Acura financing incentives vs Kelly Blue Book price

Gboyinfinity

We're evaluating an offer for a new 2019 Acura MDX w/ Advance Package. After adding a couple of xtra options, the MSRP is $60,815. As we all know, you often never pay the full MSRP and the dealership usually comes down in price. I use Kelly Blue Book (KBB) to get a Fair Purchase Price and, for this car, the KBB indicated Fair Purchase Price is $53,322. So to get this price, the dealership would have to come down by about $7500.

Now, the dealership presented an offer that was built around a $10,000 'incentive' off of the MSRP price but only if we were to finance the car through Acura. We can pay the loan off after 6 months - so this effectively would mean adding 6 months of interest payments to the cost (that adds up to about $1200). So, if we were to go through the process of financing, this offer represents the dealership coming down by about $8800.

My questions are:

- Should I consider this 'incentive' as the expected reduction in price from the MSRP that the dealership usually offers (as mentioned in paragraph 1 above)?
- Or should I negotiate a price independent of any financing incentives and continue to target a fair market price in my negotiations?

kyfdx

Gboyinfinity said:

We're evaluating an offer for a new 2019 Acura MDX w/ Advance Package. After adding a couple of xtra options, the MSRP is $60,815. As we all know, you often never pay the full MSRP and the dealership usually comes down in price. I use Kelly Blue Book (KBB) to get a Fair Purchase Price and, for this car, the KBB indicated Fair Purchase Price is $53,322. So to get this price, the dealership would have to come down by about $7500.

Now, the dealership presented an offer that was built around a $10,000 'incentive' off of the MSRP price but only if we were to finance the car through Acura. We can pay the loan off after 6 months - so this effectively would mean adding 6 months of interest payments to the cost (that adds up to about $1200). So, if we were to go through the process of financing, this offer represents the dealership coming down by about $8800.

My questions are:

- Should I consider this 'incentive' as the expected reduction in price from the MSRP that the dealership usually offers (as mentioned in paragraph 1 above)?
- Or should I negotiate a price independent of any financing incentives and continue to target a fair market price in my negotiations?

If you finance, the dealer gets $4000 more than they would, otherwise.

So, you'd be crazy not to finance.
And, you can payoff in 90 days, I'm sure.