Ask a Leasing Industry Insider Anything

Yep, re; MRM - however, I know that bit is lost on the masses.

This is a great thread to learn from. I too am trying to plan ahead for a lease. Want something with a good payment plus possible value at trade in. Will likely consider a broker on here to assist when the time is right.

Shouldn’t the general mass public be using car brokers considering that everyone thinks they know but don’t really know all the ins and outs. No one wants to leave money on the table and they pay for themselves.

@doomtoall81 What makes you think car brokers know all the ins and outs? Plus, some brokers are just a middle man and get a cut of the action. I’m sure there are plenty on here who know more than brokers and can get better deals than brokers.

You are correct. Can’t just use anyone. I should say the guys on here who really know what they are doing.

You mentioned the benchmark to use is the monthly payment divided by the net transaction price. What do you mean by net transaction price?

Do RV tend to decrease towards the end of the year?

Thank you for being such an amazing person and taking time out of your life to provide us with a wealth of information.


Have to be careful - brokering is rarely a race to the bottom.

I try and tell everyone this on before taking them on - there is no special sauce for us… we don’t have extra money in play.

It’s all about working the variables for a client and making things fit.


Daily supply should’ve said “Days Supply” and it is a sales momentum metric that is the number of days it would take to sell the entire national dealer inventory at the current sales pace. Honda and Toyota are usually in the 30-50 rage so if one of their models goes above that, the incentives usually will be increasing. Domestics will have much higher days supply with anything below 80 as normal for them.

Payment/transaction price ratio is the monthly payment divided by price that the customer is actually paying (before any trade in or down payment). So the agreed upon selling price that you negotiate with the dealer, minus any additional incentives/rebates.

Lease-pen is the % of total sales that are leases. Right now the industry is in the 28-32% range and it has been increasing for the last several years. It is lower for mainstream vehicles and much higher for luxury, as you’d expect. Certain models are higher than others within the same segment and this indicates the OEM/Captive strategy to move the volume.

As for the Grand Cherokee Limited, I’d recommend looking at the 17s once the 18s are launched but keep checking as the IDL money changes monthly.

What payment/transaction ratio makes a good lease deal (is there a general benchmark, or more of a personal one)?

Below 1% on that scale would be a really good deal. I don’t have enough data to create a true curve.

So would you say the “1% rule” should be based off the selling price less rebates/incentives instead of msrp?

Without seeing a bunch of different deals with these numbers calculated, I wouldn’t be able to determine what any rule should be. It might be 1.1% or 1.3%. If you were to analyze all lease deals on a model for 36/12k, I would try to find the % that lines up with the ~25th percentile. Meaning if you get a monthly payment below some % then it is better than 75% of all the same leases.

Similar to the old TrueCar pricing curves to determine where on the curve your agreed upon price falls relative to all the other deals.

Can you share how folks can find a particular dealers " days supply dats?" Thanks in advanced.

Data that is (20) (20)

Manufacturers set the incentives, so they would look at the “days supply” of a model in the US or a region, not dealerships.

You can look on to see the inventory across the US, then look for how many units of that model sold last month to calculate/estimate.

Thanks Jon. Maybe I’m missing or overlooking this but on I can’t find an option to search for units sold in this way. When I searched for availability of the model of my interest and selected all miles from my zip code, it gives me a total of these models for sale, but I don’t see how I can determine how old the inventory is. Also I don’t see how to search for the number of units sold. Maybe I’m missing something. Can you point me in the specific direction on the site? Thanks again.

I am a bit confused with the way sales tax works on leasing between states. I am in NV and when I get a lease quote from CA dealers they only add a monthly tax amount $40+ on to the monthly payment and I don’t see a large extra tax added to the cost of the car. They tell me I only will pay the tax monthly and when I register it in NV I will just have to pay the registration/plate fee as the tax is already included in the payment.

However when I get a NV lease quote they add a large tax amount to the car and it still seems to add a similar amount per month, almost like I am being double taxed.

Why in CA do they only add the monthly tax amount and the NV quotes are showing the full sales tax amount in the quote?

I had always thought on a lease the sales tax is only on the monthly. Am I missing something and going to have to pay some huge tax bill in addition to the registration ? The dealer assures me they are including the tax on the monthly and I will only have to pay reg/plate fees back in NV

@RVguy… The Hackrs need to make sure this stream stays on the top of the list. This is information is game changing for those on the forum.

Thank you!!

The 2 steps I mentioned were independent. To find the number of cars a model sold a month, you need to search on the manufacturers site if they release that info or just search for reports. Here is an example for the Alfa Romeo Giulia (


There are a lot of different ways states tax leasing and I am not familiar with all of them.