Whatever “rule” you cite doesn’t actually exist and you’re better off deleting that reference before ridiculing it takes over and derails your thread.
Please break out the incentives you’re receiving. Loyalty? A-plan? Costco? We can’t determine the actual discount you’re getting without knowing the incentives.
Also, forget that rule you originally posted. If it exists, it was probably created by the car dealers association.
There’s also another $2,000 in lease bonus cash, so there’s a total of $10,500 in incentives for you. That means they’re giving you a $3,845 discount (4.69%). You can do better than that. The MF they gave you is also marked up a fair amount (buy rate is 0.00363). You might want to work with a broker, as the $600 or so you’ll spend on them will be more than made up by the discount they get you.
Just to be clear, on a lease there is no EV “tax break”. Volvo is giving it to you as a lease incentive. Don’t confuse this as trying to apply for it on your returns.
So if that is included in your discounts, other Volvo dealers have said to target closer to 10% off before incentives.
And your cash down probably better used for MSDs than actual down payment.
So received this proposal from a deal for a lease on an Alfa Romeo Tonale Veloce. See attached file. I have been communicated, that $4000K is the drive off amount, and 24 months of 757.42 (that includes the tax).
Cap Cost Reduction
Cash down: 4,000
Total Rebates: 7,500
Amt Applied Upfront: 2,268.78
Total Cap Reduction: 9,213.22
Net Cap Cost: 49,024.78
Residual: 66%
Residual: 39,164.40
Payment:
Term 24 months
Rate/Money Factor 7.75
Adv Payments 1
Days 2nd Payment 30
2nd Payment Date 12/09/2023
Security Deposit 0.00
Advanced Payment 757.42
Total Cap Reduction 9,213.22
Upfront Chargers 1,529.36
Initial Payment 11,500
Due on Delivery 4,000
Insufficent 0.00
Equity Allocation (checked)
Base Monthly Payment 702.94
Monthly Tax 54.48
Payment 757.42
Looking at this, I assume I could push on getting a greater discount, and also reducing the rate and maybe using the cash down of $4K toward security deposit? Just do not know what other deals people have been able to secure.
That seems like a large payment for this vehicle, but people want what they want. Push for a much larger discount to offset the high MF. There simply does not appear to be a good lease deal on this vehicle vs say a Jeep GC 4xe.
This deal is not great for this. You should be targeting way more off (~7%) on the gross cap cost BEFORE any incentives. Also what is the aftermarkets? If you don’t feel comfortable negotiating hard on this, I would use one of our brokers. A near 800 payment on a Tonale is laughable, as you can get a Porsche Macan for that.
Not sure a 2024 is really worth it