The 20% discount on the loaner…where did you arrive at that target discount?
I think 20% off on a loaner is a stretch for most markets unless it’s an EV
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Did you ask what money factor they are using? More than likely, they are giving the 12% discount only because they’ve marked up the money factor. That’s how they are making money on this deal.
You are right. 20+ is probably for the more higher mileage ones but on a lightly used one like this, I think 15-16% or more with base MF is a good deal
Yes, it would be nice to get the 15-16% off MSRP on a loaner, but I don’t think the loaner market is that aggressive yet. Not seeing a lot of deep discounting on loaners (except for EVs or lot anchors). I’m only talking off the top of my head now, but I recall seeing about 13% or see being the norm.
I don’t think 13% would make sense, especially with many brokers offering 10%. After the residual adjustment, they would pretty much be in a similar ballpark, which wouldn’t make the loaner worth it
That’s why loaners aren’t making sense in a lot of situations now. The savings just aren’t significant enough. I get your point, but I just don’t think the loaners are being sold that aggressively.
Yea, BMW has really nerfed the market for loaners. That’s one thing Mercedes does better than BMW I guess, the residual adjustment BMW puts is brutal.
Also, the discount from MSRP just isn’t big enough to yield any meaningful reduction in monthly lease payment vs brand new. I’m going to have to save more than $40/month to go with an ex-loaner
I didn’t ask them, even when I mildly started to mention that they got defensive so I just let go. I remember an advice from the past not to get too much into that because dealers pack deals differently. I did however confirm in Edmunds that the max markup rate is .0023 and the calculator gets pretty close with this number.
They certainly mark it up. And yeah the discount on this loaner is 12%.
Am I reading between the lines that with 10% discount on a brand new one, due to not needing to adjust residual, I may end up at the same monthly for a brand new instead of a loaner? But I guess, does it usually mean it needs to be ordered to get the discount and it’s not going to be on the lot most times? WA dealers are hard because the demand is crazy. People up here pay full asking price.
From what I understand PNW dealers are going to be tough to crack. As you said, people are paying at or near MSRP willingly.
You are correct that you’re probably better going with a new car vs loaner. The discount just isn’t enough to justify a loaner.
Have your reached out to @IAC ? They serve the PNW. It might save you a lot of hassle.
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I appreciate your help!
I was trying to look at their thread to find what the deals look like. Couldn’t find anything for PNW, so checked this one from another spreadsheet they listed for NE - for a brand new car, without broker fees/shipping, there’s $1,400 difference for my numbers (10.1% tax, King RTA tax, 12k miles). If this needs to ship + $599 broker fee, it’s about the same price?
But then this is for a brand new car, so like you’re saying, the current discount just doesn’t justify the loaner.
Link for calculator:
PNW thread
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If you’re going to consider the X3, why not the XC60? You’d get more features and probably for a cheaper monthly.
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