@IAC_Scott Resourceful video! Hopefully some readers who are not ready to read through the 101 articles and the forum will find the video format more digestible. I think it would be helpful if you could include the link to the calculator and the LH community, as the video shows a screenshot of the LH Calculator without any mention of the site. Otherwise viewers might think the calculator is from Edmunds, which is mentioned just before the LH Calculator is shown.
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Thank you, unfortunately i have no control over what shows in the description of the video, I had thought I mentioned the name of the site, but it might have gotten cut in context. I’d recommend reaching out to Ed to discuss.
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Please excuse me as a noob here. He mentioned finding out invoice price…how do we do that?!
Bmw invoice is roughly 93-94% of msrp.
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To be honest, I’ve never had a dealer accept my offer because I was courteous and upfront. Also, have met tons of dishonest reps and dealers. Not sure that video helps but bring in more eyeballs.
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You are talking to the wrong dealers then.
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great advice, thanks
Cant seem to find this anywhere but where can I find a thread/tutorial how to properly use the Lease Calculator for beginner? If someone can point me in the right direction. Much Appreciated
Thank You
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What does the “nothing with the car is my problem” quote from the video mean? With a leased car every problem is a problem for the leasee. Fine, the vehicle comes with the mfgs warranty, but that’s unrelated to leasing.
I think he meant mainly in the way of warranty and maintenance if included.
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Very informative video for those of us who are just starting out.
Thanks OP!
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Invoice is irrelevant
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Invoice is absolutely relevant as it is part of the equation when a dealer (not a customer) is trying to calculate their acceptable threshold. Percent off MSRP is no more accurate as a gauge of what constitutes a “good deal” than the 1% rule is. Once we’re below invoice every dollar counts (not to mention that some models have additional trunk money while others don’t). Think about it…another 1% off on a $124k M5 Comp is not the same as another 1% off a $45k 330i. You follow? So my point is…people shouldn’t expect to get 13% off a $84k 2020 M550i just because they read on some post that a guy got 13% off a 2019 i3 BEV, three months prior. But that’s exactly what we as dealers are faced with every day from people that read this forum.
I personally thought this was an outstanding video by @IAC_Scott. Mostly because he pointed out that things that so many people seem to forget such as:
- Programs change. Every month. And what was available last month may be mathematically impossible this month.
- Kindness DOES matter. I would fight much harder to get someone a pricing exception if they were polite and appreciative of my time. When you come in like a jack, expect to get treated like one.
- “Lease hacking” is not simply working the dealership to lose more money than any deal ever in history (yes people expect that). It is knowing what the programs are and maximizing them to your benefit. Discount is of course part of that but when I get people that say they’re trying to hack a lease that’s as good as having loyalty when they don’t have it…c’mon. The focus of the site has gotten a little off track I believe and it’s become more like LeaseGouger. We dealers are having to lose more and more money to compete with each other and it’s making the expectation so unrealistic for the next prospect.
I’m stepping off the soap box now but wanted to say kudos to @IAC_Scott. Doesn’t matter if you ever got a unicorn or not. This is great info. It’s spot on. And I hope the newer members take on some of these practices.
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LH is a customer oriented site, so for us % off MSRP is a relevant target, not invoice. That’s why Max said it and I agree. But I appreciate your view from the other side 
Your comparison of percent off MSRP to 1% rule is way off. On a “normal” $50K car 1-2% off MSRP from the target of say 12% will be $500-1,000 difference (extra $15-30/mo on 36 months), while it can be $100/mo or more for someone who goes by the 1% rule.
It is not in $$$ amount for the dealership, sure. Dealership would rather lose $450 than $1,250 on any car, of course, but it is still the same discount off MSRP. If a customer wants to get 3% of dealer’s holdback then dealer gets higher $$$ amount for the remaining 1% on a higher MSRP car (assuming the same 4% holdback on both cars).
I think we see different % off MSRP targets on different BMW, MB, etc models. And % also gets adjusted for MY and rarity of a car.
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I understand your point but assuming invoice is 6% from MSRP and assuming “holdback” (which the dealership is not even guaranteed to get) is another 5% that means at 11% off and buy rate, it would be a net zero deal. So from that point on, every dollar is a real dollar lost, whether it’s an X5 M or a 230i. And that’s still before the dealership pays the inventory manager that stocked in the car upon arrival, the porter that moved it to storage or gassed it up, the tech that did the PDI, the wash crew that did a new car detail and last of all, my commission for selling the car. All of us need to get paid in real dollars, not percentages.
So please forgive me for being a dealer advocate but I still think the video is great because it focuses on hacking, not gouging. And it points out how to get a great deal that is still fair to both sides (which buyers don’t care about anymore). The one thing that a lot of people seem to have forgotten is that car sales is not a non-profit industry. And with all the information online, trust me when I say there is very little profit left to retain. In most LH cases, the deals cost the store a substantial amount and we can only hope and pray to hit our objective so that maybe, just maybe we can at least recoup those losses and break even (still with zero profit).
Everybody wants the best deal ever but no matter how many months you spend grinding it out and no matter how perfect the storm when you sign, remember that there will always be someone somewhere that got a better deal than you. It’s okay to do research and be informed. I encourage that. But in the end, be kind. Be appreciative. Focus on the car you actually want and be realistic when presenting your target. It’s really that simple.
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I would emphasize this, personally. The overall experience is much more pleasant if you use honey and make it fun for everyone.
And that is not only true for just buying a car - it’s true for everything. Kindness seems to be something we’ve lost sight of. One of my son’s favorite books is “Dear Boy” and it literally starts “Dear Boy, Be kind.”
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I’m a dealer advocate too and agree with you and most of what you said, including about the video. I only meant to say what I said - % off and importance (or lack of) of invoice for buyers.
Thanks for the kind words Dave. Some people I know in the car industry evidently weren’t too happy about the video, and I don’t understand why. I tried my best to make a video that explains that this isn’t going to work on every car, programs matter, and in general, you’re doing this on aged/ugly/some other circumstance inventory. Dealers don’t need to dump white on black x3’s in a market where plenty of people will pay full price unless they need to hit a number for the month. I’m glad you liked it, I’ll be sure to keep you in my contacts if I ever have a ref in the CA area.
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First day on here. Hopefully there are no trolls on a lease hacking site…Anyway, before I dive into the nitty gritty, I want to clarify…you guys, (I thank you btw) are telling me that you can come to a deal on a new car worth 80k, with no money down and by being well informed and prepared and patient, and get a lease for this 80k for much less than the edmunds calculator? Is it reasonable to say by experience that you guys can get said 80k car for under 800$ a month? That seams crazy. IF so then Im in to learning this whole site. Ill not waste my time if these things are too good to be true…you know the saying lol