7 Ways Negotiating a Car Lease can be CONFUSING
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- čas přidán 6. 08. 2024
- 7 Ways Negotiating a Car Lease can be CONFUSING and what you can do to better prepare yourself before signing a deal on your next new car lease.
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1. Why two cars can be identical in price but have drastically different lease payments. This has a lot to do with how much the car is depreciating over the course of the lease, in other words what the residual of the car is, AND how much in incentives are being offered by the manufacturer to help sell it. Typically a car that is harder to sell will lease out a lot more attractively because it’s getting some help from the manufacturer in the form of rebates.
2. Selling Price before rebates. How much money is being discounted by the dealer, and how much by the manufacturer. Large chunks come from the manufacturer and that can confuse you because the dealer may try to take credit for the discount and STILL sell the car to you for full price.
3. Taking a verbal estimate on miles per year is not safe. If you agree to 12k miles at $25 more a month, when the difference is $12.50, that just added back $450 in profit back to the dealer.
4. A more expensive car is not THAT much more expensive. Because you’re only paying for a portion of the car, you’d only be paying for the portion of the difference of the more expensive car. If the residual of the car is 50%, that means you are only using 50%, so if the more expensive car is $2,000 more, that would only cost you $1,000 more plus tax/interest.
5. Interest is not called APR. it’s called a Money Factor and it’s typically never disclosed. You might think it’s charged on the portion of the amount your using when in fact, it’s that, PLUS the residual of the car. To know what the APR equivalent is, multiply Money Factor x 2400. It will give you the APR.
6. On that topic, you may have been quoted a payment initially, and it changed as soon as you went to go complete the deal. This is because of your credit score. Just like a high interest rate on a car loan, your credit score will determine how much more interest the bank will add to your lease payment. This is called a Tier Approval, and if your credit is not above 720, expect advertised lease payments to change.
7. Speaking of advertised lease payments. So most of the time when you see $2000 down being advertised, that’s always going to be in addition to all the fees charged by both the bank and the dealer. As a good rule of thumb, every thousand being put down or taken away will make the payment fluctuate $30 dollars. If you are being quoted $4,000 down, and decide to remove it and do $0 down, your new payment would now be about $120 higher because the $4000 is being divided into your 36 payments.
Leasing a car, car dealer lease negotiation, how to lease a car, car lease tips, auto leasing, how to negotiate a car deal, how car leasing works - Auta a dopravní prostředky
I've leased cars several times since I like driving new cars every couple to three years. Saves me from putting down a large payment to keep the monthly payment low. These are great pointers to keep in mind when dealing for a lease. Wish I knew all of these when I began leasing cars years ago. Thanks👍🏾
Some negative comments on leasing here 🤷🏻♀️...personally I love to lease a brand new car every three years, especially since my taste changes so often, it works perfectly for me.
Arlene Marie I agree. Same here!'
You must love burning money.
I never understood why other people get mad at you because they're broke LOL. If you wanna buy an old car go ahead. These are the same people who have 20k in debt
I agree. New car and new tech every few years. 👍🏻👍🏻👍🏻
Great info in a simple presentation. Thanks. It made every step of negotiating a lease so much clearer. I can't believe a dealer actually had the gall to ask for a 0.00875 money factor on me then refused to explain it when I asked him to convert that to APR for me. I walked out and they have been begging me to come back for 2 weeks.
My lease is will be over in a few months. I have a 2017 Nissan Rogue SV for a 3-year lease. I pay $286 a month for 15,000 miles per year. I paid $0 down and zero fees. Before any negotiations start, I make it clear I am not paying anything down or fees. If the dealer declines or wants to add those fees to my monthly payment, I simply walk away.
How much was the car roughly ?
@@juancardenas1871 Sticker price almost - $30,000
@@Hello-rl6lp you got it lowered from sticker price ?
@@juancardenas1871 I didn't care about the sticker price. I was more interested in low monthly payments with everything that I wanted. I had no intention of buying the vehicle at the end of the lease. Of course, if I was thinking of buying the vehicle, then negotiating a lower sticker price would be important. I returned it a few months ago and now leased a 2020.
Great Video Ari. You nail all major points that novice car shoppers get confused about, and the dealers use that to their benefit.
Thank you Vahagn :)))
Right on Ari!!! It's funny how dealerships advertise very low monthly payments and then use ULTA SMALL disclosure letters to let you know that you have to put $3,999 down PLUS taxes to get to that payment. BEWARE everyone!!!
🙌🏻🙌🏻
Extremely useful!
Can you also do a video on car buying negotiation tips & differences vs. leasing?
I plan on getting a tlx a spec or pmc edition if possible by the end of the year. Watching your videos everyday really do help wrap my head around all the business jargon when negotiating a deal. Much love!
I’m so so happy !!! Sending love back brother
Thank you Ari for sharing this lease information!
Thank you for watching Joey!
Once again another awesome video. I keep watching and learning.
Thank you Greg for watching :)
Shootin star spotted over your left shoulder at 1:30 might even be a UFO!!
u should make something for first time buyers examples of if its a good Idea to get a coosigner for a lease or purchase thx.
I’m probably going to end up buying a used 2015 Lexus IS 350, but Ari’s content has allowed me to understand how to buy from dealers. I’ve also really enjoyed reading LeaseHackr forums.
Very valuable resources at your disposal Rolando!!
Any tips for those of us switching from financing to leasing with a car to trade in? How would it work if you are $3-4,000 upside down on your trade in? Btw I’ve been binging your videos to prepare for my switch. Thank you for posting this information!!!
Is this shot in the planet fitness parking lot on the watertown/waltham border ? I recognize this place - they use to have the bill buckner batting cages here
Another great video! Very informative and useful.
Thank you brother
I just looked over a relatives lease contract, and no money factor field, so we asked. The money factor was .00149 or (.00149x2400) 3.56%. The dealer also said that this was the “buy rate.” They really know how to manipulate the money factor, and residual percentage to hit the desired payment.
NJ always hits us with Tire Fee, DMV, Destination, tax, etc
My dealer mentioned that they don't do a lot of leases and that's why they were not able to answer some basic questions about their numbers.Highly doubt it.
Helo Ari, great video! Can you do a video on single-payment leases, what companies (manufacturers and 3rd-party companies) do them, whether a total loss accident would return a prorated amount based on months in service regardless of mileage at accident, and how to get the best credit tier money factor regardless of your actual credit?
Absolutely yes!!!
I’m thinking about leasing a 2019 Honda Ex , this was very helpful!!!
I love that!!! Thank you for sharing :)
Did u end up doing it?
Why does the dealership charge interest on the original MSRP plus the Residual Value? That's 1.5 times the MRSP of the car.
Ari you are pretty much a hero for doing these. You helped me so much and I got $3k off on a new GLI from using your strategies. That was nearly 11% off MSRP and way way below invoice hold back. Thank you for what you do sir! Keep up the awesomeness...
God bless Pezz :) thank you man and congrats 🍾!!!
@@negotiationguides It is a great car for the price. As an old dude, 52, I should know this stuff but honestly I had never been in the market for a new car till recently. Your videos were instrumental in my tactics and knowledge of the process. Thank you again Ari!
Hi Ari useful informations thank you can you give us about 2019 Dodge Durango R/T model lease deals pls thank you
Yes Matt! Just wrote it down for my upcoming vids!
How do you know money factor or residual the dealer gives you is correct from what the leasing company is really offering?
I always skip ads unless I’m watching your channel ;). Can’t thank you enough.
🤤🤤 lol ... thank you Michael!!!
An I enjoy your videos. Can you please make a short video explaining the difference between a lease and a premiere purchase when dealing with Audi?
Yes definitely!!!
@@negotiationguides thank you sir!
What are your thoughts on trading a car towards a lease. I own the car outright lets say and dealer offers me $5k and i throw this right back at the lease?
Can you give me an idea the cost monthly leasing vs purchasing a 2022 tundra SR5 crewmax with 720+ credit rating? And I'm seeing manufacture lease deals at 2.49% at 60 months. I thought lease are usually 3 yrs?
Hey Ari, What are your thoughts on assuming a lease? I found an elderly gentleman who has paid $5000 down as a downpayment for a 2018 Toyota Corolla SE and has a monthly payment of $252 (CAD). He drove 4000km (2450 miles) in his first 14 months and the remainder 34 months have 77000km (47845 Miles) with a buyout option for $9985. Do you think its a good deal? Thanks alot for all the information you provide :)
The shame of the car buisness is that people like me dont like the bullshit that goes with it.It pisses me off that 2 people let's say with the same credit same down payment same everything and one can get screwed and another can get a fair or excellent deal.For me it's easy I have no problem with saying adios and walk,but I know alot of people get wrapped up in the car they want and buy,good or bad ,then cry when they find out how screwed they got.I know this comment isnt so much what this video was about,but just what I was feeling now because I just walked on a car a few days ago.salesman was nuts
You have to be willing to walk out. I'd walk out regardless, never take a deal right away. But do NOT get emotionally attached to a car. It's just a car, there will be more, so bad deal = walk.
@@GoofieNewfie This is why it is so important to understand the process. What Ari is saying is 100% correct. But you don't need to walk away-or not take a deal right away. You can buy from the 1st dealer you go to the 1st time you walk in after their 1st offer if, after having done your homework, you KNOW you're getting a good deal.
@@GoofieNewfie I wouldnt go as far as saying never take a deal right away,because u can have a really good deal on the first deal u walk into,but you should have an idea what u should be paying on a good deal and take it from there.
@@SpeakmanDavid totally agree. Do your homework first. Know what a good deal is. I personally will not walk into a dealer before some talk of money takes places. Then if I feel their good to deal with I'll drive down and see them.
Hi Ari, I don’t understand about the down payment, all the ads 2-3k down. Can they provide 0 down?
WOW!! totally confused now. thanks but too much numbers for me to figure out.
Ari great video. I have a question when contract mgr sells you service plan or damage wavier. Can those fees be residual price or do you have pay the whole amount
Some companies allow you like MB and Audi, but not BMW and Lexus... mostly the service plan and not anything else though...
Nice vid. I loved you in "Mr. Deeds".
Great info Ari! Can you buy your BAC shirts, they are awesome!!!
Very very soon Eric but I’m not sure exactly if I can sell this one yet. The Ferrari looking vehicle may be copyrighted.
@@negotiationguides no problem ari, if you ever make any, I would be the 1st to buy and support you!!! Congrats again on 10k...in your way to 100k.
i am leasing a 2020 Lexus GX, MSGP 58K, dealer price 53+K. They initially calculated and gave me $864/mo with $0 down for a 36 mo lease. I haggled their ass off and finally gave me $710/mo included tax and everything. Not sure if this is still a good or reasonable deal but i think this is the lowest i could go.
by the way, what camera did you use for this video?
Haha nitrogen filled tires .... anytime a dealer takes the time to point out I’m getting nitrogen filled into the tires I roll my eyes.
They rarely disclose the money factor on lease contract.
It's clear Ari, that you know all about leasing and the pitfalls however, trying to take all that in in just under 8 minutes as fast as you were speaking is impossible. I would have to watch this video like over 10 times to actually use the advice. Please consider making 7 videos with each one of the topics of what you spoke about and show visuals...like the paperwork. The best thing one can do is do an entire video with 2 people playing the parts, then stopping their action at each step to explain what the heck the dealer is trying to do to the customer. Yeah, I know...not going to happen but just thought maybe....Great advice though....I'll watch it a few times over. Thanks for making this.
Hi Ari. What monthly payment should I be paying for a 2019 Golf R ?
$1/month for 1500 years
Wifes trying to lease a 2019 mazda 3 preferred. Like 26k at 10k miles per year and like a 1,000$ down. Was told they could 342$ a month. Not feeling that price?
In 2017 i leased a mazda 2017 with 2500 down. 10,000 miles per year. And my payment with taxes and everything was $154.18
I wish ari was in California to help me lease a car
What are your thoughts of the leasehkr calculator
I’ll make a video :)
Can you go car shopping with me lol
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Don't watch this high. You'll remember nothing.
Never lease a vehicle unless you own a business
My tip to negotiating a car lease: say no and go buy a car. Leases are a terrible idea unless you are wealthy.
Only reason common people lease is they're flat azz broke and don't have money for down payment and can't afford monthly payments to own car outright. Much more expensive to own and phonies like to lease