Going to a dealer, interested in leasing a new Volvo.
I know what the rebates are ($7500, Costco, ABA, etc.)
Instead of discussing money factor, residual, etc. with dealer, why not just put inputs in leasehackr calculator or a spreadsheet, and just go in and say I will give you x dollars per month for that car with no DAS?
Let dealer get there however he can - discount from MSRP, lower money factor, etc. Charge all the fees you want. (I am in state with flat sales tax amount).
I just let a deal on a different make go because I could not understand how they got to their monthly number, despite having all the inputs and confirming them with the dealer. Kind of like agreeing to sales price and fees, interest rate and term, and not being able to agree on monthly payment when financing a car - you wouldnât do that.
Is that âpaymentâ based on anything than a âhopeâ?
And if it is a minimum profit for the dealer, most will say âNoâ. There are other things such as days on lot, hidden incentives and other considerations (especially if they are asses)
Iâm not sure many here recommend discussing details like MF, fees, etc. Most will recommend exactly what you suggest: making an offer for a monthly payment structured with X DAS. However there will have to be some details discussed (e.g. term, what rebates you qualify for, zip/tax rate, MSDs, etc)
Thats what I do. I ask for/provide the monthly quote I want.
When making an offer, it should either be everything spelled out in detail or only monthly/das. Anything in between leaves ambiguity.
The problem is that in order to properly establish what the monthly/das should be, you need to know all the inputs.
99% of the time, when someone says âwhy canât i just use monthly paymentâ what theyâre really saying is âwhy cant i just ignore everything that goes into establishing the monthly payment, blindly look at other deals without understanding the nuances, and offer that?â
I donât believe OP is an advocate of doing what you describe. Theyâve already indicated that they have crunched the numbers beforehandâŚ
But youâre right, many people pluck a payment out of thin air without any kind of support. They have to be prepared to explain how they arrived at the payment and DAS.
Lately, this is what Iâve been doing. Get all the data and incentives, calculate what it should come out to, and simply offer that end number and the dealer says yes or no. Itâs cut out a lot of the back and forth crap I used to have to do to get to the same place.
It doesnât matter how they get there, just that the number that you want to achieve is actually realistic.
Thatâs fine as long as you tell them what rebates you qualify for to get you to the number you are looking for.
Thatâs fine. But post a calculator link here that reflects what youâre offering.
OP here. Have not been into dealer yet. Money factor and residual from LH calculator. Link below. Shows would need to get 10% off MSRP from dealer to get close to my $700ish goal, which I donât expect to see in our market. Did not include ABA pin, although I can get those easily, because did not see that on local dealer website. I am thinking about going in at $750, let them see if they can lower money factor, raise residual, whatever, to get there. Any thoughts if you have time to make them? Thanks,
Choose 24 months and include ABA (dealer website mentions have nothing to do with OEM rebatesâŚtheyâre coming from VCFS).
You should be sub $500
A dealer canât change the base mf or rv which are set by the lessor. A dealer can mark up the base mf for additional profit. We always suggest creating your target deal on base mf, should the dealer want to give a bigger discount off MSRP but mark up the mf, then they still got to your deal.
The variable the dealer does control is the percentage off MSRP which is a separate item from incentives.
A dealer can mark up the MF if they want, though they canât change the RV.
Added additional context to ideally make it more clear.
The pricing details on dealersâ websites are useless, unreliable, and irrelevant. The only thing theyre good for is identifying a specific stock number to make an offer on (assuming they do a half decent job at keeping their inventory updated)
Youâre missing all the fees from your calculator, so itâs useless.
This is why i said this:
What youâre doing here is making stuff up by not fully putting together all the inputs, then hoping the dealer can do things they have no power to do.
Going and offering a monthly because youâre trying to shortcut putting together an actual target deal is setting yourself up for failure.
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