You've submitted your new or used car counteroffer
and the sales manager has prepared
a list of options from the desk.
Basically, they've called you out.
Now, it's time to show your hand, just like in a poker game.
Now, if you aren't familiar with poker,
it's a card game with a series of hands
where players will either keep betting to stay in the game
or they will quit called folding.
Ultimately though, once all cards are dealt,
if there are two or more people still playing,
then they will have to show their cards
to see who has the highest hand.
It's at this point in the negotiation
then that we make our true intentions known.
We'll write what we want to accomplish
on our initial offer sheet and sign it.
If you wanna buy the car and finance it,
you'll write what you're willing to pay for it.
In the case of this F-150,
I'll write the invoice price of $40,237 for the price
minus current rebates of $1,755 for a total of $38,482.
I know that my pilot is worth $11,00 on trade,
so that's the number I'll write there.
My objective is to put $0 cash down payment
as my pilot money will serve as that down payment.
Now, you can pull up any auto loan calculator
or use the one on this site in the finance section.
Don't forget that we're going to add 10%
to the purchase price to cover taxes and fees.
We're also going to use the current prime rate
to get close to our payment target.
Now, trying to achieve the prime rate is an aggressive play,
but a manufacturer's lender may be able to get close.
Now, after everything's set, it looks like my payment target
is a little over $500 a month at 72 months.
We're putting down 26% in this scenario,
so even credit scores in the low $600s
should tier well enough to land a decent interest rate.
Putting it all together,
I'm gonna write $500 in the payment section
and sign that if they honor these terms I will buy today.
This offer is aggressive though
and I'm well aware of that.
However, the dealer will still
make some money if they accept it.
Remember, that up to this point,
we've been doing our best
to keep the sales team off balance,
but by laying out our intentions for them like we just have.
Now, they understand that you know what you're doing
and so they should be less likely to play any games,
not to say they won't try though.
After all, when you're a hammer,
everything starts to look like a nail.
In this scenario, If you're going to pay cash
or if you're already approved for outside lending,
then just tell them.
Offer the same price and ask for the same on trade.
Write the number for the difference
on the down payment section and scratch out the payments.
Sign it and send it and send it to the tower.
Things get a little bit different on a lease,
but since a little over 30% of all new car sales are leases,
it's important to know the strategy here as well.
Remember, when I had you get the invoice
and base your initial counter on that invoice price
to get options for financing,
that was to setup a counter where you
can get the lease below sticker price.
The tower already accepted an offer for you at invoice price
so they can't go back on that now without losing face.
The important distinction here though are rebates.
You will lose out on purchase rebates when you lease.
In fact, on this particular truck
at the time of filming there were zero lease incentives,
only cash back on a purchase.
Many manufacturers do have lease incentives,
so we're going to pretend that this one does as well.
In this case, we're gonna say that
Ford is offering a $500,000 rebate.
So this is how our counter looks on a lease.
The purchase price went up because we lost some rebates,
but we did manage to take $500 off of the invoice price.
Just getting that couple grand dip
from MSRP will end up saving us
around sixty bucks a month in this scenario.
This is a far better outcome
than if we'd gone in hot from the start saying
that we were looking to lease a truck.
It's unlikely that the dealer would
budge from sticker in that scenario
because the payments look so attractive anyway,
especially for people who have only ever purchased before.
We're sending it in without payments filled out
because frankly, the formulas are too complicated
to figure out for most people
because they lack all of the information
such as the money factor and residual value.
As long as they honor the price in a lease,
it's called the capitalized cost.
The payment is what it is based on the money factor is.
Just make sure to tell the dealer that you will only lease
from the manufacturer's finance company,
so that you can have the best potential
for the lowest money factor.
Those captive finance companies encourage sales
by reducing monthly payments due to offering low rates.
