Question about incentive amount provided by Edmunds

Ask the Hackrs
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1

I’m looking at leasing a 2020 Ram Bighorn Crew Cab

Edmunds provided:

39/10: .00100 MF and 54% residual
42/10: .00089 MF and 54% residual

$4500 incentive

How is the incentive amount used in the calculator? Just put that amount in the taxes or untaxed incentive box?

The truck I’m looking at is MSRP $51,840 and the online sales price is $42,372. Would the current sales price already included the possible incentives?

First round of numbers from dealer:

39 month 10K lease

Money due at signing $435 $1,000 $2,900
Monthly payment $435 $417 $361

2

Yah, put it in the taxed incentive column. It will vary depending on state and type of incentive/rebate, but always easier to start taxed and come out ahead.

Unless the dealer specifies, I’d always assume they’re rolling in incentives. In fact, if you’re looking at online sales prices without a breakdown, they’re generally rolling in every incentive there’s ever been, including some you don’t qualify for.

3

I guess that’s where I’m getting confused.

If the sales price possible already includeds some/all incentives then wouldn’t adding that to the incentive section of the calculator be double dipping?

4

Yes, which is why you should put the pre-incentive selling price into the calculator instead (and a large part of why online ads for prices are generally viewed as unreliable and misleading).

5

Makes sense.

Appreciate the info and quick response!

6

Which box depends on what state you live in.

7

No prob. Unfortunately, you’ll find that generally dealer ads are not very good deals and great at hiding details. This is why it’s generally best to work out the numbers on what a deal should be and then work on the pre-incentive discount with the dealer.

8

Gotcha.

So I did a calculator using the internet sales price just to see what I get. I got $481 pre tax.
In an email from the dealer he said $435 pre tax with $0 down. So at first glance it looks like I’m getting a good deal or am I missing something?

I’m working on getting a breakdown of how he got to that payment.

Calc:

9

Do you know for sure that the lease is through Chrysler capital? Third party banks (Ally, US Bank, etc) are very common on FCA product leases.

The other thing you need to clarify with him is if that’s $435 with $0 down or with $0 due at sale.

10

I don’t know yet who the lease is through. I’ll add that to my follow-up email to him.

Said the payment includes taxes and titling fees and based off the email, that payment is with 1st months due at signing.

What he said:

Money due at signing $435 $1,000 $2,900
Monthly payment $435 $417 $361

11

In my opinion, Ford is the worst at this.

Ford has 3 options right now for you to purchase a vehicle:

  1. Purchase with X% interest and max incentives
  2. Purchase with 0% interest and some incentives
  3. Lease and get a stick in your eye

I looked at Expeditions yesterday, the difference between option 1 and option 3 was nearly 8K. As you would expect, every dealership advertises #1 to get you in the door. If you are buying and financing #2 is likely your better bet. The monthly payments for 72 months on a purchase or 36 month lease were nearly identical which I have never seen before. Ridiculous.

/rant