When negotiating a lease, where do the incentives fit in? For example, if msrp is 50K and lease cash is 5K, do I subtract the 5K from the msrp, and then start negotiating on 45K. And, where do the dealer cash and other incentives (if available) fit into the negotiation process? Of course, my assumption is to deduct all discounts and the negotiate. Thanks.
no. start with dealer discount and take incentives off AFTER that.
What car are you trying to negotiate on? I can tell you how deep to aim for
Would appreciate a simple example. Thanks.
2019 Kia Stinger GT2 RWD to be delivered in August or Sept. Would take car off lot or factory order as long as delivery would be contracted not be before Aug when present lease (not a Kia) is up. Also would need assurance that once deal is made there will be no changes in contracted incentives. Thanks.
For a Stinger GT2 with a Msrp of $51,535 and a invoice of $48857 you should aim for a sale price before incentives of $45,857.
Ok… so when discounts are discussed here, it is off MSRP. If dealer knocks off the $5k incentive from $50k MSRP, then gives 10% after that, $4500, you’ve got 19% total discount.
But if you get 10% off the MSRP, that’s a $5k discount, then take the $5k rebate, for a total of $10k off, or 20%.
So work the discount first, and separate from the incentives. Makes the math simpler and avoids that awkward argument later when they say “oh, our discount already included the xxx incentive.”
PAL and Qbrozen: WOW, this is very useful info you guys have passed on to me. Knowing a reasonable target discount price is extremely important. But to be sure I got it straight: Before talking about any of the incentives, I first have to negotiate a discounted price. BTW, am I correct in assuming that when talking discount, the discount comes from the dealers money and not from the incentives? Once this is done, we then take off the incentives such as: lease cash, conquest, military, etc., to arrive at the final sale price??? Of course, at this point the dealer will start adding in their nefarious fees, of which I should be aware of so as not to be jacked up??? With one dealer I have made the mistake of telling then my OTD goal…shouldn’t have done this as it leaves too much room for them to finagle, eh? Nonetheless, I’m not in a rush and just go back and start the deal all over again, I guess?
Read Leasing 101, then the article on calculating payments, and then search the forum for “How to negotiate”.
This thread can be reopened if you have any other questions after that.