Update: deal check on 2019 Alfa Romeo MSRP $54240

I’m negotiating with an Alfa Romeo dealer. She gave me a pretty terrible price. MSRP 54240 and Selling price: 47780. Dealer is telling me this is employee pricing but I can see on their website there are tons of rebates going for 2019 AR’s. I asked is the sell price before or after incentives. She said that is the employee price, the incentives are only used toward your down payment to lower the monthly. I asked for a lower sell price she told I’m out of my mind yada yada. But I’m confused I dont want to put money down, so $4000 in incentives whether it goes toward a down payment or off the sell price - [either way] doesn’t it essentially come off the sell price. Am I being had?

So, this is the best the dealer is offering. Is this a good deal on a 2019 AR?

If you reread your note, and dissect it, think about what you’re really asking, but more important, the goals and end result.

Sorry I don’t understand what you mean. I did reread it. Maybe it’s just too much information. I just don’t know why I was corrected and told incentives only help the monthly and don’t work to come off the sell price. That just doesn’t make sense to me.

I guess what I meant is…it’s same same
The sales rep is probably pretty dense

But the outcome is the same

Not exactly the same as many states tax the incentives/rebates.

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A little break down that helped me understand how things work is kind of like this:

  • MSRP = Price of the car (obviously)

  • Incentives = Money that the manufacturer (alfa romeo) gives the dealer for selling to you (dependent on certain requirements you must meet)

  • Dealer discount = Discount that the dealer is actually giving you.

If the MSRP of a car is 50,000 and theres 5,000 in incentives going on, and your sale price is $45,000 after incentives, the dealer is giving up literally nothing because that full 5,000 is coming back to them in the form of payment from the manufacturer.

In your situation: 54240 - 48780 = $5460 total discount. This is basically a 10% discount exactly but includes incentives. I dont know your exact situation but if $2000 of that is incentives then $3460 of it is dealer discount meaning you are getting a 6.3% dealer discount, which is a bad deal (not familiar with Alfa deals, but I know new BMW’s they say 11-12% is a good number to try and hit for discount).

that’s how I think think about it all. In the end though, it all goes to the same place, bringing MSRP down to the amount you are agreeing to pay for it (sale price). Its just a matter of how much the dealer is going to ACTUALLY give up, vs how much they are “pretending” to give up by masking it with incentives.

If anything I’ve said above is incorrect a more experienced hacker can correct me, I dont want to spread misinformation.


Thanks this was helpful.

Understood. Still in theory just comes off the price of the car. Incentives are put into a down payment. That makes no sense.

I know you were trying to lead the horse to water. I just couldn’t drink. Thanks for helping and your agreement in what I thought helps me move forward.

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Customer incentives can usually be applied towards drive-off costs with the remainder used as cap cost reduction. It makes perfect sense.

Keith, check with @Justin_Sutton. He should be able to help.