What is your minimum score to consider leasing? Mines is 7 years or effective monthly lease payment to not exceed the MSRP of the vehicle before at least 84 payments.
I ignore the LH score because it’s as useless as the 1% rule. Frankly, I think those two things (which are basically the same thing) are the greatest disservice this community has offered to those learning how to optimize a lease.
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The Leasehackr score and 1% rule are both useless because every brand has different discounts… you can’t expect to get a Lamborghini for the same discount as a BMW.
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But it shows if you were just better off financing the car. No?
It does not.
It simply uses the MSRP of the vehicle as an arbitrary baseline number for establishing a score. It in no way compares to the actual cost of financing the vehicle.
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What costs are missing?
All of them?
It doesn’t factor in taxes, fees, interest, etc. It also doesn’t factor in any incentives or discounts. It also doesn’t factor in any of the challenges with selling a lease to minimizing total cost of ownership. It doesn’t factor in any of the details that one would need to look at to determine if leasing or financing is more cost effective.
The LH score takes the effective monthly payment and compares it to the MSRP of the vehicle. That’s it. It in no way makes any evaluation or comparison of the actual cost of financing or purchasing.
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One of the biggest considerations is depreciation, which would need an estimate of future resale value.
Next is financing charges vs the rent charge on a lease plus acq fee plus disp/purchase fee. I know some people ignore the last bit, but unless you wanna be beholden to a single corporation for the rest of your life then you’ll have to pay it sooner or later.
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Thanks for the clarification guys.