Signed this past weekend from NJ dealer, qualified for many rebates (7500 lease cash, Costco 2500, loyalty 1000) and beat the sales guy up. This was a one off since it was the last demo there( 2k miles) and not sure how much inventory they have left
This is very close to what I signed:
Solid. Congrats on the new car!!
24 mo would’ve been cheaper, no?
Edit: nope, more.
Looking at something similar for myself. Would you be able to explain how the lease cash + costco + loyalty play into the price? I’m confused where these values come into play. Thanks
12% off demo on a 2022 or 2023?
Sum of those 3 is $11,000 listed in the calculator link under taxed incentives
2023 demo with 2k miles
Yeah I see that. So is that value subtracted from the MSRP to give a cap cost? I am confused how the rebates/incentives play into it all. Like where does the money go? I’m looking at a 2023 demo with 3k miles and they gave me an MSRP of 56640. I would qualify for the 2500 costco and 1000 loyalty as well but they said with 1k down its 686 or something per month which doesnt make sense to me given that I know and confirmed the MF and residual in my zip.
Would that lower the cap cost so 56640 - (7500+2500+1000) = 45640 ?
After accounting for incentives the dealer is trying to charge you a premium over msrp instead of a significant discount for a demo with mileage. You should politely tell them to have a nice day.
Edit what miles/yr are they quoting? these work best on 36/7.5
Yeah it seemed fishy to me… Would you be able to explain to me how the incentives actually play into the calculation? In terms of where its reducing the cost from? I understand where to input it in the calculator but past that I dont get it in real world terms. Like where does this 11k go to ? I’m looking at a 36/10
Incentives help to lower the cost of the lease. They lower your monthly payment.
Congrats OP! Enjoy the new ride!
So it is amortized over the course of the lease? I am just confused where the money goes. Like you can use some of it as the down payment or for MSD? where does the remainder go? For example, lets say I have 10k in incentives but only have a 2k down-payment. Where is that remaining 8k going to?
the 8k reduces msrp
The discount you get from the dealer off MSRP gives you your selling price or “agreed upon value”
Subtract all rebates and add anything else you want to capitalize (such as acq, etc) … that’s your adjusted or net cap cost.
Ps. Don’t solicit quotes. Know your target payment (ask here if you don’t) and make offers.
Thanks so much! This makes sense. So from researching around here it looks like 7-9% off MSRP is great and a good starting point? For this instance (demo w 3k miles) maybe even 11% or so off so if initial MSRP is $58,640 (they quoted me 2k discount), I should aim for ~52,190 ish. And from there I can calculate what the payment should be.
That is if the dealer didn’t include some of the incentives/rebates in their discount already lol
Don’t know if @aronchi restrictions are off but he might be able to help you(no fee). If not there are other brokers in the marketplace
will pass. only doing c40s for repeats and off LH. big mistake posting them last month.