Hello!
If I’m interested in a subvented lease (assuming my credit qualifies me) option for a particular vehicle should I let the dealer know that up front or wait to request after negotiating OTD price? Is it the case that one dealer may offer subvented option on a vehicle/trim while another local dealer may not offer a subvented option on that same vehicle/trim?
A subvented lease is just a fancy word for a lease program. There is nothing to “ask” the dealer about. Just do your homework before ever contacting a dealer. As a super supporter everything you need is here. Put together a well researched target deal based on the best available programs and incentives you qualify for, then make the dealer an (actionable) offer.
And never waste time negotiating an OTD price as if you want to finance and then tell the dealer you really want to lease like it’s some sneaky trick. Complete waste of time.
Not really. Sometimes incentives vary by region, and in some cases there can be VIN specific incentives. But again a “subvented option” is just the lease program and it’s unlikely that within the same region one local dealer could offer it while another could not.
Asking for this from the dealer means nothing.
What it means to you as a Super Supporter is that you know what the ‘Base MF’ or Buy Rate is, and you should ask ahead ‘What is the MF’ so that you know you aren’t getting taken.
Why?
If you established your target price with buy rate, and you get there, who cares if the mf is marked up?
If they dont get there, who cares if it’s at buy rate?
Because a buyer who knows the base MF is more educated than probably 90% of buyer who walk into a dealship. It lets the dealership know that you probably understand leasing, and they should not play games with you.
You are correct that if a buyer is willing to pay $X per month for a vehicle, then it does not matter. But that is not most buyers. They try to negotiate $X to be as low as possible, which means understanding all the components of the deal to assess where there is more room to negotiate.
The fact that $X changes on a daily basis also has to be factored into the equation.
If you are asking what the MF is you are likely asking for a quote from the start. Why not cut out all the back and forth BS and make an offer from the start with the only answer from them being a yes or no? If no move to next dealer.
Also, just bc a buyer knows the MF doesn’t immediately make a dealer “stop playing games.” If they don’t know the other 10 things involved in leasing it means nothing.
Read OPs question, he asked about whether to ask about a subvented lease AFTER he got an OTD. Thats just wrong
Because timing matters. A “NO” on the first of the month may become a “YES” on the last day of the month. At some point most buyers are going to shoot for the best deal they can get on a car they see on the dealer’s lot. Knowing MF and other details let’s the buyer make an informed decision. The dealer wants you to buy a payment. Knowing the base MF and other components of the lease lets a buyer understand what they are buying.
I understand the purpose of knowing the information but by the time the end of month rolls around I’ve likely already secured a deal bc I’m making offers and just looking for one dealer to say yes.
Absolutely… which never involves talking to the dealer about mf.
If youre worried about what mf the dealer is using, youve already set yourself up for failure.
By “actionable” you mean one that the dealer can actually deliver, right? This is where I am unsure. I’m not interested in being a miserly buyer and I gunning for a deal that is untenable becasue the dealer makes no money. That is waste of my time and theirs. Using the calculator, I can figure out what the cost is that I can afford. But how do I determine what is a “reasonable” to offer that leaves the dealer whole? For example, a deal I can afford on a vehicle is a 5% discount off MSRP and the subvented lease using the base MF and RV. I have no idea whether those are untenable terms for a dealer. I get that every dealer/every vehicle will be different, but is there a general rule of thumb folks use to look for deals that can actually get to “yes?”
Why have I set myself up for failure? Isn’t marking up the MF one of the ways dealers make profit? What if the deal I can afford means a lease at or close to the base MF?
Hypotheticals are almost useless here.
What’s the exact model and trim, and what’s your target?
2024 GV 60 Performance Trim, 36/7.5, 11213
$0 down, Zero Drive off
MSRP - 72,240
5% discount off MSRP
Subvented Lease ($20,750 lease cash/sign & drive) at Base MF
$500 dealer fees (excluding acquisition)
Post a link to your LH calculator with these inputs.
No, by actionable I mean you tell the dealer exactly how and when you’ll take the car if they can meet your offer. Notice the difference between the below 2 offers:
“Hello Mr. Dealer, I really like the GV 60, is it possible for you to get around $500 month on a lease?”
“Hello Mr. Dealer, I’m interested in stock #12345, my zip code is 98765, on a 36/10 lease if you can do $515/month with $1k total due at signing (including ABC incentives) I can be there at 11am tomorrow to sign”.
Search the Marketplace and Signed Deals here to see what brokers are offering and what deals others have signed for. Use the LH calculator to build your target deal based on your research, updated for your local taxes, incentives, and whatever term you want.
Damn… no longer available in my zip
Let’s play a hypothetical to highlight the problem.
You go to two dealers, one is leasing at buy rate and is offering $550/mo.
The other is marking up the money factor by .0040 and is offering $500/mo.
Which is the good deal?
550, lower interest, costs me less
Paying $550/mo costs you less than paying $500/mo? How do you figure?