General rules/guideline of leasing a car?

All the info you need is in the front page pst for this month. From Quinox to Highlander to Maserati to Q50 to Charger to 3 series. If you can’t find a vehicle that meets your needs at these terrific prices, then please help your self to some more Grey Poupon.

thank you for the info ! i have already looked into those listing and couldn’t find anything interesting =P

Using the 1%, pre-tax and fees rule of thumb, here are the scores for my lease deals I’ve completed in the last 12 months (all $0 down leases).

2016 Cruze Limited:
MSRP: $21,620
Pre-tax/fee monthly lease payment: $11
Monthly payment as % of MSRP: 0.05% (I didn’t even factor in the $700 Costco card and $300 in e-giftcards I got! Factoring those, my monthly lease payment ends up being…-$30. Lol)

2016 Cruze Limited #2:
MSRP: $21,620
Pre-tax/fee monthly payment: $50
% of MSRP: 0.23%

2016 Spark EV:
MSRP: $27,135
Pre-tax/fee monthly payment: $93
% of MSRP: 0.34%

2017 Volt LT:
MSRP: 35,095
Pre-tax/fee monthly payment: $170 (not counting $2,300 MD EV rebate)
% of MSRP: 0.48% (I guess my worst lease deal of the bunch!)

2016 Spark EV #2:
MSRP: $27,135
Pre-tax/fee monthly: $69
% of MSRP: 0.25%

I have to add I got a free $500 Bosch charging station with each Spark EV lease, so factoring that in, that’s another $14 bucks or so off the effective monthly.

I think I’ve made out OK the past year. :slight_smile:

Losers! Should have waited for 2017 Alfa Romeo Giulia Quadrifoglio for grocery store trips :slight_smile:

I know, right! Some people are just too impulsive and jump at a second rate italian sports car under 500 whereas with some patience they could be driving a Ferrari-Engine powered Alfa Romeo to pick up their milk and bread. Arrivederci e Buon Viaggio Signore e Signori.

Great review, BTW:
http://www.wsj.com/articles/2017-alfa-romeo-giulia-review-an-awesome-reboot-1478189997

But then I drove the Giulia, and it absolutely shut my mouth. Far from irrelevant, the Giulia Quadrifoglio turns out to be instantly indispensable, a must-drive: certainly the lightest- and liveliest-handling, the most poised, pointable and neutral sport-sedan I’ve ever laid hands to. I love the steering wheel so much I’m thinking of having my palms upholstered in faux suede.

Here’s a quick sketch: midsize, five seats, majority-steel structure, powered by a twin-turbo 2.9-liter V6 (505 hp, 443 lb-ft between 2,000-4,800 rpm); eight-speed automatic (no manual transmission); and rear-wheel drive with fully articulated torque vectoring. The Quadrifoglio has a curb weight of 3,800 pounds, with 50/50 weight distribution, front/rear. On the strength of its class-leading weight-to-power ratio (7.5 pounds per hp) the Quadrifoglio snarls to 60 mph in 3.8 seconds, and boasts a reported top speed of 191 mph.

I wonder why @max_g is so worked up about the “rule of thumb” < 1% MSRP?

I am the one with the 2 Maseratis at $488 each ($72,850 MSRP) and also the first post after the OP that got @max_g all worked up :slight_smile:

I think “monthly should be < 1% MSRP” rule of thumb is a great way to figure out if you are in the ballpark and for the non-math inclined, will still be able to say “near” or “far”. If you aim for 0.5% or 0.8%, you will never get there because those are the impossible once-in-a-lifetime deals.

For the Maseratis, I wasn’t even looking for a Maserati, certainly was not going to lease (I was/am looking to buy a used 2012+ 911 S Cab), it was just too good to pass up. I didn’t have time to do that math and/or post and wait for answers in this forum. They sold ~30 cars in 2 days (one guy got 3). When I got to the dealer, they had about 10 cars left (2nd day of the promo) and they sold out in 3 hours (got there at 10 am, sold out by 1 pm). So knowing that monthly is < 1% MSRP would’ve been a good thing to know at that time (I didn’t)

Here are some details of one of the deal (the other one is $1/mo off) – I haven’t even done any of the math yet because I am super happy with the deal … knowing that my monthly is way below 1% MSRP even if it is not really $488

Sticker
http://sharebucketapp.com/ZTk3NzM2MzA5NWJkYQ

Drive Off
http://sharebucketapp.com/GI5MTdhMDY1ZTdlMTA5M

Lease Payment
http://sharebucketapp.com/kMmRjYmFmOWRhMDJjYWY

@ursus @vhooloo there are a lot of complaints about the buttons being from Jeep/Chrysler/Fiat and definitely not a Porsche … but I am pretty happy with it :wink:

@bro1999 - I’m pretty interested in that Volt deal - can you share some more info on that? Seems really solid. I’m located in SoCal - any chance that’s where you negotiated? Thanks for any tips, this is my first go at a lease.

Well, the figures I posted were with tax and all fees except the acquisition fee removed, to do the 1% comparison. After adding those back in, my lease deal was actually $239/month for the Volt.

I’m in MD, so unfortunately my MD contact probably won’t help you.

Thanks for the info. Here’s another rule to get max_g all worked up.
With LOW MF, the depreciation is spread evenly over a lease term. For instance, if your residual is 60% for 36 months, you pay depreciation of 40%/36. That’s if sales price/Cap Cost is MSRP.

So to get to 1% rule for 36 months, you need to get at least the formula such that your depreciation charge is 36% or lower of the value of the car, in other words, the sales price needs to be greater than 6% discount. So obviously you need a car with great sales price and great residual.

monthly charge as % payment of MSRP = (sales price as % of MSRP) - residual % / number of months

Of course there are other drive off fees to take into account, so the above is rough rule.

It’s not really a question of being worked up, I just don’t like to see people getting ripped off. You yourself would be a prime example: if you had gone into a Maserati dealer thinking a payment below 1% ($730) constituted a good deal, you would have been ripped off.

To say that Leasehackr’s front page deals are “once in a lifetime” is, IMO, a distortion just to make a point. Many of us remember last December’s deals. Those of us who have been “lease hacking” way before LH existed, for example doing the Mercedes E-class deal in 2012, know that such deals have existed before.

If anything, things have gotten better since last December, the breadth of vehicles on offer is much better. Last year it was a Chevy Cruze, this year we have compact sedans, midsize sedans, luxury sedans, 2-row SUVs, 3-row SUVs, Exotics, Electrics, etc.

We live in a perfect storm of high residuals (low depreciation) and low interest rates (low MF), in another time & place the converse will be true. Either way, 1% is irrelevant. It’s all about what the market will bear (assuming consumers arm themselves with the right information, otherwise they are screwed).

It’s all relative I guess. Take the Cruze Limited leases of last year. People’s $0 down monthly payments before taxes were well below 1% of MSRP. Hell, the payment on my 1st Cruze lease was under one tenth of 1%, or 0.05% to be precise. Someone that signed a deal with a monthly payment 0.5% of MSRP could be considerd “bad”, even though that monthly payment would still have been $108/month (super cheap for a $21k car).

To truly gauge if a lease deal is “good”, you need to know what the same vehicle has been leasing for in recent times. The 1% rule is a decent starting point (like if you are paying over 1% of MSRP each month, it is likely NOT a good deal), but you need to dig deeper to truly determine if a lease is good or not.

Even the definition of a “good” lease deal is subjective. If someone is looking to lease a compact car for under $200/month, and they end up leasing one for $150/month, they would consider that deal good, no? But then if lease deals that month for that vehicle were on average $125/month, is it still a good deal?

The subjective theory of value is a theory of value which advances the idea that the value of a good is not determined by any inherent property of the good, nor by the amount of labor necessary to produce the good, but instead value is determined by the importance an acting individual places on a good for the achievement of his desired ends.

Let us take an example. Organic peanut butter MSRP is 6 dollars. Whole foods has it on sale at $5. Is it a good deal? What if I told you 10 miles further, the discount grocer sells it at $4? What if you could order from Amazon but with 2 day delivery for $3.50. Furthermore, what if regular non organic peanut butter that tastes the same is at $2.50 regular and $1.75 on sale?

So is regular peanut butter on sale at 1.75 a great deal compared with $6 list price? It depends. And it depends on 2 factors: a) Time value of the purchaser and subjective taste.

If the purchaser can afford to drive further and watch.wait for peanut butter sales, then he can make the better deal. If the purchaser is indifferent to the brand and can wait for sale, then he makes the best deal. However, if purchaser needs his peanut butter on the spot at the most convenient Whole Foods, then the $5 on sale is a good deal compared with $6.

But on average, people would say $5 peanut butter is expensive and $1 peanut butter is “giveaway”. So the intrinsic value for people will depend between that range. And at less than $1, people would think there was something wrong with the peanut butter (expired/recall/safety issue?)

So, same with cars :slight_smile: Greater than 1% is expensive, 1% is fair and less than 1% is a bargain. However, not all people will lease a cruze even at 0.05%. I would argue I would not be caught dead driving one if they paid me 0.05% per month lol

However, not all people will lease a cruze even at 0.05%. I would argue I would not be caught dead driving one if they paid me 0.05% per month lol

Well, I only drove that Cruze twice (once from the dealership to my driveway, then once on a local business trip). Otherwise it sat in my driveway for 3 months until I flipped it, and pocked $4,700 in the process. That was a pretty sweet lease. :sunglasses:

Lol. You are indeed the master :slight_smile: And much to learn I have.

I didn’t even have farm bureau at the time. If I knew then what I know now, I would have leased as many Cruzes as I could fit on my property and flipped them all. I’d probably have enough money to buy a loaded Bolt outright if I had done that. :anguished:

Bro1999* chevy**. Home of the $1 lease deal. Come on down, shop us last, we treat you like family.

  • Not an actual licensed dealer
    ** Not authorized by GM

Would have had to explain to the HOA why there were a half dozen brand new Cruzes parked at my property.
“Uhhhhhh…I host a local Cruze owner gathering…every…single…night?”

That is it, in a nutshell.