Quote:
Originally Posted by Maitre_Absolut
You are trying to simplify this to a base case of offer and demand determining prices. When you get into above MSRP territory (MF surcharge is 8k vs 2k discount) its ok that the OP is not satisfied. Other than Porsche GT cars, its not common to be asking above MSRP (and hiding it through finance terms).
If you are saying that people lease because they cant afford the car then yes, paying up front would be a problem. But lets assume someone can afford and has access to cheap cash. Borrowing at 3% vs charging 6% or whatever MF they are charging is another option
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Facts are he tried to negotiate a 2% price discount and wanted a lower MF than they offered. They didn't come to an agreement and he left. It's ok that he isn't satisfied. It often happens with everything people consider buying.
I don't understand this statement "You are trying to simplify this to a base case of offer and demand determining prices." "Supply and demand" and in this case the seller (supply) and buyer (demand) don't match, eventually, one way or the other the seller will find a buyer. In the big picture this is how selling/lease prices are determined.
I never said people lease because they can't afford anything but it's highly unlikely he would consider paying the lease in full, up front. I said this because almost no one does it.