Automotive

Advise on lease negotiation strategy

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  • Jul 19th, 2019 7:43 am
Deal Addict
Aug 19, 2006
2176 posts
407 upvotes
Mississauga

Advise on lease negotiation strategy

I'm planning to lease a car for 36 month (or 48 month if the price/interest rate is right).
I got the Invoice price from Unhaggle and planning to use the email bomb strategy.
My understanding is that I should be negotiating out the door price rather than monthly payments.
At which point do I tell the dealer that I'm planning to lease the car, not buy for cash ?
What if there are cash incentives, but no lease incentives ? Example (for illustration only):

Dealer price: $30,000
Cash Incentives: $1500
Lease Incentives: $0
Mandatory Fees: $2000
Tax: $4000

Let's assume I will be offering Dealer price + $600 (but I will be leasing the car, not buying for cash)
Which of the numbers above do I mention in my email to dealers ? Do I include mandatory fees and sales tax ? What about cash incentives, which does not apply to lease ?

Also, can someone comment on Unhaggle Premium vs. email bomb strategy? Which one is more effective from your experience ?

Thanks
12 replies
Deal Expert
User avatar
Jul 30, 2007
33237 posts
21168 upvotes
Toronto
If you plan to lease, then there is no point in trying to negotiate if you are doing a cash purchase offering at all as they are not the same.
Deal Addict
Aug 19, 2006
2176 posts
407 upvotes
Mississauga
booblehead wrote: If you plan to lease, then there is no point in trying to negotiate if you are doing a cash purchase offering at all as they are not the same.
So how do I go about negotiating a lease ?
Deal Expert
User avatar
Jul 30, 2007
33237 posts
21168 upvotes
Toronto
just base off on your research on dealer invoice + x% markup + fees (that you want to pay) - factory lease credit incentive + 0 bogus item(s) / charges = planned offering amount

Once the above is agreed upon, then indicate your term, mileage allowance requirement + any other protection plan you need (or not need). Indicate a full tank of gas and mats (if you desire them) are included as part of the deal.

You may want to specify due on delivery should be just: first + security dep (if applicable) + license fee + ppsa.
Deal Addict
Aug 19, 2006
2176 posts
407 upvotes
Mississauga
booblehead wrote: just base off on your research on dealer invoice + x% markup + fees (that you want to pay) - factory lease credit incentive + 0 bogus item(s) / charges = planned offering amount

Once the above is agreed upon, then indicate your term, mileage allowance requirement + any other protection plan you need (or not need). Indicate a full tank of gas and mats (if you desire them) are included as part of the deal.

You may want to specify due on delivery should be just: first + security dep (if applicable) + license fee + ppsa.
So basically, I need to exclude the "Cash Incentives: $1500", as it doesn't apply to lease. In this case, do I mention that I'm planning to lease in my initial email ?
Deal Expert
User avatar
Jul 30, 2007
33237 posts
21168 upvotes
Toronto
I suggest to be up front on your offering (be clear on you intend to lease) so the OTR offering amount can be reviewed correctly/accordingly by the dealer to see if your offering is good enough or not. Otherwise, they would have to email you back & forth to figure out what route you are taking (lease, finance or cash purchase).
Deal Addict
Jan 8, 2007
3446 posts
2198 upvotes
Offer dealer price plus $500. if this is a high volume car and dealer is one of the bigger ones, they will likely accept it if you say you have a carcostcanada report.
Deal Fanatic
Jul 26, 2007
7579 posts
5273 upvotes
Toronto
What's better for initial contact, buyer offering $xxxxx? Or asking for lowest price on mass email?
Deal Addict
Aug 19, 2006
2176 posts
407 upvotes
Mississauga
peteryorkuca wrote: What's better for initial contact, buyer offering $xxxxx? Or asking for lowest price on mass email?
That's a good question. In rare cases it's possible to get a car below dealer cost. But if you offer invoice price (+ %), you loose that opportunity.
Deal Expert
User avatar
Oct 6, 2010
15881 posts
10565 upvotes
Toronto
peteryorkuca wrote: What's better for initial contact, buyer offering $xxxxx? Or asking for lowest price on mass email?
The problem with buyer offering is that if you send this out to say 10 dealers and none of them play ball, what's your next move? You risk insulting them and your next emails would just get deleted.

lol.

But you technically could try this out if you are willing to use fake name/email to see what happens or if you used your real name/email you could save grace buy purchasing the unhaggle service.

I've had and only used lowest offer. I know what I'm willing to pay and it's just a matter of finding the dealer to respond as close to my initial cost to play ball with.
DIY difficulty scale:
0-joke
10-no joke
Deal Addict
Aug 19, 2006
2176 posts
407 upvotes
Mississauga
koffey wrote: The problem with buyer offering is that if you send this out to say 10 dealers and none of them play ball, what's your next move? You risk insulting them and your next emails would just get deleted.

lol.

But you technically could try this out if you are willing to use fake name/email to see what happens or if you used your real name/email you could save grace buy purchasing the unhaggle service.

I've had and only used lowest offer. I know what I'm willing to pay and it's just a matter of finding the dealer to respond as close to my initial cost to play ball with.
Could you please share the outline of email you used ?
Newbie
Oct 26, 2014
61 posts
10 upvotes
Toronto, ON
Look at leasebusters as well. Will give you an idea of what people are paying. I know other things factor (down payment, term, etc.). But may be a good starting point.

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