Hi All,

Really happy to have found this place BEFORE buying/leasing! Wanted to get your feedback on what feels like a terrible, no good, very bad offer. Dealer won't budge on MSRP, though this is a MY17 British Design Edition, if that matters.

• MSRP: 93,233
• Price: 93,998 (assuming this includes delivery fee, but don't see $765 anyhwere on the sheet)
• Residual: 59% (55,007.47)
• MF: 0.00183
• Term: 36 mos
• Initial paymet: 1,542
• Monthly payment: 1,450

Going to try to get them to come down a bit as I see another dealership (somewhere else in the country) is listing the same car @ $88k.

Credit is excellent (800+), if that matters.

Worst case, I take a look at the couple regular 2016 S's in stock.

Thanks in advance!

 

Don't just walk, but run away. You should be able to realize a sizeable discount below MSRP, and that lease payment looks about 50% higher than others I've seen for that price range.

 

Wow talking about a ripoff, i would point at the salemans and laugh so hard before i leave. Jk but yeah, run away, you should be able to get that car for under $1k a month.

 

Many thanks guys! To quote Han Solo:

 

Yea. That's almost double my R payment

 

You are getting robbed. Walk away and never come back to that dealer.

 

I don't think you're getting robbed, necessarily. The dealer is banking on someone paying MSRP for a british design edition since it's a rare build. The MF looks consistent with the recent numbers I've seen people getting on Jag leases. The only thing the dealer controls is the sale price. I was only able to get about 3k off my 2017 which was probably the first sold in north america.

 

Nati makes a lot of sense. When I was interested in moving to an F-Type I was considering ordering a 2017 and I did not find much in the way of dealers willing to go below MSRP. Different story for the 2016's on dealer lots, much different. In the end, I am very pleased that I decided to go with a 2016 and a smokin' deal. When this lease is up, I hope I can replicate that experience, unless Jaguar has moved to turbocharging.


Larry

 

I think the dealer is going a bit too far here, but I generally agree with the above.
For every person that gets a fantastic deal, someone else got a horrible deal. At least in this situation, the buyer is actually getting something unique and before everyone else.

 

Actually, i re-read the original post and just realized that you are talking about BRG Edition, in this case the dealer will not negociate price. Before i did the lease on my base i was interested in the BRG Ed, and all the dealers said the same thing, they wont negociate price on BRG Ed. But honestly, i dont care for the BRG Ed for that kinda money, you can probably get a '16 R for around 800/month, i would drive the R over the BRG Ed. any day.

 

Yep, you got it - British design edition - guess I had my sights set too high. Will just have to "settle" for a 16 R, hahaha.

Seriously, though, if anyone could give me some advice for negotiating that kind of deal (800/mo with no more than, say, 5k down, if it's reasonable), I'd be forever grateful. I've bought and sold a few cars to/from dealerships, but always feel like I leave money on the table.

I did see Hornburg has an Internet special on a black 16 R for 899/mo, but if you think I could get them down to 800, I would really appreciate any kind of help.

 

the residual and MF are set by the rate sheet from Chase, and are fixed by model and year. Ask your sales person for a look at the rate sheet to confirm you are getting the prime interest rate.

again, the only thing you are negotiating on is the sale price. Figure out what sale price computes to the lease payment you are comfortable with based on a fixed MF and residual, and tell the dealer to get to that mark. How they get there (corporate incentive, etc) doesn't matter to you.

 

You can negotiate anything, including not going with Chase, who are known to be obnoxious.

 

Hold on there!
Say what?

 

It has been a while since I purchased a car in US, since I no longer live there, but I used to exclusively deal with my bank (USAA) and they were great for terms/rates. Dealers hated it, since they didn't get as much fees/kickback, but all of that translates into $ and can be reflected in the final price. Going with Chase vs. not probably a matter of couple hundred bucks for a dealer.

I also recently read that in some states they are obligated by law to present you alternative financing/lease sources, but only if you explicitly request this.

 

The process of buying a car consists of many steps, each step should be negotiated separately. Many people consider financing inseparable from purchase, and as a result don't negotiate that aspect.

Sales part is what the dealership agrees to sell you car for. It consists of MSRP +/- haggle amount, closing costs (PDI and so on), plus they often attempt to tackle on admin fee and so on. To avoid fee game, you always should negotiate in the final all-included costs. You'd be amazed how quickly window etching and other BS fees go away.

Once you agree on the final sales price and signed on this, this becomes a binding deal. Next round is financing. You could just pay cash and avoid the hassles, but for most people it isn't practical. So they rely on a dealer to provide them with financing. Dealers make money on this by charging fees and getting kickback from lenders. Just like with a car sale, they won't give you the best deal unless you negotiate it. Especially if you have top-notch credit (most F-type buyer would), you can get much better deal than initial offer. You can secure financing on your own and have pre-approved lease/financing in place and then ask them to do better. You can ask them to present you with multiple sources of financing and pick one you like.

If you lease, interest rate is only part of your costs. Residual values make bigger difference to what you pay. When lease expires, the bank owns the car and has to sell it. So they set residuals as a worst-case scenario and often end up splitting the difference with the dealers. This is also negotiable. You can use KBB price to negotiate this up. For example, KBB price for private sale 2014 V8S is $57K. This should be the floor for residual, if they are offering you less that should be factored as a cost of lease. As such, offer with 5% interest but $60K residual is better than 0% interest but $50K residual.

 

SinF,

I have found in the real world it does not work that way. Everything you say is true in theory. But I have been to dealers who will not discount from MSRP, moved up to the Sales manager, then the General manager and they stuck by their guns. So I walked away and they did not care. Everything was not negotiable.
At some point you end up deciding that I am sick of chasing dealers, I just want to find one that will indeed deal. It may not be the best deal, but it is better than MSRP, and you do not want to drag this out indefinitely.
On the subject of residuals, I also have different experiences. The financial institution sets the residuals, even publishes them. When I was looking at a Vette, I could only find 3 institutions that would lease for a new Vette with my specifications. I did not like any of the residuals, there was no one to negotiate with because the dealership finance manager says these are the numbers, take them or leave them. So I left them.
Maybe if you live in a major metro area and have multiple dealers within a reasonable distance you can juggle multiple offers. But, I am forced to use the internet and the telephone.
I found a good dealer that way, thanks to LobsterClaws. The dealer was willing to negotiate on price, which is under his control. But not on the lease terms. The dealer finance manager did not even know how to calculate a monthly payment; he just looks it up once the price is set. I was not smart enough to ask if he had alternative lease financing; I will be next time.
I found over many years, the only leverage you really have is to walk away and you must be willing to live with the consequences if you do.
Larry

 

Too true. It's funny to call around to different dealerships all over the country. I've had a couple say they can't lease to me because I'm not in their territory.

My local place is being pretty stingy (5k down for a '16 S @ 985/mo for 33 mos 7,500 miles per year???), whereas others (usually larger metro areas) are a bit more forgiving.

 

I never intended to imply that this isn't frustrating experience. I strongly dislike dealerships and personally would rather purchase directly from the manufacturer, like Tesla.

Excellent question to ask, "Is any of this worth my time?" For many people it doesn't. It certainly isn't rational behavior if I factor in my own time at billable rate. Still, if I am forced to deal with weasels at the dealership, I will make sure they will enjoy it even less than I do. There are many hills like this, but this is the hill I chose to die on.

My post here describe some of the ways one could chose to stick it to the dealer. If anyone is interested, I would gladly share more of my methods. To give you a benchmark of what is possible, I got $15K off MSRP with my F-type S.

 

FWIW, the initial financing offer I received from Chase (1.9% purchase) was within 20 or so basis points of the lowest alternatives in my state. This only translated to less than $10 difference in monthly payment and I would have to initiate a relationship with a local CU to get it. Wasn't worth the hassle.

Edit, forgot to mention: At the time of purchase there was also a $2500 rebate if financed through Chase, which obviously made it a complete no-brainer at that point.