Granted it’s been 15 years but I had a short stint in car sales. Larger dealerships could usually offer more than smaller dealerships. Sold a Chrysler 300 at a $3,500 loss on paper at a big dealership and then worked at a small dealership and they’d never go below a $500 loss on paper.
Right, but what does it have to do with the advertised brokers’ deals? If they offer 10% pre-incentives on a lease then you get the same 10% off on a purchase.
Leasing and purchasing are the same process. Negotiate a pre-incentive price then add all incentives you qualify for then you are off to financing. Purchases just have longer terms with larger payments but you own the car in the end. How do you envision purchasehackr as it’s own subforum?
The difference is that on a purchase you can use your own financing and that takes away $$$ from the dealership. One can also use dealer financing so the dealership makes some $$$ on the back end.
I’ve found that with a purchase a dealer may go a little further in discounting a vehicle compared to a lease.
You’re missing the point. A dealership looks at the entirety of the deal. The same dealership that may be willing to offer you 10% off sticker may not be willing to offer it if you have outside financing or pay cash.
The money a dealership makes from the financing is taken into consideration with the deal.
that is more so a YMMY type of deal there. You may have found that due to your personal experience but, it is not so for other people. Pre-pandemic, people were getting 20-30% off MSRP *in rare cases, it is not particularly due to lease versus purchase rather more on the customer getting lucky and the dealer accepting the loss. But as everyone said before its all about negotiations pre-incentives, pre-financing. Hell, I don’t even at times mention financing, and straight go for negotiating the price off MSRP then focus on the financing/leasing thereafter.
That’s usually the case. A dealership will get a flat commission from a lender for financing thru them then they can get extra if they bump up the rate by up to 2%. If you walk in and finance with your credit union and they don’t even get that flat commission then they may not be willing to discount the vehicle as much.
I agree on creating a sub-forum for purchasing. Does not have to be only new cars either. Dealers could go on there and advertise late model used cars as well. Last few years, it’s been painful to shop for used cars.
Quite a few dealers advertise a price online however when you get to the dealership, they will then add on so much unnecessary stuff and will not budge about removing it. This has become prevalent in the marketplace.
Also most of them will not really deal online and insist you come in to the dealership. It really would be nice for some of our trusted dealers from Leasehacker to advertise their used cars and not have to go through so many dodgy dealers.