They shouldn’t even be included in the 1% rule when you compare leases. Especially ones with high mileage.
Bump for eternal question
1% all in is tough to achieve. I know a lot of people have done it but dam…its tough.
Was looking at a $75,000 car, $6,500 dealer contribution, $8,000 lease rebate…still couldn’t do it all in.
Probably because the residual is too low / money factor is too high?
You can’t expect to be able to hack the deal on any model. It’s more about finding just the right one, and picking the right time.
I agree, cant expect it on every car. In this instance it was a poor 46% MF
Need the ‘quadfecta’ for 1%. dealer contribution, mfr rebate, MF and RV!!
Lol. My Avalons sticker was 38k.
You must know nothing about leasing. You should NEVER pay more than 1% per month (including down payment) of the msrp… So 38k would be 380 per month.
That’s a rule of thumb, not a concrete rule to follow. It’s different for certain cars-I would think it’d always be pretty hard to get 1% on a loaded car. Most of the deals that are 1% are on base or base-ish models.
So yes, good rule of thumb but that doesn’t mean anything over 1% is necessarily a bad deal.
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The only “rule” is that you should never pay more than you can afford on day 1 and on the last day of your lease.
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This 1% thing needs to die a fiery death. Lease hacking isn’t about an arbitrary rule of thumb, it’s about getting the best deal possible on WHAT YOU WANT by understanding all of the factors that go into a lease even if you can get what others think is a ‘better’ car for the same monthly. OP did fine.
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You certainly can’t go wrong using the 1% rule, I think people that don’t like it are paying more than 1% on their current lease…
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And people who pay more than 1% do not necessarily go wrong.
In my view, the 1% rule is more about deciding if you should lease or buy a particular vehicle. If you are set on a certain vehicle, it is only being prudent to price it both ways. It will also depend how certain you are you want to either get rid of it or keep it after 2-3 years.
If you are only shopping for the best lease value or lowest possible cost, then staying under 1% is much more important.
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A true hackr is always chasing the best lease, they won’t settle for a so so or mediocre deal. And buying? Hackr’s don’t even speak of such things…lol
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So far I’ve leased at .74 and .76 on 15k/24mnth leases so effectively at .6 if we converted the deal to 10k miles for a more familiar analysis since 10k is more standard.
Wow. What did you lease at this rate?
I think it is a good reference. I like the fact that it’s somewhat aggressive compared to nationwide advertised deals by manufacturers, even without taxes and fees.
My 3 leases in the last 12+ months have been at 0.53 (S90 at 10k), 0.68 (qx60 at 12k) and 0.68 (Tundra at 12k), taxes (3%) included in each one. Chasing the next best one is an addiction. I’m set for awhile so not actively looking, but when it’s time, the idea of paying 1% would make me feel like I’m overpaying (even if I’m not).
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what exactly does "retail price mean? the msrp? the dealership’s offer? the negotiated selling price? also, does the test factor the pretax monthly or the monthly with tax?
Forget about 1%. It’s not a useful metric.
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The 1% test is too general to be of any great use. Too many factors to consider that can’t be captured with a single metric.