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Incentives independent of sale price in lease?

JohnRoss2019JohnRoss2019 92606Posts: 15
edited July 11 in Mercedes-Benz
I'm in zip code 92807.

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 re-run 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

Answers

  • kyfdxkyfdx Everywhere, USAPosts: 123,050

    I'm in zip code 92807.

    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 re-run 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!

    The $2000 incentive is Mercedes-to-dealer.

    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

  • JohnRoss2019JohnRoss2019 92606Posts: 15
    kyfdx said:

    I'm in zip code 92807.

    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 re-run 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!

    The $2000 incentive is Mercedes-to-dealer.

    I don't have any info on your ABA incentive.
    My question is to the dealer's statement:

    "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?

  • MichaellMichaell ColoradoPosts: 114,613

    kyfdx said:

    I'm in zip code 92807.

    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 re-run 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!

    The $2000 incentive is Mercedes-to-dealer.

    I don't have any info on your ABA incentive.
    My question is to the dealer's statement:

    "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'll repeat what was stated earlier:

    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

    2016 VW Jetta 1.4T SE / 2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • JohnRoss2019JohnRoss2019 92606Posts: 15
    I guess I don't know how to word my question properly lol ...ignoring the ABA incentive; From reading in the forums, there is a $4460 lease cash and a $2000 lease incentive.

    He can still apply the $2000 lease incentive right? It doesn't matter how low the selling price of the car is, right?
  • kyfdxkyfdx Everywhere, USAPosts: 123,050

    I guess I don't know how to word my question properly lol ...ignoring the ABA incentive; From reading in the forums, there is a $4460 lease cash and a $2000 lease incentive.

    He can still apply the $2000 lease incentive right? It doesn't matter how low the selling price of the car is, right?

    Supposition:

    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 Mercedes-to-dealer 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

  • JohnRoss2019JohnRoss2019 92606Posts: 15
    edited July 11
    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
  • JohnRoss2019JohnRoss2019 92606Posts: 15
    kyfdx 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

    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.

    Let's continue this conversation in the other thread.
    ok thanks
This discussion has been closed.