Did you get a quote from Carvana and Vroom for your current car? If you have cash on hand, you might minimize your negative equity by working with someone other than the dealer. At a minimum, you can use better offers (if they come) as leverage with the dealer.
Then save cash on inceptions fees by rolling them all into your new lease.
Thereâs a very thorough calculator 101 that covers how to handle that, among other challenges.
Here is another deal I got. 9% Pre incentive so Iâm getting closer. MF was .00067 and RV 55%. Same as first dealer.
They are also giving me $33,500 for my trade which is much better than the $32,000 from dealer 1. Thoughts?
That negative equity is really killing the deal. Have you gotten quotes from carvana and vroom?
Agreed! You need to remove the trade in from the deal and try to sell it off to a third party. Albeit for a small loss.
Why? And why would you want to pay close to $700/mo for the $50K XC60? You are wasting your money.
I will jump in on your non-trade portion of your deal. You are at 9.1% pre-incentive on your latest offer. You are making significant progress. Was there any back-and-forth or was this the dealers first offer?
This was their first offer as it is essentially exactly the same MSRP and discount as shown on their website. I thought it was pretty fair given that was their âadvertisedâ sell price. They tried to sneak in some excess wear and tear waivers, and dealer installed options but I told them to remove it. I was really stressing my trade in value which they can in much higher than anticipated. I basically countered with saying I want to be ~$600/month with 2k down and see how they move the numbers around.
A website offer (if its real i.e. it doesnât roll-in every incentive under the sun and its a car in stock) is not usually a dealers best offer. Rule of thumb, always try to get more than advertised.
If you are happy with the number, you are done. 9.1% is solid in this market. To get to 10% we are talking about another $500 off so it comes down to the value of your time. If you have the energy get quotes from as many dealers as you have in your driving range. Or stop now. Your call.
Your trade-in complicates your negotiation. Good news, your $33.2K Carvana offer shows your latest dealer is giving you a solid value for your trade at $33.5k.
Good luck.
I countered the dealers offer last night and told them I essentially wanted to be as close to a $600 payment as possible and see if they would come down off the Sale Price to get us there. Interestingly, the sales manager calls me and says, âwe wonât lose your business for 2.18 right.â $602 payment I was pretty happy with but I asked to see the numbers and the sales person sent me the following.
Revised offer.
First offer.
https://leasehackr-assets.b-cdn.netoriginal/3X/c/6/c6cdb30676eacd758c777f8c153ee96001223295.jpeg
My initial thought was they changed the MF, but I confirmed they used .00067 for both. Then I kept probing at what changed the numbers since they were the same and she told me they used the wrong RV for the first quote @ $641 per month. They used RV for a T6, not a T5. Seemed fishyâŚ
Working a deal on a T5 Inscription now because the wife is being really pickyâŚ
Using the same negotiation tactics, I got a reasonable offer but they âgoofedâ again and tried to use the same MF as Momentum. MF is lower on Inscription, .00041. When I corrected them I got the following.
I think Iâm going to try and work the Sales Price down a bit more and get closer to $615/month. That might be as good as I can getâŚ
Your dealer sure makes a lot of careless errors. My spidey sense is tingling. When a dealers makes this many errors I run my lease calculator to make sure all is right in the world (well I do this every time, but I do it more carefully when the dealer is careless).
You are throwing lots of numbers at us, so lets keep things straight. Do us a favor so we can help you. Recap the pre-incentive discount for each deal you are considering and give us the corresponding MF.
Here is my Calc for the deal currently on the table (Monthly matches what they are giving me.). I included my -$3,192.55 into the Sales Price of the car. (I know this is killing it but it is what is is.) Comes out to 8.5% Pre Incentive before trade I believe.
I want to counter with them bring the sales cost down another ~$650. That would bring the pre-incentive to 9.6% and get me below $615/monthâŚ
As @824 said. RV does not change and MF they can mark up. But they canât keep saying they made mistakes in getting the wrong number.
Heads up: Your negative equity requires a tweak to your calculator so the pre-incentive is distorted in the calculator. PRE-incentive is so important to a good deal please take great care in spelling out Pre-Incentive because we wonât see it in your calc.
With that said. In this market all you can do is work with as many dealers as possible and negotiate the best Pre-incentive @ buy rate you can. Shooting for 9.6 is reasonable. Seeing if you can get 10%+ is reasonable as well. At this point in your negotiation, get the best deal you can and stop when you run out of energy or available dealers.
If you get stuck at 8.6% I would look closely at broker options on this forum.
Good luck.
