There has been regular review of this, and understanding people want the easy button - there is no substitute for understanding the math and all the elements so you can compare any deals apples to apples. Saving thousands of dollars is worth the indignity of cranking out a spreadsheet
The LH MP Guidelines are intended to ensure all the advertised deals - include all the variables needed to plug-into the calculator and make your adjustments: different DAS, taxes, etc. It’s not realistic to expect every permutation of every make and model for every US tax authority -fed. Dealer advertised ads rarely if-ever include all those elements…
Do math, save dollars.
Standing in the trap and that sound you just heard is the spring grabbing you by the wallet.
How does one determine sales tax or registration/title costs without knowing where the car will be registered?
Also, if you’d spend more time at home you’d only need 7,500 miles a year, which is the best default for us if there isn’t a 5,000 mile program available.
This is not a cheap system to have available, which is why you only see it for a small number of brokers. Becomes a high barrier to entry and if you’re requiring that, you’re now saying “don’t advertise prices at all, you have to go through the website to see anything”.
If you want a useful normalization of data, the only viable option is to require advertisements to be normalized dealer discount after backing out any add ons/mark ups. Or course, then people would have to actually work out what a deal really is for their situation… which really everyone should be doing anyway if they want to be effective.
You recoup a portion of the DAS (1 divided by the term in months) plus finance charges every month of the lease, including from the first payment which is collected at signing.
Of course the lower the MF, the less it makes sense to pay much (or any) money upfront, but unless the first payment is deferred past the day you sign the lease, it’s impossible to lose all of it.
Had you totaled the car in the final month of the lease, for example, you would have recouped all of your DAS (and then some, unless the MF is 0).
You also aren’t at elevated risk in the future because of a previous loss.
I lost my ass in bonds in 2022. Should I never buy bonds again?
Years ago, the push in the northeast was that you had to share a calculator to be “transparent”. That’s great - because of this, I spend hours every month putting together these stupid links to price people out. They work, people like them, whatever.
Now the opposite is happening - this thread aims to push brokers to change how ads work by capping in every inception / tax. I will not be doing this. My customers shop my prices against dealer quotes, not other brokers. They are never given an all-in payment when they shop, so why should I provide one? it doesn’t benefit my business, at all.
-fed. Dealer advertised ads rarely if-ever include all those elements…
trap and that sound you just heard is the spring grabbing you by the wallet.
