internet Price that I see on their website.
Is the midwest better/worse/the same than other areas? The midwest doesn’t seem to have a strong presence in the forum in general, Ohio barely shows up at all.
I started with Subaru, which I’m guessing isn’t going to be the easiest route since there aren’t extra incentives or anything they can throw in there (unless I’m missing something). I keep just getting a “if you put in $X then you can get that payment.” I know this is just a tactic, but when it’s repeated it just feels like a stonewall.
How long should a typical negotiation last? If we count total turns, how many back-and-forth interactions typically happen? I understand this isn’t a hard rule and thinking as such is likely a detriment, but some of these conversations seem to be cut pretty short after I send them my researched offer and we go through maybe 3-4 attempts to get to an agreeable number.
If I get nothing more than “it varies, deal with it or find a broker,” that’s fine, but I’m really just trying to understand the real, day-to-day process with leasehacking.
While my initial target was Crosstreks, I’m definitely open to other options on cars. I really just want a smaller SUV that can carry more than a Corolla, but doesn’t feel like driving a boat.
TLDR; I don’t know what I’m doing, and I couldn’t find the answers to some questions I had regarding time on lot, midwest location, Subaru leasing, and negotiation length. Any help is appreciated.
Welcome to LH! So, you have a lot of challenging factors working against you in that short sentence
Subaru is not a very hackable make, and I don’t remember seeing Subaru on LH in awhile. I think last year there was a rebate for being a SPCA member?
Time on lot makes minimal difference especially if inventory is low or the make/model is in demand. Midwest is a smaller market, which is why you see the bulk of the deals on the east or west coasts. Sometimes the deals there are so much better that it’s even worth shipping them to the Midwest. One thing though - Subaru dealers have a constraint put on them to not sell to customers beyond 300 miles (?) or they will be penalized by corporate. Guess that’s a way for them to limit/control the sales areas.
Also, when folks truly know what they want and are hunting down the hack, they start reaching out broadly, out of state, 20-30+ dealers and such.
Yes, age on the lot matters. It generally indicates at least one or multiple of the below conditions
a. Overpriced relative to the market
b. Undesirable model/trim/color combo
c. Idiot/Stubborn Dealer (See a)
Location always matters, and floorplan costs vary significantly based on multiple factors including the price of the land the floor is built on and the cost of labor. Population and demand are intertwined, so population centers like NY, FL, CA, and TX are expected to turnover more units so, depending on the demand of a specific unit, there is likely more or less incentive for the dealer to free up space for a higher demand unit on their expensive lot.
Don’t ask for quotes, research this forum, especially the Signed section, and present multiple dealers in a radius of your choosing with your offer and be ready to sign up if/when they agree.
Thanks! I’m happy to be here, there’s a ton of information here and it’s a world I never even knew existed. I knew that leases could be negotiated, but not on this level.
Subaru is just a first choice, I’ll have to do some more research on some others. I’m not married to them, so I’ll look into more incentivized makes. I have supplier discount through GM, so between Chevy/Hyundai/Nissan I may be able to find similar models that work for the next 3 years. Interesting info about the limited range of Subaru dealers, that’s completely foreign to me, but it makes sense to keep relationships somewhat local if they’re looking for long-term buyers.
Also, when folks truly know what they want and are hunting down the hack, they start reaching out broadly, out of state, 20-30+ dealers and such.
Maybe that’s my biggest problem here. I know the size of vehicle I want, and I want it to be reliable even if leasing, but I’m not married to a Subaru. Maybe I need to just take more time and settle on a specific make/model/trim that I absolutely have to have.
Best subaru purchase deal is paying a donation to become a guardian member of SPCA, getting certificate from them a few weeks later and taking to Subaru dealer to get below invoice pricing. Lots of internet info on how to do this whole process. Also should be sure the dealership participates in this program before donating.
Do the calculators represent deals they offered you or deals you think they should offer you?
These are deals offered by the dealer after my initial offers and some back-and-forth. I started both conversations by sending them an offer directly, and it ended at those calculations at the “final best offer” from each.
Best subaru purchase deal is paying a donation to become a guardian member of SPCA, getting certificate from them a few weeks later and taking to Subaru dealer to get below invoice pricing. Lots of internet info on how to do this whole process. Also should be sure the dealership participates in this program before donating.
I realized after the fact that I actually qualify for Subaru VIP through my employer, but it stipulates that you are meant to lead with that information. Would I be able to go back to each dealer and get it honored after the fact?
The process starts with finding the right candidate ie a vehicle with a great combination of discount, rebate, RV and MF. The last three of those 4 factors come from the bank and have nothing to do with the dealership
Those candidates are generally very expensive cars or EVs. Anything else either just doesn’t have the margin or doesn’t need to be a possible loss leader for the bank because people buy them instead. Subaru is the textbook example of the latter. Pretty much most mainstream brands that have good reputations.
Those candidates are generally very expensive cars or EVs. Anything else either just doesn’t have the margin or doesn’t need to be a possible loss leader for the bank because people buy them instead. Subaru is the textbook example of the latter. Pretty much most mainstream brands that have good reputations.
That makes total sense, and I’m guessing is why I’m seeing some of these SIGNED! deals that are crazy good for cars that seem way out of my price range if I were to try and finance one.
check out Mazda. Should be a little better economics and fun to drive.
I’ll give them a look, thanks! I was on the outskirts of Mazda initially, they were a secondary/tertiary make, but I’ll definitely add them to the list of research candidates for this week.
I figured, it’s written in big bold letters on the top that you have to let them know at first contact, so I’d be surprised if they let somebody do it.
If you have not made a purchase, it might be possible- just have to ask, just understand they make almost zero at dealership level with this type of program purchases. The car price in this plan is not negotiable, but all add ons you purchase for your vehicle when using the discount are also discounted for you which is a great thing.
Genuine question: what is it that you’re looking for? Meaning, have you determined if there’s enough data here or elsewhere to establish a target deal?
Also, is there a reason you wish to lease a Crosstrek, rather than purchase one?
what is it that you’re looking for? Meaning, have you determined if there’s enough data here or elsewhere to establish a target deal?
I’m really unsure. I don’t see too many deals on Subarus being made, so that’s why I was concerned that maybe I made a mistake picking that make for my first go.
It also kind of makes sense that the reliability of a Subaru shines in a purchase. I suppose if I went more for purchasing I’d probably stick with the Crosstrek, since I feel like I would have less hassle in repairs down the road.
Also, is there a reason you wish to lease a Crosstrek, rather than purchase one?
Right now I’m in a spot where a lease makes the most sense to me for my commute and general driving habits while maintaining a lower monthly budget in comparison to financing, I don’t know that I need to buy a 10-15 year vehicle at this point.
