What matters is that you find a car you like for a payment that leaves you responsible for as little depreciation as possible.
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Just forget about it.
SETF was 10 MSDs at 0.00009 each on my Tundra lease in Oct 2018.
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As others have mentioned, you need to do the math to check out the permutations involved in each vehicle. E.g. 12% off msrp subtract incentives, use RV and MF in calculator + MSDs to determine what is reasonable for a monthly payment. Once you have done that work, there are advantages to negotiating on monthly payment only, but using the facts and figures as the basis for your target cost. [Much easier to get pricing information from dealers that way, easier to competitively bid one dealer against another - so frustrating at times to get dealer to share all the details, mainly because in most cases the salesperson isnt privy to them].
…which is why you should always deal with a sales manager.
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To me, the 1% rule isn’t about grading your lease deal as good or bad. As others have mentioned, a 1% lease on a 2018 bmw 328 is god awful, whereas if you can get a Porsche at 1%, that’s amazing. So, it can’t be used as an across the board standard for all vehicles.
1% rule is about judging whether to buy or lease a specific car. Ie. if you can lease a car @ 1% or lower, than it’s a no brainer to lease. So, you’d be crazy to buy a bmw 328 because they are dirt cheap to lease.
On the flip side, something like a Porsche, or amg 63 model, which typically lease closer to 2%, are vehicles that you are much better off purchasing.
Keep in mind 1% should be all inclusive too (Tax, Doc, acq, tags)
It’s a guideline more than it is a rule.
That depends on who you ask. It’s a silly rule.
Well what I meant by guideline is, if you end up paying more than 1% all inclusive, generally you’re getting your head ripped off.
64% agreement. Not bad!
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Not necessarily. It depends on the car.
Also, look at the cars that typically lease really well. Base engine bmw loaners, Infiniti QX60, etc. These aren’t necessarily the most desirable cars, people get them because the deals are insane.
If you can lease a $90k 2019 Porsche Cayenne for $1000/mo all in, would you say you’re getting your head ripped off?
The only reason why you think $0 down and $289/month is a good deal is because someone else already computed the numbers using mf, residuals etc. Nothing wrong with researching just the monthly payment but do know those payments came about by someone doing the math
Well, your average car anyway.
Define “average car”
This 1% thing gets too stuck in too many heads.
Oh you know, Accord, Civic, Sonata, Elantra, Camry, Corolla etc.
Let the records show that the Accord and Civic were the first two vehicles on the list therefore placing them above average.
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First nameplate that comes to mind when I think “Vanilla” is Honda. lol.
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Your Hired!!!
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