I propose a site name change to: DONTGETRIPPEDOFFLEASING …as lease hacking is dead
6 Likes
It’s not dead. It’s just that… in a buyer’s market… a lot of buyers had NEGOTIATING TACTICS, which weren’t actually good negotiating tactics, but worked because dealers always needed to move metal.
Now that it’s a sellers market, some buyers are learning that old strategies that “always worked” are simply futile when the economics are not already in the buyer’s favor.
There are deals to be had, but buyers need to get used to negotiating from a position of no leverage. It’s in this time that you catch more flies with honey than vinegar.
Just as some car shoppers say “remember the car dealerships that marked up, and don’t return to them next time” - some dealerships will “remember the easy customers from last time, and reward those that treated them well”. Relationship-building has certainly been my “secret” to succeeding as a broker that works with dealerships in this market, or any market.
7 Likes
I agree with @Phat it’s more about leasing hardly making sense in this market. Most cars have terrible lease programs and are better off financing.
In the case of many gas-powered vehicles (especially SUVs), I agree.
But for electrified options, leasing is getting more interesting. With leases being subsidized/incentivized, and market demand for EVs growing (hopefully faster than residuals), it does get exciting on the electrified leasing frontier!
2 Likes
100% disagree.
Imo, the only thing that has changed is what a reasonable offer is based on market conditions.
But you and I have always disagreed on this topic.
2 Likes
Sure, at your local Pcar and Exotic dealer (as always)
But what is the turnover rate at commodity car dealerships? (has to be huge)
And therefore memory, at best, would be fleeting
Thanks for the chuckle! …should have set the no broker switch before posting 
I realize you need to protect your business
That did though fell like being spoken down to from a guy that just got out of an ‘Other Side of the Desk’ Seminar
4 Likes
Most brokers are getting average deals at best compared to several years ago…
4 Likes
1 Like
The consumer does not have a lot of leverage in this market, but that doesn’t mean that every deal is $4k over sticker.
Even before the car market flipped upside down, there were people walking out of dealers with terrible deals and posting on LH with 0 due-diligence. The only difference now is that those terrible deals are for over MSRP.
4 Likes
And hence the rebranding
Frontier and Jeep 4xe shows that hacking still lives. 
And now… it’s sell the lease hacking.
3 Likes
to be fair, theyre frontiers and jeeps. hardly something worth hacking…
6 Likes
One man’s trash is another man’s hack. 
6 Likes
I would consider invoice on an M340i to be better than average right now. 
One positive about this market however is people shopping out of necessity (less tire kickers) as opposed to out of hobby.
I agree with this as more companies get into the EV game and more $7500 handouts/credits become available are available combined with a hopefully normalizing inventory situation there will be more hacks and maybe flips there. Especially if legislation like the one proposed in the fall happens to increase or reup the incentive and there will be a wave of amateur Tesla flippers.
Someone being priced out of this market is, by definition, a tire kicker.
2 Likes
Hacking is not dead, it has just changed and some of the old tricks will come back as history has a tendency to repeat itself.
1 Like
totally. What we know from history is that automakers often produce products that miss the market or mess up inventory planning or need to keep the lines moving. Never mind tightening credit or a weaker economy. When that happens, which might be a year or more from now, the deals will return.
The entire purpose of this site and lease hacking is to identify market anomalies and use them to your advantage. Shop the deal, not the car, if you will. There will always be opportunities to get at least a relatively good deal on certain vehicles that may be undervalued, in addition to additional incentives one may be eligible for. These tools and insights are important regardless of the market conditions because they allow you to get the best deal you possibly can in any circumstances.
11 Likes
Going with gone and not returning