Quote:
Originally Posted by TunTac
Based on a recent lease promotion (non-Toyota model) advertisement I saw, the fine print stated, amongst many other details and restrictions, that there was $1000 lease cash and that the dealer may contribute up to $1430 towards the lease.
My question:
If this were a vehicle that (say) you could negotiate down to $500 over invoice, does the dealer contribution of $1430 listed in the ad mean that the dealer is being subsidized by the manufacturer and thus they could cap the cost essentially below invoice (~$500 below) before any customer cap reduction is made?
Then, the $1000 lease cash I'm assuming would just go towards a cap cost reduction?
Am I making sense?
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"Dealer contribution" means the amount the dealer must discount the vehicle in order to arrive at that payment. The lease payments you see on TV are examples. Dealers are not required to give you that payment. Manufacturers can't tell dealers how much they can or must sell cars for. Its a suggested "contribution" or discount off MSRP. In the example you have, you can choose to negotiate a larger discount or you might find that $1430 is already below your target of $500 over invoice. It depends on the vehicle.