[Mr. Homey]

Is there any chance someone could take a look at the attached image of a screenshot of the lease worksheet my dealership is trying to use and make any sense of it? I've been playing around with these numbers for like, the last 6 hours and can't come to terms with what I need to tell them, other than the base MF is way too high at .00160.

As listed in the screencap:
MSRP: 57,825
Price: 54,295 ($500 over invoice, confirmed)
Residual: 63%
Base MF: .00160
sell rate: .00111 (after 7 MSD's)
fees: 393.50

The "worksheet" is showing a monthly payment of $637.31 with $6582.19 due at signing.
I've plugged these numbers into the lease calculation worksheet, the lease payment formula, and my recently purchased copy of leasematic. The numbers just don't jive and I have no idea how to explain it to them.

thanx fellow fester's!

 

[jjrandorin]

Is there any chance someone could take a look at the attached image of a screenshot of the lease worksheet my dealership is trying to use and make any sense of it? I've been playing around with these numbers for like, the last 6 hours and can't come to terms with what I need to tell them, other than the base MF is way too high at .00160.

As listed in the screencap:
MSRP: 57,825
Price: 54,295 ($500 over invoice, confirmed)
Residual: 63%
Base MF: .00160
sell rate: .00111 (after 7 MSD's)
fees: 393.50

The "worksheet" is showing a monthly payment of $637.31 with $6582.19 due at signing.
I've plugged these numbers into the lease calculation worksheet, the lease payment formula, and my recently purchased copy of leasematic. The numbers just don't jive and I have no idea how to explain it to them.

thanx fellow fester's!

How is tax handled in cleveland?

Just taking a quick glance at it, it looks like the lease aquisition is paid up front, but I cant tell if tax is being paid up front.

 

[Mr. Homey]

Tax is based on the sum of all lease payments, which works out to....1,396 and is included in the "due at signing" portion. I have the option to include it in the lease amount but there would be interest on that and increase monthly amount. I'd really like to get this to less than $600/mo

Sent from my SM-T800 using Tapatalk

 

[Mr. Homey]

I decided to try and counter with what leasematic is proposing. This attached screenshot would be what I will shoot for. it keeps the sale price at $500 over invoice, drops the base MF to .00138 and drops the MSD's. Anything look weird in here, or otherwise offensive to make as an offer?

I did get in touch with Adrian from Gwinnett in Atlanta and am awaiting an offer from him, as well as a call back from a dealership in Cleveland so hopefully will have something finalized by the weekend.

 

[Yinzer]

Definitely push for the base MF or walk.

 

[Mr. Homey]

Definitely push for the base MF or walk.

So...where does this dealership make a profit on a deal like this? I assume they are low volume. If I give them $500 over invoice and base MF, their only profit will be the $500?

 

[ctorrey]

So...where does this dealership make a profit on a deal like this? I assume they are low volume. If I give them $500 over invoice and base MF, their only profit will be the $500?

It's not quite that simple. Is the car a MY16 or 17? There are difference in how the dealer is compensated in '17. There could be dealer incentives involved. Maybe they want the car gone. Let the dealer worry about how much they make and you worry about how much you spend.

 

[MJBrown62]

It's not quite that simple. Is the car a MY16 or 17? There are difference in how the dealer is compensated in '17. There could be dealer incentives involved. Maybe they want the car gone. Let the dealer worry about how much they make and you worry about how much you spend.

Chuckie T is right ... we dealers choose to make the deal or not. There could be manufacturer to dealer incentives, regional cash "coupons" to dealers, etc. We will be taking those into account.

At the same time, a $500 over invoice deal is an under invoice deal for us before any such M-to-D programs. All of us have prep costs, gas, and commissions that will drive this below invoice.

But like I said, we know all these going into the deal.

Michael

 

[Yinzer]

So...where does this dealership make a profit on a deal like this? I assume they are low volume. If I give them $500 over invoice and base MF, their only profit will be the $500?

Way to many variables behind the scenes to answer that.

 

[Mr. Homey]

It's for a MY16 sitting on their lot since March. Maybe could have gotten the cap cost down a little more but I feel good about the deal. They accepted my offer of $500 over invoice and base MF of .00138, so looks like I get to finally join the family. M3 will have to wait a little longer....