Selling price changes when I tell them Im leasing

Ask the Hackrs
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1

Im in Oklahoma City and struggling with a new Lease.

I’ve been leasing for a while now and coming out of a 2018 Acura MDX.

This is my Wifes car and she likes the new VW Atlas Cross Sport.

Dealers are advertising decent pricing but when I mention Leasing and the MF they tell me the discounts co away and I have to use the VW discounts in order to qualify for the lower MF.

I’ve never seen this. Is this the new norm?

I even called my local Jeep dealer on a Grand Cherokee and the story was the same

2

Yes, it’s very common to have different incentives for buying and leasing. This is part of why you want to always verify the incentives that apply and work based on pre-incentive discount.

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3

I know that times are different now than back in 2018, but what happened to dealers wanting to move cars…

4

:popcorn:

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5

I’m not sure how thats related. There have been differing incentives for purchases and leases for as long as I know. This isn’t a new thing. It’s also not under the dealers control.

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6

Do you negotiate a pre-incentive price, which later changes when you mention leasing? Seems like you should do some homework before contacting dealers.

7

Historically Ive had friends at dealers that have helped me secure a good price off of MSRP. Im in new waters here with these dealer but learning as I go.

8

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.

  1. Read Leasing 101 (Blog | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!!
  2. Pick a specific vehicle that you want to target
  3. Gather the current MF, RV and incentives from Edmunds forums for your zip code
  4. 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?
  5. Plug your numbers into the LH calculator, and use a pre-incentive discount similar to what you have seen
  6. 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.

9

Dealers have not been having much difficulty moving cars during the pandemic.

10

:point_up_2:
Also, you can easily find out which incentives apply to leasing vs. purchase with a short internet search.

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