Lease Pricing Questions

[Bwash2020]

Hello I'm new here. I own a 2018 AWD Premium.

I'm looking to upgrade. I should have went for the v6 like I originally wanted to, but I basically stole it because it was "used" at 3k miles and didnt sell for a while and they wanted it gone. I'm looking at lease buyout since it seems like a good opportunity (I'm only getting rid of mine to upgrade trims)

I was wondering how the pricing/incentives work. Specifically I was wondering about the $3500 cash/rebate.

Does it apply to all terms or specific terms?

I'm looking to do the 24m for the extra bonus cash, but also open to 36m (some dealers around mearen't listing the 24m option)

Also for the pricing. Does the residual come in from the initial MSRP/ask price and the incentives/discounts/bonuses are taken off after, or do the incentives/discounts come first then the residual comes in?

 

[stasek]

The $3500 rebate is for purchase only and doesn’t stack with lease rebates. Don’t worry about what the dealers are listing - if it’s offered by KMF, they should do it. Regarding RV - it’s always based on MSRP and set by the captive.

 

[Bwash2020]

So a hypothetical, so I can see how to do the math right. Say I have MSRP at 52,500. With a 43% residual, and 8,000 lease cash and MF 0.00169 for a 36/12k

How do I punch these in?

Would it be 52500 - 43% -8k +MF / 36?

~600/mo?

 

[stasek]

So a hypothetical, so I can see how to do the math right. Say I have MSRP at 52,500. With a 43% residual, and 8,000 lease cash and MF 0.00169 for a 36/12k

How do I punch these in?

Would it be 52500 - 43% -8k +MF / 36?

~600/mo?

I strongly recommend this calculator:

Leasehackr Calculator - Hack your next lease | Leasehackr

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leasehackr.com

Since you're doing the lease buy-out, I wouldn't sweat the monthly too much. It's more important to work on the adjusted cap cost, which is going to be your approximate buyout.
Don't let the dealer talk you into high profit items like undercoating, clearcoating, blinker fluid, etc...

 

[Bwash2020]

I strongly recommend this calculator:

[ ... ]

Since you're doing the lease buy-out, I wouldn't sweat the monthly too much. It's more important to work on the adjusted cap cost, which is going to be your approximate buyout.

I was thinking you combine your months into a total. I've only ever purchased/financed, leasing *anything* is new to me.

Edit: how do I find adjusted cap cost, that calc gives me total lease cost, this seems too low for a buyout

 

[2Slo4u]

Two things... focus on getting the dealer to discount around 10% off msrp. Then start talking about leasing. The dealer might try to tell you they can’t discount off msrp if you’re leasing but that is false. Go to autobytel.com to find the lease incentives for your area. Pick the lease term that gives you the highest lease cash. Tell the dealer you want this lease term and mileage
Have dealer work up the numbers for you and have them send to you. You’ll see adjusted cap cost in the worksheet. That is the important number if you’re doing a buyout. There is a acquisition fee of $650 plus some sort of doc fee,

 

[stasek]

It’s little more complicated, but not that much. Spend some time on the leasehackr website (read leasing 101) or go through this link: it’ll explain everything you need to know about leasing.

Calculate Your Own Car Lease Payment | Edmunds

Always wanted to calculate your own lease but never knew how? We can help. All you need is a calculator, some dealer-supplied info and a little guidance.

www.edmunds.com

 

[Lonz]

Two things... focus on getting the dealer to discount around 10% off msrp. Then start talking about leasing. The dealer might try to tell you they can’t discount off msrp if you’re leasing but that is false.

Yep, completely agree! Also, do not bother going into the dealership trying to get this deal done. Simply email or talk over the phone, otherwise, you'll be wasting your time. They'll have your head spinning, and you'll walk out overpaying. You'll be in a far better frame of mind to work this deal in the comfort of your own home, and where your emotions will not get in the way of 3rd-grade math. Here's the deal you want:

- 10% off of MSRP
- Then apply 24-month lease rebate AFTER the 10% off of MSRP. Let me repeat! AFTER 10% off of MSRP!
- Add $650 lease acquisition fee (can't get around this one).
- Add dealer doc fee (hopefully, no more than $200).
- Say "NO, NO, NO!" to dealer add-ons. They are worthless.
- Do not let them add any destination fees (these fees are already part of MSRP clearly shown on the window sticker).
- Do not trade-in anything. This will cloud the deal.
- Only put your first month's payment down, and if possible, do not put any payment down at all.

Lastly, and most importantly, the only number you care about on the confusing paperwork is the "Adjusted Capital Cost." This is your buy-out number. This number needs to equal the math above (again, 10% off of MSRP, less lease rebate, plus $650 lease acq. fee, plus dealer doc fee, less first month's payment). You need to know this exact number before signing the deal! Have it all written up on a piece of paper before you go into the dealership, so that you're not trying to crunch numbers with your emotions running high.

Some dealers will do this deal, most will not. Your mission, should you choose to accept it, is to find a dealer in your area that will! Hold your ground, and do not go to the dealership until they clearly say that they will do this deal. Once there, pull out your piece of paper with your math, and if the "Adjusted Capital Cost" does not match your math, DO NOT sign the deal! Walk away!

Hope this helps!

 

[Bwash2020]

This dealer most likely will. I know this because I bought from them [wrong number] below invoice for the "used" (demo) Stinger I have now. They probably want it gone since it's in similar condition (nearly-new demo) and hasn't sold since receiving in Jan. Been in the same dealer network this whole time. A crying shame .

Edit: I dug up my actual papers... I got my current Singer priced ~20% below invoice when it had ~3k miles. I didn't think I got them that bad... I almost feel sorry.

 

[Bwash2020]

They already have a dealer add on, but I'm ok with it. They tried to muscle me into trading in (i'll Uber to dealers from now on) and tried to shoo me off leasing. They gave me 51000 sale and I'm supposed to go in today. I've got the numbers for the car, so I'll just email in and see if they will do it. If not, I'll check back in Nov when it'll still probably be there waiting for its first buyer. If "the buyer from out of state" doesn't get to it.

I own my current car outright, upgrading is a desire, not a necessity.

 

[beez97ls]

Yep, completely agree! Also, do not bother going into the dealership trying to get this deal done. Simply email or talk over the phone, otherwise, you'll be wasting your time. They'll have your head spinning, and you'll walk out overpaying. You'll be in a far better frame of mind to work this deal in the comfort of your own home, and where your emotions will not get in the way of 3rd-grade math. Here's the deal you want:

- 10% off of MSRP
- Then apply 24-month lease rebate AFTER the 10% off of MSRP. Let me repeat! AFTER 10% off of MSRP!
- Add $650 lease acquisition fee (can't get around this one).
- Add dealer doc fee (hopefully, no more than $200).
- Say "NO, NO, NO!" to dealer add-ons. They are worthless.
- Do not let them add any destination fees (these fees are already part of MSRP clearly shown on the window sticker).
- Do not trade-in anything. This will cloud the deal.
- Only put your first month's payment down, and if possible, do not put any payment down at all.

Lastly, and most importantly, the only number you care about on the confusing paperwork is the "Adjusted Capital Cost." This is your buy-out number. This number needs to equal the math above (again, 10% off of MSRP, less lease rebate, plus $650 lease acq. fee, plus dealer doc fee, less first month's payment). You need to know this exact number before signing the deal! Have it all written up on a piece of paper before you go into the dealership, so that you're not trying to crunch numbers with your emotions running high.

Some dealers will do this deal, most will not. Your mission, should you choose to accept it, is to find a dealer in your area that will! Hold your ground, and do not go to the dealership until they clearly say that they will do this deal. Once there, pull out your piece of paper with your math, and if the "Adjusted Capital Cost" does not match your math, DO NOT sign the deal! Walk away!

Hope this helps!

Yep, completely agree! Also, do not bother going into the dealership trying to get this deal done. Simply email or talk over the phone, otherwise, you'll be wasting your time. They'll have your head spinning, and you'll walk out overpaying. You'll be in a far better frame of mind to work this deal in the comfort of your own home, and where your emotions will not get in the way of 3rd-grade math. Here's the deal you want:

- 10% off of MSRP
- Then apply 24-month lease rebate AFTER the 10% off of MSRP. Let me repeat! AFTER 10% off of MSRP!
- Add $650 lease acquisition fee (can't get around this one).
- Add dealer doc fee (hopefully, no more than $200).
- Say "NO, NO, NO!" to dealer add-ons. They are worthless.
- Do not let them add any destination fees (these fees are already part of MSRP clearly shown on the window sticker).
- Do not trade-in anything. This will cloud the deal.
- Only put your first month's payment down, and if possible, do not put any payment down at all.

Lastly, and most importantly, the only number you care about on the confusing paperwork is the "Adjusted Capital Cost." This is your buy-out number. This number needs to equal the math above (again, 10% off of MSRP, less lease rebate, plus $650 lease acq. fee, plus dealer doc fee, less first month's payment). You need to know this exact number before signing the deal! Have it all written up on a piece of paper before you go into the dealership, so that you're not trying to crunch numbers with your emotions running high.

Some dealers will do this deal, most will not. Your mission, should you choose to accept it, is to find a dealer in your area that will! Hold your ground, and do not go to the dealership until they clearly say that they will do this deal. Once there, pull out your piece of paper with your math, and if the "Adjusted Capital Cost" does not match your math, DO NOT sign the deal! Walk away!

Hope this helps!

Hey Lonz,

thanks for the great breakdown. I'm looking to get a GT1 or GT2 RWD and do the lease/buyout. Now that it's the beginning of a new month, do you think dealers are less likely to "deal", or will the famous Labor Day weekend coming up offset that a little? I'm looking for the micro blue color within 500 miles of home, and there's only 5 or 6, so it won't take me too long to find out who's willing to work with me or not. Also wondered if it would be better to wait until the 2021s hit the lots later this month, to see if that might loosen them up some more. Or maybe even after the election riots. Finally, when you are saying to strive for 10% below MSRP, isn't that essentially getting all the 3% dealer holdback, and then some? (not that I'm wanting them to retain it, just curious) I know they'll try to get me to pay all the add ons which isnt happening. thanks!

 

[OhioStateStinger]

Hey Lonz,

thanks for the great breakdown. I'm looking to get a GT1 or GT2 RWD and do the lease/buyout. Now that it's the beginning of a new month, do you think dealers are less likely to "deal", or will the famous Labor Day weekend coming up offset that a little? I'm looking for the micro blue color within 500 miles of home, and there's only 5 or 6, so it won't take me too long to find out who's willing to work with me or not. Also wondered if it would be better to wait until the 2021s hit the lots later this month, to see if that might loosen them up some more. Or maybe even after the election riots. Finally, when you are saying to strive for 10% below MSRP, isn't that essentially getting all the 3% dealer holdback, and then some? (not that I'm wanting them to retain it, just curious) I know they'll try to get me to pay all the add ons which isnt happening. thanks!

It seems as if most everyone is able to land between 8-10% off of MSRP (before rebates). Dealers can absolutely do it. The question is whether they will or not. It likely will have to do with age of vehicle on the lot and how close they are to hitting their month/quarter/year end incentives. Some have been able to go > 10%.

Just stick to your guns, go after what you know is possible and settle on a deal you are 100% happy making. If you feel like you need to balk at a $500-$1000 difference, then walk away. Otherwise sign and drive the hell out of that new Stinger!