Regarding the total cost that should be under 50% being close to 35% as the fantastic deal. Its easy to say that but it really depends on location, car brand and model in my experience. Especially here in SoCal. 35% is impossible im telling you. Atleast 45% and that is more realistic. And how can you negotiate a fantastic deal if you are going to lease a Toyota or Lexus??? They will just say take it or leave it at times. People put them in that position because of course they are known for reliability.
So, after looking at your videos, I decided to review my current lease and i recently found out i got charged a “Rent Charge” of $5,000. Was i ripped off? How and where did that come from? I have a 2019 BMW X4
@@gwillis01 i did my math on it after Ari’s video and found out it was the way they compute the interest rate fee. So my money factor was .0016 which i believe is good.
most warranties are 5 years 50,000 miles?? damn that is crap. My powertrain warranty is 10 years 100,000 miles and no that was not the extended warranty. That is Hyundai's normal warranty
I have a Hyundai . biggest piece of crap I've ever owned . I've owned pos before but Hyundai is the worst . Wait until the motor blows up and they tell you t.s. . and t.s. doesn't mean turkey sandwich .
Can anyone confirm if I got a fair deal here? 2022 Sonata SEL Convenience Package - MSRP WAS 26K BUT DUE TO THE SHORTAGE IT WAS BUFFED TO 30K MSRP. I PUT 1K DOWNPAYMENT (INCLUDES FIRST MONTH OF $350 AND DMV FEES) 10/36 - $350 MONTHLY PAYMENTS. (I WAS GOING TO GET AN ACCORD SPORT BUT THEY WERE CHARGING ME $440 WITH 2K DOWN, ITS INSANE AS THEIR INTERIOR SUCKS COMPARED TO THE SONATA)
Hey great video My 2020 hyundai sonata is worth about 6 grand over residual according to KBB etal Lease ends in Aug 2023with taxes and tags dealer fees about 2 grand i was thinking about putting down about 2 k extra is that a terrible deal given the cuurent situation with few vehicles on lots
Hello Ari,you stated in one of your videos let thedealer buy your leased car,why would I do that when my car will have no equity,isn’t it better just to return it?.
it's VERY rare that you can get a 35% lease with all the fees and taxes...most residual value is 50% - 60% for a lease, and that's without the fees and taxes
@@JohnLee-dm8jf exactly, and this might go on for quite some time because of the chip shortage and dealerships knowing ppl are willing to pay the money. We used to get deals 5%-10% below MSRP...now mark ups are INSANE... And still people are willing to pay for it...
@@michaelc4866 it’s not even that people know they’re over paying…..most people I know who are leasing or buying are just lazy or dumb and don’t even bother doing research
You either put money up front or you pay more per month. Either way your paying. Most important for me is avoid extra add on and interest rate. Plus added dealer adjustment fee !!!!
Hey Ari, love you video. I need your advice on leasing a 2020 Tacoma. I did my homework, used the calculators, and called about 7 dealers. All said that Tacoma production was shutdown for 2 months and they don't have cars on lots and are only selling for MSRP. Am I being jerked around cus I'm a young guy and they want to take advantage? Or are they really not budging from MSRP? The only dealer I found that budged could offer $1,000 below MSRP and that was it. Not your 8.5% discount you teach in your other video.
Yes! Absolutely! If you have negative equity in the vehicle you’re trading out of, and roll it into a lease, you chip away at your negative equity every lease payment… and of course your lease term will be about half the length of your purchase term, so you’ll get rid of your negative equity much quicker. :) the downside to that is every 1k of negative equity in your lease will add 27$ per month to your 36 month lease, whereas if you did a 60/72 month loan your negative equity would increase your payment $15-$20 per month for every 1k of negative equity. Lease is the much better way to get out of negative equity. Or a total loss on the vehicle if you have gap insurance too. But that’s a whole other topic. Haha
goddammit lol I should of watch the video before renewing my lease I got into a lease with 0 money down for 48 months the only problem is the 600+ payment which is pretty much 30k by month 48 I feel I should just get out of the lease next year and buy the car using the bank. The good news is I do love the car and i plan on keeping it for up to 80k if possible what do you think? am I fucked lol
I have noticed these days Acura is giving a great discount in vehicle price lowering Adjusted cap cost but charging money factor 0.00225, making rent charge as high as 5000+ for 36 month lease deal on a 2020 acura MDX with msrp around 46000. Is this a bad deal despite low payment?
0.00225 x 2400 = 5.4% interest basically. Acura has two programs one with more lease cash but a money factor of 0.00225 or less lease cash with a much lower money factor. 3 years ago the money factor was much less but so was the lease cash from Acura, most of my repeat clients are leasing the same package of MDX for about 10$ or so more a month then they did 3 years ago.
I sold cars for 10 years, the National lease special ad’s are not “designed to make a ton of money for the dealership.” They are loser deals for the dealerships. Every dealership I worked at over 10 years, the desk managers hated pencilling those deals and tried to finesse the deal out of the lease special.
Too late I already did😟 I was told I could refinance the car next year to lower the payment. I learned later that I can not refinance the car until the lease is up in three years.
I hear you saying that the total of all the lease payments and all fees should be less than 50 percent of the MSRP and ideally close to 35 percent of the MSRP
Ari I just requested an extension on my toyota tacoma lease and they gave it to me but now I been getting calls from local delear saying they wanna work a deal since supposedly the inventory on the tacomas is low I would like to know what's your advice please. They are looking to see if I'm willing to buy it or getting a newer ride so I want to know what you recommend BTW I'm around Boston.
I got a 2020 Honda Civic LX 4 door sedan for 0 down , 0 walk off , 15k miles every year for 3 years for $257 a month. What are your thoughts? Is it a good deal? He started at $322 but I was able to get him down to $257
@@mjdukes2782 I got that first quote for $322 I told the first dealer $322 is way too much for me so come down to $280 but the dude was like "no,no,no" so I was like aight bet I hit up another honda dealer in the area and told em I got quoted for $280 (not $322) so if you can do better with the same terms and conditions let me know. second dealer said send a pic of the $280 quote and well help you out. Obviously I didnt have that cuz I got quoted for $322 , so I just stopped replying. I message the second dealer a couple of days later saying look, you do better than $280 I'll come sign right now and the first dealer messaged me saying hell come down to $290 and I told him issa deal I'll come tomorrow and sign I got a call the next from the second dealer he was like I can get you for $257 so I was like issa deal I message the first dealer let him know thanks for your business and I appreciate your time but I got a $257 quote so I'm going over there to sign. First was like no no no dont go come here sign here I'll give it to you for $257 so I ended up signing with the first dealer.
Can leasing help your credit? I’ve looking into a lease because I want to buy a house soon but I don’t want to buy a new car because I love my old 5.3 swapped 94 2dr tahoe and my sr20 s13
Did you manage? I am trying for a 2020 Tacoma TRD and I got 6 dealers to laugh when I asked for a discount off MSRP, and 1 dealer gave $1000 discount (3% discount) and that was it.
the short terms are paired with HIGH residuals. this is how they come up with the payment. add lots of cap cost reduction, and they advertise these ridiculous 129 and 189 payments.
Yes that’s a great payment… did you trade in something with equity or is this just a straight lease with no cash down and no equity rolling into the lease?
I have a genuine question. Please don’t think I’m dumb. I’m planning on 10k down payment. Leasing the rest. Which may be around 11-16k. can I get out on say... 36-48 month lease for lower payments. But can I make bigger payments?? Say I get 380 monthly payments. Can I sometimes do like 700-900 a month to pay off faster so I don’t get by interest??? Or is that not allowed
I wouldn't put such a large down payment on a lease. If you total the lease vehicle then they keep all of that. I suppose you could apply stacked MSDs to reduce your payment and receive that money back afterwards, but financially it doesn't make much sense to lock that much up into a multi-year lease when you could get way more ROI by putting it into an index fund and pull it out after the same amount of time (even after capital gains). I think you're confusing leasing with Financing a purchase. Why would you want to make larger payments on a lease? The point of a lease is to minimize the out of pocket as much as possible while maximizing cap cost reduction with reduction in price and money factor. You basically want to pay as little of the depreciation as possible, or at the very least pay no more than the actual depreciation after adding all the fees and payments together.
Hello friend, I used to sell Hondas. Unfortunately (but understandably so from a business perspective), Honda does not allow third-party leases, meaning you can only lease through Honda Financial.
The absolute best content. I’m looking at leasing versus buying my 2022 Defender and I set myself up for failure in my negotiating. After seeing this I will request a completely new offer as they gave me a terrible one compared to this data.
@@brianprather6307 lol well, UPDATE: tell us the deal you got! did they negotiate? It's now 5 months later, and while in the market for a BMW, I'm getting the "we can't budge on anything" lines and a ridiculous MF of 0.00216 with a 54% residual value. The guy told me that any deals I read about are "probably over a month old" and because interest rates keep rising, that's the best they can do, yadda yadda.
Ari, I just leased a 2020 c300, three years, 30k miles. MSRP is a little over $55k. I was able to get almost $6k off the MSRP, I put $5k down, and my lease payment is $515 a month. What do you think? I love the car and I’m happy overall but would love to hear your thoughts.
What ZIP are you in? $515 tax included? Is it 4 door? Edit: for Los Angeles area this month the money factor is .00053, and the residual value is 56% $500 dealer cash
@@mjdukes2782 I am getting $440-$450 per month assuming 6% sales tax as a great deal when I use Leasehackr (these numbers are really hard to get nowadays). Use numbers from your contract to get more precise answer. Usually August is the month they want to get rid of current year inventory, but I haven't heard anything about model year 2021 Mercedes being shipped to dealerships yet. leasehackr.com/calculator
That $5K down is equivalent of $138.89 on top of your $515+$138= $653 month.... never ever include a downpay in your lease agreement . You can check out lease 101 from lease hacker forum . Has some good tips..
Here's the first sign that a car lease is a bad deal. Read the paper work, if anywhere on there, it says "Lease", then it's a bad deal. Simple as that. Pay CASH for all of your car purchases. Paying cash, forces a person to make their finances behave. Paying cash, as that cold hard cash leaves your hand, makes you have proper discernment in your car buying experience. Paying cash, puts the proper value on material items. It forces you to say, "I really don't need that whistle and bell, my money would be better used, by earning that interest in the 401K". Almost all self made millionaires pay cash for their cars. And the cars they drive, have an average of 41,000 miles on them. One of reason they're millionaires, is because cars are way, way down on the totem pole of their list of importance. They don't define themselves by their RIDE! You DON'T get wealthy by having your lifetime and money spent financing new cars every 3-5 years. Whether you're leasing or buying, YOU ARE FINANCING! They should really call it fleecing.