I do get it - I think? It seems that what is considered a good deal I’m assuming varies across models and times of year, locations, etc. Let’s say I test drive 4 cars and decide on the exact brand and trim I want.
I could contact 10 dealers within 50 miles and find that the best price I can get is only 4% off MSRP, maybe because the car was just released, or there’s low inventory, etc. If I then find a dealer that’s willing to do 5% off MSRP, wouldn’t that be considered a “good deal”? I guess I’m thinking of it all in relative terms.
Is the philosophy here more to wait longer for better incentives, or perhaps get a different trim, older model or even brand altogether if there’s a better deal to be had? I guess you need to be somewhat flexible to get these kinds of deals.
Thanks for being patient with me and thanks for all the good info and insight.
If you’re worried about reliability, why would you get a used German car, even as a CPO?
As the OP mentioned, one advantage of leasing is not needing to worry about long-term reliability.
I think the only philosophy here is to be an informed consumer. Are you shopping for the best deal on a specific car, or the best deal for a class of car? And, as you said, timing can make all the difference, too. It’s just being able to make a relatively rational decision in what can be an emotional process.
One more point of consideration - if you’re shopping yourself (without a broker), don’t limit yourself to only dealers at a certain distance (i.e. 50-mile radius) unless you value the convenience more.
Even after shipping costs, it’s not unusual for buyers in the Pacific NW to buy from CA, buyers from NorCal to buy in SoCal, etc.
The definition of a good deal will vary from car to car. A 35k Avalon is more expensive to lease than a 40K Lexus ES350, which are BOTH the same car.
How do you want to slice the car?
Your budget is $500 and you want a 2-row luxury SUV?
You just want Lexus RX and want the best available price?
This is my personal rule of thumb: anything less than 10% discount isn’t worth it (many cars don’t make this cut and Im pricing myself out of it, but that’s my choice). Others use the stupid 1% rule.
Yes a car that just came out, may not be able to get you a GOOD deal but it is what it is. If the market turns south and makers pull incentives, all leases will goto hell. Then even an expensive lease will be a good deal for the time being
Don’t use the 1% rule, like almost ever. 260/month on a 40k volvo s60 is under 1%, but you can find anything from 179-250 on a loaner, which is much better. 179, is the base model with nothing, but you get the point.
I’ve seen and witnessed the 1% rule trashed many times, a 1% lease on an i3 is not a deal, when it could have been had for as little as .25% to .5% of MSRP per month. Discount is good to go off of, our loaner was at 29% off with no incentives. However, incentives also matter.
To the OP, look for a car within your budget, maybe Volvo or some other luxury brands that are in this price range, and include maintenance and other creature comforts. For what you’re paying now, you could get a toptier XC90 or XC60, BMW X3, or Lexus GX (500/month no MSD 2.7k DAS(NY’s a bitch eh?) (Lexus Highlander variant). IMO with so much stuff, cheaper than what you’re paying now on the broker market place, some with no broker fee in your area, (NJ/NY), why not just go with something else?
One will always end up with the best deal if they follow the latter. Every single one of the best leases I have ever signed (and honestly, I won’t even consider a lease unless it is 0.5-0.6%/mo tops) have been where I have been flexible. There are simply too many choices out there to limit oneself in exchange for a much lower overall lease cost.
I know I will get blasted for even suggesting the %/mo metric, but I find it to be a somewhat valuable screening tool when you are a lease bottom feeder such as myself😁.
I agree…I literally have not found a single car out there that I would pay 1% per month for! That doesn’t mean there aren’t cars that, relatively speaking, at 1% are the best deal available for that car, but with rare exception, there tend to be competitive cars which can be had for less.
With these numbers, you obviously aren’t talking effective, all-in payment, which would mess with the percentage in the first place. IMHO, it is best to calculate it as an effective payment so as to not fall into one of the salesman’s tricks of making you think you are paying less than you really are.
You are indeed right. Here is the calc for my current daily with 0 down MSDs.
And 2k down.
I didn’t do 0 down, because my dad wanted to keep liquid for an upcoming recession, god damn was he right. But still, well bellow 1%, amazing deal thanks to Q, a broker here on the site (Note, one time loaner deal on a discontinued full term loaner do not ask how to repeat, you can’t).
Actually, it is a common metric and I don’t think it gets blasted. What people do have a problem with is saying 1% is good, not that you can’t use %\mo at all. You are correct in using it to compare deals. As I said above, you could get fooled otherwise.
No incentives this month has 2k loyalty, 1k conquest on Japanese luxury, 2k first responder, but no 6k full term loaners The tax is 9% for me, varies state to state so I didn’t include. 2k Down I’m paying, or my dad per sae haha, 248 p/m on a 41k sticker car, so 1% rule definitely has a place, in comparing lease to lease on the same car, versus leases on different cars.
If a lease is less than the other all in comparing cost vs % of MSRP, then decide that way I guess, but you do make great points.
Thanks guys for the good discussion. For this car, my wife really wants a luxury SUV with a 3rd row. So that pretty much narrows down the field. She wants to get the car she likes, not the best deal - So I guess i’m looking for the best price for the car, not the best car for the price.
I was also planning on using a broker for this. A colleague of mine is used a broker to help him shop an SQ5, and the guy was able to get him 10% off MSRP - so I guess it’s possible.
Finally, can anyone help me take a quick look at my lease calculator and see why I can’t tie out my numbers? This was driving me nuts last night.
I’d recommend, even if you use a broker, to spend some more time doing research on what prices look like on the vehicles you’re searching for. You shouldn’t be surprised by hearing 10% off.
- So I guess i’m looking for the best price for the car, not the best car for the price.