Thank You. I am new to this so I donât really know how to push for discounts. Is it smart to flat out ask the dealer to meet a certain percent discount off sales price?
There ya go! Now you know you need 8% discount off MSRP (which I assume is good for this car as I havenât done the research) with base MF to get to your 440 payment with 0 DAS. Email a bunch of dealers with the vehicle you want MSRP wise and ask for say a 425 payment with 0 DAS and settle at your 440.
And this is why you do the calc and understand your target payment like you didâŠyou can now wade thru the BS because you know how the numbers workâŠthey will most likely throw different stuff out at you but you know the levers now!
VWs are âslimâ on the markup from âinvoiceâ to MSRP so that is trueâŠwhat the exact % is, who knows? Asking costs nothing as all they can do is say no. If you start getting a lot of no responses tho you might be asking for too much. Be patient and ready to pounce same day when you do get somebody close!
Itâs even worse than that. Itâs a fake number that dealers use as leverage. Look sir weâre giving you this at invoice, any less and weâre losing money. This is the best deal we can offer.
One chooses hackable cars when they exist and actually hacks leases. Their TCO (total cost of ownership) even over multiple leases is lower than traditional ownership. Usually because they take advantage of an overestimated RV and leave the bank holding a big bag.
The other looks at a nominal saving in the monthly payment over financing. Over multiple leases they leave a huge amount of equity on the table, effectively writing a big check to the bank. The idea of saving ironically backfires because it costs them much more over the long term.
A quick sanity check is looking at 72 months of lease payments ending with $0 equity and comparing that TCO against the TCO of financing (including the equity you have at the end).
If I had to guess itâs 90/10 in favor of the âoooh with a lease I save $100/mo over buyingâ type. Because for the vast majority of people itâs all about the payment. They could pay 100% interest every month vs 100% equity every month. But if interest only is just a little less money, theyâll take that option.
The average American consumer is really bad at figuring this stuff out. And retailers - not just auto - take full advantage of their financial stupidity.
Yep, 90+% of people who come here are bamboozled by math and the calc and have no clue of TCOâŠall about the payment! There were a couple people here willing to lease in Chicago (additional 9% tax on leases) because they were payment buyersâŠignoring fact they are paying twice as much in taxes than if they bought.
