When Should I Walk Out When Negotiating a Deal?
Here’s an interesting experience shared by Leasehackr reader @watermelonporcupine who was trying to negotiate a lease on a 2022 BMW 3-series in Florida but ultimately decided to walk out:
I was checking BMW 330i. I did the test drive and wanted to discuss the price.
With annual milage of 10k/36 months / 0 down payment
Selling Price : $46,570
Fees/ Taxes : $2,352
AddOn : $815
Capcost : $49,824.64
Residual Vaue : 58%
Money Factor .00163resulting $842.52 per month
I asked him if there is ANY discount can be made. Dealer said since the market is favorable to the sellers, they are not going to make any discount on the price of the car or the money factor.
Before I went into the dealership, I researched and on my area, MF was around .00123. So I asked him if there is any way that they can match that. He said no.
At this point, I felt like there was no point continuing the conversation, so I just thanked for his time and walked out.What do you guys think? was it a reasonable offer?
I didn’t feel like it was reasonable that even in current market that he didn’t even leave a room for negotiation.
Florida dealers are notorious for charging high fees and markups, but even this—a monthly payment of $842 on a lightly-optioned BMW 3-series—seems absurd. The reader made the right decision to walk out. Here are some further lease negotiation tips shared by the Leasehackr community in that conversation:
Don’t walk into the dealership without having agreed to the numbers beforehand. Once you walk in, you’re on their turf.
Connect with a broker who may offer a more competitive price and more convenience.
Plan ahead and pre-order a car. Right now, dealers are less likely to discount existing inventory; they would rather make more money from someone who needs a car immediately.
Know your numbers. Research residuals, rates, and incentives, and then create a target deal to shoot for using Leasehackr Calculator.
Be open to different makes and models that may lease better, given the craziness of the current global car shortage. Aside from leasing, you may also want to consider buying a car that historically holds its value well, at least until the market improves.