The problem is that it doesn’t even tell you that. There are plenty of cars that 1% is taking you to the cleaners and plenty of cars that 1% isn’t even attainable. Not to mention that it varies so much with ones specific situation, that it isn’t even consistent on the same car.
If we’re going to go down the path of rules that are so incredibly useless, they’re only used by those that want to put absolutely zero effort into trying to get a deal, then let’s just use the “is the lease cheaper per month than if you financed?” rule.
It just seems to me that, pragmatically spaaking, if we averaged things out, a $50,000 car at $500 a month would seem to be what most people would call “in range” for a normal consumer. There are plenty of exceptions for sure, but there probably aren’t too many cars at that MSRP that are going to be $250 a month (outside of LH of course ), and not too many that are going to be 750 a month that are generally considered “worth leasing”.
Yeah but almost every lease I’ve seen outside of LH is above the 1 percent rule. I’ve seen people paying over 2 percent on a Hyundai Santa Fe. Effective 600/m in a 28k car is no joke. I would say the average lease is probably over 1.5%, so for most people a 1 percent lease represent a far lower cost than what they are accustomed to.
Baring singilar body parts where on average there are two…Even though I dislike the one percent rule as well, this is more or less what I was getting at.
Exactly. Once you become informed on how leases work and how to get a good deal, you learn that the 1% rule is garbage.
There’s a bunch of people out there that walk into a dealership on a lease and pay full MSRP because they don’t know any better. That doesn’t mean the “$500 over invoice” rule is any good either.
), and not too many that are going to be 750 a month that are generally considered “worth leasing”.