Leasing a 2010 Toyota Prius, and saving $2500 off of MSRP.
Northside's the only Toyota dealer within 300km... so, yeah. I also considered a Ford Fusion Hybrid, but the residual was terrible 24% after 48 mos, and the lease rate was 12%. The Prius, by comparison, was 49% after 36 mos, and 3.9% lease rate.
I wrote up an offer letter and handed it to my salesman before taking off on a 6 hour test drive. The letter specified the car I wanted, what the wholesale price was, what my offer price was, and what the dealer profit would be.
The car I wanted was a 2010 Prius, Premium package, with leather seats, in silver.
I also described my trade-in, a 2007 FJ Cruiser with 100Kkms, and set my price really high so I had some wiggle room. Canadian blackbook was $16-$19K. I said I wanted $21K, and would settle for $20K. I also said what the dealer stood to profit off that, if they priced it at $25K.
After returning from the test drive, we sat down to negotiate. These were the results:
- Northside accepted my offer on the Prius.
- MSRP was $33,455. I got it at dealer cost... $31,320. Savings $2135.
- So, no profit for the dealer on the new sale.
- They gave me $20,000 for the FJ, $3000 over what they''d likely have offered.
- So all the profit the dealer could make is on reselling the FJ (I figured $3K)
- After paying off what I owed on the FJ, we used the $6K difference as a downpayment, resulting in a 36mo lease payment of $415/mo.
As if that wasn't enough, they didn't have a silver Prius in stock with leather, so Northside had a local upholstery company re-do the interior in dark charcoal leather
I would highly recommend using this approach for buying a car. By writing an offer letter, YOU set the starting point for price negotiations, rather than letting the dealer start off at MSRP. And as long as you list out in detail what the dealer profit is between the new sale and the trade-in, you can likely score a killer deal, like getting your new car at cost.
Jake from Sault Ste. Marie, ON
reported on Monday, May 03, 2010