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Jim, you are correct, but...
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Posted by gatorcpa [Email] (more from gatorcpa) on Mon, 20 Jan 2003 23:23:38 Share Post by Email
In Reply to: Re: Value of GM Supplier Discount w/Incentives (long), Jim F, Mon, 20 Jan 2003 21:18:25
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... in order to make the numbers work on the promotional lease, the dealer has to give back more than the $3,000 incentive. Here is the way I see it:

MSRP $41,100
Discount (5,000)
-------
Sell $36,100
Down Pmt (2,200)
-------
Finance $33,900
=======
Interest 1.58%
Term 48 mos.
Residual $16,438
Payment $ 398.67
========

Plug this into a lease calculator and it is an equasion. Therefore, the way it was explained to me, the extra $2,100 (approx.) they are required to give on this deal reduces the suppler discount as well. That is the part that doesn't make sense.

I'm not trying to be greedy and the dealer is entitled to make a profit on every car they sell. However, if GM is reimbursing them for the difference between MSRP and the supplier price printed on the invoice, I thought it was all supposed to be refunded to the consumer regardless of any additional discount on any promotional price. Maybe this guy is right and GM is docking them the $2,100 on the promotion. I'm just trying to find out the right answer.

Thanks to all for your help. Here is a link to an easy to use lease calculator.

gatorcpa
'00 9-3 convertible



posted by 64.158....

http://alfredo.wustl.edu/mort/lease.cgi

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