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Incentives independent of sale price in lease?
Dealer is offering me GLC350e 36/12 RWD with MSRP $55,845 for $43,145.
He said he only applied the $4460 lease cash. I told him to apply the $2000 incentive and the ABA Executive Allowance bonus of $2500 incentive and $1000 down payment to bring capitalized cost reduction to $9960. Told him to rerun the numbers with the $9960.
He replied saying that it doesn't work like that because he gave so much off of the MSRP.
Is this correct? Or can he still apply the $2000 incentive and/or the ABA $2500 on top of this? (he didn't know I was an ABA attorney when he offered the deal)
Thanks in advance!
Best Answer

kyfdx Posts: 145,453
Thanks for the link. I don't know for sure, but I'll guess that the dealer loses the $2000 incentive from MB, if they use that $2500 incentive. That would be typical for most Fleet plans. They tend to not be worth as much as they seem.JohnRoss2019 said:I think I understand it...so with the ABA, their total discount would be $13,200, but after the incentives their effective discount is still $6240.
My next question is, when calculating the payments, what do I put for capitalized cost reduction other than down payment? do any of the above discounts/incentives get added to capitalized cost reduction?
Also I attached a screen shot of the ABA incentive it helps.
Sorry first time trying to get this right
Thank you
https://imgur.com/a/q9wyS82
Let's continue this conversation in the other thread.Did you get a good deal? Be sure to come back and share!
Edmunds Moderator5
Answers
I don't have any info on your ABA incentive.
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
"It doesn’t work like that. Did you look how much discount I have given you ? according to your number payment will go up. I have given you 12700 total off from msrp.
According to yours it is only 9960. So payment will go up 30 dollars every 1k difference. Means with 2k down 81 dollars more on payment. So I have given you better deal"
Can't he still keep the lease price and apply the $2000 incentive towards the down payment? The ABA incentive states that a $2500 "fleet executive allowance bonus incentive be applied toward the purchase/lease..."
I have the document from the ABA but can't attach here.
Technically dealer can still apply at least one of these contrarcy to what he stated above, correct?
I don't have any info on your ABA incentive.
Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!
MODERATOR
2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4
He can still apply the $2000 lease incentive right? It doesn't matter how low the selling price of the car is, right?
ABA incentive isn't a "real" incentive. It's more of an advertising vehicle. "Hey, we'll give you $2500 off!". And, they've already given you more than that.
The $2000 Mercedestodealer incentive is included in any offer, because that is the dealer's incentive, and by definition has already been factored into their offer.
$12700 off minus $4460 customer incentive = $8240 discount. Since we know they have $2000 from Mercedes, that makes their effective discount $6240. Another assumption: If the ABA incentive is real, and it comes from MB, then it's possible that by taking that, the dealer loses the first $2000.
In that case, your ABA advantage is just $500.
Those are all just guesses.
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
My next question is, when calculating the payments, what do I put for capitalized cost reduction other than down payment? do any of the above discounts/incentives get added to capitalized cost reduction?
Also I attached a screen shot of the ABA incentive it helps.
Sorry first time trying to get this right
Thank you
https://imgur.com/a/q9wyS82