This is helpful to see and will definitely use to work on improving my Excel calc and next deal I am working on.
Your post about OH taxes was extremely helpful… referenced it a number of times to try to get the numbers to match the dealer.
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Thanks, and good luck!
There is no pushing involved. The sell price is still the same. All of the dealer’s “hard” data remains the same. It’s just structured differently (e.g., taxes paid upfront instead of capped).
Ah, I’ve got you.
Restructuring deals really depends on how much a finance person will take your suggestions. The sharp ones will get it, others just want the deal out the door.
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I always provide a detailed lease proposal of exactly the way I want the lease structured. All numbers must be spot on. The only things they look at is the sell price and money factor. If they’re in agreement with both, then there is no reason for them to have a problem with the structure as the dealer isn’t losing anything. A lower payment doesn’t always mean the dealer loses. As you know, there is so much more to leasing than just calculating payments.
For me, the structure is very important and part of the deal. I haven’t had a problem with any dealer rejecting my proposed structure. At least, not yet.
We often see dealers resist anything that requires extra effort like a one pay.
I too have coached finance guys through getting the structure right. And others who lazily claim this is what it is.
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Why should a dealership resist a one pay if the fund provider will do them? I’m not sure if it can all be attributed to laziness. I don’t think they understand the multitude of different ways a lease can be structured. Perhaps their desking software requires a bit more knowledge and effort on their part for different structures like a one pay?
Keep coaching those F&I guys, coach!
I contacted 8 Hyundai dealerships closest to me. 4 of them said they do not do one-pay and 1 said they would never give out their numbers over the phone or email. So there were only three that agreed for a one-pay lease. One of them even suggested doing a large downpayment rather than a OnePay lease because in their mind, it is the same thing. I think you are underestimating how inflexible most dealerships usually are.
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Haven’t encountered that problem yet. Why they won’t do a one pay is a mystery to me… it’s no skin off their nose unless I’m missing something. I won’t do business with any dealer unless they are transparent and agree to my terms. I never ask for numbers and do my own research. Then, I send them a lease proposal like the one below which screams that I’m a serious buyer.
I’m always open to negotiating sell price but, if they refuse to negotiate, I move on and am perfectly content to buy a low mileage cream puff from a private seller and run it until the wheels fall off.
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I’ll be honest this is good I saved it. Thanks for information.
Assuming like everything else you used local data and previous people’s deals to determine your % off msrp?
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You’re welcome and thank you! To determine sell price, I use several sources including, but not limited to, Edmunds, TrueCar, Kelley Blue Book, dealer inventory pricing, LH marketplace, etc. It’s important to assess dealer discount before rebates/incentives. I include any manufacturer to dealer incentives in the dealer discount.
@delta737h i like your style! do you use an Excel template to create this deal sheet? very tidy!
Thank you. I used to use Excel exclusively but now use something called Mathematica most of the time. For less detailed calculations it would be overkill, so I use a TI-84 or TI-89.
This is amazing but I’m a bit confused about including mfr discount in the agreed upon value. Doesn’t that give the dealer the chance to obfuscate the dealer discount and pass off mfr incentives as their own discounting. Thanks!
They all do this! It’s so confusing and hard to shop. Some add 2k bonus cash, some 7500 ev cash. I always ask what the dealer discounts are before incentives and they are sometimes still shady about it. I’ve had some change the price when they see all the rebates. Some say we are giving you 15k off, I’m like those are my rebates, not yours. It’s A very frustrating game. Some have dealer add ons of 2500, 1k doc fees, mark up the money factor. It just seems like that they would be upfront and honest unless they just like fielding all these calls wasting an hour just to find out that the discount isn’t any better than your neighborhood dealership.
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Absolutely! That’s why you need to dig deeper. Call several dealers in your market area. You can often get to the truth by formulating logical conclusions. It’s not easy and does require work. See @Chadclement1 post.
But aren’t you enabling that dealer obfuscation by baking the mfr incentives into the sale price that you list in that incredibly detailed offer letter you send out to dealers? Wouldn’t it be better to separately line item the discount you expect the dealer to give vs the the exact mfr incentives you hope to stack. The work you’ve done is so diligent and thoughtful with this offer sheet so that’s why you’re losing me on this one point. Is there some negotiation tactic that I’m not thinking about that makes it better to lump it all together?
Nope. Not as long as I know the dealer’s contribution as well as any mfr to dealer incentives. You
do not want to itemize those separately in a lease proposal which could piss off the dealer.
Yup. Keep your mouth shut and only disclose your selling price. As any attorney knows, never say blough blough if you only have to say blough. As I stated above, you don’t want to upset the dealer. I know the dealer’s discount and the mfr incentives and so does the dealer. So, what’s the point in itemizing what the dealer already knows. The only thing that matters is your well-researched selling price. It doesn’t matter how you got there. What matters is whether the dealer can do the deal. Sometimes the less said the better. This is something that dealers practice regularly and they’re good at it.
NOTE: It’s best to research your own sell price in your market while taking the dealer discount and mfr to dealer incentive into account. Set your target sell price lower if necessary. Remember that you can always come up but never down.
And thanks for your kind words.
I prefer to itemize and list so I can get a quick yes/no. Perhaps yours has a bit more tact, but I haven’t found my approach to be the reason why they don’t want to deal.
As long as you’re comfortable doing it that way, go for it.