Hi All, I understand the rule to a good lease is that your monthly payment is < 1% of MSRP. Questions on this assumption: Does this assume 10k / year Does this rule change when leasing for 12k and 15k respectively? Does this rule apply for leases structured as sign and drive leases? What about l…

Just jumping in here to see the answer…i would like to know as well.

From what I understand how the 1% rule works: Standard lease terms that get you the best rate (MF) and residual. This can mean that the term could be 27/10k, 24/10k, 30/10k, etc. There is no surefire way to calculate lease mileages on different terms when it comes to the 1% rule however we can all…

I thought 1% was inclusive of all fees. If that is the case my jeep gc lease was at .75 of Msrp. Not bad, feeling better and better about it.

[image] NY13: I thought 1% was inclusive of all fees There is no 1% “rule”, it’s just a very rough ballpark. People interpret it any way they like - including everything, including tax only, 10K miles, 15K miles, etc. Some genius came up with this “rule” and everybody fell in love with it …

Man i sure did. :slight_smile: I think its a good rule of thumb though.

[image] NY13: I thought 1% was inclusive of all fees. From my understanding it includes all fees including inception fees. I was offered an Audi A3 Quattro Premium with a 17% discount, but dealer wanted $3,300.00 up front for inception fees (Tag, dealer fee, etc) I went to another Audi dealer…

I would think the 1% benchmark includes all fees; otherwise inception feed and any cap cost reductions (which are not advised by the way for leases) would result in artificially depressed monthly payments

1% never includes payment toward cap cost But it’s unclear if our 1% rule includes factoring in basic drive offs or not

If the drive off costs (excluding MSDs, which can be significant but are refunded unless you beat up the vehicle) are the difference between being under or over the 1% guideline, it’s an ok deal - not great, probably not very good. Also probably not bad (depending on the model and associated lease p…

[image] Warbeast: 1% never includes payment toward cap cost If you don’t consider CCR, then many terrible deals can/would “pass” the 1% rule.

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Lease Rules -- % of MSRP

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CDJRElliott April 26, 2017, 4:40pm 19

@Ursus

Absolutely not…

2018 Audi A3 Lease