I cracked the navigation screen of my leased 2016 Honda CRV. my lease is up in 3 months and to replace the whole unit (which still works just the screen is cracked) with OEM is 3k could I replace it with an aftermarket stereo for $200 so would I get penalized because I don't have the original equipment? I don't want to keep the car, I have very low miles on the vehicle, I am not even at 27K I only drive to work which is 8 miles round trip and stay mostly local. But because I don't want to pay for OEM, I am considering keeping the car and then trading it in in a few months.
02:43 PM ET (US)
You can either turn in your end-of-lease vehicle...
My son leased a ford explorer for 2 years. Inspection was done and minimal charge so they say. Under mileage. The question I have is does he just go to the dealer and drop it off and that's the end? Or are we missing something. Does money come back to him? I have never leased and the stories I hear are conflicting on options. etc. I'm just trying to understand what I don't know....any help would be great...thanks
04:25 PM ET (US)
Hey hey w126c...
That Volvo V90 wagon is SWEET. I am getting a 2019 version myself once the 2020 hits the streets.
With that said - the good news is YES. My system works all-new cars, too. When you get my system, go to the Tutorials & Reference page -> then search for "How to find rare production cars at the best price"
By the way: the 2020 vs the 2019... not sure it is much of a difference (e.g. a self-parking system... no biggie). And the 2019 is in stock and can be had at a great price.
Edited 05-20-2019 04:35 PM
04:21 PM ET (US)
I'm looking into leasing a 2020 Volvo V90 T6 Inscription wagon. (MSRP $67,020.) Unfortunately the only way to get the options I want, is to special order the car. So will your program work with a lease on a special order car? Am I at the mercy of the dealership?
10:11 AM ET (US)
Hey hey Brendan,
Please check your account/email... I just posted answers to your questions.
10:07 PM ET (US)
Thanks for the response Markus. I bought your system and have been watching the videos. I am shopping this lease for my wife and was wondering if I should send the emails in her name, my name or a fake name? I would be doing all the negotiating, but her name would be on the lease and registration. Also, do I want to use the base MSRP of the Infinity QX60 as where I want to be at 1% or do I want to be at 1% of the MSRP of the car with trim line and options that I want?
03:19 PM ET (US)
Hey hey Brandan,
About your INFINITY QX60... the Disposition Fee is a skosh high (normally $350). The $700 bank fee is definitely raking you over the coals.
With that said:
When using my at-home leasing system, we do not care about the fees or down payments. Because we always ask for a single monthly payment price - always $0 cash down. This lets us truly know if we are getting a sweet deal or getting fleeced.
We do not care how the "stealership" arrives at this low monthly payment. We just want the darn car as close to the 1% rule as possible:
Hey Markus, I am looking into leasing an Infinity QX60 and feel like I am getting raked over the coals with the $700 bank fee and $400 disposition fees. If I were to purchase your system does that get around paying for those fees or would they just roll them into the monthly payments?
07:52 PM ET (US)
Respectfully, I do not do well with nags.
I already said that I am working on a video for that page. I avoid giving dates because sometimes life gets in the way. But I am working on it right now... on a Friday night... so this video is a high priority for me.
My suggestion is to find another way to lease your car. I do not think you will be happy using my system.
07:40 PM ET (US)
Sorry to nag, but I need to take an action soon, and your clarification would really help.
I am sure that a video on "Revealed: How to skip the car dealership..." will be great. But, I'd appreciate it if you could simply show the calculations that led you, as you just mentioned again in your latest post here, to the conclusion that "it costs roughly the same to drive a mile in a lease car than it does a financed car or used car".
Wouldn't replying with a couple of lines here - just showing the numbers - easily explain the matter?
I would NEVER, EVER get a used car, either. This is the dumbest move ever (Dave Ramsey and Suze Orman are wrong about this). The exception is if you are super handy and get an under $1,000 junker.
It costs roughly the same to drive a mile in a lease car than it does a financed car or used car. And with my system, we do not put any money down - never. So we can lease a car for less than any other method of getting a car.
My system aims for the 1% rule (technically between 1% and 1.29%)... that is, 1% of the MSRP sticker price. So a $25,000 car is $250 - $323 a month. Again, that is all in - $0 cash down.
Getting a no-money down lease is crucial. Because it shows us which car is truly within our budget. Adding a down payment to a seemingly low monthly price is car-seller-math-magic. Most people forget to add the amount of the down payment into their monthly budget and wonder why their car is so expensive after getting their first payment coupon in the mail.
Yeah I did the math and it equaled out to 20k to buy it off and I see people selling the same car for half the price. What do you recommend I do in the time being? Finance a niceish used car or wait till holidays for lease deals or..?
06:50 AM ET (US)
Hey hey Valentina,
Actually, my clients tell me they have a super hard time even breaking even on trying to sell a used hybrid/electric car at lease end.
Edited 05-10-2019 06:50 AM
06:18 AM ET (US)
Hey! I hate math lol so real quick, I know u said its hard to sell and profit of a green car lease deal but green cars are more in demand now...I had a 3 year lease deal, 10k miles per year and in 8 months its over. I pay 64 per month its a fiat 500e 2017 white...can I sell it and get a profit??cause Id like to get a car after it Im just finishing college so Im not rich yet lol. I want to figure out what to do now so Im not screwed n car less by the time the lease ends thanks!!!
06:39 AM ET (US)
I am making a new video about the page "Revealed: How to skip the car dealership..." - I will update this entry when it is ready.
01:27 AM ET (US)
I am a little confused by the math you are using in your "Revealed: How to skip the car dealership..." article to calculate the total cost of transportation per mile. You are saying you are dividing Consumer Reports costs numbers by 12,000 miles per year. I am really unclear what numbers, specifically, you are taking? Also, the article refers to the result as both 34 and 37 cents per mile - one of those is, probably, a typo?
You mention it a lot on this board - that no matter whether one buys or leases a new car, or buys a used one, in the end, all costs considered, the per mile cost is about the same. It would be great to be better able to follow your calculations as they lead to that conclusion.
Edited 05-03-2019 01:28 AM
08:57 PM ET (US)
This is excellent news for you.
Yes, you use my system now.
And remember... truck lease specials typically last for the month or so. If they go away, my leasing system is useless.
05:22 PM ET (US)
Markus, thanks for the previous reply. I messaged multiple dealers around my area and several of them have "lease specials" while all of them are saying that they lease RAM 1500's. When you say find out if they have a lease offer, is that something different than them simply willing to lease a truck?
09:17 AM ET (US)
Hey hey JS,
Officially, my system only works for production cars sold here in the lower 48 states here in the USA.
Unofficially, it will work for most trucks, too. The problem is some trucks are not available for lease. It can change from one month to the next. You would need to visit a dealership website and see if there is a lease offer. If there is, you can use my system.
09:11 AM ET (US)
Hey Markus! Does your system work for all types of vehicles...specifically I'm looking to lease a 2019 RAM higher-end trim level? I leased this vehicle in 2016 and my lease is running out in the next month...thought I got a pretty good deal then but I'm not realizing the deal was just okay.
07:04 PM ET (US)
Whoa KB. Are you secretly spying over my shoulder?:>
You nailed it. The FDA is a colossal scam. One of my old buddies in the supplement industry (a BIG BIG BIG fish) admitted to me all supplements are scams - no exception. None.
And most Americans have no idea they are being poisoned by plants. Yes plants (look into oxalates, lectins and Monsanto/Bayer RoundUp).
The nutrition industry is my next target. I am SUPER excited about it. And because the auto industry is ready to nuke their franchise dealer network, my timetable to move into my next business has been severely expedited.
I have MASSIVE, BIG plans. Some say it is crazy. But the same people said I was crazy when I disrupted the car selling biz.
Hint: I will make being fat, sick or dying an option. Yep, optional. Big Pharma, Big Food and Big Doctors are going to HATE me.
I will have an update here at QuickTopic when all this goes down - hopefully, any day now.
Stay tuned! Exciting times!
Edited 04-28-2019 07:10 PM
05:45 PM ET (US)
Whoa Markus!!!! That's some crazy talk right there. BUT... I'm all ears! I'm really looking forward to hearing about what's to come AND your new venture into the nutrition industry. Will you notify us when the new video comes out?
Speaking of the nutrition industry, I'm praying the FDA will finally police this trillion dollar scam. False claims and ZERO ingredient testing have been running rampant for decades and only getting worse. Most supplements on the market are nothing but sugar pills and a pipe dream.
05:05 PM ET (US)
While the government does not allow me to make guarantees or "claims"...
I am 100% sure you will not be able to get my system in time for your next lease 3 years from now.
In fact, I am putting the finishing touches on a new video right now about this.
We have less than 18 months (or so) left before the entire franchise car dealership implodes and goes out of business.
And since I offer one full year of updates, I am going to be pulling the plug on my product sooner than later.
This is not some scarcity trick. I wish it was. When I launched my system, I thought dealerships would go out of business in 2025 at the earliest. But for the first time ever, the auto industry is YEARS ahead of schedule. This is forcing me to move into my next disruption business years ahead of schedule - the nutrition industry.
Here is the deal:
Most automakers HATE their dealerships... they are forced to sell via them because of politics from decades ago. State laws prevent Ford (for example) to sell to us directly. (Tesla gets away with it because their showroom employees are hourly, not commissioned.)
Once new "subscriptions" arrive on the scene this year and cars are able to drive themselves (this is already happening), we will see a massive shift away from traditional car purchasing and leasing. Planet Fitness will take over car dealerships - it is happening already. And we will be renting cars by the mile in the future.
I will update this post when my video is ready. You will be kinda' stunned what will happen 18 months from now.
P.S. Yes: this will be the last time we can both drive our own car and lease our own car. Because in the future, we will summon a car via our phone... it will arrive 30 feet from us... and when our ride is over, the car will zoom to the next ride - driverless. People will be angry about this, then they will love it once they see the cost savings and convenience. We will not longer need car insurance, extended warranties - or even car washes. Our rental will include it all for one low by-the-mile price.
03:43 PM ET (US)
Yeah... I kinda figured I'm in a terrible situation. Story of my life bud.
I'll be sure to come prepared with your system when I lease my next vehicle.
01:07 PM ET (US)
I would take the deal you are getting. Having just 1 day to make a decision puts you in a TERRIBLE position.
12:09 PM ET (US)
I understand your system is self-service but I only have 1 day to make a decision. Otherwise, I continue to rack up mileage and lose one buyback incentive payment ($569) if I wait till the 30th which is my next Lincoln lease payment. I was trying to get out of this vehicle and into another one within a day. Not much time to go through your system and shop around for the best deal. Was just trying to see if you thought the current deal on the table for me looked like I was getting raped or it was not bad. That's all.
But I totally understand if you don't want to help here in this message board. After all, you're trying to run a business and make money from your system. It's all good. I'll tell others about your system. Thanks for the help you previously provided!
11:40 AM ET (US)
I am confused, KB.
My system will help you right now.
You do not need me. In fact, my system is 100% self-service.
Me helping you here would be repeating what is already in my system.
11:38 AM ET (US)
Wish I found your system a long time ago because I wouldn't be in the bind I am right now! I already took your kind advice and shopped around for a buyout but didn't have any luck. Now I need to make a quick decision here on the current deal I'm being offered.
I will be sure to tell my family and friends about your system so they don't fall into the same trap as I did with very little time to act. My friend across the street has a Jag that's coming off lease in 5 months. I'll give him the link you just gave me.
In the meantime, if you can provide any guidance on my current situation, it would be greatly appreciated. THANKS!!!
It will give you the best chance to put yourself in the best position.
Just do it.
11:30 AM ET (US)
If you see my previous messages, I'm kinda in a bind with my WAY Over Mileage ($3,731 in fees) on my 2016 Lincoln MKX. I went to a few 3rd party buyers but they couldn't even come close to my buyout price. So I went back to my original dealer to see what they can get me in for somewhere around the same price I was paying before, but this time in a Ford Explorer not a Lincoln MKX.
Selling Price = $39,766 Plus Tax 4% (Estimate on @ half purchase price) = $1590 Total Selling Price = $41,356
I will have to pay $3,731 for my over mileage. Plus first months payment and DMV fees. I still have 4 payments of $569 on my Lincoln MKX which they are going to pay for with the current incentive.
They came up with $627 for 39 months, 15,000 miles. No money down except for the over mileage that I have to pay upfront for the Lincoln.
This seems so much money for a $47,000 MSRP truck and it comes NOWHERE near your 1% rule!
Can you PLEASE give me some guidance here. I need to make a decision by Tuesday because the current deals will be changing and my next Lincoln payment will be withdrawn on 4/30 so I want to get in the new vehicle before them.
And about negotiating down the rent charge... I do not recommend negotiating anything. I teach my clients to email dozens of dealerships within their "selling zone" (there are 3 major selling zones here in the lower 48.). And instead of negotiating, we ask for a car lease near the 1% rule:
Honestly, amateurs "negotiate". Dealerships LOVE this, because they will use magic math to make it seem like we are getting a great deal (even if we are not).
08:38 AM ET (US)
Great blog Markus. THANK YOU. Two questions: 1. What are the pros/cons of getting a 24/36 month lease. 2. Please explain how to negotiate it down the rent charge on a new lease? Thanks
04:17 PM ET (US)
Yes Rob - I would go for both cars.
Remember to use 2 different browsers as my system remembers your car's details. I prefer Safari and Chrome.
I would get everything ready this week, then use my Timing guide to choose the right day to email next week.
Just follow my system exactly. Do not get creative. It is a proven system that has helped my clients get more car for less money now for years.
And never forget - you are in complete control. If you do not get the car at the 1% rule (technically up to 1.3% of the MSRP), pivot and move on. Guilt free. There is no obligation to take on a deal that you are not 100% comfortable with.
04:04 PM ET (US)
Markus, I recently purchased your system and have learned a lot already. I have a Ford Explorer lease that expires at the end of May and I am stuck between two crossovers, the MINI Coachman S ALL4 and the Mercedes GLC 4Matic. I am torn but would probably get the GLC over the MINI if I can get close to 1% of MSRP, but Mercedes doesn't have any lease incentives this month and MINI has some good incentives that expire April 30. I do have $2,000 USAA Bonus cash for the Mercedes, plus my wife has a current Mercedes lease and I have $1,000 USAA Bonus Cash on the MINI. Should I reach out to dealers for both cars, get the best deal possible on each and decide? I don't want to miss the MINI incentives but I also want to make sure I'm not missing the right deal on the Mercedes. Thanks for your help.
I once again thank you for your quick replies. One last question I have before I get the system is I am an foreign worker here in USA on visa. So I was wondering if I can still lease car when I'm on visa with Ford(Mustang). I have around 17-18 months left on my visa and I can extend the current visa for another 3 more years. Thanks.
09:57 AM ET (US)
Hello again Manny,
I include a system within my system to deal with your type of situation. Look for the section titled, "The Flip".
09:30 AM ET (US)
Thank you Markus, looking forward to using your system soon. One more question I have a Honda Civic '16 financed by a credit union. I am planning to sell it off and get a new Mustang on lease with your system. Do you think it would be a good idea to use the system to also sell the Civic or look for car selling services like Carmax? I know crashes can bring down the value and my car has had a crash and it is reported as minor in the CARFAX report. Greatly appreciate the help.
07:23 AM ET (US)
Yes... my KTL system can help you get your Mustang - anywhere in the lower 48.
I cannot personally help you - then I would be considered a "lease broker" which requires a license.
10:41 PM ET (US)
Hi Markus, I am planning to use your system to get a Mustang EcoBoost Premium. Can you help me with it? Also I live in Louisville, KY. Thanks.
04:39 PM ET (US)
Thanks Markus! That's not great news, it's awesome news! Wish me luck on my 3rd party buyout mission. I'll report back once I have some news. Thanks again for helping us regular folks stick it to the leasing companies who don't tell us the truth!
03:28 PM ET (US)
Hey hey KB,
Great news: no. You do not have to buy those expensive OEM tires. You can buy any tire... in fact, you can even buy used tires - as long as they have enough tread.
02:17 PM ET (US)
Thanks for the info Markus! If I can't make the 3rd party buyout work in my favor and have to return my MKX to the dealer, do you know if I have to replace the tires with OEM? I'm definitely going to need to replace that one tire with the sidewall gash.
Reason why I stumbled upon your website and you was due to not wanting to pay for an extra set of tires on my 2nd year of a 3-year lease. Felt it was a cost I could use elsewhere. I read about what you and your package is all about and it inspires me knowing there's hope for people who are 3k miles over the expected mileage. Not sure how your selected aggressive buyers work for people with worn out tires. Is that taken into account when my vehicle is appraised? Just curious how that all works once my vehicle is chosen to be bought out of the lease contract.
Thanks for your honesty and all the knowledge you've shared with us so far!
OK... I need your help Markus! After reading your "How to turn end-of-lease cars into extra cash", it sounds like I'm pretty screwed with my current 2016 Lincoln MXK Select lease. When we first got the lease, my wife worked 5 min from our house. A month later she switched jobs and has been putting on 40+ miles per day on her SUV. Therefore, she's already at 52,000 miles and we still have 4 months left on the lease! The total amount of mileage allowed is 39,015.
Here are the details: 39-month lease (ends Aug 31st, 2019 - 4 payments left) Payments: $569 per mon. Mileage Allowed: 39,015 Actual Mileage: 52,000 Cost of Overage: .20 per mile Buy Out Option: $27,332.60
What is the best option for me that would cost the least amount of money? We've been leasing cars forever and never ran into a situation like this. This sucks!
Also... She just rubbed a curb and took a chunk out of the side wall of one of her tires. So I need to get a new one. If I'm handing the car back into Lincoln, do I have to replace the tire with the same exact brand and model number? If not, I'll buy a $89 tire instead of spending $230 on the OEM one.
Any help will be greatly appreciated! Thanks!
Edited 04-10-2019 03:54 PM
10:24 PM ET (US)
The first thing I would do is read my "Flip" tutorial here:
Punchline: The car seller lied to you - what a surprise:>
04:18 PM ET (US)
Hey Markus, I purchased your system a couple of days ago and I'm looking forward to using it. Thank you for the info! As I'm reading through everything the question that comes to mind is when should I initiate the process? I am currently leasing a Ford Escape (I had never leased before and made one of the worst business deals in my life....) and my lease expires in exactly 90 days. If I start the process now, is that too early? For example, if I found a vehicle in a week's time, it would leave me paying for 2 vehicles for several weeks. Or is this something I would address in the emails--the delivery date? Also, the salesman who initially got me into the lease told me that it's not worth buying my current vehicle because the price that was agreed upon when we signed the lease is higher than the vehicle is currently worth. (Nice.) Lastly, I purchased extra mileage up front (15k per year) and am now at 32k, meaning I've purchased an asset that, unless I do a whole lot of driving in 90 days, I will give to Ford for free. My vehicle is in perfect condition. Should I try to sell it? I will appreciate any and all advice.
11:47 PM ET (US)
Hello Again. Just purchased system. Since I will be leasing two range rovers would you suggest combining the letters and requirements? Would this be even more of an incentive for dealership to deep discount?
09:25 PM ET (US)
Thank You Markus for such a quick response. I had a feeling your answer would be exactly what it was. Thank you. Buying your system now and hoping it is easy and works. Promise to post after our experience. Thank you.
07:57 PM ET (US)
Hey hey Anthony,
We never want to step foot into a dealership - so no... my clients avoid trade-ins like the plague. Instead, I show my clients how to get Wall-Street-funded car buying services to bid on our trades. Highest bidder wins. They swing by our home or office and take away our trades on a flat-bed tow truck. They either hand us a check, Fedex us a check or direct deposit their offer - usually by the next day.
Leasing has SO SO SO many advantages over buying... even if we drive a lot of miles.
And no... you cannot hire me to do this. I would need a broker's license. (Quite frankly, my system is super simple to use... no need to hire me for anything). Just use my system and get your new car delivered to your home (or office) in as little as 36 hours.
07:36 PM ET (US)
Hi Markus, Wow super impressed by what you are saying. Even have family as a general manager of multiple dealerships and feel what you are saying is more consumer truthful. We are looking at leasing (we have always bought in past) 2 land rovers - Range Rover velar and full size Range Rover. We have two cars, paid in full, that we would normally trade in (Audi q 5 and Mercedes GLE Coupe). Two questions. Does your system allow for trade ins? Can we just hire you to do this for us? Would love to go to family member in the industry and loudly share the success.
09:12 AM ET (US)
Hey hey Sarah,
Here is the oldest joke in the book...
How do you know when a car seller is lying - their lips are moving.
That would be my reply to your question.
Edited 03-19-2019 09:30 AM
09:07 AM ET (US)
Morning, Markus. I just got a letter in the mail from my dealer who is saying on one day only (this saturday - with lots of exclamation points), they'll give me an additional $6k over my residual value. Of course, if I did that this weekend, it would leave me without a car, but I imagine this is just another dealer trick, right? I hear your voice in my head, but this is also more than I could get for my car elsewhere based on past research. Thoughts? Thanks in advance! - Sarah
06:44 AM ET (US)
Yes. US Bank will not allow 3rd-party buyouts.
You can buy it out first, then sell it to a 3rd party buying service. But this is a risky strategy. From what you are telling me, I would just turn the vehicle in and be done with it.
11:54 PM ET (US)
Hey Markus! I'm nearing the end of my 3 yr lease on a Ram 1500 (2016). My lease is with US Bank. I was considering flipping the truck but I'd need to negotiate a lower buyout than my residual value/buyout price to have some equity. If they are firm on their pricing then it would make better sense for me to turn it in.
Here's my concern: I've read that US Bank leases are not able to be sold to the highest bidder, that US Bank doesn't negotiate the buyout price, and that if I were to turn it in they kill you on damage fees.
I'm trying to figure out the best route to go!
Edited 03-14-2019 11:58 PM
09:46 AM ET (US)
Yes, I would give flipping a try. You have nothing to lose and hundreds... even thousands to gain.
With a flip, you do not turn in your Passat. Instead, a car buying service will bring a flat-bed tow truck to your home or office and whisk it away.
My lease is almost up with vw..paperwork says I have to turn into vw dealorship but I want to try flipping, or turning into possibly honda for used civic and seeing how much they will give, its a 2015 passat with only 16,000 miles and Ive found over years vwag had become real shady with alot of issues since diesle crisis especially!!
Edited 03-12-2019 09:43 AM
01:57 PM ET (US)
My system only works with new car leases. So no. I would not get my system until you get back on your feet.
01:55 PM ET (US)
Hey Markus, Alex with the RAV4 again, we're looking to get out of that lease, but our budget won't allow for a new car ATM, is it still worth it to purchase your system, will it work for this particular situation?
09:40 PM ET (US)
Ah, I see what you are saying now Ricardo... the Gross Cap Cost. Yes... the difference of $733 is for extras/options, etc.
09:33 PM ET (US)
Gross cap cost is $23321 and value is 22588. Maybe they had something added in like an accessory?
09:01 PM ET (US)
Can you tell me what the exact number of the "agreed upon value" is - I do not see it. Also, can you tell me what the other number is... there are multiple "A" rows.
I have 6600 miles ona leases car. My lease is up in June 2019. I dont put many ,lies on my car. Im hearing noise - potentially from the brakes. Who is responsible for the brake repair? If I take to a different repair shop, will it void my warranty?
Big Dave (like your rooma
05:01 PM ET (US)
Never buy a car?!? Really?
I drive about 4000-5000 miles per month
Obviously Id rather exceed the mileage quickly.
And then I couldnt sell it for more than the buyout / residual.
Wouldnt I be stuck?
04:53 PM ET (US)
Hey hey Kay,
I would NEVER, EVER get a car (or turn in a car) at a "stealership's" location. I train my clients to do it all over the Internet.
End of lease on a 2016 EX Civic Sedan. Residual value is stated on agreement is $14,000. Car is in very good shape plus the mileage is under the 36,000. Allowed My present mileage is 27,000. Dealer is offering a leased 2019 Civic LX at $255.00 a month with 1,000.00 down payment. Price of $255.00 includes taxes and fees. Should I buy or lease a 2019 auto.
09:03 AM ET (US)
Yes... some end of lease buyouts can be negotiated. I would contact the leasing company and ask "How can I get 10% off my end-of-lease buyout figure?"
P.S. Do not mention KBB or Edmunds - our lease buyout has nothing to do with market values.
08:56 AM ET (US)
Can a end of lease buyout figure be negotiated based on a KBB or Edmunds value?
Edited 02-16-2019 09:00 AM
09:17 AM ET (US)
Hey hey Vontavia,
About financing a car with no money down... that is not my expertise. Because I do not think there is ever a good reason to finance a car - even if we drive a ton of miles.
The truth is a leased car, financed car - even a used car costs us roughly the same amount per mile. So why not drive a new car (which gets safer year after year)?
On your website you stated that whether we are financing or leasing a car we should not put any money down. I see how that makes sense for leasing but how does it work to our advantage if you are financing? Do you have any sites or videos you can recommend in regards to financing a car with no money down?
04:03 PM ET (US)
Yes, Alex... do not skimp on driving. No need.
My system gives you a full year of access... so, if you are going to get it (since you are 10 months away from lease end), you can get it any time. If you get it now, you can use my list of Wall-Street-Funded car buyers to get bids - you might be able to get out of your lease now and move into your new car in days.
03:39 PM ET (US)
Thank you Markus! So to clarify, you're saying don't skimp on driving, (yay) continue through the lease and then go to flip? When is the right time to sign up with you?
02:17 PM ET (US)
Hey hey Alex,
There is ABSOLUTELY nothing to worry about here.
Yes, it looks like you got hosed on your current RAV4 lease. The good news is your fleecing ends in less than a year. After that, you will never get hosed again (when you follow my strategies here).
My clients NEVER pay any money down - we always get $0 cash-down deals AND we shoot for the 1% rule on the monthly payment.
About your mileage. You are not alone. A lot of leasees go over their mileage allotment. It is human nature - life happens. Surprises come up and we drive more than we planned. I would not beat yourself up over this.
The good news is, it almost never makes sense to turn in or trade in a leased car and pay mileage penalties. Because the wholesale "hit" (i.e. value drop) on being over the mileage allotment is less than a nickel. Yep - go over by 10,000 miles and your vehicle's market value only goes down roughly $500... no matter what brand of vehicle you drive.
This is why the "flip" is so awesome for us (not for the car-leasing industry):
In fact, I have seen people with 25,000 miles over the allotment walk away with an equity check after selling their end-of-lease car to one of my list of Wall-Street-Funded car buying services. (Warning: our government's Federal Trade Commission does not allow me to make claims, so I cannot guarantee this.) The only guarantee I can make is my clients get everything they need to find the highest bidder on their end-of-lease vehicle.
Punchline: Don't worry. Be happy:> Turn the tables on Toyota's leasing company. Flip your vehicle at lease end. Then get your next car the right way (without getting hosed).
P.S. Rolling negative equity into a new-car lease is a TERRIBLE, AWFUL strategy... this is like taking out a cash advance from a credit card to make the minimum payment amount on the same card. We will NEVER get out of the vicious negative-equity cycle falling for this hustle.
11:24 AM ET (US)
Hey Markus, came across your site by chance and like what you have to say. Currently in a 3 year lease on a 2017 RAV4 Limited Hybrid, which we love but 2 years and 2 months into it we are almost at our mileage amount (little over 500 miles left). It is adding a considerable amount of stress to our lives worrying about this, and what our options can be. Our dealership had initially said they could roll us into a new lease ( we have been eyeing the 2019 or highlander as our family is growing) but it seems like it is too early to do so. When I checked the buyout it was around 25k. Also looking at your basic guide I feel we got ripped off, we put 4k down and pay a monthly payment of 395.
08:45 AM ET (US)
Hey hey Rudy,
With my system, we do not care about dealer fees, security deposits, acquisition fees, disposition fees, title fees, registration and license fees.
Hi Markus and thanks much for the insights on your blog!
The 0$ down obviously doesnt refer to some of the other usual fees due at signing, such as dealer fee, security deposit, acquisition fee, disposition fee, title, registration and license fees. Is there a part in your blog that addresses these? Some of them clearly cant be negotiated, but others may?
Thanks for your help.
03:46 PM ET (US)
Ah, I see Bruce.
Yes, the cool thing about flipping our end-of-lease vehicle is we get to hedge equity in our favor. So, instead of the dealership flipping the car when we turn it in for thousands in profit, we have the opportunity to share in their pot. And the worst-case scenario is we turn the car in if we have no equity.
The buyout formula is: Residual Value + Remaining payments owed + buyout fee
I am not sure where Toyota is getting the $22,000 number. We can always call the leasing company and find out the buyout amount to the exact penny - just ask for the 10-day payoff amount (without taxes).
03:25 PM ET (US)
Sir: Could not figure out how to edit. Sorry. Embarrassed. Had at least 1 computer since 1984, still have problems with them. No, trying to figure out what to do. Is this situation worth flipping? Buyout at the end should be $17,823 as that is the residual(but Toyota said $22k at their call us before the lease is up number) At $18k I think I'm going to either flip it soon, or buy it and sell. @ $22k I'm turning it in and walking away. Prius V are very rare here, matter of fact, so are any Prius. I see the few available 15-17 are being offered between $20k-23k
I agree with you on leasing. I told several people that the only way to get a new car is lease. They are way too complicated and expensive to repair.And especially the luxury ones, depreciate like a brick and become money pits.
And I apologize for taking up so much of your time.
01:45 PM ET (US)
I tried reading your question 3 times... I am not exactly sure what you are asking.
It sounds like you are looking to buy a car. My site is only about new-car leasing.
Can you edit it and try again?
P.S. I teach my clients to never, ever lease a car longer than 39 months. Never. Ever. Never ever.
Edited 02-13-2019 01:46 PM
12:22 PM ET (US)
Hey Markus, Ok 2016 Prius V four. Turn in is May 11. Payoff is $17,823. Has about 31,500 miles. We liked it enough to buy it, and yes, flipping it was a serious thought, but called Toyota and John quoted $22,000 @ $370 per month for 75 months. He gave me the car salesman hustle. "everybody takes that and goes the 75 months" I owed 3 payments of $275 at the time, now just 2. So my math says the residual of $17,823 + $550 or $18,373....what say ye? BTW: assumption off of Swapalease, lady had put $6700 down.
Hi Markus, I have 2016 Honda Accord LX ,8000 miles is on the odometer. So pay off price is around $14000. A car is in excellent condition. What do you suggest? Resell it to Carmax or buy out from the lease? If buy out from the lease , whom do I contact to negotiate and hit the buy out price down? To financial company or ? I leased this car with $0 down, monthly $210 for 39 months.
02:38 PM ET (US)
Hey hey Vontavia,
Nothing to be nervous about. I work full time on this site (in fact I am finishing another video for my clients right now).
Yes, my system works with any production car sold in the good ol' USA - except Tesla. This includes the awesome Toyota RAV4.
I am glad to see you are still active, I went through your site and did not find any car post dated for 2019 or 2018 (maybe I'm over looking?) and became worried.
Anyways, I am planning on purchasing your system, but I have to admit that I am nervous. I want a Toyota RAV4 2019, do you think your system would work for this type of car, and I was thinking of waiting until March to try KTL out. What are your thoughts?
11:34 AM ET (US)
Hey hey Shane,
About your down payment of $5,500.00 - it goes to absolutely nothing.
In fact, putting down money has a few liabilities... I explain here:
I have a couple questions regards to my new leasing policy. I just leased a 2019 Acura ILX I put a down payment of 5500 and my payments are 279 a month. My question is what did my downpayment really do? I have the intention of purchasing the vehicle at the end of my contract because I couldn't afford the monthly payments of a vehicle at the moment. Was it dumb to put such a high down payment? And is it really cheaper purchasing the vehicle after my lease is up compared to actually buying it at first?
09:24 AM ET (US)
Yes Sarah, you did something right.
09:23 AM ET (US)
Hello again Ken,
> The buyers you reference - are they local throughout the US and are the individual buyers or dealerships?
Not dealerships. They are car-buying services that have no expensive showrooms. They buy out our lease, come to our home or office to pick up our car... resell our car on their website... then deliver the car to the new buyer.
08:56 AM ET (US)
No... $59/mo was not a typo. Did I at least do something right??
08:52 AM ET (US)
Thank you for the prompt response. My current vehicle isn't a BMW but that is what I am looking to lease again. I've always had them and they've been great. There are much better options out there but its simply a preference. However, the dealers aren't that great in being flexible with pricing. I might consider Audi. My highest auto enhanced credit score is 788 and the lowest is 720. Not sure why the dealer thought I would fall for Balloon financing. His magic was that the vehicle would be worth 15-20K after five years and I'd walk away squeaky clean. If he could predict the future like that, I doubt he'd be selling cars.
My current vehicle is an Acura- so I am not sure how much someone would pay to help close the gap. They'd have to be willing to pay a rather large amount. However, I will take your approach and with your system, find the highest bidder. If I get the dealer to increase the trade in amount to where I have significantly less negative equity - would that put me in a somewhat better situation? My new approach is to not tell dealers about my trade until they give me their best price. It hasn't been proven advantageous yet. However, seeing that 5 series are being advertised at $530 a month for a lease rolling another 200 dollars a month of negative equity - wouldn't be bad in my case if it can be done with 0 down and I'm paying less than my current payment?
All in all - I have learned my lesson about leasing. Make sure you get the car you like the first time to avoid paying for something you do not want to drive and to avoid having to deal with negative equity because you choose to trade it in. Against multiple dealers advice, I will continue to pay down the vehicle until I secure a solid deal so the gap becomes smaller or more "reasonable".
The buyers you reference - are they local throughout the US and are the individual buyers or dealerships?
08:31 AM ET (US)
Hey hey good morning Ken,
I hear about your type of scenario many times a day.
And it is terrible... because dealerships use heavy-handed, psychological trickery to emotionally get us to make HORRIBLE financial decisions.
I warn my clients about BMW. I have a super long rant within my system about BMW - and it is not pretty. They are the absolute worst in almost every way. I would never recommend getting into a BMW these days. There are MANY other cars that perform better - for less. BMW's kidney grill and shiny plastic-chrome logo fools a lot of people.
Your situation reminds me of a person in an endless cycle of debt. The debt is so bad, they are taking cash advances just to make the minimum payment on the same credit card...
I was once in your scenario. And today, life is much different. I put an end to the nonsense... reset my finances... and now I am in the best financial shape of my life.
And that is what I would do in your situation. Clear the "underwater" issue. Get out of that terrible lease. Reset. Start over.
There is nothing worse than driving a car each day that you hate. I would never put up with that. I would take the financial hit and never look back.
I teach my clients to never, ever trust a car seller. And never, ever walk into their stealership to get quotes. This is a colossal mistake - the dealer will squeeze tens of thousands of extra dollars in profit when we enter their lion's den.
You have the right mentality by shopping for lease worksheets from home, but it sounds like you are not wording your emails the right way.
The problem is (as you are finding out), car dealers pretend that they do not do business via email.
I cracked the code. And I know EXACTLY what to say (and when to say it) to get dealerships to virtually BEG to send us lease worksheets to win our business.
My clients get access to my system. Just fill in the blanks with the car you want, use my proprietary app to send them fast... then about 20 minutes later, we get lease worksheets for the car we want to lease.
If I were in your situation, I would get my system right away...
Next, I would use my list of Wall-Street-funded car buyers to bid on your current leased vehicle. While the government does not let me make "claims", I am pretty sure one of these car buying services will SIGNIFICANTLY close the gap on the buyout amount and the cash you need to get rid of that crappy BMW.
Next, take the bids... find the highest one... and then do whatever it takes to pay it off. Find the cash somehow... get a low-interest car loan from a credit union or bank... temporarily borrow from a retirement account... whatever. I would NOT roll negative equity into a new lease - doing so will put you right back into the mercy of the car seller... they will charge you full price for the car lease AND the "Rent Charge" (interest amount) will be at rates that people with terrible credit pay. Rolling negative equity will cost you $6,000 to $12,000 (depending on your next car) - maybe more.
> Does your service assist with scenarios like this?
My system is 100% do it yourself. So no, I do not personally assist (unless a question comes up that has not been answered within my system - like I am doing now).
> Have you had clients who have obtained a new lease and had the car delivered and their trade in vehicle picked up from home?
My recommendation (found within my system) is to avoid trading in a car with the same dealership we lease our new car from. Because car sellers are professional magicians... and they will use our trade in and fleece us almost every time. I teach my clients to sell their car to the highest bidder and get their new car from another dealer. That is how we beat the dealership at their game.
By the way: You made the right call by refusing the balloon payment option... that is usually an option for those with horrible credit.
07:45 AM ET (US)
Good morning Markus,
My name is Ken and I came across your informative website while doing something research on trying to get out of my current lease and into a new one. I am not sure if you've encountered this issue before in the past but here goes:
August 2018 I traded in a used vehicle purchased from Carmax for a lease. The dealership told me this would get rid of the negative equity and put me in a better position after three years. No discounts or rebates applied. 2K down and 1st months payment.
Fast forward to today, I absolutely hate the car and its not worth the monthly lease payment. I am trying to get out of the vehicle as fast as possible. The vehicle is an 2019 with only 6700 miles. The payoff amount is currently at 53K and trade in value is 32K. I have been dealing with BMW as I would like to trade in my current lease for a 2019 BMW 540 (MSRP 72K). Originally, I was going to put down 17,5K and have payments around $1198 a month which is about 80 dollars more than what I am paying now. I informed the dealer that I didnt want to put that much money down on a lease and would pay down my lease a little bit more to reduce the negative equity. The dealer told me not to do that as the figures would still be the same. I challenge this concept because I know going into the dealer with less negative equity would put me in a better position. To prove my theory on this, I paid 2K on my current lease which took the payoff to 53K from 55. I reached back out to the dealer with the new pay off amount and told them I wanted to put the minimum amount down. I was quoted yesterday, 13K down for payments of $1260. As well as the finance manager tried to convince me to take advantage of BMWs Select Financing which is like an unrestricted lease with a balloon payment (20K at the end of five years. I rejected and said I would consider the 13K down and that is when I discovered your blog and have a few questions.
1-To offset my negative equity should I pay down my current lease by $7,500 to have a payoff of 46K which would leave me with about 14K negative before rebates/incentives are applied? My goal is to get a payment below $1000 if possible with only putting down the minimum. I was thinking 2K plus first months payment. 2-Does your service assist with scenarios like this? 3-Ive asked the dealer to send me the lease worksheet 4 times now and have yet to receive it. Is this something dealers do not like to disclose unless youre in person? Personally, I would rather not go to the dealer until everything is finalized and its time to turn in the trade. 4-Have you had clients who have obtained a new lease and had the car delivered and their trade in vehicle picked up from home?
Thanks in advance!
03:29 PM ET (US)
Good afternoon Robin,
As an entrepreneur, I focus on mitigating risk...
Two ways I do this in the current economic climate is to:
#1: Lock in great interest rates Interest rates (for car financing) are still near record lows, but are creeping up. I do not see them coming down any time soon.
#2: Avoid "life happinin's" Sh*t happens. Things always take longer than expected. And waiting until the last moment is always stressful.
Punchline: I would get bids from various banks and credit unions and pick the lowest-priced loan to fund the buyout. Then I would buy now, not later.
03:19 PM ET (US)
Hi Markus, Thanks for the advice. One last question, since you are suggesting to purchase the car in my situation. Is there any reason to do anything early or just wait until least is complete or should I go ahead and purchase early I have about 3 or 4 months left on the lease.
03:14 PM ET (US)
Hey hey hello again Sarah,
About this: In 2017 I leased a Kia sportage putting a total of $5500 down (I know, I know), and I pay $59/mo for 24 months.
Is there a typo here? $59 a month? Do you mean $259 a month?
Just get my system. I am normally not direct about the things I sell, but the way you describe your situation - just get it.
You will actually have fun dumping your old lease and getting into a new lease. Your stress will melt away because I have ever scenario in a video, audio or written tutorial.
You do it all from home. In almost every case, you never even see a salesperson. Your car arrives in your driveway. And in most cases, your first month of driving it is FREE.
Remember what I keep repeating here - every lease sold in America is worth $6,000 to $12,000 in pure profit to the "stealership". When we make the mistake of leasing a car at the dealership, we miss out on this cash... the dealer pockets it all. With my system, we get most of this money applied as a discount/rebate/incentive. This is why we ALWAYS have the down payment waived. We never pay one. This helps to lower our monthly payment.
And about this:
> Do you have a tiered system where I could pay less for only half the service (meaning, I wouldnt need to flip, since the car isnt worth more than the residual value, so I would only need the new lease services)?
Nope. I do not have a discounted system.
01:41 PM ET (US)
Hi Markus, Its me again. Im starting to stress about my lease being up and I wanted to share the whole picture with you in hopes you can point me in the right direction.
In 2017 I leased a Kia sportage putting a total of $5500 down (I know, I know), and I pay $59/mo for 24 months.
My lease is up in July. I only have 4,000 miles left until I hit my mileage limit of 24,000.
I will take the car to get appraised at CarMax, as you previously suggested, but I would be shocked if the car was appraised at more than the $16,5000 residual value on my lease.
So you suggested if thats the case, my only real option is turning the car in and walking away. Youre certain that if I chose a pull ahead lease option with this dealer that Ill continue to get hosed, as I did on this deal?
Ive already started researching a new lease deal, but many of the $0 options at dealerships actually have at least a thousand dollars worth of fees associated with them. Are you saying that your sign then drive $0 approach, has absolutely no fees?
Is your program ideal for someone who doesnt know what kind of car they want to lease next? Do you have a tiered system where I could pay less for only half the service (meaning, I wouldnt need to flip, since the car isnt worth more than the residual value, so I would only need the new lease services)?
Im feeling super overwhelmed and confused about what to do next. HELP!
08:45 PM ET (US)
I appreciate you sharing your shoutout!
08:40 PM ET (US)
Markus - just a public shoutout to say that your system works and THANK YOU! I contacted a dealer two days ago (end of month) and cordially asked for exactly what you suggested. Im walking away with a new lease with the highest level trim for about 1.2% of the MSRP- all without walking into a dealership! And theyre delivering the car to me! Thank you for sharing this information. Ill be buying your program in three years when this lease is up to try and flip it and probably save even more money. Ps- thanks for your advice on the end of lease - I ended up just making the final payment and will wash my hands of that one.
01:58 PM ET (US)
Hey hey Sarah,
I know of no way to turn the vehicle back in an avoid the at least $350 disposition fee.
The dealership will try to get you to lease another car... they will even agree to forgive your at-least $350 fee... but this is a magic trick... they will overcharge you $6,000 to $12,000 in the end.
12:27 PM ET (US)
If I can't get $2,500 or more back in my pocket by selling, and my best option is to walk away. How to I avoid any additional payments that might be required at the end of the lease? Not talking about miles here, but things like a re-stocking fee, etc.
11:34 AM ET (US)
Hey hey Robin,
Yes, when buying out a lease, I would contact the leasing company and ask, "Is there any way I can get the 10-day payoff for 10% less?" Sometimes, this works.
11:32 AM ET (US)
Thanks for the guidance Markus. When purchasing the car is it best to negotiate down from the residual value? RV is $28k, I would love to save any money I can. What would you suggest?
But in your case, you have 2 things working against you:
1) You are substantially over the mileage limit (I get it... life happens:>)... 2) Your accident
If your accident shows up in a CarFax report, the perceived value could plummet its market value. It usually takes up to 6 months for CarFax to report it.
So, if I were in your situation, I would buy out the lease and keep the car. And instead of buying it out at a dealership, I would get a car loan from my credit union send the check to the leasing company.
By the way: buying out your lease will save you from paying that "disposition fee" - at least $350.
Edited 01-29-2019 07:09 AM
11:52 PM ET (US)
Hi Markus, This is my first lease so I am learning about the end of lease process. I have about 4 months remaining on my 39 month Infiniti lease. I am currently over the mileage by 30k. I know the best options would be to sell it out right and 2nd best would be buy it so that I don't get hit with the mileage penalty.
If I sell it outright can it be to a dealer like CarMax where they give you a valid offer for 7 days or does it have to be to a private party?
If I have to negotiate with them to purchase outright, do you have any suggestions on where to start price wise? Is there a percentage off the residual value that you suggest?
Car has been a great car and it was involved in one accident all repairs were done at local shop and paid by insurance. Car otherwise is excellent condition and garaged daily.
04:31 PM ET (US)
Hey hey Sarah,
I just posted a similar response below to Jenny...
Instead of relying on the HIGHLY inaccurate KBB appraisal, I would visit a nationwide, no-haggle... used-car seller like CarMax. Search for your Kia Sportage there with about 36,000 miles. I would see if the average selling price is at least $2,500 more than your buyout. If it is, great... I would try to flip it - as I document here:
If not, I would simply turn the car in and be done with it. No harm, no foul.
Again, my clients get access to my list of Wall-Street-funded car-buying services that will bid to buy out your lease (and maybe put hundreds... maybe even thousands in your pocket). This is included when you get my KTL USA At-home Leasing System here:
First, I would visit a nationwide, no-haggle... used-car seller like CarMax. Search for your 2015 Outback there with 36,000 or so miles. I would see if the average selling price is at least $2,500 more than my buyout. If it is, great... I would try to flip it for a nifty profit as I document here:
If the Outbacks are selling for less than $2,500 more than my buyout, I would simply turn the car in and be done with it. No harm, no foul.
About the $800-a-month payment: sounds like you got "loyalty slammed". No, this is not some pancake special at IHOP... loyalty means you are "loyal" to Subaru. And "slammed" as in grand slam - because $800.00 a month is more than double what you should pay for that Ascent... even if you got the most expensive "Limited" package.
You sound like a perfect candidate for my KTL USA At-home Leasing System. Get it here:
... My system gets you the best deal AND helps you find Wall-Street-funded car-buying services that will bid to buy out your lease (and maybe put hundreds... maybe even thousands in your pocket).
02:25 PM ET (US)
I know you said KBB is often wrong in terms of car values. For my nearly two-year old Kia Sportage, it's giving me roughly $13k in value. My residual lease value is $16,500. Is this too big of a gap to make a possible flip? Also, do you think your service is worth it if I'm not looking for a fancy car, but instead just looking for the best deal I can get on a lease? Thoughts? Thanks in advance.
12:45 PM ET (US)
Hi Markus, What advice would you give for someone who is 120 days out from lease end with a residual value amount of $21,000 for a 2016 Subaru Outback. I got a quote from the same dealer for an almost $800/month payment for the ascent and am feeling like I'm out of options. I feel like the residual value total is too high to try and flip. What are my choices?!
Hi, My lease is up on my Honda Accord-Unfortunately Ijust saw your articles so I'm behind on what to do--Do you have a list of companies that will buy the end of lease cars? Pls let me know ASAP. THANK YOU.
06:31 PM ET (US)
Normally, I am off the grid on Saturdays - but my wife left me...
To go to a friend's reunion, that is.
So here are the quick answers:
There are over 60,000 car dealerships in the good ol' USA. I investigated each one and cherry-picked those with the highest number of units sold. (I cannot reveal exactly how I did that as it would freak dealerships out.) Plus, when my clients get the best deal, I am privy to the winning dealership. And if that dealership is missing from my list, I add it.
I update my list every day. This is my full-time job here.
I cannot guarantee results - the FTC is REALLY cracking down on "claims." So yes... you might completely waste your time (and money paying for my system):>
About "wholesale" dealers selling to the public... I have no idea how they get away with it, but they do. They have been helping my clients since I started this system in 2017. And ever since Georgia changed their tax laws on leasing, I have a LOT of Georgia clients.
Off to finish up my end-of-lease video tutorial... it will blow everyone's mind. Stay tuned!
By the way: the 1% rule is a guide. It is a gauge to see if we got an outstanding deal. It is not guaranteed.
Edited 01-26-2019 06:32 PM
06:20 PM ET (US)
I can search your blogs and Q&A for hours. But can I get a quick answer? The main thing that I'm interested in is your contacts for the 1 percent rule. I'm not sure how you personally connect with them. How many will there be available to me when I join that will "honor" the 1 percent rule? Are they updated? I don't mind asking for quotes for 3 dozen or so of your contacts but I'm leery of wasting time. And how can a wholesaler dealer lease cars to the public? I'm in Atlanta, GA and that's illegal here. Many thanks for a response!
02:33 PM ET (US)
Kevin - about buying used cars...
My site is all about leasing new cars.
I do not buy used cars because with my system... we are able to get a new car for about the same cost per mile as a similar used car.
02:30 PM ET (US)
Best way to buy a used car?
11:32 AM ET (US)
Hey hey Tom,
KBB is often WAY wrong. Dealerships and car-buying services use an expensive subscription-only service to come up with an offer for us. If we are underwater, we would send them the balance at the same time they buy out our vehicle.
My clients get access to my list of Wall Street-funded car buyers. I teach my clients to get bids. Highest bid gets our end-of-lease car (and we get the lease equity). Now in your case, your goal should be to come close to breaking even (based on how far over you are on mileage).
I know 26,000 miles at a 25-cent-per-mile-penalty sounds like a lot. But, the wholesale rate on over-the-mileage penalties is just shy of a nickel. So, you are "in the hole" by $1,300. But, if your vehicle has at least $1,300 in lease equity (again, I recommend going with the highest bidder), then you can walk away from your vehicle without owing a penny (or you might owe a few hundred bucks - not $6,500.00).
Now, if you have a vehicle that the marketplace does not want, the worst case scenario is you buy the car.
Again, I recommend getting bids. The best-case scenario is you come close to break even.
The problem with rolling negative equity into a new lease is you are missing out on getting bids from these Wall Street-funded car buyers. Again, they might bid so close to your lease buyout amount that you will not have to roll any negative equity into a new lease.
By the way: The other problem is you have almost no chance getting approved (credit wise) rolling in such a large amount into a new-car lease. You need to be under 120% of the MSRP - even if you use my system and get a "unicorn" deal, you will most likely be over the 120% threshold... even if you got the most expensive car available.
10:32 AM ET (US)
Follow up question. Does it still makes sense to flip the car if I am underwater? Checking the values in KBB the difference is about the same as the the penalties. Should I have the dealer I eventually lease from, roll the difference into the new lease? Or find a way to pay for the difference out of pocket?
07:25 AM ET (US)
Good morning Tom,
I understand your sense of dread - the car industry loves to freak us out.
Yes. Your worst-case scenario is to buy out the car.
My lease ends in February am way over miles, about 26,000, on my 2016 Malibu with a $0.25 penalty. I really like the car so my original plan was accept the higher than market buy option and purchase the car at the end ubt after getting stuck in the snow in a recent storm my wife is adamant we get an AWD SUV.
What are my options? The increasing sense of dread is keeping me up at night.
02:06 PM ET (US)
Here in the USA, we can only lease new cars.
And my system only works with new car leases.
Edited 01-24-2019 02:07 PM
02:03 PM ET (US)
Will this system work to lease used cars? Looking at 20-6 Porsche Cayenne.
05:23 PM ET (US)
Hey hey Joe,
The auto industry wants to scare us into thinking we are in a pickle about mileage.
But this is a WHOPPER of a lie.
As I have hinted about here a lot, I am finishing my exhaustive video on the concept of "flipping" our vehicle for a profit. But we can also flip our vehicle to close the gap on being over the mileage limit.
This is an un-edited transcript of one part of my video that should help you feel at ease:
I often hear, "What should I do if I drove more than the mileage allotment?"
This is one of the most-asked questions I get about the end-of-lease process.
People get SUPER stressed and anxious about this.
Because leasing companies scare us half to death about mileage penalties.
Our signed lease agreement forces us to pay 15 cents... 20 cents... 25 cents - heck, I have even seen an over-the-mileage penalty of a dollar per mile.
So I get it. Over-the-mileage penalties add up quick.
And being forced to pay thousands of dollars for over-the-mileage penalties SEEMS to make leasing look like one big mistake.
There are a couple of fast and easy ways to get around these expensive over-the-mileage penalties.
My favorite way is... yep, no surprise... is to flip our vehicle.
Because when the lease is bought out by a Wall Street-funded car-buying service, the lease agreement is null and void. And all penalties are forgiven.
We could be a million miles over the allotment. Yet, after buying out the lease, we would owe nothing in over-the-mileage penalties.
Of course, totally escaping mileage penalties completely depends on a few factors.
First, let's talk about the true cost of a mileage penalty.
Remember, that over-the-mileage penalty that we pay at lease end is a full-priced, retail amount. There is no discount. It provides the leasing company with a MASSIVE profit if we choose to pay it. I say "choose" to pay it, because we have the option NOT to pay it. And in almost every situation, paying this full-price penalty is what suckers do.
Yes, I said suckers:
Because suckers never invest the time to look at alternatives.
The good news is you are watching this video tutorial. So you are not a sucker.
Here is the fascinating part:
The wholesale cost of over-the-allotment mileage is roughly a nickel. Yep, just 5 cents. It is not 15 cents... not 25 cents - and certainly not a dollar, either. Plus, it does not matter if we are over the miles in a Mitsubishi or a Mercedes... Honda or Hyundai... Volkswagon or Volvo. The wholesale cost is almost always roughly a nickel no matter what brand of vehicle we turn in at the end.
So, when we flip our vehicle, one mile over the limit will reduce the value of our vehicle by about 5 cents. When we drive over the limit by 1,000 miles, the total value of our entire vehicle is worth about $50 less. Drive over 5,000 miles over the allotment and our vehicle is worth about $250 less.
See how over-the-mileage penalties are no big deal?
Because, when we flip our vehicle, our extra mileage will only reduce the total appraised value of our vehicle by just tens or just hundreds of dollars - not thousands.
In a surprisingly high number of cases, people who lease cars wind up going WAY over their mileage allotments.
Life happens. Things change. And those leasing a car at 12,000 miles a year wind up driving over 20,000 miles a year.
Yes, paying even 15 cents a mile adds up fast. But we now have the knowledge to skip the lease turn in and slash our over-the-allotment mileage penalty by flipping our vehicle. Not because we would expect to make a profit. But rather, to mitigate and minimize our losses. Flipping allows us to slash our over-the-mileage penalty by up to 75%. Again, instead of paying 15, 20 or even 25 cents for over-the-allotment mileage penalties, the appraisal value of our vehicle only goes down about 5 cents a mile.
As a result of flipping, I have had clients who were about to pay thousands in over-the-mileage penalties almost break even.
03:13 PM ET (US)
Hi, I am in pickle. I have 1,000 miles left on my lease mileage. I am at 42,000 and my mileage contract is 43,000 and my lease currently ends in 9 months. I have had other dealerships send me promotions in the mail and tell me they will pay off my lease for the same payment of 300.00 now and get me into another lease. The dealership I got my lease from told me they can not give me 300.00 again because I owe 9 months and it will be more like 425 dollars now. They also told me that the promotion offer of paying off my lease is a teaser that I got from other dealerships. What can I do because I can not afford anything more than 300 dollars now. I have also never put anything ever down and I always did sign and drive option. I am desperately looking for answers and can use some assistance. Thank you Joe
10:01 AM ET (US)
Hey hey Ron,
Yes. My system turns the tables on "dealerships". Instead of shenanigans and B.S. games, we are in control - from the comfort of our home. Anyone who goes to a "stealership" is overpaying by at least $6,000.00 to $12,0000.
About timing. Waiting until March (end of quarter) might save us less than 9% of the payment we get any other time of the year. Is that worth it? Of course, that is up to you. And I say might as in at the most. For example, last month (last week of year) was a HUGE disappointment for (most of) my clients. It certainly was not worth the wait.
Remember, my system finds the preverbial "needle in the haystack". It finds a car seller who needs that one last sale to make their HUGE "retro" (i.e. retroactive) manufacturer-to-dealership bonus. Sure, incentives help, but it is more about improving our luck finding these desperate car sellers. This is why I do not spend a lot of time fretting about incentives. Instead, we send out dozens and dozens of pitch letters to target a 1% deal.
About your second question - my system works well to get Pacificas super close to 1% of the MSRP (and as always, $0 cash down). In this case study, it was actually less than 1% of the MSRP:
With that said, I would NEVER, EVER get a Pacifica. Nor would I get a Sienna or Odyssey. Because the INFINITI QX60 gives us WAY more bang for the buck. Of course, the QX60's middle-row doors do not slide open... but that is okay because we always park away from other cars in lots. And INFINITI's center stack is long in the tooth - very dated. But that does not matter to us as our iPhones and iPads fit the bill quite nicely. The QX60 does not have captain's chairs... this kind of sucks, but it is not a deal breaker for us, either.
Hi Markus! I purchased your system about a week ago and have been doing my homework in getting prepared for today - Tuesday. Your videos, success stories, blog posts, templates are all spot on. Very easy to follow! I came up with a list of 100 dealers here in southern CA and sent out email #1 today as a feeler. I have about a 70% response rate so far which is great, and about 5 legit lease worksheets to consider for Email #2.
My question has to do with timing - now that it is January, there are literally no incentives on the car I want (or more specifically, my wife wants) - a 2019 Honda Odyssey EX-L ($38,610 MSRP). The only incentive listed is $750 loyalty cash if you already lease a Honda which I do not (I own an older model Odyssey). In March, it will be end of quarter and end of fiscal year for Honda. Would you recommend waiting to see what, if any, incentives there will be for March? In your opinion do the incentives make a material difference in the monthly payment price dealers will go down to?
Second question would be recommendations on minivans. Apparently Odyssey leases are hard to get discounted, same with the Sienna. Pacifica has some good incentives but poor reliability, even though we would only have it three years. In your experience, what would be a typical 'good' percentage for an Odyssey? Your blog said to start with 1.17% ($440). After Email #1, best offer so far is $474 per month sign and drive ($570 due on delivery).
Any advice is appreciated! No matter what, this is a fun process and it is amusing to see so many responses in line with what you said to expect! Ultimately I may drag my feet and do a 'remember me' and 'are there any new incentives in March to get me closer to my budget' messages in March to see what happens.
06:57 PM ET (US)
Can you copy and paste this message as a help-desk ticket... it is under the "Help" tab.
05:46 PM ET (US)
Hi, Markus. I know you've answered this question before, but I can't find the answer. I just sent out the email 1 to all the named people, and now I need to get the car dealerships that only have "Contact Us." How do I do this? (again!)
04:55 PM ET (US)
Thanks, Marcus! I just ordered your program. We should be pretty good candidates I think; fico in the mid 700s, good income, & we are not desperate for a new car. We can wait until we get a great offer.
Ill let you know how we do! Hoping we can provide you with your next great success story.
07:19 AM ET (US)
What you are looking for is what I call a "rare production" car. My system works quite well with these.
With that said, you are looking more towards the 1.3% of the MSRP - again, always sign and drive (no money down).
When you say "settle" - I will gladly "settle" when I am able to save $6,000 to $12,000 on a new-car lease. That is how much extra profit is available on any car sold here in the good ol' US of A. Because most people pay 100% full price on leases. Some "lease hackers" shoot for 6- to 11% reduction in price. With my system, we shoot for a 26.5% reduction in price.
Again: there are no guarantees... way too many variables in the grand scheme of things.
12:28 AM ET (US)
Hi Markus! I'm curious about how much I will have to 'settle for' for our 1% lease price if I use your program and send out lease requests to the dealerships; i.e., interior/exterior colors, options, etc. The vehicle we need is hard to find in the exact set-up that will work for our family (we need the All Wheel Drive due to location; we need certain other features to accommodate our family's special needs (rear windows that roll down most of the way, rear moonroof -sounds unusual, I know, but for our twins' autism, anything less feels claustrophobic to them and we're limited to 30 minutes of travel before panic attacks...)
For my own sanity, no white vehicles this time -but that's the VAST majority that I'm finding. I found a single vehicle that ticks off all of the needs plus our color request within about 100 miles. We can wait, as we aren't in dire need yet. We have 2 working paid-off vehicles, and about 30 minutes of travel is all we do for the most part. However, those paid off vehicles will be needing tires, possible transmission work, and a new battery sooner rather than later. Can a dealership order us our exact specs for our offer, or are we needing to focus on what is sitting on the lots?
Thanks in advance! Love your blogs, & looking forward to checking out your Lease At Home Program. -JP
08:53 AM ET (US)
The 1% rule is merely a guide. My teach my clients to shoot for getting leases between .7% of the MSRP and 1.3%.
This is for everything - including taxes. Plus, we never put a single penny down... so it is a sign-and-drive deal, too.
Since local taxes vary widely, some areas might get a bit lower prices, others higher. City dwellers typically pay more than those living in the suburbs (or like me the middle of nowhere).
(And yes... there is an MSRP for the car and a separate MSRP for each upgrade and option.)
I often sound like a broken record. Because so many people are stuck on the "1% rule" as gospel. It is not. It is guidance - not guaranteed. It is a target. For example, if you get any BMW lease below 1.3% of the MSRP, you did super duper well. But if you get an INFINITY at 1.1% of the MSRP, you did "just okay. But a 1.1% Hyundai deal is fantastic."
There are so many factors at play - I would not get stuck on the "1% rule".
What I teach my clients is to use my system and see what happens. I even suggest using my system on several different cars over the course of several different weeks. This way, we can see which car gives us truly the most outstanding deal.
01:54 AM ET (US)
Hey Markus, simple question. When applying the 1% rule say for an SUC thats valued at $32,000 the monthly payment should be around $329 or less however is that before or after taxes? Also, would iit be safe to assume that if the dealer wont meet at that price I shout just walk away? Also, the MSRP is what the manufacture says the car is worth but when you get to the dealership there are a bunch of ads-ons That jack up the price. So should I stick to solely trying to get the 1% rule to match the MSRP or the total value of the car with all the upgrades?
09:09 PM ET (US)
Hey hey StillLearning,
Yes, odds are the dealership is laughing all the way to the bank - while slappin' you on the back for "taking us to the cleaners on this deal."
Do not fret about it. It happened to me all during my adult life. This is why I launched this site. (But it will NEVER happen again.)
No need to send me your lease agreement - this post helps you self determine if you got a truly outstanding deal on your new lease:
I came across your site a little too late (I got a leased car 10 days ago). I think I got a good deal but I'm not sure, as there are so many fees on the paperwork. Even if I did not pay them, I'm pretty sure the dealership benefited. I'm trying to understand how. Please I'd like to send you my lease agreement for a look over. Would you kindly educate me?
08:13 PM ET (US)
Hey hey RTM,
I get the confusion on my stance about flipping end-of-lease cars for a profit here...
Most of the questions in this FAQ section surrounds being either "underwater" and/or being way over the mileage allowance...
But for the VAST majority of people who get my system, they walk away with a nifty profit after having a car-buying service buy out their lease.
We avoid paying a "disposition fee" of at least $350.00 when we "flip" our vehicle.
Even better, the car-buying services I recommend within my system offer to flat-bed tow our old car away FREE. It sure beats begging the dealership to take back our car... and yes, we have to beg them because they HATE taking back cars (unless we lease another new car from them).
So to be clear: I HIGHLY recommend trying to flip our end-of-lease vehicle for a profit. If in the unlikely event we cannot, then we simply turn in the vehicle and walk away.
At the risk of sounding like an annoying broken record, my video will explain this complex topic at length. I cannot wait to alert you when the video is complete. Stay tuned!
Edited 01-06-2019 08:34 PM
02:29 PM ET (US)
Markus, I'm considering your program but it's not clear which scenarios you focus on. Based on your posts, it appears you don't recommend purchasing your car coming off a lease or trading in your lease for another one. If that's the case then what is the ideal scenario for your system? Thanks!
Edited 01-06-2019 02:54 PM
08:56 AM ET (US)
Good morning Casey,
If you read this thread, you know I have been promising a video about "flipping" cars since last month. I do not make excuses - but I am still workin' on it.
With that said, most people get their appraisals from Kelly Blue Book, etc. These are not always accurate. I have a better way to appraise - again, I will have it in my video.
About VW willing to adjust their residuals... just ask. Contact VW and ask how you can get the residual lowered by 10%. This works from time to time. As they say, if you do not ask, you do not get.
The good news is if you cannot "flip" your VW for a profit, you simply hand in the keys and walk away. (Of course this is different if we are "underwater" and owe a lot for under-the-mileage penalties. Again, my video addresses this issue.)
And I appreciate the kudos on my blog.
10:49 PM ET (US)
I'm in a lease with 5 payments left on a Volkswagen GTI. I found out I'm having my first kid soon so I want to get into a cheaper lease. However, I'm not sure what to do with my current lease. It's appraising about 2000 to 3000 lower than the residual value, and rolling the remaining payments into my next lease is putting me out of budget on a lot of vehicles I'm considering. Do you think Volkswagen Credit is still willing to adjust the residual after their multiple scandals? And what part/who do you contact at the financial company to discuss adjusting the residual?
Also just wanted to say thanks for your website, it has helped me tremendously. I'd like to use your product once I actually get into setting up a lease for my new vehicle.
10:05 AM ET (US)
Hey hey Jordan,
Great followup question:
As an entrepreneur, I like to mitigate risk.
Right now, interest rates are rising. My observation is they will never be as low as they were 2 years ago. By locking in a rate today at relatively low interest rates, I mitigate the risk of having rates double in a few years.
Now, if I saw a trend of lowering interest rates, I would agree - let it play its course and buy out at the last minute.
09:59 AM ET (US)
I have a follow-up to your response to Hanna... Why buyout the lease ASAP and not just let it play its course and then buy it out? If its going to cost the same anyway...?
09:03 AM ET (US)
Hey hey Hanna,
About your Honda Civic LX 2017:
You are WAY underwater at this point - not good. And you will (probably) not qualify to roll the negative equity into a new car lease.
Do not feel bad. A LOT of people who lease cars are underwater. The auto industry is good for hosing people.
So, if I were you, I would buy the car ASAP.
The total buyout price on any vehicle lease is:
Residual Value + Remaining Payments
(Lately, leasing companies have been adding a $350 buyout fee, too).
Buying out your lease totally eliminates any over-the-mileage penalties.
If you have the cash to buy out the lease, then you would send the payment directly to the leasing company.
If you do not have the cash, you will look to get financing from either any Honda dealership (a traditional bank or a credit union)...
Since I am a member of a credit union, I would get a quote from them. I would then leverage this quote and see if the dealership would be willing to match (or beat) the quote.
If you have less-than-stellar credit (between FICO 620 and 699), then dealerships are typically the best to work with.
Hello there, I have a leased Honda Civic LX 2017 for 36 months that means that lease will be ended in 18 months on July 2020.But, I already have 25000 miles.I don't want to keep driving and go over the mileage and pay a high penalty.I consider to buy that car (no smart other options) and do they allowed me to buy it without extra penalties? Pay off amount on may last statement was $17.000.Is this a price that I have to pay to them? My dealer wants to take that car from me now and offers me to pay monthly payment till it will be paid in full.I don't like itbc i have to pay a couple hundred dollars interest or even more. Please let me know is there any oder wise solution in this hard scenario. Thank you Hanna
Edited 01-02-2019 10:18 PM
01:17 PM ET (US)
Yes it is true. I officially claim my system does not work with trucks. (But the truth is my system works as well with trucks as it does with cars.)
The problem is truck makers regularly make their trucks not available as a lease. This just happened with the Ford Raptor. One week it is available, the next week not.
So, earlier this year, I proclaimed that my system does not work with trucks.
And about having RAM on my list - thanks for reminding me to remove that... I will leave it up the rest of today and take it down tomorrow.
11:57 AM ET (US)
You mention your system will not work with trucks but you have RAM posted in your Wholesale Dealers list. Please advise.
08:18 PM ET (US)
Can you send this to me via my Help Desk within the system?
Deleted by topic administrator 12-26-2018 08:44 PM
06:55 PM ET (US)
Hello again, Eric.
I am not sure what "guard rails" are. Maybe you meant guidelines?
I am interest in purchasing your program, the one thing I dont understand is how you know where the guard rails are for getting the lowest price. If researching online invoices is misleading, how do you know how to get the lowest possible price? If Im interested in a Honda Pilot EX-L and the advertised price is $40k and the KBB invoice is $39,068, what should I offer?
03:31 PM ET (US)
Earlier this year, I offered a final one-on-one strategy session. It was my last one. I no longer offer phone consultations.
My KTL At-Home Leasing System is 100% self serve. It comes with video and written tutorials that answer questions from the last 2 years of my offering the system.
I have a 2017 Acura MDX,that I am leasing,I agreed to 7500 miles per year on the lease, the 3 year lease period is not up but I'm about 1,000 miles from the allotted amount for the 3 year term. What should I do. Can I extend the lease even though it's not even up, or should I go to a bank and look at buying it. (913) 319-9357
09:47 PM ET (US)
Hey Paul M.
Over the last month, I have promised a video tutorial revealing exactly how to "flip" an end-of-lease vehicle for a potential profit.
No excuses - been working on it every day. It is a VERY complex "mindmap" that I am trying to simplify.
About comps, etc... Kelly Blue Book gives (most) people terrible data. There is no correlation between what is says and reality. Same with Truecar, etc.
About leasing a used car - terrible idea. Because we can get a brand new car for less money per month (using my system).
Back to filming my video... stay tuned!
09:14 PM ET (US)
Turning lease in after 42 months...extended it for 6. My buyout for Subaru Motors finance is $16K for a 2015 Subaru Forester 2.5 i Premium with 31k miles...well below what many comps have. I see a 2017 Subaru Forester 2.5i CVT (upgrade model) with only 12k miles on it at a Ford dealer who is eager to unload it. I am asking them to lease with no money down. They have it listed on Truecar for $19K. Is it a good idea to lease this SUV and is it possible and wise to lease a used vehicle. The incentive is the upgrade model, low miles. Check out the car if interested:
> I guess I'm not sure what the point is of all these specials and rebates etc to get the sticker price down if the msrp is the number used to determine the 1% deal in the end. So glad I found your website! Thank you!
If we do not get a discount off the MSRP sticker price, we pay a higher price - which is a higher monthly car payment. And typically, that higher price is at least 2% of the MSRP.
We want to find discounts and incentives to lower the percentage to 1%. There is about $6,000 to $12,000 in any car dealer of extra profit. If we pay full price for a car lease, the dealership keeps that $6k to $12k. If we get discounts and incentives, we want to convince them to pass along those savings to lower our monthly payment (and get $0-cash down deals).
This is exactly why I created my KTL At-Home Leasing System. I reveal how to do it all - from home... without wasting up to 5 hours at a "stealership":
I guess I'm not sure what the point is of all these specials and rebates etc to get the sticker price down if the msrp is the number used to determine the 1% deal in the end. So glad I found your website! Thank you!
04:23 PM ET (US)
Hey hey Layla,
The "1% rule" is based on the full manufacturer's MSRP sticker price of the car.
1) A lot of "Stealerships" artificially inflate the MSRP on the window sticker. This makes it appear that any discounts are larger than they really are. If you are a client of mine, log into my system and look for the search engine to get the true MSRP on any car sold in America.
2) The 1% rule is a loose target. It lets us self check to see if we got an outstanding deal. Sometimes we can get a .7% deal or as high as a 1.3% deal - this averages out to 1%. Getting a 1% deal depends on lots of things. This includes geography, local tax rates, type of car, credit score, production cycle, secret manufacturer-to-dealership incentives, etc.
Finally, I get "janky" when the word "negotiate" is mentioned here...
Car dealers HATE that word, too. And they will present us with fuzzy math to make it "seem" like we "negotiated" a great deal...
If you enjoy negotiating, my system is not for you. (I am not kidding... studies show 1 out of every 10 people LOVE negotiating a new car deal)...
I teach my clients to borrow my list of aggressive dealerships (sorted by auto manufacturer) and ask if they want to lease us a 1% deal - always $0 cash down. There is no negotiating with my system. There is no hagglin' with my system. We just ask for the right deal in a respectful manner - with the right timing. Most dealerships decline our offer, but some jump on it and lease us our perfect car near the 1% rule.
02:05 PM ET (US)
Hi! I'm sorry for the elementary question - but with the 1% rule - am I basing that off the sticker MSRP price? Or the lower price I am able to negotiate (after specials, rebates, etc. etc.) Thank you so much for the help!
01:57 PM ET (US)
The wholesale rate for being over the mileage is roughly 5 cents. So even if you are over by 10,000 miles come March, that is less than $500. Not a big deal when trying to "flip".
And a PDR (Paintless Dent Removal) service can pull out dents FAR cheaper than a collision shop. But, I would not worry about dents if they are small - less than the size of a credit card.
So yes... you MIGHT be able to sell it for a profit. I cannot make any claims of success - our government does not like that.
01:21 PM ET (US)
I have a leased car2016 elantra it will completed in march 2019. It is over the mileage by 4000. And it has a dent in the driver's side fender. Can sell for a profit.
Hello, the lease on my 2016 Base WRX is about to end (took it from a seller working there), the car is in great shape and has about 25 000 miles on it. I actually love the car and would like to buy it, but it was suggested to me (and by that seller working there, too) to sell it in order to pocket the equity since the market value on these cars is generally greater than the residual value. So I was wondering whether or not it's a good idea to buy, and if so, what kind of price tag should I expect on it: residual value or market value. I'm new at this.
Deleted by author 12-04-2018 02:43 AM
09:26 PM ET (US)
About your Hyundai - I recommend flipping it for a profit - details here:
My 2016 hyundai 36 month lease is done in about 9 days.I paid $140 a month the residual value is 10,600 should I keep the car or turn it in.I am 72 yrs old and have only 12,300 miles on it.I probably will only put about 5000 miles a year on it.The dealer said I should buy it but I would have to finance it for 60 months at $200 a month.what do you think I should do.
05:19 PM ET (US)
Hey hey Sandy M...
Can you copy this question and send it to me via my Help Desk.
This is a lot of inside baseball stuff:>
When you log into my system, click on the Help tab... then look towards the bottom to submit a help ticket.
11:27 PM ET (US)
Markus, Wow, I did not expect you to answer my email so quickly! Thanks. :) Yes, I am a client of yours. You mentioned being female can be an issue - I totally agree. I am also disabled and leasing this car alone. Talk about a trifecta!
I have owned or leased several cars in my lifetime, and all the car companies have a special deal. They will assist a person with a disability to adapt their car - including leases. I am looking at a Mazda CX 5. For some reason, however, Mazda Mobility will not adapt cars if they are leased. The last time I had a car adapted it was almost $1000. Is this something I can bring to the table? Who should I talk to? The dealership or the actual company?
Another question is about the dealerships. I will be looking at dealerships in my area (small) and an area 200 miles away. The larger area has dealerships that are all similar. For example, several Mazda dealerships but they all have the same name. (CityA Bob's Mazda, CityB Bob's Mazda, etc). Should I contact all of them or just one?
Thank you, again! -sandy
04:46 PM ET (US)
Hey hey Sandy,
If you are a client of mine (or looking to become one)...
I find the all-new model is generally cheaper than the mid-year model about 3 months after it was released.
With that said, you are in a GREAT position (timing wise).
Because you have at least two 30-day cycles to use my system to get the best deal. Meaning, if you do not get a good deal one month, you have time to try it again the next month.
If you are able to get the best deal this month (which is a high probability), I would "flip" your car to get out of your lease early (and might even get cash back via your "lease equity").
03:35 PM ET (US)
Hi, Markus, I am currently leasing a small SUV, and my lease runs out in February 2019. So, I am looking to get a new SUV. Should I wait until Feb., or find something in the 2018s? It would seem. I would get a better deal if I went with the 2018s.
I am still working on it. It will be worth the wait.
Stay tuned for an announcement about it.
07:38 AM ET (US)
Good morning Tee,
I would keep the Corolla.
I feel gas prices will continue to go down. So the PRIUS gas savings will not even matter much.
Your recent bankruptcy will cost you a TON in leasing "Rent Charge"... banks love bankrupt customers because they are able to charge outrageous premiums. In fact, you are going to pay a lot for many things as bankruptcy is tough like that.
I had 2 business bankruptcies because of 9/11. And going bankrupt was the absolute dumbest thing I ever did. Instead, I just should have done nothing - stopped paying all my debts and started building back up my credit 4 years later (look into "statute of limitation on debt")... it would have helped me build my credit faster. I know you do not want to hear that now, but it is the truth.
The only real winners in a bankruptcy are lawyers and those who lend money to bankrupt people. Of course, bankruptcy lawyers "forget" to let us know how things will work after bankruptcy... if they were truthful, most people would not go bankrupt.
Yikes... I wish I had better news for you. My family would enjoy you buying my leasing system:> But the truth is I feel leasing a new car right now is a bad move for you.
11:45 PM ET (US)
Hi Markus, I need your advice I currently have one year left of my lease on a Toyota Corolla 2017. lost my job and sold my house and moved in with my Brother. recently I got a new job but the commute is 56 miles each way :-(. I was thinking if there is a way to switch my Toyota Corolla lease for a PRIUS lease. Is that possible? or is it a bad decision? and just to make this more fun for you ( Big challenge) I had to file for bankruptcy in April 2017. but I kept paying on my Corolla to Toyota financing company. ( Ps. I had a Prius before that I leased from them and paid fully till the end of the term. My credit is getting better and its considered Fair.
Please let me know your thoughts
10:21 AM ET (US)
There is a mantra that floats around in the lunchrooms at car dealerships.
It is, "Buyers are liars."
This might be true, but car sellers take lying to another higher level. That is, car sellers are trained to lie or they lose their job. I am not kidding.
I would not beLIEve a single word uttered by a car seller.
And it is true. Right now, there are no real manufacturer-to-dealer incentives for that vehicle.
With my system, it really does not matter much. (Typically, these incentives lower our payment $30 to $50 a month.)
Instead, we find car dealerships that desperately need to make that one last sale to get their retroactive manufacturer-to-dealers bonus. This bonus can be as high as $1,000,000 a quarter... and they need our one last deal to trigger this HUGE bonus. When we find these desperate dealers, the savings are hundreds of dollars per month.
With that said, I would NEVER drive another BMW or VW ever again. Both carmakers are putting out so-so vehicles these days. And there are SO many cars out there that offer the same (or better) "stuff" for a lot less money.
For example, the similar Volvo V60 (which is a lot more expensive) might come in close to a similar monthly payment than the VW. And trust me - you get WAY WAY WAY more car than the Alltrack.
The problem with cars selling/leasing for less than $30,000 is the are not in the "sweet spot." The sweet spot is above $30,000, yet below $46,000. At these prices, my clients find they are able to lease an AMAZING Volvo car for nearly the same price as a low-quality VW.
09:52 AM ET (US)
Hi Markus, just recently stumbled onto your site while on my search on what to do with my next car. I was strongly considering financing and keeping my next car because Ive been leasing all my cars and it feels like Im throwing cash away. But after reading your site Im strongly reconsidering going back to another lease. Ive gone the leasing company route for a long time now. I have a lease with 5 months left on a 2016 Sentra sr. I pay 171 monthly for it and I payed 900 at signing I think? It was almost a sign and drive pretty much. Anyway I would love to get rid of it early if I can. The car I want however is apparently difficult to lease. Its 2018 vw golf alltrack. Given vws new peoples warrantee I was considering buying/financing it as the asking price I was fielding was 26900 on an SE. Allegedly the resale on the car should still be good so why is it still a bad lease as the dealers have been telling me. My lease guy doesnt even have one to price up from his network so I am a bit in the dark but I do like the car a lot. Anyway would love to know why this car is not a great lease as the dealers tell me, and would your system still work on this car, given their limited numbers. Thanks!
Since electric cars tend to plunge in marketplace value, it is super hard to get a car-buying company to pay us more than its end-of-term worth. We would be "underwater". And we would be forced to turn the car in without flipping it for a nifty profit.
If there was a super cool car that I wanted to lease (and did not care about flippin' it), then I would consider it.
By the way: The Hyundai Nexo is the "world's first dedicated hydrogen-powered SUV". Yikes. Cars are like computer software - I would never ever... never ever get the first version of ANYTHING. I would wait 'til version x.1.1 comes out. In the car world, that is at least a year later.
Absolutely. I would absolutely log into my system and look at the bottom for this:
"Flip your end-of-lease vehicle"
You have nothing to lose but a little bit of time and everything to gain by trying.
2018 Volvo XC60
05:56 PM ET (US)
I've used your KTL system to get an XC60 in March of this year, and have been following this thread since then.
In March of 2019, Mercedes is going to start selling the updated GLE, and I want to get one. By then my current lease will only be month 12 out of 36. Do you think it's possible those Wall Street-funded companies would be interested in buying my car, even though it's not end of lease?
09:41 PM ET (US)
Hey ho JP,
Your situation is not unusual at all - the car industry has hosed us for decades. Almost all my clients are seemingly "underwater" in one form or another.
And that is EXACTLY why I created my system.
> Will your system work for me?
The car industry would love for me to claim it works for everyone. Then they would RUSH to the FTC and get me shut down for making "claims." With a claim, it must work for 100% of the people.
P.S. The XC90 may seem pricey, but in my humble opinion, it is one of the best cars for the buck out there. I am getting one next year.
09:20 PM ET (US)
Stumbled onto your blog. Definitely interesting stuff. Have a somewhat challenging situation, and wondering if your system would work?
I'm looking to trade-in (or more likely sell) my fully-owned 2012 Volvo XC60 for a 2019 Volvo XC90 lease. I'm also looking for the dealership to take me out early of a 2016 Highlander lease that ends in April 2019. I need this to be a package deal, dropping 2 cars for the XC90. And of course, 1% sounds great on the pricey XC90.
Will your system work for me?
08:11 AM ET (US)
Good morning Rocky and Andy (and anyone else looking for my help on "flipping" their end-of-lease vehicle for a profit)...
I have GREAT news...
I am working on a new video tutorial on this subject.
There is a lot to soak in when it comes to end our leases. My video will make it easy peasy.
And since I do not take part in the CocaCola/Indian slaughter Thanksgiving "holy day":
... I have lots of time to finish it over the next week or so.
When I finish my video and it is ready for viewing, I will update this post here.
03:47 AM ET (US)
Hi Markus, My lease will be mature by 12/31/2018. Residual is about $40k on a 2016 Mercedes GLE350. What do you recommend? Buy it or lease another similar car? I like the car. I am paying $750/monthly on a $70k MSRP. Not sure if I can get the same deal again.
12:02 AM ET (US)
I have about 6 mos left on my 2016 Fusion plug-in hybrid lease. Needless to say, the $16,500 residual value is inflated. I see DEALERSHIPS selling used 2016 models for less, meaning I wouldn't be able to trade it in for anything close. I'm already $2000 over in mileage fees as of TODAY, not counting the next 6 mos of mileage! Do you think your Wall Street funded purchasers could help me? I fear buying out the car will leave me hybrid battery problems.
12:40 PM ET (US)
I will pass on your offer.
The only reason I am responding is to clear up a lie you just told about me...
I do not get paid from car dealerships. I could... I would get a paid a LOT, too. But that would be a massive conflict of interest.
I only get paid from my clients who purchase my information products.
P.S. You look EXACTLY like my dad.
Edited 11-21-2018 07:18 PM
12:28 PM ET (US)
Im in real estate and have been for many years. Here's a challenge - email me at [email protected] and I will send you all of my personal information. You can verify everything you want on my state's website. After which, you can show it to your children and Ghandi in an effort to show how you're wrong AGAIN.
I'm not in the car business and haven't been for 30 years. I HATE the car business, it's repugnant to me. You are the one in the car business - you get paid from dealerships for referrals. I on the other hand, just sound like I'm in the business because I have that wisdom that surpasses all human understanding - that exposes your fraud.
Had you just been polite to me as I was to you...I wouldn't have pulled intellectual rank on you and exposed you for the fraud that you are.
Again, have a good holiday.
08:00 AM ET (US)
Zixin... I wouldn't lease a used car if the only car left on the planet was a used car.
Leasing NEW cars are about the same price (cost per mile) than leasing a used car. So why not choose the new option?
10:48 PM ET (US)
A few dealerships I contacted only do open-end lease for their pre-owned vehicles. And they avoid answering my question about the car vehicle at return. That's why I asked you here. But anyway, thanks.
07:28 AM ET (US)
Almost every car lease here in the good ol' USA is a closed-end lease - not open end.
You have stumped me. I do not know the answer.
11:21 PM ET (US)
Do you know how the residual value is determined at the end of an open-end lease? Who would do the appraisal? Thanks.
09:05 AM ET (US)
Time to bring up a quote:
"First they ignore you, then they laugh at you, then they fight you, then you win
I have been waiting a LONG time to mention this quote (which is usually misattributed to Ghandi). I have been offering my leasing system for almost 2 years now. And finally, the car leasing industry is at the "fight you" stage with me.
Time for a quick story:
When I got an email notification about your first post, I asked my two children to see me in my home office.
I read your post out loud. And I mentioned the (misattributed Ghandi) quote above.
I explained that this Marty character is pretending to be an interested buyer, but is CLEARLY a phony - most likely to be working in the car industry.
They both got it. And the both smiled.
Thank you Marty for revealing how the car industry really works. Because as soon as their lies are revealed, they go into attack mode.
This is why I mentioned a few times in my posts below, "my system is not for you."
Because I knew you were here to be the shit stirrer. You lied about wanting to order my system. Your last post proved you lied.
Nice try Marty. But it ain't going to work on me.
This is my house. And you are not invited back to my party.
Do not post here again. You will be wasting your time, because I will delete and ban you.
12:30 AM ET (US)
Lol...again with the "has nothing to with it". You're trying to hard to be authoritative - but it comes across more like arrogance and condescendence. Especially because you're so wrong about eveything.
* 2nd response to me - "Time, desire , and wherewithal has nothing to do with it"
* 1st response to me - A majority of my clients are professionals who do not have time for games.
Looks like contradictory responses. Guess it did have something to do with it.
* Would not be able to achieve 1% without a MASSIVE discount.
Pure BS. See below.
25K MSRP and $5K rebate. So $5K divided by $25K = 20%. The MASSIVE 20% discount herein is nothing more than the rebate - meaning the car is sold at full MSRP which still packs a hefty profit. 10-25% depending on the car.
lease scenario 36/15 50% residual.
MSRP $28485 Invoice $26987 Rebate $ 4000 Adj cap cost $22967 Rent charge $ 435 Start-up amount $ 1500 paid for by the rebate. Drive off $ 0 Payment $ 275 Just under your 1%.
Above scenario is the same as your client's lease examples - small rental charge and a 1% of MSRP payment. BUT, where's the MASSIVE discount? Not only is there no massive discount, there is no discount at all... just as I suspected from the beginning. The only discount is the $4K rebate, which is not a discount at all, it's an EXTRA TEMPORARY incentive to motivate buyers to buy now.
With another $3K discount from MSRP - this payment would be $184. YOU SEE, why the 1% model does not get people the lowest payments. It actually helps a network of car dealerships get full pop customers believing they're getting the deal of the century. I'm sure the dealerships would love to pay a referral fee for these customers.
* He challenged me to get him a new car and meet the 1% rule
Wow, congrats. Your story presupposes that the 1% rule is the gold standard. I highly doubt this GM only wanted a 1% MSRP deal. No way. If he did...he wasn't much of a GM.
If you feel the need to respond - do so mathmatically instead of 5 paragraphs of superfluous rhetoric, otherwise just let it go while you're ahead.
Have a blessed thanks giving and Christmas.
Edited 11-17-2018 12:32 AM
06:28 AM ET (US)
> The 1% rule is based on leasing a car at full MSRP...which means no discount.
We would not be able to meet the 1% rule without a massive discount... something along the lines of 15% to 26.5% off the MSRP.
And by the way, a lot of car dealerships inflate the MSRP. So when I bring up the 1% rule, it is the official MSRP put out by each car's manufacturer.
P.S. My leasing system includes a video diary of me helping a retired car sales' General Manager. He too decided to get out (he's a Catholic school teacher now)... and he challenged me to get him a new car and meet the 1% rule (which is really a target or guide). I won his challenge. Easily. He was blown away. He too tried to haggle and negotiate a great deal in New York - he got nowhere and was frustrated.
P.P.S. Time, desire and wherewithal has nothing to do with it. All I did was flip the traditional model. Instead of negotiating with one... maybe 2 or 3 dealerships - we cast a wide net and contact every dealership selling the car we want within a 1,000-mile zone. We ask for a 1% deal, $0-cash down, $0 drives offs. In about 20 minutes, we find interested dealerships... they need that one last sale to desperately meet their quota.
01:58 AM ET (US)
Hi again Markus:
I do enjoy the art of negotiation. 25 years in sales. First sales job was in the car business, was also a top GP (gross profit) closer. I did a few leases then as well. I was one of them until I decided to have integrity and character.
I appreciate the lengthy response - reselling your product...I get it. But my questions were not addressed. I'll assume that I was correct.
* The 1% rule is based on leasing a car at full MSRP...which means no discount. * Your program gets the dealership to lower the rate (money factor) to achieve a desirable payment. That's great. I learned a lot from this point - which is what you misunderstood. Dealerships say that the money factor is based soley on a fico score, set by the lender, and cannot be manipulated. You've disproven the conventional wisdom of a money factor...hence the categorical and unequivocal counterintuitiveness.
You definately have a unique approach to a lease and it's great for those that don't have the time, desire, or wherewithal to tangle with dealerships. Great product.
07:23 PM ET (US)
Hey hey Marty,
Let me start with your last part:
Anal people do not (typically) like my system. They tend to enjoy the negotiating game. Their mantra is something like, "It's getting the get... not the get that we enjoy."
I created my system to be super simple to use and put into action. A majority of my clients are professionals who do not have time for games.
I know most "lease hackers" are anal and worry about Residual Values and Money Factors and Cap Costs. They run these numbers into lease calculators. And then they DEMAND that dealerships match the 1% rule. Often times, this leads to frustration and failure. Car sellers do not like seeing their customers present these lease calculator printouts. These car sellers get offended. And everyone loses in the end.
With my system, we do not worry about these nuts and bolts.
These are all illusions. They are magic tricks to distract us from the bottom line - getting the lowest monthly payment with $0-cash down, $0 drive off.
Instead, you borrow my list of aggressive dealerships - sorted by each auth manufacturer within the 3 selling zones here in the USA. I give you my prewritten, fill-in-the-blank contact templates. You fill in the blanks with the exact car you desire. You send out these precisely worded emails that are cordial and right to the point. We ask for near 1% deals (of the MSRP) in a way that is respectful. About 20 minutes later, dealerships reply back with a yes or no.
We do not negotiate. We do not haggle. We do not care about incentives. We do not wait 'til the end of the month. Heck, we do not even see a salesperson... the car is delivered to our driveway by either porters or a flat-bed.
And about the Rent Charge. My system finds the needle in the haystack sort of speak... we find that one car seller that needs that one extra sale to make their monthly "retro" manufacturer-to-dealer bonus. I know of one Nissan dealership that made over $1,000,000 this way. And that is EXACTLY who were are looking to do a deal with...
As long as we show at least $19,000 a year in income AND have a higher-than-620 FICO score, dealerships will forgo gouging us with their inflated Rent Charges. That is why my clients tend to have the Rent Charge in the 3-figure range, not 4-digit range. It has nothing to do with it being counterintuitive... some car sellers DESPERATELY NEED that one last sale to make their HUGE bonus. And we are rewarded with the savings.
Again, if you enjoy the art of negotiating - my system is not for you. My system skips through the crap and games of the car selling process.
06:35 PM ET (US)
Like your website and system...I'm about to purchase it, but I have a couple of questions.
I'm curious, is your 1% rule based on leasing the car at full MSRP? Am I wrong or wouldn't the 1% vary based on the adjusted cap cost (actual sales price) of the car?
Also, when the rental charge is lowered, effectively what's happening is that the interest rate (money factor) is being lowered. This seems counterintuitive because (lenders/liars) use the fico scores as their main reason to drive up the interest rates - if they can. So are you saying that via your system their ability to raise the rate is lowered or eliminated?
I'm kind of anal, I like to know the nuts and bolts, hence my questions. Looking forward to your feedback.
Thank you sir.
09:58 AM ET (US)
Hey hey John H,
I have a lengthy rant about BMW in my KTL USA At-Home Leasing System. BMW is one of the worst car companies out there right now. Awful in so many ways... including the heavy inflating of their residual values - which cause good people like you to be underwater.
There are 2 options for you:
First, I have a list of Wall Street-funded car buying services that tend to overpay for end-of-lease and used cars. You can read more about this here:
You might get lucky and come close to break even in the end.
Or, you can skip the "flip" (strategy #1) and might be able to roll your negative equity into a new lease. There are two problems with this - #1, you will not get a much for your trade... dealers know you are behind the 8 ball and will exploit this. And #2, leasing companies tend to cap the total dollars "lent" to 110% of the MSRP. This means you have to get a lot of discounts on your new car lease to make room to add your negative equity.
My system gives you the best chance to win this bad situation.
03:59 AM ET (US)
Hello Markus, I have a 2014 BMW 328 GT that I owe roughly $19k. I drive around 25k (bought used and currently have 80k miles in it currently) each year for work and after looking on KBB, it appears I might be upside down on the car. Does your program offer solutions to this? My wife is also currently leasing a 2016 Hyundai Elantra which is due back next September but there is equity in her lease. Do we have buying power if we use your system and get new cars at the same time? Thanks for the help.
11:28 AM ET (US)
I appreciate your question. You can contact me directly from the "Help" tab... look for the link at the bottom.
11:26 AM ET (US)
Hi, going through your materials as is there a way to contact you without going on this forum since I do not want to give away any of your materials but have a few specific questions I need help on. or should I just post here?
10:08 AM ET (US)
When you log into my system, look at the top for the Tutorial & Reference tab. Then look for the "Leasing a new car mid year vs all-new model which is cheaper?" tutorial I have (under the Pricing category).
And yes... devour my "Flip your end-of-lease vehicle" tutorial so you can be ready to get those Wall Street-funded car buying services to buy your current car's lease. I would do that about a week before getting your new car.
12:07 PM ET (US)
Just ordered your system and will try to devour it all!! since my lease is up Nov. 24 should I just start with getting a bid on my current car? and then go through the system. Dont want to make a mistake. Thanks
11:50 AM ET (US)
one more question please -- do you go for the 2018 or the 2019 model? I was going for the 2019 since it is out etc. Also if there are questions on what they send me do you help? thanks Linda
11:10 PM ET (US)
Hey hey Linda,
With my system, we do not worry about hagglin' for a reduction in the buyout price. Because I have a short list of Wall Street-funded car-buying services that pay top dollar to us. They do all the hagglin' for us. There is no cost for them to give you an online appraisal. Again, if we do not like their offer, no harm... no foul.
About buying a car: I would never, ever buy another car again. Buying a car - new or used is a BIG mistake. The benefits of leasing are too great. Remember... the cost to drive a mile in a new-car lease, a purchased new car, a slightly-used car, a lease-end car, a car bought for cash, or a clunker is roughly the same per mile. So why not always be in a newer, safer car?
And about that 0% financing: ha! The car industry LOVES to dangle that carrot. They might show 0% on the paperwork, but then hide the finance charge as some "other" fee. With that said, I admire you thinking this through. I LOVE critical thinkers.
Time for bed. Good night!
09:57 PM ET (US)
Thank you very much for the reply. Hyundai has lease and incentives until Dec. 3 so thought that would be good. Do you teach about getting a reduction in the buyout price in your course? Mine is with Hyundai finance--and thought I would try for the end of November to make my deal-- I usually buy the last day or 2 at the end of the month and those that have not made their numbers deal a bit better right?
One question though about buying versus leasing - if you have 0% apr for 4-5 years and get a good price on the car why not? at the end you at least can sell it and recoup some of the money which you cannot do on a lease? So if I purchase the Hyundai Sante Fe Sport 2.0T which is MSRP for $35,500 and found a dealer that would price the car at $29,200-30,000 and did the 0% financing with 20% down ($6,000) (I can qualify since my score is above 780 etc.) at the end of 5 years (which is also their warranty so I would sell it just before) I could sell that and recoup probably $16,000 or so no? So I would get back my $6,000 plus an additional $8-10,000 (I also drive about 7500 miles a year). But at the end of a 3 year lease I can only make money on the amount between the buyout and what I can sell it for.
So if you can truly get a 0% financing with the price price for the car isnt that better money wise? $6000 down is not that much but the return at the end is?? That makes logic to me no? Where am I wrong?
thank you! Linda
03:43 PM ET (US)
Do not be hard on yourself. I thought I knew a lot about cars all my life, too. I did not. Last month I ran the math on all the cars I bought or leased. I got fleeced for over $100,000 more than I should have.
The good news is the last fleecing triggered me to launch this site. Win-win for everyone (but the car dealers):>
And yes. lease calculators... Money Factors... RVs... and hagglin' are for suckers. It is an illusion for us to THINK we can beat the dealerships at their game.
Yes: my leasing system works for anyone with a FICO score of at least 620 and a yearly income of at least $19k - man or woman... as long as we live in the lower 48.
And no person should buy a car - no matter what age. A simple spreadsheet shows the cost per mile is virtually the same no matter how we get into a new car.
P.S. Your November 24th end-of-lease is not a problem at all. I have a short list of Wall-Street-funded buying services that (will probably) want to buy out your lease. If the math makes sense, it is cash in your pocket if your car is worth more than the payoff amount. If not, just turn in the car and owe nothin' but your disposition fee. And the worst-case scenario is leasing companies allow us to extend our lease (if we never missed a payment)... all we have to do is ask.
02:31 PM ET (US)
Hi Markus: My 2016 Hyundai Sante Fe Sport 2.0T lease is ending Nov. 24 (I know it snuck up on me) and was looking to either buy it or lease another one. I ran across your information for the first time and have read everything on your blog in addition to Q & A and also listened to people. I always thought I was good at leasing cars, I did the old money factor, depreciation etc game and probably did better than most but it is exhausting and very difficult constant haggling and walking out of dealerships with them running after me in the parking lot. I buy cars with calculators - I dont like depreciating assets but a car is a necessity. I read about your rent charge and NEVER even knew or thought about it. So my last deal was $322 a month or $342 including tax. BUT I JUST LOOKED and my RENT Charge was 2066.54!!! Ouch so guess I am not that good. I have been with Hyundai for about 9 years and use Hyundai leasing. Can this system work for me? I am a 69 year female and boy do they love to see me walk into a dealership. They start salivating -- 1. a woman and 2. an old one at that!! My buyout figure is $18,182 and the dealer is selling them for $23,500-$24,500 do I think I can make some money right? Am I on the right track? Will this work for an older woman and if so I will tell all of my old friends about it. Old people should never buy cars in my opinion. We need our money for healthcare and old age homes!
07:09 AM ET (US)
Hey Ryan, S:
You are correct...
March... June... September and December are (typically) better months to lease cars. The manufacturer-to-dealer incentives are (usually) higher when their fiscal quarter ends.
With that said, if you use my KTL Leasing System, it is ALWAYS a good time to lease. Because in addition to exploiting the highest incentives, we find dealership owners that need our one last sale to get their monthly "retro" bonus. One Nissan dealership I know had a "two-comma" bonus (over $1,000,000) when he surpassed his monthly "retro" quota.
Edited 11-09-2018 07:09 AM
10:53 PM ET (US)
Quick question. We are getting close to the end of the year, and I've been wrestling with pulling the trigger on jumping into a lease or not. I currently have an Xterra with a loan payment of about $300 per month and I am looking into a BMW or Mercedes to lease. My question is if I should jump on getting the new car (lease) now versus waiting until 2019. I read another post of yours that there are sometimes higher chances of getting better incentives since it is the end of the year. Thank you in advance!
08:20 AM ET (US)
Canâ€™t tell you how excited I am! Thank you!
Tamara Sent from my iPhone
07:39 AM ET (US)
Hello again Tamara Sims,
It is good to see you are looking to up your game. And getting my KTL Leasing System will give you all the tools to MASTER the game. Congrats on the purchase...
For the most part, cars go down in value as they age. There are rare exceptions. For example, when popular cars get discontinued, they rise a bit - Toyota's FJ Cruiser and Honda's Crosstour come to mind. With that said, you will at best be trading your payment dollars for equity if you wait until the end... so I would dump your Jeep sooner rather than later.
Here is the GREAT news.
If you got an offer from a dealership for $300 under the 10-day payoff, I have a list of Wall Street-funded car buying services that (should) pay you A LOT more. I call it "stupid money" - that is, these Wall Street car buying services buy out leases all day long for A LOT more than car dealerships. They are able to overpay because they have lower overhead. Everything is done via their website. Then they bring out a towing service to pick up our car and give us a payment for the difference.
To access my up-to-date list, log into my system and click on the "Flip your end-of-lease vehicle". You can find it towards the bottom... in the "After the deal" section. I have an entire tutorial on how to grab this "stupid money".
And remember: as I say a lot in my system - never, ever go into a dealership. Do everything from your home.
06:59 AM ET (US)
So, a couple things; I had a dealer yesterday willing to buy my JKU for $300 less than what the dealer buyout is on it & 2, I bought your kit yesterday because I too am dying to figure out the conundrum of cars. After an experience when I was just 22 of getting probably completely hosed on a deal, I vowed to never do that again. Iâ€™m now 38 & many car leases later , I feel Iâ€™ve gotten better but I also know there has GOT to be a way to master this process. Anyway, do you thing odds are good that closer to my lease end, Iâ€™d be able to flip for an actual profit or is it a good sign that this dealership offered me $300 under what the buyout is? Tamara Sent from my iPhone
08:32 PM ET (US)
The short answer it is probably too soon.
The other problem you (probably) have is the Jeep Wrangler Unlimited. It is NOTORIOUSLY set at an artificially high Residual Value % - typically over 72%. This makes it SUPER hard to flip for a profit.
What you need right now is the 10-day payoff amount. You can guess it by adding the total of payments remaining on your lease PLUS the Residual Value PLUS any buyout cost. Then see if CarMax or AutoNation is selling roughly the same vehicle for more than $5,000 your 10-day payoff. If so, you will be able to flip. Anything less, and turning in your Jeep for another lease is the way to go.
Edited 11-07-2018 08:35 PM
02:36 PM ET (US)
I have 9 months left on my 2016 Jeep Wrangler unlimited lease & I want to flip this vehicle & lease a Land Rover Discovery Sport HSE. Is this too far out to do? Should I wait until closer to lease end?
12:53 PM ET (US)
This is why I created this blog about leasing more car for less money...
Im looking at leasing a 2019 Dodge Charger Scat Pack for 24 or 36 months. Ive been to a couple dealerships and they are asking ridiculous prices for a ~$43k car. An example is 3,000 down and 599 a month for 36 months. Do you have an explanation of why it is so high or where they should be at? Thank you so much.
01:41 PM ET (US)
Thanks for the kudos, man.
Here are my thoughts on using my system to get a used car:
I was able to get to 650 FICO in less than a month. I cannot promise the same for you (the government does not allow me to make claims), but my system shows you how I did it.
05:00 AM ET (US)
I plan to be looking into a lease on a Mazda CX-3 in the Spring of 2019.
My question has to do with the FICO score. You say your system works only if I have 620 or better. After tapping out a card or two while enjoying a much-needed vacation to London, I'm close at 606. I feel like I'll hit that 620 score or better it before buying time, but if I don't for some reason, is there any hope for me? What are the less than perfect scenarios I might expect?
05:43 PM ET (US)
Hey hey Janelle,
Your question about "free maintenance" inspired me to write a new blog post about it...
I hope to complete it tonight. Stay tuned for an update - will be worth the wait!
Hi Markus, came upon your website on a Google search and am intrigued by your insights. I have always owned cars and never leased and am for the first time determined to do so as all of my cars and trucks are very old (newest is 2001). When you lease a vehicle according to your guideline, and it is delivered to your location, how do you handle bringing in that vehicle to a dealer to get free maintenance service such as oil change during the term of the lease? Especially since you did not lease it from that local dealership. I apologize if this is a dumb question!
Deleted by topic administrator 10-29-2018 11:44 AM
09:48 PM ET (US)
Hey hey Sherri,
When we lease a vehicle, we get the buyout figure from the leasing company - not the dealership. People at the leasing company are (usually) super helpful. They are not sleazy salespeople. So I would contact them and ask for a 10-day payoff on your vehicle.
To get a super-close estimate, the formula is:
Payments remaining + Residual Value + Disposition Fee
The Residual Value is printed on every lease agreement. And the Disposition Fee is usually $350.
Yes, the buyout can be negotiated. Just ask, "How can I pay 10% less on the 10-day payoff?" Nothing to lose for trying.
Kelly Blue Book is a marketing scam. It is not the true marketplace value of your vehicle. Those in the auto industry use something called Black Book Weekly. This is the true retail and wholesale value of your car. Of course, getting a subscription to Black Book Weekly is super expensive - only dealerships can afford it.
The general rule of thumb is $5,000. Dealerships try to sell cars for $5,000 more than they pay for them. So if you are seeing lots of similar cars selling for more, you are in a great position...
Most people get scammed when they lease their new car. And often, the buyout number is higher than it should be.
I would never buy a leased car - even my own. I am still paying for that mistake from years ago - I bought my 2011 RAV4 out from under my lease because of over-the-limit miles. At the time, it seemed like my only option. But from what I know today, I should have "flipped" my end-of-lease car to erase/substantially reduce the over-the-mileage penalties.
Instead, I should have gotten appraisals from Wall Street-funded car-buying services. They are flush with venture capital cash and are overpaying for our cars these days. I have a list of these companies which I include for my clients here:
The bottom line is this: every way to get into a new car... a slightly used car... an end-of-lease car - even a junker... is approximately the same cost when calculated per mile. My RAV4 is 34 cents a mile anyway I look at it. This is why I am biased toward leasing. Because when the cost per mile is the same no matter what, I would rather drive a new car. Even if it is the last car I drive.
If you insist on buying out your Toyota, you can refinance at Toyota dealershp - YUCK! Or, you send a check to the leasing company in the amount of the 10-day payoff.
06:42 PM ET (US)
How do you calculate the residual on a leased vehicle? We are trying to decide the best move without the pressure from the dealerships on a trade in or buy out a lease. We are elderly and if we buy out, we predict this will be last vehicle.
06:36 PM ET (US)
What are the steps to buying out a Toyota lease if I want to keep it. Can that price be negotiated? Ex. If pay off is 26,000 but Kelly Blue Book value is $33,000 is this a good move?
12:31 PM ET (US)
Wow - $799 to buy out your lease? That is the highest amount I have ever heard.
The good news is you can rip up your lease contract and avoid the $799 - look for the section about "flipping" here:
Hi there! Thanks for your site. I am likely purchasing my leased Kia Optima but do not want to pay dealer fee of $799. After all, when I leased car in 2015, document shows I paid $699 plus $264 (in separate box on lease docs these costs were described as dealer profit and other processing fees). The person I spoke with on phone, not finance guy, said I had to pay this. I plan to pay residual amount in full with only sales tax and if they dont't like it I can always leave and continue with my lease extension. What is the rub with dealer fee, Is this negotiable? Also, if I purchase this car I still qualify as first owner and the warranty of 10 year/100,000 mile remains in place:) only benefit really.
06:51 PM ET (US)
Hey hey Adam,
You are in the PERFECT situation...
Here is what I would do:
I would sell your 2016 GLE350 to a car-buying service... and look for the highest bidder.
(Almost) every lease agreement allows us to do this. Nissan and Chrysler are the exceptions.
With my KTL Leasing System, I include a list of Wall Street-funded car-buying services.
These cash-rich, car-buying services do everything over the Internet - they have no dealerships. The best part is they spend "stupid money" to buy out end-of-lease agreements. This one-two punch lets them overpay for our lease-end car.
Since you are way under the mileage allotment (I am assuming) and the car is in great condition, you should walk away with hundreds - even thousands in your pocket after selling the car to them. Even the disposition fee is forgiven because your lease agreement is void once they buy you out.
Now, in the rare instance that they offer you less than your car's 10-day payoff, you simply turn your car in (and get billed the disposition fee).
This is why I say you are in a great position.
Of course, I would not complete the sale until you had your new 2019 Mercedes GLE400 delivered to your driveway - again, my system helps you do it all from home:
I currently lease a 2016 GLE350 and lease will mature by 1/2019. This car is in great condition and 20k miles on it. not sure to turn it in or lease a 2019 Mercedes GLE400.
What do you recommend?
10:39 AM ET (US)
Hey Matt... there does seem to be resistance by Ford about leasing at this moment. Of course, that could change any day.
With that said:
There are so many other alternatives to choose from that would LOVE to lease a truck to you.
10:29 AM ET (US)
Hi Markus.... Ive posted a few times about being in the market to lease a ford raptor. I have started to inquire about where I can get a lease and I havent found one dealership anywhere that will lease. They say that ford doesnt offer lease rates for raptors. Is that accurate? Could that be accurate? I want to lease a raptor, not purchase. Help
06:15 PM ET (US)
Hey Colleen... my pleasure to help you out.
Every since 1997, I offered a lifetime guarantee - no questions asked guarantee and happiness refund on all my information products. It was great for me (sold more stuff) and great for my clients (of course, put them at ease).
Then earlier this year, the FTC went after people like me... saying my guarantee implied a "claim."
A claim means my system has to work 100% for 100% of my clients. If only 99.9% get the benefit, I am in violation of their "claims" law.
So no. I am no longer able to guarantee my program. It requires a leap of faith.
It sucks. Sucks for me and my potential clients. This is what happens when people scream for government regulation.
Edited 10-18-2018 06:20 PM
05:22 PM ET (US)
Markus, Thanks so much for your reply! I'm wondering if you offer any type of guarantee for your program? We have lately been faced with multiple swindling situations-- one was with the lemon we bought from a used dealership that went under and the other at the repair department of another dealership. Combined for a loss of $14,000 and we are feeling frustrated and skeptical. Thanks so much for your time.
02:08 PM ET (US)
With my system, timing is everything.
Fortunately for you, you are set up for perfect timing... if you can get started in a few days...
I would rent a car for a week or so. This will help stave off any pressure of rushing into things. My system has an unadvertised Enterprise Rent-A-Car hack that gets car rentals at obscenely low prices. At the same time, get my system before the weekend so you can do a little bit of required homework. Then use my system early next week. It takes a day or so to have your new car delivered.
On my order page is a video interview with Kim in Idaho. She is literally in the middle of nowhere... and she used my system to get a FANTASTIC new car lease. Car sellers will travel hundreds of miles to get an easy sale. There is one Hyundai dealership in Pennsylvania that delivers new cars every week as far south as Hollywood, Florida.
And 780 is equally FANTASTIC - you are a car seller's dream customer... most have to deal with people and their terrible FICO scores. You can skip my guide to boosting your credit score... you do not need any more help on that end.
Edited 10-17-2018 02:09 PM
02:01 PM ET (US)
Hi Markus-- We are considering leasing a car and need to do so rather quickly as our current vehicle is dead. We've never leased and live in a rural part of California so I'm not sure about the 'delivery' part of your system. (There are a couple of very small dealerships about 30 minutes away, but most are over an hour away from where we live.) I'm just wondering if you think your system would work for us? We also do want to test drive some vehicles because we aren't sure of what we want. Our credit is about 780. Thanks.
06:53 AM ET (US)
Hey Jordan... please ping me via a help desk via the system.
10:45 PM ET (US)
Can I ask a question about your system here? Or is there proprietary information that I shouldn't share. It retains to setting up email.
05:34 PM ET (US)
Okay thanks Markus :)
05:00 PM ET (US)
Hello Rebekah... my system only works with new cars leased in the lower 48.
11:10 AM ET (US)
Hi! Is your program applicable to commercial truck leases, or personal vehicles only? Thanks.
04:59 PM ET (US)
alaki - all the ideas you have here have been tried before - it will not work well in my experience (especially the CC idea). My templates will not help you in any way. Car sellers outside the US know they have a virtual monopoly. I do not have any good alternatives for you.
The only suggestion I have is to move to the States here and enjoy our global warming:>
Edited 10-10-2018 05:01 PM
04:37 PM ET (US)
Ah I see your point, Markus. Anyway I've got stuck with my geography! I can see that one value of your system is the list of car sellers that you know, but still the other value of your system is your templates. How about having a tiny little system of no guarantee whatsoever for Canadians to do at their-own-risk by only giving them the access to templates?
I could try to tweak it and send it to all the dealerships and auto-brokers here, and could get back to you with the results.
I can even CC all of them together in a single email so that they can see what they are up against. Would that possibly work? :/ (I do understand you have absolutely zero liability in whether it works or not)
03:40 PM ET (US)
I wish I had better news for you alaki,
Almost 2 years ago, I had my first (and last) Canadian client. In fact, he is the reason I added the word "USA" to the title of my system. He was like you... he desperately wanted to try my system - even though I warned him against it.
Here is the deal:
Yes. My fill-in-the-blank templates work like crazy. They have been tweaked over the years to convince car sellers to lease us a car via email. I am especially proud of how well my email templates work.
The main benefit of getting my system is borrowing my wholesale list of car sellers. I have roughly 7% of the total number of car sellers in the USA on my list - sorted by 3 "selling zones" and 34 auto manufacturers (e.g. Toyota, Honda, Subaru, etc). I understand there are over 66,000 car sellers here in the States - so I have the "needle-in-the-haystack" list. The car sellers on my list are willing to work with us rather than fleece us. Because they all need that one extra sale to make their huge manufacturer-to-dealer monthly bonus. I curated this list over the years by crowdsourcing the success of my clients. In simple speak, when my clients got the best deal, I added the dealership info to my list.
And this is the problem: I do not have a single wholesale car seller of anyone outside the lower 48 (of the USA). Not a single one. And I get it as only America has 35 Toyota dealerships within a 90-minute drive.
So you are fighting a no-win game because of your geography. And these car sellers know it.
Bottom line: America is home to fried Twinkies, Hollywood, and tons of car dealerships. No other country compares.
02:41 PM ET (US)
I still wanna try it out on them :-D, maybe it worked. What are the odds? I can't find any other place to grab some template or strategies to email them. There are a few dealerships in my province (maybe 10-20), but I'm not sure if I can work with dealers from other provinces and how the tax and registration work. I guess some similarities should be there between the US and Canadian market
11:21 AM ET (US)
Hey alaki dolaki,
The short answer is no.
My system does not work in Canada because there are not enough car dealerships in your area.
You all get free healthcare... we get car dealers miles apart:>
My system does not work in Hawaii, Alaska, or Puerto Rico, either.
10:18 AM ET (US)
Would have a service or something for Canadian dealerships? How should I use your stuff in Canada?
08:24 PM ET (US)
Hey hey Chris C,
About your question on 24-month leases:
I LOVE LOVE LOVE 24-month leases. This gets me into a new car more often - usually without paying more each month for the lease.
Auto manufacturers typically offer the largest "secret incentives" on longer-term leases (e.g. 36-month or even 39-month).
If the auto manufacturer offers more lease incentives for a 24-month deal, then I would definitely pursue a 24-month lease.
08:22 PM ET (US)
Hey hey Jared - ( I grew up with a guy named Jared in Radnor, Pennsylvania - is that you:>)
About your tax question and high-mileage question:
About your VW GTI... if you are going to move into a new lease, you can sell it to any car dealer on the planet. And of course, you can sell it privately. If you got my KTL At-home Leasing System, search for my "car trade in" tutorial for my lengthy thoughts on this...
In short, I have a list of Wall-Street funded, car-buying services who have "drunk" money - and they are buying up cars at higher prices than seasoned used-car dealerships will pay. Since they do it all over the internet, they are flush with cash. And they are overpaying for cars these days. I have no idea how long this will last, but it is awesome for us with used cars right now.
And about your state/local fees' question: selling to these car-buying dealerships avoids having to pay any taxes. They are legal "resellers" - and the tax authorities will charge tax once the car is resold to the new buyer.
About leasing cars who rack up high miles - you are describing me. I put on more than 50,000 miles between my family's two cars each year. That puts me over the allowable limit by more than 26,000 miles every year!
The good news is I have nothing to worry about - let me explain:
The auto industry has successfully convinced us that in trade for a "low monthly price", we pay full price for everything else.
We pay full-sticker MSRP for the car...
We get $0 discounts...
We put thousands and thousands of dollars "down" for some weird reason...
We pay full price for all fees...
We pay full price for "Rent Charge" - the cost to borrow money from the leasing company...
And of course, we pay full price for over-the-mileage fees.
But when we "flip" our leased car and sell it (instead of turning it in), all the end-of-lease fees go away. The exact buyout procedure is featured on our lease agreement. And in most cases, the "lease equity" we have built up will all but end over-the-mileage penalties for those of us who rack up the miles.
If you got my KTL System, zoom to my tutorial titled, "Flip your end-of-lease vehicle" and see how we turn the tables on the auto industry in our favor.
06:00 PM ET (US)
I purchased your service, am in the process of going through the steps, and wanted to ask you a related question. I think you focus on either a 36 or 39 month lease with this service. Is there a reason why you don't target the 24 month leases? Will the process support a 24 month lease? Just wanted to hear your thoughts as I will be sending out the first round of emails tomorrow.
05:08 PM ET (US)
Markus, Interesting reads on both your leasing blog and this thread. Have you had any success through your system of pulling off the "sign and drive" for people who rack up high miles? For frame of reference I bought a VW GTI last September at 17500 miles and it now sits at 54000. Assuming it could work and I'm an out-of-state buyer (living in California) could I negotiate the waiver of state/local fees as the vehicle would be registered in my home state.
03:35 PM ET (US)
About negotiating your payoff amount:
Here is the good news - everything in life is negotiable... and this includes end-of-lease vehicles.
The bad news is this: the Ford Edge is a popular vehicle. And it tends to hold its value as well as a mid-size SUV. And Ford knows it. So the odds are poor that they will reduce the payoff amount for you. They know they will get their money in the end.
On the flip side, any vehicle that is all electric is a surefire bet to be "negotiable". Why? Because today's battery technology is still primitive. Battery packs only last tens of thousands of miles. And leasing companies are HIGHLY willing to lower their payoff on these vehicles. If not, they incur HUGE losses when the car goes to the next auto auction.
Also, most people forget that the payoff amount is not the final amount. In addition, there might be a "payoff fee" of $350.00. And local governments get their share in the form of sales tax. Yep, we pay tax on the entire Residual Value of the car - a.k.a. "the buyout amount". This can add thousands of extra dollars to the final price we pay when the lease ends.
With that said:
I would call up the leasing company and ask for the department that handles the 10-day payoff.
Then, I would say something like, "Hi there, my account number is [lease account number]... is there anything I can do to reduce my payoff amount 15% today?
The good news is there is nothing to lose by trying.
01:39 PM ET (US)
My lease is just about up, I will be buying my Ford Edge can I negotiate what my payout will be or is it in stone? If it is possible to negotiate could you please give me an idea of how I would go about it, thank you so much!
06:50 AM ET (US)
Hello again Chris,
Yes, Texas charges local tax on the Cap cost, not the monthly payment. This roughly doubles the total tax paid on a $40,000 car lease... typically an extra $50 a month.
I would not mind paying the extra tax - after all, it is Texas. And Texas is an awesome place to live... there is no other place quite like it.
Edited 10-01-2018 06:51 AM
10:46 PM ET (US)
Thanks for the reply below! Since I live in Texas, can I assume that I will be paying tax on the full value of the vehicle regardless of the state where the dealership is located, the manufacture of the vehicle, the term of the loan, or the type of loan (one pay versus conventional lease)?
I am just thinking through what I have read on your website today, your service, and the best way to approach this.
08:53 PM ET (US)
Hey Chris C,
I do not know your exact situation...
But get this... car seller's talk trash about us behind our backs. Their mantra is "buyers are liars".
If anything, car sellers are 100 times worse. They are illusionists, too. They use sleight of hand to fleece us in so many different ways.
Just take a look at your leasing agreement. It is riddled with "lease speak" - no average person can decipher it all.
And that brings me to your question - why does one leasing company charge little in tax when the other charges more.
Again, it is a magic trick:
Think of the price we pay for new-leased car like an audio equalizer. The knobs are like the fees, MSRP, interest, add-ons, trade ins, down payments - even discounts and incentives. Car sellers move these levers up and down to come up with a monthly price (plus a massive down payment) to make it seem like we got a great deal. And since they are the master illusionists, asking them to lower one number moves up another number when we are not looking. It is the ultimate shell game.
Local taxes are always charged. In all but a few states, taxes (on a leased car) are charged on the cheaper monthly (or in your case one-time) payment. When financing a car, the same states charge tax on the entire "sales price." This is one of the many advantages of leasing... it is roughly half the cost for local tax.
The bottom line is a one-pay lease (which I would almost never recommend) will contain the sales tax somewhere hidden within the payment. Whatever is displayed in the lease agreement means nothing. They can shift the sales tax into some other "fee". I see this a lot. I teach my clients to ignore all numbers on the lease agreement except the payment and the term of the lease (24 to 39 months). No other number matters.
By the way, I recommend against a one-pay lease because, in the event of a theft or total collision, insurance companies (almost always) sack our one-pay payment as a partial payment toward a claim... and if they determine the "insurance value" of the car is underwater, you will be responsible for the balance!!! On the flip side, going the more traditional monthly-lease payment route with GAP coverage fits the bill. GAP is almost always included in a lease (except for Toyota). Instead, I would take my one-pay lump sum and deposit it into an online bank account. Then I would "sweep" the monthly payment via Bill Pay every 30 days to make a monthly payment. This tactic protects us against total losses and unethical insurance companies. It also guarantees on-time payments (which helps build our credit score).
07:59 PM ET (US)
Can you please help me understand taxation on a lease (or point me to one of your previous articles that explains it)?
I am just ending a one pay lease on a Lexus in which we did not pay sales tax (or very little sales tax) and were told that Lexus is either one of or the only company that is able to do this. I have been looking at doing another one pay lease with Nissan (before coming across your site) and they charge sales tax for the full amount of the vehicle (a little less than the MSRP), even though we are only leasing it for two years.
Basically, I am confused as to why one manufacture would charge a substantial amount on sales tax while another. I am also trying to understand the sales tax difference in a one pay lease versus a conventional lease (I am reading on your site and learning that you don't recommend one pay leases).
Thanks in advance for your thoughts!
12:53 PM ET (US)
I am not sure what you question is exactly. I assume you want to avoid double state taxation.
Most states give us 10 days to resell a car to avoid the double tax. I would visit a tag/title/notary and ask them about it.
Lexus is an awesome car the first 36,000 miles. But magically, Lexus vehicles tend to develop problems soon after. This is one of the many reasons why I NEVER, EVER get into a used car - even with low mileage.
03:00 PM ET (US)
I would like to purchase my elderly neighbor's car at the end of her lease (she drives very little mileage), but I would like to avoid paying state tax twice on the car (And I say twice because the only person that can buy from Lexus Financial is the actual person that leased the car from them. So theoretically the car would be purchased twice because of this rule). I live in Miami, Florida. Thanks!
02:21 PM ET (US)
Hey Chuck (This makes me think about Charlie Brown:>),
If you are asking about using my KTL At-Home Leasing System...
No. My system works exclusively for car leasing only.
And yes - we always get a sign-and-drive, $0-down lease. Always. $0 cash outlay.
My 90 yr mother 3 yr lease is up in dec on Toyota Camry low mileage @ 13,000 in the 3 yr. Excellent condition except bumper scratch she had repaired cheaply and poorly. Is it possible to negotiate 0 cash down and lower monthly payment purchase of the car,or what else 0 cash outlay possible thank you for your advice
07:53 PM ET (US)
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08:11 PM ET (US)
I hear this nonsense all day long... stuff like:
"So I can sell you this car $1000 under dealer invoice..."
As I have said numerous times on my leasing blog - after the dust settles, the car dealer buys their inventory for a smidge less than 50% of the MSRP.
That means a $50,000 car costs the car dealer less than $25,000.
We know this is true, because I am regularly seeing leased new cars at 25 to 26.5% off the MSRP. (Again, I cannot make a claim that you will get same - the FTC is super hard on claims these days). But the point is "invoice price" is not even close to what the dealership pay for their cars. A $1,000 under "invoice price" is highly insulting to me. Big woop.
True: only Toyota charges for GAP coverage.
All the other fees and documentation charges are not necessarily B.S... it is just pure profit for the dealer. And with my system, we easily get these fees reduced to virtually nothin'.
The big lie is Residual Value. A lot of "Lease Hackers" love to look hard at that percentage. I can tell you from analyzing my client's paperwork that no two of my clients get the same Residual Value - even on the same new car. This number goes up and down depending on how good a deal we get. So we ignore the Residual Value when going after the lowest price. Again, we know this is true... because a Jeep Wrangler (which is around 72% RV) should cost less than $290 per month with their super-high Residual Percentage. But, the Jeep Wrangler is amongst the worst leases out there - usually coming in over $550.00 a month with an eye-popping $5,000.00 down.
Car sellers are MASTER magicians and illusionists. They get us to think we always get a good deal. Most people get fleeced and have no idea. Their lies are shameful and insulting.
There is only one number that counts in this game - the monthly payment with $0 cash down. When my clients ask for this type of deal, it is (virtually) impossible to get fleeced.
Edited 09-18-2018 08:12 PM
04:48 PM ET (US)
Thanks for the update. I dug through some old emails. Here is what the upfront payment was. Are some of those items BS?
All water under the bridge now. Will def get a good deal on a new lease. FROM THE DEALER ON MY ORIGINAL LEASE "So I can sell you this car $1000 under dealer invoice and the lease payment is $662 for 36 month with 12,000 miles per year. That is paying your first month payment, motor vehicle, documentation fee, tire tax, supplemental tax(vehicles over $45,000) and up front documentation tax bringing the total due at signing to $1622.65. All ford leases come with GAP insurance at no cost to you. The residual value is $29,546.10 and the apr is .5%."
$1,600 upfront is a LOT of money for that vehicle... even though technically that is no "down payment."
With my system, we shoot for "true sign and drive" AND 1%. So the dealership delivers the car to our driveway, we sign the lease, they hand us the keys - and we never give them a penny. In fact, we never see a salesperson, either!
The worst-case scenario is "sign and drive" - first-month payment upfront plus government title fees.
UPDATE: As per your request, I deleted your post with your email and phone - here is what you posted:
I did pay money the day I received my car, but not a downpayment. Taxes, other titel and registration fees, etc., that came to about $1600, but none was a down payment.
Thanks for the info. Will be checking out your system soon.
Edited 09-18-2018 04:46 PM
04:44 PM ET (US)
> > Can you please update my last post and remove my email and cell phone? > Thanks
Deleted by topic administrator 09-18-2018 04:46 PM
10:38 PM ET (US)
Hey hey Jordan,
I am going off the grid for the weekend in a moment - so here is a quick reply:
Most people forget to add in the down-payment amount. If you leased at $689 with a sign and drive ($0 cash down) deal, you did not get fleeced. But from experience, I am guessing you put down at least $2,000. I spoke to a client last night who put down a whopping $8,000.00!
Dealer distance does not matter. There is a dealership we use outside of Penn State University who regularly delivers new leased cars to Florida. These are the dealerships we want to use - they will do ANYTHING to lease us their inventory so they make their monthly manufacturer bonus. These bonuses are often hundreds and hundreds of thousands of extra dollars per month.
I have 2 sources that buy lease-end cars anywhere in the lower 48. And they almost always offer a lot more than a CarMax appraisal. Marketplace value is an illusion. We only care about the difference between the 10-day payoff (Residual Value + payments owed + lease-end fee) and the highest offer we get. The dealership will then take your lease-end car and try to flip it for $2,500 to $5,000 on their used car lot.
Remember, once you get my system, look for my extensive "Trades" tutorial.
07:18 PM ET (US)
What makes it getting fleeced? $689 / $51000 price of the car is 1.3%, that is pretty close to 1%. Or is it that little bit that makes all the difference? Ideally I wouldâ€™ve been paying $510/mo? Does dealer matter as far as distance goes? Donâ€™t I want local? How far is too far? For a trade, am I looking for anyone willing to give me more than my residual value? Or anyone willing to give me market price? Market price for this car appears to be around $35,000. Residual is $30,000. Is there money to be made or a dealer wonâ€™t pay the amount that it can be sold for, so really I should just hand it back in and walk out? Sent from my iPhone
04:12 PM ET (US)
Hey hey Jordan,
Here we go:
>- currently in the last 3-4 months of a 2016 lease of a Ford Explorer. The residual value is $30,000 even. My current monthly payment is $689 (sounds like this is wayyyy above your 1% target) I hear this story every single day. Dealers makin' BANK on innocent lease customers. For $689 a month, you can use my system is lease almost any Volvo available. I hate to say this but you got fleeced. But that is okay, I got fleeced, too. And the same night I got fleeced, I went to work to create my KTL Leasing System. Sometimes we need a kick in the arse to move forward.
> - I want to convert this to a new lease of either a Ford or Chrysler vehicle, will I have better luck at Chrysler over Ford, or Ford over Chrysler, given the current car is a Ford? There are many factors that let us know which manufacturer is the best for us month after month. This article helps figure it all out: https://www.leasemorecarforlessmoney.com/r...thly-lease-payment/
> - Should I get a quote from CarMax or somewhere else before going to the dealer? If you are getting my system, look for the tutorial titled "Trades". Yes, Car Max is one. I list a few others. We want get offers and see who is willing to give us the most. With that said, you might not have any lease equity. And that is cool. Because you have the option to just turn the car in and walk away. Whatever you do, do NOT mix the selling of a leased car with the leasing of a new car. We want them as separate transactions.
>- Does your program have the emails and info on how to begin those discussions? Of course! Yes!
Most importantly, I have the list of all the aggressive car dealers - sorted by 3 nationwide zones AND sorted by car manufacturer. This makes it easy for us to come near the 1% rule.
> - Will I have luck leasing brand new 2019 model cars or those are harder to get good deals on? There is a saying that goes something like, "There is no luck needed for the unprepared." We use knowledge, timing and logic to get more car for less money. And yes, this includes brand new model year cars.
02:56 PM ET (US)
Hi Markus, browsing your blog and interested in your program. Just a few thoughts/questions for you to comment on before I get the program. - currently in the last 3-4 months of a 2016 lease of a Ford Explorer. The residual value is $30,000 even. My current monthly payment is $689 (sounds like this is wayyyy above your 1% target) - I want to convert this to a new lease of either a Ford or Chrysler vehicle, will I have better luck at Chrysler over Ford, or Ford over Chrysler, given the current car is a Ford? - Should I get a quote from CarMax or somewhere else before going to the dealer? - Does your program have the emails and info on how to begin those discussions? - Will I have luck leasing brand new 2019 model cars or those are harder to get good deals on?
Edited 09-14-2018 02:58 PM
07:34 PM ET (US)
Ive been reading all the tutorials. So much information. Im making notes & will call a few minutes early with my questions tonight thanks..
03:03 PM ET (US)
Thank you Markus!
02:42 PM ET (US)
There is no need to sign in here. This is not my website.
02:41 PM ET (US)
Hey Kim S...
The price you will pay for your leased car is the:
- Residual Value plus - any remaining payments plus - any buyout fee.
12:56 PM ET (US)
I bought the program but used a different user name. I dont usually use my real name as an online user name. Thanks. I tried to register to sign in to post here but was having trouble. It didnt recognize the user name I used when I bought the program & said I had to register & when I try it says someone has already registered with that username. Is that because I already used that mane for the program or is this supposed to be a different mane?
Edited 09-10-2018 01:03 PM
12:11 PM ET (US)
Hello. I am about to buy out my 2015 kia optima ex lease, I'm pretty sure that's what I want to do - extremely low miles (5800), 1 scratch and dent from scraping a garage entrance pole (*eye roll*), and it's only 2.5 years at my lease maturation, so I still have 2.5 years left on my bumper to bumper warranty (not just powertrain which is to 100k or 10 yrs). It's been a fine car, and I figure at any time after buying, I can always decide to get something else anyway if I want to. But it seems I can finance it for a bit less than leasing a base trim LX (even though it has a few features mine doesn't; mine has a couple it doesn't, and the trim level listings have changed from 2015 to 2018). They really tried to high pressure me into re-leasing that LX, and now I know why...lol. And I didn't appreciate it and said so. So I got an approval (and check) from my bank to pay off the car.
So how to I get the best price for my leased car? I think the lease end value is under contract and pretty much set at about 12,700, and I will need to pay VA sales tax. But what fees can I get out of/are negotiable? And I can to this all by phone if necessary? Thanks!
01:59 PM ET (US)
When you use my KTL Leasing System, getting 2 cars will not save you any extra money. The prices are so low, there is no more "wiggle room".
01:05 PM ET (US)
My daughter and I want to lease the same car, Hyundai Kona SEL. Can we use this to get even better offers from dealers? Or should we go after each lease separately?
08:53 AM ET (US)
Good Sunday morning, Leanne...
As long as you are getting my KTL Leasing System, why not take advantage of my Wednesday night phone call.
I am opening up my phone to clients. It starts at 6:15 p.m. Cali time. If you call in a few minutes early, I will take your call first to help you find the perfect car for your wants and needs. We can also discuss the strategy of selling back your car (instead of handing the keys back in).
12:21 AM ET (US)
Thanks Markus. I will buy your program & get started. I dont own a BMW for the snob factor. It is the best car Ive driven in canyons but I test drove a Mini S that felt quite good also that seemed like it would hug the road & the twisties. What car do you recommend? Why should I avoid run flat tires? Thanks. Also what do you mean by sell back my car? Is that different than returning it at the end of the lease? Thanks
Edited 09-09-2018 12:45 AM
06:52 PM ET (US)
Announcement: 9/5/2018 @ 06:41 PM
I will be hosting a live "Ask Markus Anything" about car leasing next Wednesday night.
If you want to call my phone directly and pick my brain, mark September 12th @ 9:15 p.m. (New York time) on your calendar.
I will not hang up the phone until every question is answered.
This is a FREE added service I provide for my clients who have access to my K.T.L. USA At-Home Car Leasing System here:
If you want my recommendations on the best new car for your situation... how to deal with trade-ins - even how to get out of an underwater lease... ask me anything.
We talk next Wednesday night!
06:46 PM ET (US)
Hey hey how ya' doin' Leanne,
Lots of questions - here we go...
Los Angeles is one of the 3 most competitive zones in the USA. My clients have a lot of success in your area. That is the very good news for you. You hit the geography lottery living there (for car leasing that is).
About BMW. It is seriously the worst car brand selling in the USA (in my humble opinion). They sell snob appeal. Their cars are shamefully overpriced. I see their new cars broken down on the side of the road a lot (my towing friends confirm this) And last year, they pivoted away from the leasing business in a big way... they even eliminated accepting MSDs:
... You will be more in the range of 1.25% of the MSRP as a monthly payment - always no-money down.
There are hundreds and hundreds of alternative cars to lease that are superior to any BMW at a WAY better monthly price. The only exception is their sister company MINI. Their MINIs are basically their X1 model with awesome quirks and coolness. I would get a MINI if they were not equipped with run-flat tires (I refuse to get run-flats for many many reasons). And MINIs are priced in a fair way - unlike their HUGELY overpriced cousins at BMW.
About your over-mileage and wear-and-tear issues... This is easy to solve. I would sell back your car to any willing dealership. Almost any dealership would GLADLY take your car with your relatively minor issues and you will (probably) walk away owing nothing. Some might even pay you a few hundred... even more than a thousand dollars if they want your car bad enough.
Finally (and at the risk of sounding like a broken record)...
NEVER, EVER combine a trade-in (or end-of-the-lease-term) car along with a new lease.
This is the oldest trick in the book. And doing so will cost you $6,000 to $12,000.
I teach my clients to get the best price (always no money down) and then deal with an end-of-lease car as two separate transactions.
P.S. You need more than $19k a year to show as income. If you have less, you will need a security deposit. And yes, any insurance claim (from what I have been told) goes on the blacklist.
Edited 09-05-2018 06:48 PM
04:48 PM ET (US)
Hi, my lease on my 2015 BMW 328i ends November 25. Id like another similar car. Preferably BMW but if I have to get something else to get the deal Im open. I would like the heated seats, backup camera & front & rear sensors Im used to and also the performance Im used to as I drive in canyons. I also like the free maintenance & loaner cars. My circumstances have changed since I got this lease & cant afford what Ive been paying. Also I will have 4-5K extra miles at .20 a mile which is $800-$1,000 & 3 curb rashed premium rims. I already replaced the tires so Im not worried about that. I have some scrapes bigger than a credit card on the panel below the bumper. Do you have instructions for avoiding lease end expenses? Does that come into play when negotiating the new lease? My self employed income in my tax return is less than $19,000 a year. Also a separate question. I had an insurance claim for vandalism that was not my fault & comes out of comprehensive insurance & doesnt increase premium. Am I now on a blacklist? Thanks. PS I live in Los Angeles.
Edited 09-05-2018 04:51 PM
04:11 PM ET (US)
Anytime there are incentives over $1,000... that signals to us that we MIGHT be able to get a 1%-rule deal.
I say MIGHT, because we do not know until we try.
Plus, I can never guarantee anything - making "claims" is highly illegal here in the good ol' USA.
The cool thing about my system is we are never pressured to do anything. If we are not thrilled with the deal - no harm, no foul. We can pause - even pivot onto a similar type of vehicle.
03:52 PM ET (US)
Ok, so I was checking out the Autobytel website for the model I am looking at ('18 Silverado 2500 High Country) and it lists $1,500 bonus cash down pay assistance, $500 lease loyalty and a few others. Is that pretty decent? $58,800 MSRP, using your system, do you think we can get 1% ??
08:22 AM ET (US)
Good morning, AR.
Last year... the Tuesday before the end of the year was the best day.
This will not occur for another 6 years.
So anytime is a great time - as long as the car you are looking for has any under-the-radar incentives:
Hi Markus, thanks for the info. So what would be the best day of the year to start your process? Day after Christmas? Memorial day weekend?
07:09 AM ET (US)
Hey hey Eric,
Yes, if I were in your shoes, I would do everything in your wife's name alone. There are no benefits of cosigning. None.
09:07 PM ET (US)
Thanks Markus! That is some great info!
We would easily surpass the 19K requirement if I put the lease in the name of my spouse (who has verified income), or both of us combined. You mentioned putting your lease in your spouse's name. I am wondering if there are any advantages/disadvantages to putting it in both, or his only, or hers only. I am better at handling this negotiation business than she is, so I am thinking I could just do all the email correspondence in her name, or the two of us, on the front end, to get the deal secured. Your thoughts?
08:32 PM ET (US)
The magic lease credit numbers are (for most leasing companies) FICO 620+ and $19,000+ income per year.
Your 850 score is amazing...
Your challenge is the $19,000+ in income. Yes. You will need tax returns (going back at least a year... some require 2 years) showing at least $19k in verified income. Anything less and you start to get into a high-risk loan area with the need for a hefty security deposit (many thousands and thousands of dollars).
This is why I put all my stuff in my wife's name. She's got the best credit and verified income. Since I am self-employed, I feel your pain. I get it.
And yes. All car leasing companies will use your private tax information to approve your lease. Remember: they are lending you money and paying the full amount of the sales price of your new car to the dealership. They want to be assured you have the ability to pay them back.
Trust me: I HATE that privacy is dead. I went without a phone until exactly a year ago to fight the system. I was forced to succumb because we are quickly headed for a cashless society. I totally get your concern...
But in the end, we want their damn car. And unless we pay cash for the whole shebang, we are forced to go by their rules.
07:46 PM ET (US)
Hi Markus. Your leasing strategy seems really appealing and I am considering using it in the not too distant future. One question that I have not seen addressed on your website (forgive me if I missed it), is qualifying for the lease. I have FICO scores that are excellent (hovering around 850 with a 30+ year history), but I am a long time self employed person that usually has huge tax write offs. This makes my income (AGI) look much smaller than those that have regular pay stubs. So, I have had previous experiences with mortgage companies and car loan companies where they will request complete tax returns to review, even with excellent credit scores. My million dollar question is how do they review this info, what do they look for, and how is their final decision actually made. I am not totally comfortable handing my private tax information over to a car dealer, with total strangers, for their prying eyes, just to get a great deal on a lease. Do they all require this? I would love to hear your thoughts. Thank you!
03:27 PM ET (US)
Believe it or not, older models cost more to lease than new models.
The reason is the incentives. New-vehicle incentives are MUCH MUCH higher than vehicles that have been on the lot for a long time.
Hi Markus, I'd like to lease a pick up truck, f150 or Silverado. I don't mind going with an older year model if it helps keep my monthly payment lower, however I would like a higher trim package, high country or King ranch... Have you had experience with these two models? Am I going to be able to get a good deal here in upstate SC? Should I wait for a particular time of the year?
02:29 PM ET (US)
Thank you Markus; that's helpful, particularly the Autobytel tip! My Z plan discount is through my father who retired from Ford.
01:59 PM ET (US)
It sounds like you are getting the Ford A/Z plan discount via your employer. Normally, these are "stackable" discounts - and that is GREAT news. This means you might even come a little under 1% (using my KTL Leasing System) along with other Ford stackable "secret" incentives I reveal here:
About it helping you at the end of your lease. Probably not.
01:12 PM ET (US)
A couple of specifics I'm trying to weigh into your recommendations: I get Ford A/Z plan discount for leases and buying. How would this affect your approach to paying ca. 1% of MSRP of the vehicle when one is eligible for at least $2,000 off of that due to discount? Should I aim for 1% of the discounted price? Also, should having this discount put me in a better place at end of lease, do you know? Wish I'd known more before entering into my first least almost three years ago! Thanks for any insights!
10:11 PM ET (US)
Hint: Buick Enclave. Buick Enclave. Buick Enclave. Buick Enclave. Buick Enclave. Buick Enclave. Although, it starts at $40,000 - no way you will get that at $200 a month at $0 cash down. (I am guessing this is where your trade comes into play.) The Avenir (top of the line) is better than almost every BMW and Mercedes I have inspected. I know, I know - surprise surprise.
Buick has kicked up their game in a major way this year. Lots of car bang for the buck. The only downside is the fuel economy:
If you have scanned my blog, you might know I am not a fan of Subaru - one of the most overrated car companies here in the USA. They are marketing geniuses.
The Ford Flex gets even worse gas mileage - and "looks weird" (so say my 12-year old son who knows more about cars than Doug Demuro). He suggested taking a look at the Volkswagon Atlas or Toyota Highlander... the Highlander is another overrated vehicle in my humble opinion. The interior seems cheap - lots of plastic and terrible fuel economy:
And we are frequent visitors to Brooklyn and Manhattan. (The Ferry is NYC's best-kept secret... $2.50 for a 50-minute ride to the beach is quite the steal.) Maybe one day you will take my family for a ride in your new car! Last time we were there we met another client of ours. For some reason, we get a lot of near-NYC clients... which makes sense because NYC is one of the most expensive markets in the USA.
Time for bed. Night!
09:20 PM ET (US)
Thank you very much for that advice. I read through your site more and think I am onboard with just leasing. That does open some options though - I'd be open to the Subaru Ascent, Ford Flex and Buick Enclave. I would appreciate your thoughts on these vehicles from a leasing perspective. And in regard to them, does your system work better for one in particular in my area (Bronx). Much appreciated - so happy to have found the site before leasing (not after!).
03:54 PM ET (US)
Hey Alex D,
I am working on a documentary about the car industry... and I am scripting the answer to one of your questions right now (oh the irony):
> I also have a decent trade-in (2008 Volvo XC70 with 80K) - not sure how that works with or complicates your system.
Never ever combine a trade in with a new car lease (or purchase).
Most dealerships use a scummy, sleazy scheme called the "4-square" sheet. It is nothing more than an illusion - a grand magic trick. It gets us to focus on a trade value. This seems to lower our monthly payment. But in true "stealership" form, we will almost never truly get the real value of our trade-in...
Instead, best practice is to work on a new car leased separately from a trade in. In fact, we can get a few appraisals of our trade in (from any car dealer) an pocket hundreds... maybe even thousands more than we would expect.
I have watched this video at least 6 times now. I laugh every time. It is HYSTERICAL. I cannot believe anyone would trust a dealership after watching this training video...
Watch how car sellers are trained on the 4-square selling scheme here:
The only way to get the most money for our trade is to sell our car privately. If this is not an option (or desire), then selling it to a dealer/used car lot will get us about $2,500 to $6,000 less than selling it privately. After all, the dealership needs to profit when they flip our car and sell it to the next sucker.
I say "sucker" because anyone who buys a used car these days is a sucker. People have been brainwashed by Dave Ramsey and Susie Orman that a used car is the way to go. This is decades'-old good advice. But, today's cars are WAY more expensive to repair... these days, we need to replace entire units of things - small repairs are no longer an option. Plus, when we run the total cost of ownership through a basic spreadsheet, we can lease a new car 3 times in a row and still pay less money per mile than buying a used car. Sucker.
Back to your first question: I model my financial decisions on what a Rockefeller or Rothschilds would do. And they know that we rent a depreciating asset and invest in something that vastly increases in value. They buy insurance bonds and real estate while leasing cars. I agree 100% with this strategy. This is why I will never buy another car again. I will lease for as long as I can.
About purchasing a lease car at the end of the term. I would not. I would turn the keys in and lease a new car. Rinse and repeat. If I was significantly over in mileage, I would sell the car to a sucker (er, used-car buyer:>) and get out of being "underwater."
Punchline: it is truly remarkable that we can get a $30,000 new car these days near $300 a month - always $0 down. I wish the housing industry offered the same benefits of leasing as the car industry offers.
03:21 PM ET (US)
Hi Markus - I am interested in your system but wonder if you offer some general advice on my situation and how it ties in with your system.
I don't have the cash at the moment to buy the car I prefer (new Subaru Ascent) I am considering leasing one and then purchasing it at lease end. Financing the purchase price is an option but I like the idea of getting a look at a very new model before really committing to buying - as well, from what I have read on your site it seems the dealer may offer me a good purchase option at lease end. I also have a decent trade-in (2008 Volvo XC70 with 80K) - not sure how that works with or complicates your system.
Any advice appreciated. I am just outside New York city, easy access to NY, CT and NJ.
Edited 08-30-2018 03:28 PM
08:45 AM ET (US)
Hello again, Jason...
The good news is you no longer need to wait 45 days. You can get started right now.
In my earlier reply to you, we were approaching the dog days of summer. And usually, this is when incentives are the lowest. This is why I suggested waiting...
But now that September is just days away, incentives should be back to normal.
Also, I include in my KTL Leasing System an extensive tutorial on how to get an Enterprise Rent-A-Car on the cheap. So if you need to rent a car while shopping for a new lease, this is a worthwhile strategy.
11:43 PM ET (US)
I've asked you a related question before and you gave me some good information.
Ultimately it comes down to this: I'd like to lease 2 cars each at $200 monthly payments or less for a max total of $400. I know these leases will be separate and there are no "grouped cars" deals.
In your previous answer you said with low payments like that you need more time: 45-60 days. Is that always the case? I asked you that question a couple of months ago, but now my wife and I are getting serious. We are selling our current cars private party, using some extra cash to buy your system, and then going after the leasing option.
With 45-60 days, my timing is a little more challenging than if I sold a car and went and got a car. We can manage without one for a little while to get the best deal. But - any way you think I could wrap it up faster than that? (I understand we can't be as choosy with make and model)
Sorry - long way around to get to that question.
TL:DR - i want low monthly payments and to lease quicker than 45 days if possible!
This is from a popular reality TV star. She asked that I do not reveal her name:
I just wanted to update you and let you know that today I had my brand new Ford Focus Titanium Hatchback delivered to my house!
After we spoke I decided saving a few bucks wasn't worth waiting another month for end of quarter deals and that I should jump on the $280/month deal I was getting for this top of the line Focus.
As soon as I used email #4 with the dealer with the lowest monthly, things moved crazy fast and it was actually fun, just like you said.
Not only did I get a TRUE sign and drive lease but they arranged delivery to my house just 3 days later and drove the car here from 2 hours away!
I signed all of the paperwork in the lobby of my building and never had to speak to or see anyone from the dealership in person. That alone was worth the price of your system, but I learned so much in the process as well, that I just wanted to say thank you. I know that without your system there is no way I would have managed such a good deal and avoided all the hassle of the dealership process. This was BY FAR the best car buying experience I have ever had in my life and now I feel completely empowered to buy cars in the future without any drama or nonsense.
Thanks again for everything, Jennie XXXXXXXXX
05:41 PM ET (US)
Hey hey again, Eric...
With my system, we shoot to get a 1%-of-the-MSRP-monthly payment... always $0 cash down. The 1% rule is a way we can sort of test to see if we got a stellar deal. It is not guaranteed... the only guarantee is a $0 cash down lease. Some deals will come just under 1%, and others just above.
Again... in your situation, a $30k car PLUS $3,500 in negative equity makes it harder to stay within the 115 - 120% LTV. (Each manufacturer's leasing requirements are slightly different.) By moving to the $46k sweet spot, staying under the LTV requirements is a LOT easier. Yes, I have seen $46,000 cars lease for less than $30,000 cars after using my system. (Again, no guarantees as doing so would be a claim. And the government cracks down on those making claims.)
Bottom line: For years, Toyota pushed heavy incentives on their RAV4 LE... their cheapest RAV4 model. This was a head scratcher because manufacturers usually push middle trim models. So again, use my incentive's tutorial to get an idea on which trim level has the best incentives.
Me. Personally. I would ALWAYS get the highest-trim package. Because it is ALWAYS on sale in a lease. Remember, we only pay for the depreciation on anything we lease... so that $5,000 Technology Package is discounted by the residual percentage - which is roughly 50% to 60% off. And my clients always tell me after they drive their high-trim cars something like, "Ya' know, I never cared about getting the Convenience Package, but now that I have it, I could never live without it."
Yes. I pinch myself a lot when it comes to leasing a car - there are SO many more advantages of leasing vs. buying.
P.S. Hondas make my list of the top 5 most overhyped car manufacturers. Their marketing department is genius... making it seem like their cars are awesome. They are not. Instead, I would look at INFINITIs and Volvos instead - terrific car brands these days who are aggressive with their leasing pricing.
05:06 PM ET (US)
Thanks for the analysis Markus! Another question in regards to your response , I do live in Southern California, and I know you say 46k is the best area to get a deal but how would your 1% system work on something like an upper trim Honda Accord or a Acura TLX? Something closer to the 30k mark. Also does choosing an up-level trim on any vehicle whether it be 30k or 46k , effect dealers willingness to give you a good lease deal as apposed to the base models they usually push in the lease advertising? Thanks again!
10:23 PM ET (US)
Hey hey Eric,
Believe it or not, that was the greatest mistake your wife could ever make...
That is this:
By not adding your newly-leased car on your insurance policy, you did not submit a claim.
Almost no one I know understands the devastating consequences of submitting just one auto claim. Even a windshield-chip repair will cost us big in the long run...
Yes, our car will be repaired (after paying off our deductible). But then we are added to the insurance industry's secret "blacklisting" network. Of course, the auto industry vehemently denies that this blacklist exists, but it does. It is called the CLUE system: the Comprehensive Loss Underwriting Exchange. CBS News wrote a post about it here:
This blacklist was confirmed to me about 2 years ago: I was having a casual conversation with a high-level claims adjuster. He worked for a top-3 auto insurance company. We were at a bar. And he had one too many drinks. The insider information he revealed to me about the insurance industry shocked me. (And nothin' shocks me anymore). One thing he said was this: auto insurance companies LOVE when we make a claim. Because it gives them a reason to add us to their industry's blacklist.
Being added to the blacklist prevents us from shopping for better auto rates. Yep, all the auto insurance companies are in cahoots with each other. So when our premiums increase (and they will), we will be stuck paying hundreds of thousands more each year. So that $4,500 repair (which is $5,000 minus our $500 deductible) winds up costing us much more over the years of paying extra premiums.
And get this: Level 5 self driving cars (no steering wheel, no brake or gas pedal) will be the norm in 2025:
The good news is insurance rates will plummet to about $100 a year (to cover "computer malfunctions"). But for those driving non-self driving cars (and/or those on the "blacklist") will see their premiums skyrocket).
Yes. Regularly-driving cars are about to go the way as the horse and carriage. I keep telling my 12-year old that he will be amongst the last people to drive a regular car.
I always leverage auto insurance as a catastrophic safety net. I get the minimum coverage required by the leasing company. Yes... if my car runs a stop sign and causes death and destruction, I will submit a claim. For everything else, I will leverage the repair cost in another way. I might pay the repair with a home equity line or even a low-interest credit card. Heck, I might even borrow against an overfunded life insurance policy to pay off the repair. (Whatever is best for my cash flow. Cashflow is king in my household.)
And having too much auto insurance makes us a target. For example, if a personal injury lawyer sees we have a $3 million umbrella policy, we will be sued into oblivion. But if we have minimum coverage, the lawyer might suggest his client drop the case - it just is not worth it.
Like you asked about... another popular option is to roll this $3,500 into a new lease.
Now, here is the catch. Most "captives" (i.e. auto manufacturer's leasing companies) will only finance 115% or 120% of the LTV (Loan to Value). So getting the absolute lowest selling price is a must.
Your $3,500 negative equity is not so bad. But remember... this means you will carry an extra $100 or so onto a 36-month payment for this "insurance mistake". Again, I think this works better for you in the long run.
Also, you will be forced to get a more luxury car in order to get a $0 down deal. Again, you need the math to work for you. In your situation, I would look at cars with an MSRP of at least $46,000. Coincidentally, a $46,000 price tag is one of the "sweet spots" to get a luxury car at the lowest price (when using my KTL Leasing System). As always, my clients shoot for the 1% rule here:
Finally, you might get a bit lucky if you live in one of these zones:
- Washington, D.C. - Southern California - San Francisco, California - Boston, Massachusetts - Seattle, Washington - Detroit, Michigan - Chicago, Illinois - Minneapolis-St. Paul, Minnesota - Baltimore, Maryland - Denver, Colorado
These geographic zones are HIGHLY competitive. And that usually means we can get more car for less there - and once again, this helps our Loan-to-Value ratios.
Finally, there are 2 "never evers" here...
First, never ever use a trade on a new vehicle lease. We want to treat them as two separate transactions. This gets us the lowest price on a new car and the best appraisal on our used car - to see how underwater we truly are. Remember, we can sell our leased car to any dealer on the planet. They will handle all the paperwork. And selling back our leased car saves us from paying sales tax, too. We are not forced to deal with the original dealership or the new-car dealership. (I have an entire tutorial on how to roll in a trade in my system once we have the best price... look for the "Trades" tutorial.)
And "never ever" #2 - never ever go into a dealership to get prices. They will eat us alive and fleece us for thousands and thousands of dollars. We only go into a dealership once we have a draft lease worksheet emailed to us for proper inspection.
You might buy your wife a box of chocolates - she just saved you a lot of money over your lifetime.
06:43 PM ET (US)
Hey Markus, I have a lease im currently in that my wife crashed in the second month of the lease, but she forgot to add it to our insurance. The front bumper and grill need to be replaced and I have been quoted for somewhere around 5k+ for the repairs, what is your suggested advice for the best coarse of action now that my lease is coming due in the next couple months? Also would dealers be willing to abide by the $0 down philosophy on a new lease if I traded the car in and rolled over about $3500 in negative equity? Thanks for your time
12:36 PM ET (US)
I do not send out the emails...
You fill in the blanks with my templates and send them out at your pleasure.
I do supply you with the list of all of the aggressive dealerships in your zone - sorted by auto manufacturer.
11:56 AM ET (US)
Hey Markus.....you wrote this in your response:
"With my system, we email all the General Managers in our local and regional "zone" - usually, this is 50 to 75 dealerships. In less than 20 minutes, a dealership will be the needle in the haystack... willing to lease their Raptor near the 1% mark - always $0 cash down."
You send out the emails?
Deleted by topic administrator 08-28-2018 01:02 PM
With my system, we email all the General Managers in our local and regional "zone" - usually, this is 50 to 75 dealerships. In less than 20 minutes, a dealership will be the needle in the haystack... willing to lease their Raptor near the 1% mark - always $0 cash down.
My clients swear they will never step foot in a dealership again after using my system.
07:17 PM ET (US)
Markus...thanks for your quick response. you wrote this.."In fact, I see a lot of 'em going for almost 20% lower than MSRP." Now that catches my attention. How can I find those dealerships without calling all of them.
07:10 PM ET (US)
Good evening, Matt.
Congrats on your FICO of 800 - stellar. Car dealers will love you for that.
Now, I just checked my sources on the 2018 Ford Raptor - boy o' boy that did not last long. As predicted (in my post above), they are not going for obscene markups anymore. In fact, I see a lot of 'em going for almost 20% lower than MSRP.
We see there are several reasons we never want to put money down on a car. So I would keep your cash and buy yourself something nice instead.
And I would never ever ever NEVER EVER ever ever cosign...
Everyone in the financial/credit industry warned me about this when researching my credit boosting report. It almost never ends well. Instead, just lease your new car in his name - problem solved... 740 is a great credit score for leasing. If you are looking to boost your credit score with leasing, you will get no help. The way it shows up on your credit report lowers our utilization score - not good when you have a 580 FICO. (Remember, my system includes my At-Home 850 Credit Building System. It is the same system I regularly sell for $199.00 on its own.)
My car died recently and my husband convinced me to get a lease car. I want to put $1,000 down that includes taxes and fees. My credit score is bad around 580 my husband credit card is around 740, he will probably get the car under his name and I'll be a cosigner. I had look at different options of cars which one would you recommend? I want to keep my payments under $300.00
09:12 PM ET (US)
Ok perfect thank you
09:07 PM ET (US)
No worries, Rebecca - I totally understand. I have been called WAY worse in the past:>
As long as you have a FICO of at least 620 and at least $19,000 a year in income, you are good to go to lease with almost any car leasing company in the good ol' USA.
09:04 PM ET (US)
Oh my ... my apologies I grabbed that name from one of the post below. How embarrassing. 🤭I am ready to order with one other question, does your credit score weigh heavily on lease ? I believe I am at 660-680 due to the hard inquiries . Thank you
Also, I would not shop slow at this point. Credit agencies allow about 30 days to shop virtually unlimited car dealers. They know we are shopping for a car, so they typically "ding" us 4 or 5 points off just once. But after 30 days, your score will go down the longer you wait. My leasing system includes my entire system on boosting our credit score - I would zoom to that section if you get my system ASAP.
Yes, my KTL Leasing System works in the lower 48... and this includes New York.
And about your budget and luxury cars - here are more than a dozen case studies... as you see, people who use my system are usually able to get a luxury car for the same price as a Honda Accord:
Finally. Remember. With my system, we NEVER EVER pay any money down. There is no exception - this saves us thousands and thousands of dollars in upfront cash. We find dealerships who are willing to zero out the down-payment requirement.
Edited 07-07-2018 08:41 PM
08:29 PM ET (US)
Hello David ,
I have been shopping for a car for months. Should I get a new or used, finance or lease. Its so stressful. Then every time I thought I made a desicion they would run my credit lowering the score instantly for hard inquiries and ii have mediocre scores at best. I originally wanted to lease but unfortunately my taste in cars is a little to expensive for my budget with the luxury cars down payment. So I am extremely interested in purchasing your program but I did see somewhere on your site if I read it correctly, it works only in 48 lower states, I am from NY. Thoughts.? Thank you kindly. Rebecca
09:20 AM ET (US)
Hey hey David,
The car industry likes to get us all excited about holidays. They give us the impression we are going to get that extra special deal. But the truth is we will not.
For your other question, here is a snippet from a tutorial I wrote for my leasing clients. I see you just ordered my system - you can find this under the "Timing" section:
Timing is EVERYTHING
The letter "T" in my KTL Leasing System stands for "Timing."
The wrong timing costs us big. I have seen bad timing add more than a $100.00 a month more to a car payment.
However, the right timing (usually) gets us fantastic deals.
There are 2 exceptions
There is (almost) never a bad week to start using my system.
Because every day, car dealers have to sell enough cars to get their lucrative manufacturer bonuses.
There is one particular week that we might want to wait for...
And that is the last week of the year. The week after Christmas Day.
The last week represents the end of the month, the end of the quarter and the end of the fiscal year.
This timing is the perfect storm - for us.
During this week, I have seen my clients get extra special deals - deals not seen the rest of the year.
Bottom line: when we wait until the last week of the year, it might be worth it.
Another bad time to start sending out emails is the first few days after the last month's last incentive day.
Because manufacturers leave dealers in limbo until they update their incentives.
For example, if the last incentive day ends on the 2nd of the new month, then new incentives will not show up until a few days later...
And usually, new incentive dates filter through dealer networks on a Thursday through Friday. And these are not good days to start our email campaign.
In this scenario, I recommend a pause. And we try again a week later.
07:48 PM ET (US)
Does your service work better at the end of the month or could I expect to see the same results over the next week (first 7-10 days of the month), which also coincides with July 4th?
Also, how long does it take to have your system set up to email all the dealers?
04:45 PM ET (US)
Hello again Chris T,
I see now.
Actually, my system encourages multi-car shopping. I have a video diary about this in my system. I was challenged by a 10-year General Manager of a Texas dealership. He bet I could not beat his deal. He lost and I documented it - blow by blow. The key was to shop 3 different cars at the same time. It is a bit more work, but SO worth it.
04:33 PM ET (US)
Hi Markus, might be a misunderstanding there.
What I meant to ask is if I am still undecided to buy either cars, can I buy 1 KTL system to shop between the 2 cars? Or do I need to buy 2 KTL systems to shop 2 different cars?
Only my wife and I are using it, and we are only buying 1 car.
03:56 PM ET (US)
Hey Chris T,
My KTL Leasing System is for you only.
However, I allow people to use it for those in their immediate household - access is for 12 months.
03:54 PM ET (US)
Hi Markus, thanks for the quick reply.
I forgot to ask you, since we're still comtemplating either 1 of the 2 cars mentioned previously.
Do I have to buy 2 KTL Leasing system? or can I use buy 1 system?
03:25 PM ET (US)
Hey Chris T,
Yes, my KTL Leasing System works for any production cars sold in the lower 48 here in the good ol' U S of A. This includes any Volvo or any Mercedes. The only exception is Tesla. Tesla does not discount (actually they do if you know a few hacks/secrets)... thus, my system does not work with their cars.
About Leashackr - I posted my entire system there almost 2 years ago (FREE) as a proof of concept. I was banned the same day. I later found out their forum is run by the car industry! And yes, brokers are almost always getting paid on both sides of the coin - from us (broker fee) and from the dealership (kickback).
02:37 PM ET (US)
Good afternoon Markus
I came across your blogs, and find it intriguing. We're looking to lease either a 2018 Volvo XC90 or 2018 Mercedes 350 4Matic.
Will your KTL leasing system help?
It will be first time we're leasing so I'm getting educated. I also came across https://forum.leasehackr.com/ and found a couple of broker who offered their systems to broker out a deal. My concern with brokers are they might get kick backs from the dealership directly?
11:46 PM ET (US)
Hey ho Johnny,
Yes, I know about the just-announced Genesis G70. Stick... loads of tech... looks fine. We are still waiting to get more details on it.
Also, all-new production cars are (usually) riddled with problems.
And the 4-cylinder engine does not help a sporty car be - well, sporty.
Of course, the G70 has a "cousin' in the Kia Stinger GT. They are both made on the same platform by the same car manufacturer. This article finds little in the way of a difference between the two vehicles:
But here is the difference maker for me... Kia has almost $8,000.00 available as a secret incentive on all Stinger models from now until July 9th. That is HUGE. In fact, it is one of the most lucrative secret incentives I have ever seen on any vehicle.
What have you heard about Genesis G70? And are demo or loaner cars really worth going after?
02:29 PM ET (US)
MF and RVs (and even MSDs) are important for those not using my system. This is an awesome car-industry magic trick to get the public to pay too much of their attention on meaningless mumbo jumbo.
We know this is true by looking at the Rent Charge on any new-car lease agreement. On a "good" lease deal, the Rent Charge comes in around 9.5% of the MSRP. So a $35,000 Honda Accord would cost us about $3,300 in Rent Charge. But my clients pay a tiny fraction of this (plus we never ever pay for a down payment). With my system, RVs and MFs and MSDs have absolutely nothing to do with getting the best deal. Nothing. Zero.
About 24 months vs. 36 months: It is better for some and not for others. Remember, there is an under-the-radar cost of getting a new car too often... there are the $300 to $500 disposition fee AND the time cost of getting into a new car to factor in. For some, time and money. (With that said, I have seen car manufacturers push hard on a 24-month lease. And if the math makes sense, count me in.) There is also a cost on our credit report - turning over a car more often increases our Credit Utilization rating... which can lower our credit score.
About "settling" for the 1% rule. I have said this all throughout my blog: it is merely a guide. It allows my clients to get an idea on whether or not they got a great deal... a deal that less than 1% of new-car buyers get.
I could post lots of under-1%-rule deals on my blog. My clients almost beg me to interview them just after their new car arrives in their driveway. But posting too many of these would make it seem that EVERYONE is going to get a 1%-rule deal. And that is not always true.
I do not hype. I do not oversell. In fact, my marketing buddies tell me I should "push the marketing envelope" more. No thanks. I sleep well at night doing it just the way I do it now.
Edited 06-18-2018 02:31 PM
02:04 PM ET (US)
HI Markus, while I agree that the only relevant number in the end is the monthly, there is a basic need to understand the MF, resid, and discount off MSRP when dealing with lessors because they in the end determine that monthly payment, holding drive off at $0 as a constant. Also, when looking at discounts, once you cross 25-30% or so, the numbers get better with a 24M lease. Maybe not for everyone but a new car every 24M is better than 36M, plus depending on how you drive avoids potential tire replacement cost. Finally, while I get what you are saying about LH, they are great for finding sub 1% leases, which is what many call a true hack. "Settling" for 1% should not be encouraged for folks that want the "best lease possible"
12:45 PM ET (US)
Hey hey David,
Let me start off with a quick story...
In 2016, I was going to write an app that hacked one of the most swap-a-lease websites. It would scrape each listing and find SUPER desperate people that would offer HUGE incentives to swap their lease - all in a click.
I was super excited about the project...
But, I gave up on it after learning how to hack new-car leases. Because anyone using my system could get a brand new car lease FAR cheaper - always with $0 cash down.
Punchline: I do not recommend swapping a lease. I constantly hear horror stories. I regularly see people in forums say this about swapping a lease: "Do NOT do this under ANY circumstance! I attempted this years ago and I don't have the time to spell out the absolute nightmare of an unmitigated disaster it turned out to be. Just don't do it." I understand the big problem is people look to get into a swap lease because of poor credit. And bad-credit people seem to have a lot of issues.
About waiting for that 2019 X5, I would try to talk you out of getting that car. BMW puts out surprisingly so-so cars. A lot of people complain about their nav system. And their cars look surprisingly dated just a year in. Most BMW car journalists are bribed to write glowing reviews about BMW. Envelopes of "gas money" are left in the glove compartment. I know, I know - crazy right?
The other problem is BMW essentially got out of the leasing biz last year. Sure, they still lease their cars, but their leasing program has been overhauled for higher profit instead of volume sales - not good for us.
The Volvo XC60 (5 seater) or XC90 (7 seater) is a far superior car for the buck.
But if you insist...
Here is what I would do - I would see about getting a 24-month lease on the 2018 X5. This way, you skip the all-new insane prices over the next few years... then get into it after the 2018 lease ends.
12:25 PM ET (US)
Good morning John J
> First, with your system do you need to wait until the end of an incentive period or can you do it at anytime? Anytime, except if the first of the month lands on a Tuesday. If this happens, the newest incentives will not be available, and that will delay things a full week.
> Second, do you get the exact car you want or do you have to be open to, as an example, interior or exterior colors that are not your first choice? Yes, you get the EXACT "production" car you want. The word "production" is important here because there are limited-edition cars that might cost a bit more.
02:08 PM ET (US)
Im considering a 2018 BMW X5 50i lease, but recently learned that BMW unveiled its new gen 2019 X5. The problem is that the 2019s wont be available for another 6 months, so Im wondering if I would be better off to swap a lease with someone with low months remaining (like 6-12 mo) and wait it out or get the 2018? My concern is that if I move forward with a 2018 lease just before the new model is released, the value of the 2018 will drop significantly or become difficult to find someone to assume my lease in a year.
One last question, if I assume a lease with previous damage repaired by the dealer, will I have issues when I turn it in?
Any advice is appreciated!
10:57 AM ET (US)
Hi Markus, I have two quick questions. First, with your system do you need to wait until the end of an incentive period or can you do it at anytime? Second, do you get the exact car you want or do you have to be open to, as an example, interior or exterior colors that are not your first choice?
Thank you, John
10:40 PM ET (US)
Hello again, Kevin.
Yes, a 48-month lease "seems" to lower the payment... but wear and tear does not cover consumables (like timing chains, oil changes, tires, brakes, etc.). And Mercedes is SUPER expensive for those consumables - over 300.00 for a silly oil change.
About the 100-mile pickup. This is why you need a draft lease agreement. And even with it in writing, they can still employ the "switcharoo."
My system is almost always able to get home delivery - this bulletproofs us against the "switcharoo". We are able to get this because we have dozens of dealerships involved in the process - not one. You can always ask... but if they know you are not shopping the car, they probably will not offer it. They want you in their "lion's den" because they will have you sign the lease in their F&I office - this is where the real money is made.
06:05 PM ET (US)
Thank you for the quick reply and insight Markus, it's really appreciated. That's a good idea and I have asked them to send me the lease quote in writing with all detailed numbers prior to me submitting any info to them.
Also, i chose a 48 month lease for 1) it lowers the monthly payment and 2) I believe Mercedes have a 4-year warranty on them, so I figured i'd be covered for "wear and tear" for 48 months.
Am I correct on this or is it not a good idea to do a 48 month regardless of the car/brand?
Lastly, the dealership wants me to drive over 100 miles to pick up the car, of course I don't want to do that. How do you suggest I go about getting them to deliver the car to me without additional expense/cost to me or my quote?
05:16 PM ET (US)
When you factor in your "drive off" (which is really mostly a down payment), your total is about $550.00 a month.
A 48-month lease is not desirable, because it forces us to spend a ton of money on new brakes, new tires and other B.S. And on a Mercedes-Benz, this effectively adds more than a $100 a month more to the total cost of leasing.
With that said, Mercedes-Benz thinks its poop don't stink. And they are typically higher than the 1% guideline. So I would probably go for it...
I would insist on a draft lease agreement before you enter the "stealership". I have seen the "switcharoo" too often - they lowball us, then tell us the car was sold an hour ago... and move us into a more expensive car.
04:41 PM ET (US)
I wanted to get your opinion on this lease offer on a 2018 Mercedes C-Coupe:
MSRP: $51,870 Cap Cost: $45,576.00
48 mo lease
7,500 miles per year Money factor: 0.0004 47% Residual $2379.62 drive off 9.5% tax rate (Los Angeles) $456.61+tax = $499.99/month
I read though a lot of your blog posts and find them quite interesting. Any insights or advice would be very appreciated! Thank you,
11:29 AM ET (US)
Good morning Andrew,
We can move to another state during a lease term - no problem.
The difference is our payment might change because of the local municipality's tax structure. The good news is most leasing companies figure this out for us and adjust the monthly bill. With that said, it is important to notify both the leasing company AND the auto insurance company within 30 days of a move. Not informing them has serious consequences - especially if we suffer an insurance loss. Some say not alerting the insurance and leasing company could void both contracts/policies!!!
About transferring a lease to a spouse. This is not much different than swapping a lease (common for those who need to get out of a lease). My best advice is to contact the leasing company and ask. If you want to know ahead of time, it is tough, because leasing companies (usually) only answer questions for existing clients. Generally, we need a FICO score greater than 620 and more than $19,000 a year in income to qualify.
10:26 AM ET (US)
Hi, I have a couple of questions today.
1) Is it acceptable generally to move to another state during the lease term? If you have leased a car and you have to move for some reason like a job transfer, what are you gonna do?
2) Secondly just wondering if you can transfer a lease to spouse during the term if they also have good credit?
09:34 AM ET (US)
I wish I could help you, but I cannot. My system only works in the lower 48.
The problem is competition - there is none on your big island. And my system relies heavily on competition.
Last year, I did help a fellow Hawaiin (sp?)... and using my system he saved a TON of money (and of course, $0 cash down). But it only worked because he had connections on the shipping industry. I recorded an audio interview about it here:
Can you help me with a toyota or honda on big island, hawaii?
07:54 PM ET (US)
Hey hey Jason,
Let me skip down your questions a bit:
I LOATHE LeaseHackr.
It started off great, but has been completely taken over by - guess who... the car industry!!!
I could name names, but my wife tells me to stay out of the drama. Good advice.
With that said, I posted my entire system on LeaseHackr in 2016. I offered it FREE there when I first started out as a proof of concept. I posted my fill-in-the-blank templates and tutorials as one long post. I got immediately attacked. And the site owner deleted it all and banned me, too. Hmmmmmmm.
And any time one of my clients posts a success story there, I have been told they delete those, too.
Now, some people there are honest and offer valuable advice...
But others - not so much.
Some of my clients admit investing hundreds of hours there. I get it. That site is one giant rabbit hole.
Now. Why do I strongly recommend against following most of the advice at LeaseHackr?
If you notice, the "Trusted Hackrs" constantly talk about MFs (Money Factors), RVs (Residual Values) and MSDs (Multiple Security Deposits). They make it seem like these are the most important factors in getting the best deal. It is not. Not even close.
All this jargon is car-industry magic tricks. They are deceptions. They are given to us to magically get us to pay thousands more for a lease.
This is why my clients ALWAYS get $0-cash down leases. It allows us to focus on the most important number - the monthly payment. Nothing else matters.
For example, the "experts" at LeaseHackrs say to go after cars with high Residual Values. And on paper, this seems logical. But, the Residual Value is irrelevant. If this was true, just about every Subaru would be less than $200 a month.
On the flip side, INFINITIs have terrible Residual Values (averaging 51% over 36 months). Yet, INFINITI offer amazing cars as amazingly-low monthly prices - again, $0 cash down. Some of the best deals are done with cars at so-so Residual Values. You can scan my list of success stories here to see them:
Then there is the Money Factor deception. This is lease speak for the interest rate on borrowing money for the car. The "experts" at LeaseHackrs tell us to negotiate this percentage. This is just crap...
My clients never worry about the Money Factor... because after using my system, the "Rent Charge" - lease speak for the total interest charged is as low as possible on its own. There is no need to negotiate it. The Rent Charge is typically 9.5% of the MSRP of the car. So when we lease a $30,000 car, the leasing company's Rent Charge is almost $3,000.00. Yet using my system, it is not uncommon to see a Rent Charge on the exact same car under $100. (Remember, I cannot make claims and guarantee anything I say here - it is illegal according the the Federal Trade Commission).
And that leads to the use of MSDs (Multiple Security Deposits). I wrote an entire post about why MSDs are a bad idea here:
But the punchline about MSDs is this - if we need to use 'em, we are paying too much for our lease. My clients have never needed to use an MSD to get the absolute lowest "Rent Charge".
Now, to your question about getting a new car for $150 a month at $0 cash down. Can it be done? I could do it using my system... as long as I have enough time (at least 45 to 63 days) AND as long as I was not loyal to a specific car.
Finally, I know you did not ask it - but I am guessing you are wondering if there is a discount to lease 2 cars at the same time. There is (typically) not. That is because the price we get is so low, there is no more room in the deal.
05:41 PM ET (US)
Love your site.
Ever since reading your site Ive changed my feelings towards leasing to be more positive.
Im considering buying your program to find a deal that might allow me to lease two cars and pay around the same amount that Im paying for my current car loan (Id sell my car and pay off the loan prior to leasing of course).
My payment is 280 a month. Is there any way to get a couple of smaller cars each no money down and 150 a month or less? Wondering if that even exists in decent compact cars. I read Chevy cruzes can get that low.
Ive read in some forums on leasehackr where people have gotten less than 140 with a Chevy Cruze.
Either way I dont feel adequate to chase those deals myself without your program. So if I decide to lease Ill be getting it.
Sorry long message - ultimately just asking if 150/month no money down is even out there.
So, I have to play their game and say, "This is what I would do":
First, I would get 3 appraisals of the Hyundai from a used-car lot (or places like CarMax). It will not be pretty. Cars from Korea do not (typically) hold their value well in the end. Then I would sell the car to the highest bidder. Using this strategy, the over-the mileage penalty might be half. Yep, if we are charged 15 cents or 25 cents over the mileage allowance (look at your lease agreement for the exact penalty), the going rate on the used-car market is less than 10 cents - so that will save possible thousands in mileage penalties.
Taking the buyout and selling a leased car skips the nonsense. There are no end-of-lease fees or damages... no disposition fees - nothing. We just pay the remaining payments plus the buyout amount minus what we are offered for the car.
The only downside is we need to pay the difference at time of sale - usually in cash. And judging from your situation, I bet cashflow is a problem for you.
Another option is to sell the car privately. This usually brings in more money (and more hassles). Plus, some states require we pay off the entire balance before transferring the title to the new owner. If I had the cash, this is the way I would go. In fact, I might break even (or come out a few hundred dollars ahead) selling my car privately.
Of course, you will then ask me if you can roll the negative equity of this Hyundai into a new-car lease. Yes, we can. But, you run the risk of not getting your lease approved, because your negative equity is so high. There is a formula (it is different for each leasing company). And if the adjusted cap cost plus negative equity is more than 110% of the new car's MSRP, odds are we will not get approved. Rolling negative equity into a new-car lease (or purchase) is awful, because the dealership knows we are in a terrible position - and they go for blood (highest profit... no discounts... high "Rent Charge").
I hear about this all the time. So many people are "underwater" these days because they thought they got a good deal on their leased car, but in reality, they got massively screwed. I get it. It sucks. We are lied to in so many ways...
This is why I created my KTL Leasing System. It is virtually impossible to get fleeced.
In the future, I would HIGHLY recommend setting aside an over-the-mileage savings account... 10 cents a mile. I do this with my online banking. It automatically transfer a small amount each week into my savings account. It is a small amount, so I do not miss it. This way, when the lease ends, we can buyout the car (instead of turning it in) and pay the cash for the over-the-mileage hit.
04:23 PM ET (US)
I have a 2015 Hyundai Tucson, lease is almost up. I'm kinda worried because my mileage is at about 65K, which the agreement stipulated 42K. My payments monthly are quite high (almost $600). It's due to be turned in within 90 days. I have had regular maintenance on the vehicle, was planning to buy it (not only because of the overmileage but there is some damage to one rear quarter panel and the trunk interior). My economic situation has changed drastically, and I'm not sure I can afford to keep it. They're also a predatory dealer and I had some trouble with them in the beginning because of this, so I'm worried that they're out to screw me (when I turn it in). What advice do you have for me?
07:50 AM ET (US)
Hey hey Rodger,
If you are as old as dirt like me, you will remember the phrase "Voodoo Economics":
Now, is there a legal document that backs this up? Nope. Not that I am aware of. I know, I know - crazy right?
With that said, the lease shows (e.g. on a 36-month lease) 35 remaining payments. And when we get the car dropped off, they hand us the keys without asking for a single penny. That is good enough for me. So I am not worried about any hidden shenanigans at this point.
The good news is I have helped many hundreds of clients so far. And I am not aware of any "renegging" or flip flopping on this issue. And we would know about this within 30 days just after the first bill arrives in the mail. After the first bill arrives, we are in the clear... even agains the "spot delivery hustle":
I'm looking into purchasing your KTL Leasing System and I've been reviewing your success stories. I see on a few of the lease documents there is an "Amount do at lease signing" and you say some of the dealers pay this amount to make it a true sign and drive (first payment and gov't fees). My question is am I legally obligated to pay these amount when I sign the lease? Or is there another document that says the dealer will be paying this. Just wondering if they could back out of paying this amount after I sign the lease.
04:17 PM ET (US)
Hello again, Aaron.
Remember, in the vast majority of cases, the dealership will include FREE delivery of your new car to your home, office - even a Starbucks.
Take a look at email #4 for more details about this.
03:49 PM ET (US)
Found it thanks! I have another quick question: In preparing to go after a car this week, I went to CarGuru after seeing you do it on your tutorial, and I found over 50-60 dealerships within 500 miles of my home that carry that vehicle. If I were to use your list (the Eastern and Central versions) many of those dealerships will be too far for me to consider flying to in order to drive the car back here. If I have to pay 1000 for shipping, then that negates the idea of 0 down. The car I'm thinking of is right at the 30000 mark, meaning it's not like I'd be saving thousands upon thousands by traveling far far away (as opposed to an X5 or Range Rover or something). Does it hurt the system if I use the dealerships listed by CarGuru within a 200 or 500 mile radius of where I am?
But anyone who ordered my KTL Leasing System gets it FREE.
Once logged in, click the "Credit & Leasing" tab - it is found on every page of my system.
Edited 05-20-2018 12:51 PM
12:35 AM ET (US)
this post is not properly about car leasing, but I wanted to know how to get access to the credit score system and strategies that you bundle for free with the ktl leasing system. I can't find it anywhere on the KTL homepage.
06:55 AM ET (US)
There are 3 "must dos" when it comes to shopping for a lease:
1) Get a $0 down deal... 2) Aim for the 1% rule 3) Never ever ever ever ever go into a dealership while shopping a lease.
We want a no-down deal so we can shop the car with dozens of dealers selling the exact same car. This keeps them honest so we can truly find the lowest price.
Your $395 all in plus $4,000 is a bit over $500 a month when factoring the cash you need to front. That is 1.6% of the MSRP - a HORRIBLE violation of the 1% rule.
HI, I'm curious if you think I could do a lot better than this Lease deal I've negotiated in Bellevue Washington. Audi A3 Front Wheel Drive Premium. $4000 down, price $31,500, money rate .000082, 42 months, payment $395 all in. I have almost the same deal going on a quattro in Bend Or.
Thanks for your input! MT
12:10 PM ET (US)
Hello again, levitt.m.
Just had a 35-minute talk with my 2 "moles" about your question after picking up my RAV4...
I stand 100% behind my original thoughts (below).
Again, I would NEVER get an electric/hybrid vehicle unless I was forced to do so (which probably will happen in a few years). Until things improve, I will gleefully drive my reliable gas guzzler.
11:49 AM ET (US)
I'm the levitt.m below. Doesn't conform to my experience. I owned a Camry hybrid and then owned a Prius plug-in/hybrid. But probably not owned for longer than three years each. The first was trouble-free but the latter was until I ran out of gas, after exhausting the battery. AAA could bring gas, but had absolutely no idea how to start it. Off it went on the hook and to be treated to some mumbo jumbo by the dealer. Never trusted it after that and traded in the Prius soon enough. Kudos they were. And are... Nice stuff.
Edited 05-17-2018 12:05 PM
11:07 AM ET (US)
I appreciate the kudos (I think... "interesting blog"... will take that as a compliment:>)...
Ironically, I am typing this while getting my Toyota RAV4 serviced. And it is here where two of my industry "moles" work...
They confirmed to me the endless issues their hybrid customers have after year 2. Most leases are 36 months... and there is nothing worse than having to be responsible for replacing hybrid batteries upon end-of-lease inspection.
Hybrid batteries are not much different than smartphone batteries. The technology remains "dicey."
If I was forced to get a hybrid, I would find a 24-month lease max.
And the leasing industry knows it is a problem. This is why residuals are often lower. The end-of-lease values on hybrids and electric cars plunge at the end of the term... because the used-car market knows about the battery issue.
Gotta run... just got word my non-hybrid, super reliable RAV4 is ready for pickup.:>
10:53 AM ET (US)
Not sure I get this point: "3 reasons I would NEVER lease an all-electric or hybrid car." Your argument makes sense about the lifespan of batteries and what the guarantee means, but if you're leasing a hybrid car, it's likely to be someone else's problem after three years. A very interesting blog by the way...
05:19 PM ET (US)
Hey Kristin. You are not bothering me at all.
As always, use my reply system to ask for the lease worksheet in writing. Once in writing, proceed to email #4.
This sounds like a winner to me. You are off by peanuts ($3 a month). I am sure you will get those fog lights gratis. And remember, you should be getting a true sign and drive here... that is $0 cash down AND the dealer will make your first month's payment - so you get to drive the car FREE for the first 30 days! How sweet is that?
P.S. If you could follow up using my help desk ticket system, it would be better. There is a lot of inside baseball stuff here.
05:04 PM ET (US)
Hi again, Markus!
So sorry to keep bothering you :/ I just received an email (I've received several today saying my numbers are off). But this one said the following:
"I want to let you know the 2018 Tiguan SE AWD Roof and fog lights package is rare. They do not have a lot of those combinations available. I did a 200 mile radius search and there were 3 available. I have the SE here with the roof but not the fog light package. However, if the fog lights are 100% a must I can swap it in for you. I rather try for exactly what you want first. What I did was ran the lease on the locates I found since that is exactly what you are looking for.
36 months 10,000 miles per year first payment down $300 per month including all taxes and fees.
Please let me know if we can make a deal happen. If so, I will get to work on securing your vehicle.
Any questions I am 100% here to help you. If you would like to come in and go over options and cars with us, let me know as well so I can have somethings ready for your arrival."
I had requested a $0 down sign and drive price of $297 per month. I'm having a hard time discerning if this dealer is really saying they will get me in with $0 down for $300 a month? Or is there a catch that I'm missing??! Thank you!
2018 Volvo XC
02:18 PM ET (US)
Ads can be deceptive, but salespeople are even more deceptive! I don't understand how someone can happily live by making living by lying to other people...
Anyway... $0 (true sign-and-drive) leases are real and they are not just for those who leased from a particular stealership before.
I used the KTL to get this kind of lease, I didn't pay anything for a month. And they agreed to it from email #1 when they had no idea who I am, as I used a different name.
Just follow everything Markus got for you in the KTL. Most of the questions are already answered there.
Edited 05-16-2018 02:20 PM
12:45 PM ET (US)
Here is the oldest joke in the book:
Question: How do you know when a car salesperson is lying? Answer: When their mouth is moving.
I train my clients to ignore all "sales speak".
Car ads are riddled with hidden fees that add hundreds to the lease amount every month.
My clients never worry about this...
My system works with anyone - even first-time leases. Always $0 down. Always.
12:30 PM ET (US)
I went to test drive a car recently and the sales guy said to me that those 0 down specials we read about in the paper or on the website in reality are only for those who qualify by having leased a car before with them. How deceptive these ads are because they do not mention this! With your system if this is our first lease ever, can we still get the best sign and drive zero down deals?
11:28 AM ET (US)
In my system, there is a checklist of incentives to use.
We never use the manufacturer incentives. We let the dealerships figure that all out for us.
If you do not have many personal incentives, that is perfectly okay. All good.
11:10 AM ET (US)
Thanks, Markus -
So, in terms of email #2, should I list/detail any of these incentives (e.g., $2,100 dealer cash (VCI Lease Dealer Bonus))? Other than those that I provided below, I think I may only qualify for a Loyalty Program rate reduction of 0.5% as an existing VW customer. SO I don't have much else to list! Thanks again!
10:40 AM ET (US)
"You warned me about this."
This is EXACTLY what happens during the first phase of using my system.
Dealers will always say the numbers are way off - it is the game they play. They will peddle fear porn on us. Stay calm. Put emotion aside. Logic always wins.
And remember... we only want to see if a bunch of incentives is happening. Clearly, they are. There is no need to worry about the incentive details. Just follow the next phase exactly and watch the magic happen.
10:36 AM ET (US)
Hi again, Markus -
Thanks for your response to my last question... I'm getting responses from VW dealers saying my numbers are way off. You warned me about this. But I wondered if you could take a look at the current incentives for the Tiguan SE 4Motion? I see $2,100 dealer cash (VCI Lease Dealer Bonus) and then some other numbers. But I'm unsure if the other numbers apply only when buying a car?
Thank you so much!
Trim Rebate 24 Mo 36 Mo 48 Mo 60 Mo 72 Mo Expires Category SE AWD $2,100 - - - - - 5/31/2018 Dealer Cash(VCI Lease Dealer Bonus SE AWD - 4.37% 4.37% 4.37% 4.37% 5.12% 5/31/2018 Finance Rate SE AWD $750 - - - - - 5/31/2018 Dealer Cash (VCI APR Dealer Bonus) SE AWD - 1.90% 1.90% 1.90% 1.90% 2.90% 5/31/2018 Finance Rate SE AWD $1,750 - - - - - 5/31/2018 Dealer Cash (VCI APR Dealer Bonus Cash - Dealer 2nd Choice) SE AWD $1,250 - - - - - 5/31/2018 Dealer Cash (VCI APR Dealer Bonus Cash - Dealer 1st Choice) SE AWD - 2.90% 2.90% 2.90% 2.90% 3.90% 5/31/2018 Finance Rate SE AWD - 3.90% 3.90% 3.90% 3.90% 4.90% 5/31/2018 Finance Rate SE AWD $1,250 - - - - - 5/31/2018 Dealer Cash (Dealer Cash)
10:39 PM ET (US)
Hey hey Aaron,
I appreciate the kudos on my system.
There is a video tutorial above my sending app. When you click on the link, you will also see answers to your questions you asked here.
Happy car shopping this week!
Edited 05-13-2018 10:42 PM
09:51 PM ET (US)
I have the KTL system and the logic and insight are astounding. You have provided needed information for consumers, and I believe that this is the best kept secret about car leasing in existence. For example, your information about car incentives and how to access the ones that are hidden to the public but provided to the manufacturer (I'm not giving anything away) are worth the price of admission alone. My question is in regard to how to send the email. What is the purpose of the app outside of automatically generating the email? Is it true that we must manually enter the information for each dealership into a separate email, or does the app send an email automatically to the dealerships? What is the purpose of the Google API code? I seemed to have missed something, and I've been watching videos and reading your tutorials assiduously in preparation for going after my desired car this week!
10:22 AM ET (US)
Thanks very much!!
09:33 AM ET (US)
Hey ho Kristin,
The good news is you did not get sucked into the marketing vortex of Subaru Corp. Subaru is a HIGHLY HIGHLY HIGHLY overrated car brand...
And this is great, smart marketing. Kudos to Subaru for turning around their once-awful image via this vocal group.
But the bottom line is their cars are stunningly awful. Their body frames squeak a lot, their entertainment "stack" is downright embarrassing and their interiors are cheap (at best). I could go on and on.
Nowadays, there are SO many better options for the same amount of money.
Onward: about your incentive's question... it is reason #2: "knowledge of the incentives as justification for asking for the 1% number" - I went into more detail about it within my KTL Leasing System... I used your excellent question as an update on the bottom of the Incentive's tutorial.
10:38 AM ET (US)
Hi Markus -
Very happy that I came across your website and system! One question I have (and I'm sorry if you've answered it on the website--you probably have--but I'm can't quite figure out the answer): how do the incentives work with the 1% rule? In other words, should I start with an even lower monthly number going in if there are some incentives right now? Or, do I just use my knowledge of the incentives as justification for asking for the 1% number? I am currently driving a Volkswagen Tiguan SE 4 motion (w/ appearance) and I would like to stay in the same car. My lease is up at the end of May. I visited a dealer a couple of weeks ago and they gave me a song and dance about how VW Corporate is now basically making it difficult for dealerships to offer good lease deals. Even though the cost of the Tiguan has gone down, they said my monthly payment would go up by like $40! I was looking for it to go down as my car is in perfect condition, I've been with VW for 6 years, and after each 3 year lease have only about 22,000 miles. Any input would be very welcome. Thank you! (PS - I also considered a Subaru, but Subaru doesn't have any incentives this month.)
Deleted by topic administrator 05-09-2018 10:20 PM
08:38 PM ET (US)
We ask for sign and drive ($0 cash down) deals to keep car dealers honest. They cannot play games with us when everyone is pricing their car at the same spec. If we did not ask for $0 cash down deals, prices would be all over the place.
With my system, we get prices from zones. These zones can be as much as 1,500 miles away. And remember... most dealers will deliver the car to us - so distance is often irrelevant. For example, there is one dealer that often helps my clients. They are located in State College, Pennsylvania... and they regularly deliver their new car leases near I-95 as south as Orlando, Florida. They make this run several times a week. Again: zones. No one talks about zones - it is a well-kept secret in the car biz.
With my system, you will get prices on EXACTLY what you want - including the EXACT color. Keep in mind that a growing number of car manufacturers are charging higher prices for "premium" colors (like white). Anyone can find out about these premium colors - they are now listed on dealer websites as "premium options" or "upgrades."
06:35 PM ET (US)
Hi Mr. Allen here is an update. We have been test driving some cars. We are wondering is your method more commonly successful at leasing the car desired at zero down and what is considered a very good payment or rather more often taking the car you can get at zero down and a good payment. For example, my wife found out she likes Camrys. We further discovered there are only two Toyota deals relatively close to us. I am not sure if dealers farther away than 125 miles are considered as viable possibilities with your method?
There are also issues like color and features. Will we be realistic to expect with your method to receive the color and features she likes? Or will we be instead taught the approach to shoot for the sky, hope for the best, but also be ready to accept the Camry in a color that maybe a second or third choice or alternatively accept a nice deal on a Corolla, Malibu, Accord, or Sonata, etc. instead? We want to know what we can truly expect so we set some real expectations at the outset should we move forward. Thanks!
Deleted by topic administrator 05-02-2018 05:10 PM
08:07 AM ET (US)
Good morning, Andrew.
You are on the edge with a FICO of 631. You really need to have that go up 10 to 20 points to get approved for a car lease.
Nothing else matters until that happens.
About waiting for incentives. Typically, incentives get better and better from May to December. The dealership's most profitable months are from January 'til April (when the weather warms). So waiting should pay off for you. Just make sure you skip the first week or so of every month as incentives are not released.
With my system, we are contacting many dealerships. We are looking for that one desperate dealership that needs that one extra sale to make a huge manufacturer bonus. So "prequalifying" is impossible. And yes, the Finance Manager knows all about credit. They work minor miracles every day. Quite frankly I am puzzled that some of my bad-credit clients get approved.
The credit score system is rigged. It is meant to scare us so we pay more interest. The credit industry is in cahoots with those offering credit...
With that said: yes, utilization is (by far) the most important factor. But, there are no guarantees that your score goes up. I have seen the same scenario where the score actually goes down a few points over many months before it goes up. I can tell you that having individual credit accounts with more an 89% utilization kills our score. And having 100%+ utilization knocks at least 100 points off. So I would fund any of those accounts ASAP to get them below 89%.
My recommendation is to get my system sooner rather than later but wait until the second week of June to deploy it. This way, you will master my system... and not be rushed when deploying it. In your case, there is a bigger leap of faith... you can get the most fantastical, record-setting deal ever... and not get approved for the lease. As an entrepreneur, you know we mitigate risk vs. reward. Judging from what you are telling me, it sounds like you will have a slightly better than 50/50 shot of getting approved in June. The good news is if you do not get approved, you can (usually) leverage your deal (hold onto the draft lease agreement you get) and reapply again in July. That is, a dealer will (probably) honor their deal the next month if it does not happen the month before.
One last thing: a dealership can almost always get a deal approved if you are willing to come up with at least $2,000 in security deposit. This is different than a down payment because you get it back at the end of the term. Mitigate risk.
Edited 05-02-2018 08:08 AM
07:43 AM ET (US)
Markus these are probably the last questions before I begin. I am wondering am I likely to get a much better deal at the end of May for some reason than somewhere in Mid May? If so I can probably wait if it is truly likely to make a significant difference?
The next thing is my FICO 8 credit score for May 1st currently is just at 631 from Experian and I am not sure what they are at other bureaus. Should I check as I know the three bureaus sometimes can vary in score? Do you know happen to know which Bureau score is most commonly looked at in the leasing industry or do the companies all differ? You said I should have a 630 at least.
The other important factor is I know for a fact my score will go up probably 25 points or more June 1st because I just yesterday received a new $3500 revolving line of credit from my bank which will significantly lower my credit utilization (causing my score to increase). But this increase won't reflect until June 1st. So I really don't know what move to make considering all this? If I wait until the credit score goes up, I miss the May offers and am right back at the beginning of a new month.
One possible solution I thought of is if I fax to the car leasing company along with my income tax return, a copy of the letter from my bank showing this new credit line approval. As I am sure they understand how credit scores work, they will know my score is about to increase further in June and they also might realize that I am unlikely to miss a lease payment because I have $3500 at my disposal. My credit report also shows no late payments or collections. Please advise and thanks!
Edited 05-02-2018 07:51 AM
02:23 PM ET (US)
Hey hey Andrew,
> Ok. What I was getting at is... if I make multiple offers being open to a variety of vehicles, am I more likely to get at least one of them to accept one of these offers (which of course all include the true sign and drive)?
In fact, if you order my system, my video diary shows exactly how to do this. I show how to shop for 3 different cars at the same time. In the end, my client was offered more car than he asked for at the same price. This is exactly why my system works so well. It flips the tables on how we shop for a car.
"I believe I am significantly above 630 but will double check to be sure. Can you provide me an idea of general income requirements that these care companies typically have relative to varying payments? I am an entrepreneur also and pulled in just only about 25k last year on tax returns. The good news is, my debt is almost nothing, only $50 per month for two credit card payments. Also I don't have a mortgage or rental payment. Therefore my DTI leaves some significant room. So I have relatively quite good cash flow to my 25k income. But I can only hope the lease companies see it this way too. Markus based on these figures can you assist me in calculating what kind of lease payment I might be eligible for? There is no sense in pursuing this unless it truly is likely that I can get a lease."
I completely understand your concern about the credit issue...
I find the vast majority of people think their credit is worse than they imagine. (On the flip side, some are in deep denial:>)
Based on what you are saying here, you should have absolutely nothing to worry about. I say "should", because again I cannot legally make claims.
01:59 PM ET (US)
Ok. What I was getting at is... if I make multiple offers being open to a variety of vehicles, am I more likely to get at least one of them to accept one of these offers (which of course all include the true sign and drive)?
I believe I am significantly above 630 but will double check to be sure. Can you provide me an idea of general income requirements that these care companies typically have relative to varying payments? I am an entrepreneur also and pulled in just only about 25k last year on tax returns. The good news is, my debt is almost nothing, only $50 per month for two credit card payments. Also I don't have a mortgage or rental payment. Therefore my DTI leaves some significant room. So I have relatively quite good cash flow to my 25k income. But I can only hope the lease companies see it this way too. Markus based on these figures can you assist me in calculating what kind of lease payment I might be eligible for? There is no sense in pursuing this unless it truly is likely that I can get a lease.
Edited 05-01-2018 02:01 PM
01:30 PM ET (US)
Hello again Andrew - all great questions. Here we go:
1) "If I submit multiple letters to multiple dealerships and am a little flexible on the type of vehicle, does this make me more likely to get a true sign and drive lease?" Nope. It has nothing to do with the type of vehicle. We always ask for a true sign and drive - always.
2) "How much time does it take to implement the system? I do need another car within the seven days due to work. Can I watch the videos and begin submitting offers the very same day or does learning and implementing this system take more time to do it the right way?" I have an entire tutorial on the timing. And the money we save is directly in proportion to the time we invest learning my system (and the time we have to use the system). This guy did it all in one day (and got his car delivered to his apartment from over 4 hours away):
You said 7 days. That is cutting it close. I would rent a car for a few extra days... you will probably have your new car by next Thursday if you get started picking up my system this week. (And by the way. This is the worst week of the month to start researching to lease a car - incentives are not out yet... should be out in a few days.)
3) "Secondly, if my credit is fair to good, mid 600's or high 600's or even just above 700 (I need to check today), will I need to provide proof of income too? If yes, what docs do they usually require?" Your credit score will work - anything below 630 or so is not going to work for sign and drive. You will need to provide a paystub to verify your income. Or if you are like me (entrepreneur), you need to show last year's tax returns.
11:33 AM ET (US)
Thanks for that super comprehensive response. Yeah Boise is nice and a little smaller than many major metro areas. But a great place. I have a few more questions if you would before I take the leap of faith.
If I submit multiple letters to multiple dealerships and am a little flexible on the type of vehicle, does this make me more likely to get a true sign and drive lease?
How much time does it take to implement the system? I do need another car within the seven days due to work. Can I watch the videos and begin submitting offers the very same day or does learning and implementing this system take more time to do it the right way?
Secondly, if my credit is fair to good, mid 600's or high 600's or even just above 700 (I need to check today), will I need to provide proof of income too? If yes, what docs do they usually require?
Edited 05-01-2018 12:56 PM
11:10 AM ET (US)
I appreciate your "cheeseness" Andrew,
I cannot guarantee any results using my system. The FTC prohibits this. The FTC is REALLY REALLY tough on those who make claims these days. (I even offered a lifetime guarantee on my leasing system... but even that is a no no these days... so I do not offer a refund policy.)
What I can guarantee is you will not be taken for a ride. My system prevents this from happening. I have videos, audios and tutorials to show you how to be in 100% control of the car leasing process. In the end, you will know more about the leasing game than 99.99% of car sellers.
My clients always get a sign and drive deal. That is $0 cash down (first payment and government tag fees must be paid upon taking delivery). Most deals are even better... they are true-sign-and-drive deals... this means we get to use the car FREE for the first 30 days. Yep. Sign the paperwork, get the keys to your new car... first payment due 30 days later. (Most of my clients are blown away by this.)
Finally, most of my clients get FREE home delivery. They never step foot in a dealership. And they never meet a salesperson. Some choose to pick up the car at the dealership for a variety of reasons.
You might think being in Boise with little competition works against you. It does not. My first client was in Boise. And she got this stellar deal on her new INFINITI Q50 - check out her story here:
Wow I hope this doesn't sound cheesy or over zealous, but I feel pretty relieved right about now that I stumbled on to this site. I am going to read everything here and if I feel confident I will purchase your course. I have a few initial questions. I live in the Boise, Idaho area, and in my current paradigm set of perhaps "limited beliefs", I have gone online to look for local $0 due at signing lease specials. Of course I do find a few and maybe one or two that potentially fit my budget, but I feel both restricted and also have a looming feeling that I may be "taken for ride." Are you asserting that your course allows me to access nationwide lease offers and have the car delivered to my home with $0 (including no freight costs)? How much in approximately fees will I have to pay at signing if any? How great would this be !!!
Edited 05-01-2018 10:58 AM
11:16 PM ET (US)
Awesome! Thank you Markus. Glad I'm a certified underwater diver :) and now "underwater" driver LOL
09:32 PM ET (US)
Yes Paul. You are currently "underwater" about $14,000.00!!!
03:17 PM ET (US)
Thank you for your response and advice, Markus.
The depreciation amount is $24,097 and the buyout fee is $400.
So in order to actually buyout the lease it would be $30,808.50 (remaining payments) + $24,097 (depreciation amount) + $400 (buyout fee)? Total of $55.305? I know I screwed up, but not this bad!
02:40 PM ET (US)
I am guessing the acronym you are referring to of "TMV" is Edmunds True Market Value. This is irrelevant for your issue.
You need to find out the buyout amount. This is found on your lease next to the depreciation amount. Plus, you need to get the buyout fee (usually under $500).
With that said, you would be the greatest car leaser on the planet if you have equity in your lease after just one month.
Heck, I couldn't even pull it off... and that is my thing.
I think you are forgetting that in order to buy out your lease, you need to calculate your remaining payments PLUS the buyout amount PLUS the buyout fee. It must be less than what you can sell it for. We can sell it privately or to any car dealership - anywhere on the planet.
Even worse, a 48-month lease is almost always brutally bad for us. It is a total win for the car dealership. I never recommend leasing for more than 36 to 39 months.
What you can try to do is visit any car dealer/CarMax/car-buying place and ask for an appraisal. I would visit at least 3. If the loss you take is manageable for you (probably several thousands of dollars), they will buy out your lease and handle all the paperwork. You will need to pay the difference on the spot. Then you lease a car the right way (if you use my system).
One final thing: you are not alone. This happens all the time. People get fleeced/suckered/screwed by dealers a lot. They make poor choices. And then they get into a bad car and regret it a month in.
I would DEVOUR all my blog posts. Gain the knowledge so this never happens again:
I just leased a car last week for 48 months with an MSRP of $44,390 and a residual value of $15,865. The total amount of my monthly payments is $31,464. I have 47 payments remaining. The TMV of a new vehicle is $43,358. The used TMV for a dealer is $38,092 and the TMV for a trade-in is $31,967. Do I have equity in this lease? Do you think another dealer would buyout my lease so that I can lease the actual vehicle I want?
09:37 AM ET (US)
Thanks, Markus. Again, you didn't respond to the question, which is telling. Congrats on the FTC not cracking down.
Edited 04-09-2018 10:46 AM
09:15 AM ET (US)
I think it is great that you can do it all yourself without any of my help. You should go for it.
09:00 AM ET (US)
Well why do you place so much emphasis on your ability to make "no down payment"? It is simple to get "no down payment" by oneself anyway, so why feature that so prominently? I mean, it is sort of like saying "I can help you stay at a hotel without a deposit for incidentals." I've rarely had a problem saying no that deposit either, as long as I say "you can remove the incidentals from my room." Sometimes they actually remove them, often not.
FTC are REALLY cracking down on claims? How about this, to be more accurate: The FTC always cracks down on false claims eventually.
Edited 04-09-2018 09:03 AM
07:22 AM ET (US)
In the past, I would say that my average client saved between $6,000.00 and $10,000.00 more than "working a deal" themselves.
How? Instead of getting prices from 1 or 2 dealers, we use an app I created to contact dozens of general managers selling the same car. Plus, I have a list of the most aggressive dealers - sorted by car manufacturer.
The FTC are REALLY cracking down on claims. So I cannot guarantee anything. It is so bad right now I do not even offer a money back guarantee - again, because it implies a claim.
So, the only thing I can suggest is to look at the success stories on my site - these are unsolicited case studies of the savings:
I've never paid any sort of down payment or deposit on my leased cars. It hasn't been that hard to do, for me or other people I know. And I have easily found my desired car's money factor and residual online for the particular month I choose to lease. I have always gotten very very competitive deals at ends of the month or year all by myself. Yes, you are knowledgeable, but what kind of value are you adding here if "no down payment" is your top selling point?
Edited 04-08-2018 11:31 PM
01:41 PM ET (US)
The quick answer is no. I would NEVER EVER lease a used car.
Even program cars (courtesy cars loaned out by the dealership to their service clients) are almost never good deals... no matter what they claim in their ads.
With my system, you never ever put cash down. This is known as sign and drive. We always go for a sign and drive lease, because it keeps dealerships honest when we get quotes from them. (It also lets us keep our cash for better uses... like investments). I never invest money in declining assets... and a car's value plunges year after year.
12:40 PM ET (US)
I just found your website and I am blown away by your site, I just started the process of getting another car and was seriously considering an off lease dealer with several locations the closest to me in Orlando,Fl but then when I ran the vin # I learned the car had been in a couple of accidents.
Which really surprised and turned me off, my question is do you recommend using one of these off lease dealers, or can you get an even better deal with a brand new lease on a new car and does the drive off the lot immediate depreciation matter when leasing.
I'm now looking at the sign & drive new lease offers and they all say, with a big deposit if I understand correctly there is zero down with your system?
Deleted by author 03-25-2018 02:09 PM
05:42 PM ET (US)
I have bad credit so I can get a car for just 45 down
03:46 PM ET (US)
During the entire year of 2017, I was "on call". I fielded over 1,500 helpdesk requests... handholding during the entire process. I even traveled to some of my client's homes and recorded video of them using my system.
I have since grouped these questions and published them... sorted by answers. These are all in my KTL Leasing System.
I am no longer on call. And since just about every question is answered, I no longer get requests for help.
While I understand the fear, there is nothing to be nervous about. Just follow my system and have fun. Really. Getting a new car is fun when you do it all from home.
02:35 PM ET (US)
I came across this while doing some research on leasing a car. I am a young-ish female professional who would like to lease a car on my own (sans any help from other males in my life) but am quite nervous about it. Your blog and videos have really caught my interest but I'm wondering if there's any actual real-time help/guidance from you (which I'm hoping for) once I purchase your package, or if it's more a step-by-step guide (which makes me a bit nervous).
Thanks for the quick response. I took blurbs being run by So-Cal Lexus dealers about the special factory financing at face value and assumed my main area to maneuver was to try knocking down the upfront payment by way of selling them my leased lexus that has under 20,000 miles. Now I know that I can sleep in tomorrow and forget about those ads. I have a couple months left on the lease. Interesting observation about electric cars as it probably won't be long before Elon Musk adds an electric SUV Tesla to his product line. If he can make a semi that goes 500 miles on a single charge and a 250 mph roadster, chances are he'll come up with a better RX 350 than Lexus.
11:30 PM ET (US)
Hey hey Car Addict,
Let me answer in reverse about your lease equity question:
The $419 for 36 months with $4499 due at signing will cost you more than $600.00 a month when the dust settles. Because when you factor in that HUGE down payment, hidden fees (and rent charge), it adds more than $180 a month to the final payment.
Bottom line: I NEVER look at advertised "deals", because they are missing thousands in fees and extras. And they need massive downpayments (which are totally unnecessary to pay).
Also, I anticipate the manufacturer incentives to become sweeter next month and the month after. That is how the timing works in the car leasing industry. One month the deals are so-so, then better the next... even better the next - the cycle lasts 3 months. Rinse and repeat. So I would not get trapped in Lexus' pressure tactics of rushing into something this week.
Anyone with a pulse and $30,000 can buy out your lease. If you buy it out early, you add the remaining payments plus $30,000.
There is no wholesale rate that I am aware of. With that said, a Lexus dealer (or anyone with the cash) can ask for a reduction in the buyout as a standard operating procedure - which is like getting a wholesale rate. (See more about this below.)
I recommend contacting Lexus Financial Services and request a 10-day payoff. We can request one as many times as we want. Hells bells, we can call every 10 minutes if we want. Why would we keep calling? Because situations change - and Lexus Financial Services might lower the buyout price because of "circumstances". (They can also raise the price back up to the residual value plus remaining payments).
What "circumstances" might come up?
Perhaps they do not want the car to go to auction and might be willing to lower the buyout amount.
Like in the case of Volkswagon, their recent emissions scandal is plummeting the value of their cars.
Electric cars are taking a huge hit to their resale value. Electric batteries need to be replaced in as little as 36 months. And they are often not covered under warrantee. And they are super expensive to replace. So the leasing company might drop their buyout amount significantly. I see this happen a lot with Chevy Bolt electric vehicles.
I always ask for a 25% discount on the buyout amount. The worst-case scenario is they say no. There is nothing lost for trying. Asking for a discount often gets the leasing company to lower the buyout amount.
As I said in my "flip" tutorial, dealerships LOVE buying off-lease vehicles. Since we treat them well (and keep the mileage low), they do not have to invest much to flip them on their used-car lot. Typically, they aim to profit $2,000 to $6,000. So, they are going to low ball us with an offer. Sometimes, this low-ball offer might net us hundreds of dollars. Other times, we might owe hundreds of dollars. Of course, being over the mileage allotment means we might owe thousands.
The real profit comes when we sell the car privately - especially if we can lower the buyout amount by at least 10%. Of course, private selling is a bit of a hassle. In most states, someone pays off the leasing company's buyout amount. Next, the lessee gets the title in the mail. Then we have to transfer the title to the new owner at the DMV (or notary) - usually within 10 days to avoid paying local/state sales tax.
08:32 PM ET (US)
I find your blog entertaining and enlightening but I'd appreciate clarification on a key point that may have some other of your readers mystified, too. Reading that it's possible to sell a car near the end of a lease to a dealer turned on a lightbulb over my head, but I was confused about how much value this posed for the dealership. Obviously the greater the value, the greater the opportunity they'd have for granting me concessions. So my question keys on whether the dealership pays me the full residual value directly, and I pay off the car company, or does the dealership instead pay off the car company directly at the wholesale price of the car, which would be lower than the residual value, and in turn offer me a check that's a percentage of the spread between the wholesale price they've paid and what they anticipate they'll get by selling the car at retail? Let's say I have a Lexus with a $30,000 residual value and the market average retail sale price for this particular car is $32,883. If a Lexus dealership only has to pay a wholesale rate of $25,000 or less for my car, they'd have room to either pay me some cash or grant me concessions on the new Lexus I'd like to lease. I'm especially interested right now because local dealers are advertising factory incentive leases for $419 for 36 months with $4499 due at signing. These rates are lower than their usual 2018 RX 350 lease rates and this promotion ends January 31. So I'm wondering if my super-low mileage version might induce them to wave the $4499? Any sort of guidance, particularly if it comes within 24 hours, would be greatly appreciated.
07:17 AM ET (US)
Hey Lisa Lee,
Your lease is based on your "garaged" location. That would be California.
Once you arrive here in beautiful Pennsylvania (where I currently reside), the state will charge you a new registration and plate fee.
Your leasing company will take care of all the transfer stuff. They officially own the car (not you). And they will adjust your new payment accordingly. I suspect you will see a lower payment once you arrive here as most locals in California are taxed higher than locals here in Pennsylvania.
Remember: tax is based on locals, not state sales tax.
I say "typically" because there are some super rare exceptions... for example, if you decided to move to Texas one day - a complete nightmare as they charge tax on the entire cap cost (i.e. selling price), not the monthly payment.
Edited 01-24-2018 07:23 AM
05:52 AM ET (US)
I'm moving to PA from CA. I was hoping to drive across country with a leased Subaru Forester so I could bring all my stuff. Would dealerships deliver leased cars to my CA address, but apply a PA state tax since that will be my state of residence?
07:23 PM ET (US)
My clients shoot for the 1% rule - I wrote about it here:
Hey Markus- My wife and I currently lease a 2015 Nissan Pathfinder that is due back on 2/4/18. We have researched going through a broker for our next lease but it seems any savings in monthly price would be negated by the broker's "bank fee" of $595. We have never incurred this "bank fee" when dealing with Nissan dealer direct. We also always put no money down when we lease and have the taxes rolled into our monthly payments. In your opinion what should we reasonably expect to pay a month on a 2018 Pathfinder a lease?
Edited 01-23-2018 05:51 PM
05:08 PM ET (US)
The answer is it depends.
If you negotiate for two leases on your own at the dealership, you will probably get a small extra discount. Many try this and are surprised how little the discount is.
If you use my KTL Leasing System, you will get absolutely no extra discount. I have to be careful here. Because making "claims" is against the FTC's stringent policy. But let's just say my system squeezes the dealer to get the maximum discount available. In simple speak, there is no more profit to give out as a volume buy.
I know, I know: you would think two major purchases at once would thrill the dealership. But in the real world, it does not work this way. I really do not understand it.
The car industry is a strange industry is so many ways.
04:07 PM ET (US)
I'm interested in leasing two cars versus one. It's my assumption that if dealers can make twice the commission/bonus for moving two cars off their lot, then why shouldnt I expect twice the flexibility to meet my lease terms. Does leasing two cars give me any leverage in negotiating lease terms? Thanks in advance.
10:44 AM ET (US)
Sweet Mary! Markus is still here. (now he won't reply b/c I called it out lol :). I work in Human Resources- and I know how it is (benefit open enrollment) etc., when people just don't read what you send them. You likely truly did answer ALL questions in your system and folks miss it - I am as guilty of this as anyone!! Seeing the questions pop up since you left has terrified me and stopped me from clicking buy twice. I'll admit it - I need my hand held. my personal email is: [email protected] if you would be willing to help me (WITH your system of course)!
10:12 AM ET (US)
Of course, it depends on each dealer.
One dealership I know in State College, PA delivers cars to Florida every week - they are hungry for sales.
And in a few short years, self-driving cars will drive themselves to us from anywhere.
If you have my KTL Leasing System, look at email #4 for the details on this.
Edited 12-28-2017 10:13 AM
10:08 AM ET (US)
Quick question: do you think a high-volume dealership will deliver across country? e.g. Massachusetts to North Carolina.
03:30 PM ET (US)
Had a great Christmas... thanks for asking!
Could you submit a help desk ticket so I can answer your questions?
Log into my system and click the "Help" tab - then zoom all the way to the bottom for the help desk link.
02:27 PM ET (US)
Hi Markus, Hope you had a wonderful Christmas! Any chance you would still be willing to answer some questions? I'm using your system and not sure what to do if I didn't receive a low-priced worksheet... Also, not sure which of the lease worksheets I have is actually the lowest given that it's unclear if they are true sign and drive. Would a sign and drive that's lower than a true sign and drive still be the better deal? I'm enjoying your system but still need some help! Thanks
2018 Volvo XC
05:53 PM ET (US)
Thank you for confirming that!
A follow-up question, if you don't mind:
If my payoff amount, let's say, is $30K, do I first ask the dealership whether they would give me a check for $32K? And when they agree, do I tell them to write one check for $30K to the leasing company and another check for $2K to me?
05:10 PM ET (US)
Hey 2018 Volvo XC,
Yes, you are right in your scenario. That extra step of taking the cash and then paying off the leasing company triggers a tax liability (in most cases). Some states handle it differently - like Montana:
This is why we want to have the dealership handle it all - it somehow magically avoids the tax issue. Instead of selling them the car, let them pay off the lease and then you give them the car. Any positive lease equity is cash in your pocket... any negative lease equity means you pay the difference.
Ah, America - land of the brave and home of the silliest laws on the planet.:>
Edited 12-24-2017 05:11 PM
2018 Volvo XC
02:40 PM ET (US)
I think the situation described there is a little bit different: It's if I were to pay for the leased car from my own money (let's say from my wages).
My situation: I take money from a dealer for my car first (like if I sold my own car), then use this money to pay off the lease. It's like if I were to pay off from my own money first, then sold it to a third party. Just a different order.
If I understand it right, I have to pay taxes on such sale (I sell my car to a dealer whom I then get a new car from).
Am I wrong?
Maybe it's a wrong place to ask, but this is my understanding.
If one takes a check from a dealer or CarMax for the current lease, won't one have to pay taxes on such check because it's considered a sale?
11:15 PM ET (US)
Thanks for suggestions and appraising. Good luck with credit score guidance and should be good timing around tax season for all the number crunchers in us - Cheers!
10:37 PM ET (US)
Hello R King,
Assuming you paid 12 months into a 36 month deal:
You take the remaining 24 months owed @ $260 a month. This is a total of $6,240.
Now here is the bad news.
You then have to add your $11,000 residual.
So to buy out the lease right now you will need at least $17,240. This is the only real option to get out of a lease early.
If you can find a dealer to give you at least that amount (because they think they can sell your car for a few thousand more than your total buyout), you will walk away with a check for the difference. Of course, if you are offered less, you have to come up with the difference.
Here is what I would do:
First, I would get an appraisal at a CarMax. You might be surprised by their offer.
Next, take their appraisal and go down the street to their competition. Most advertise that they will buy your car for at least a few hundred dollars more than CarMax.
Since you have this Toyota Prius, I would find any local Toyota dealer and get them to beat your two offers.
At the end of the day, you might find dealerships (or car-buying services) that will come close to your lease buyout. They will handle all the paperwork. It is a relatively painless option
Of course, the other option is to sell your car privately. This is a lot more work AND in most states, you have to possess a clear title before offering your car for sale. That means you need at least $17,240 for the payoff before you can legally sell your car. The upside is you should easily get more than $17,240 when selling it privately - coming out of the deal with a nifty little profit.
Then, I would get into a new car lease as a separate transaction.
This is the big mistake I see all the time: people try to use their old car in the same transaction as the new car. This is a HUGE mistake. The dealerships will hustle us for thousands of extra dollar this way Better: we always get the best price on a new car first - without a trade in.
Edited 12-23-2017 10:42 PM
07:15 PM ET (US)
Hi Markus: Great system for the DIY's. I am 1 year into a 3 year lease and want to get into something better as only got into a Prius C at 1.3% with 0 down (20K msrp paying 260/mo with 11K residual). How best to take advantage of my situation as I seem to be getting docked the 6,500 still due on lease?
05:05 PM ET (US)
Hey Katy W,
Man o' man everyone is freaking out about Christmas being my last day...
Yes. I will stop answering questions on December 25th. But my system will always be available to order. I would be an idiot to take it down, because it is as close to 100% perfect as it could be. And the system will work just as well years from now than it does today.
The only thing that will change after Christmas will be one-on-one access to me. I will not offer that any more. I will begin a new project after I get back from a quick trip to Charleston, South Carolina (chasing warmer weather).
There is nothing to be stressed out about, because I have answered over 1,500 help desk tickets within my system since Christmas of last year. Most of the questions are similar - I combined them... and my answers are included in my KTL Leasing System in 3 different formats: written, audio - even in my just uploaded video diary.
The only reason I am no longer answering questions is because I am bored. Seriously. Virtually no one asks me questions anymore, so I moving onto a new project (which I am launching the second week of March). My leasing system is so perfected, it works like crazy. Check out my list of success stories here if you are still on the fence: https://www.leasemorecarforlessmoney.com/c...y/ktl-case-studies/
Finally: never forget this. With my KTL Leasing System, if you do not get EXACTLY the car you want at the right price (and always $0 cash down), just start over with a similar car. When you log in and see how we do it all anonymously, it will all make sense.
Punchline: there is 0% reason to be worried. All good!
Edited 12-21-2017 05:06 PM
04:04 PM ET (US)
I am buying your system tonight/tomorrow and I'm so pumped. I know you'll be gone soon and I'd be lying if I didn't say I'm stressed about that. Dealerships have been SUCH jerks in the past and, I see these questions popping up on here and barely understand what they're talking about. Will your whole site be down after 12/25? Is there a poster on here I could maybe reach out to for help if I really get in a bind? I trust your system - I am just worried. Thanks!!
03:35 PM ET (US)
Hey 2018 Volvo XC (something tells me you are the great Russian:>)...
I would not include any fees into the MSRP. (Fees are not priced consistently between dealers.)
If I said to include it in my other tutorials, can you point me to those so I can fix that?
2018 Volvo XC
02:03 PM ET (US)
Yes, I am using your system.
When specifying MSRP, should it include the destination fee?
In your video diary, you don't include it, but some of the sites you mention do list it as a part of MSRP.
11:26 PM ET (US)
Hello 2018 Volvo XC,
I am assuming you are using my system based on your question...
If so, use all my emails until you are ready to send email #4.
Then contact the dealer you are about to go with and ask them for a revised lease worksheet with your options.
Most dealers will code the dealer option so you only pay the residual amount, not the whole amount. This is like getting a 50% to 60% discount (depending on what the residual percentage is). If the $0-cash-down monthly payment on the new lease worksheet seems off for some reason, try again with the next lowest price (and so on).
This is another in a long string of reasons why I LOVE leasing. Because in this case, we get extras at a deep discount.
2018 Volvo XC
08:43 PM ET (US)
I'd like to get your opinion on something, if you don't mind:
I want to get a bicycle holder for towbar hitch.
Volvo has a Trailer Hitch (Accessory) option on the site which costs $1,010:
1) Should I request it both, the hitch and the holder, in email #1 or should I buy the custom and cheaper versions after I get the vehicle?
2) If I request them in the email, how do I determine the price of the holder to put towards MSRP?
3) Should I contact dealers and find out the price?
Thank you in advance.
Edited 12-20-2017 08:44 PM
05:06 PM ET (US)
I have an entire reply system for your exact situation...
The tutorial is at the bottom of the FAQs on the email #1 page.
P.S. I appreciate your kudos and faith in my system.
Edited 12-20-2017 05:08 PM
05:00 PM ET (US)
I am always careful to say that 1% is a target. Some cars we can get for less, some more.
Did you send out all of the emails, or just email #1?
If you sent out all 3 emails, then I would move onto a different car. I would absolutely look at the Volvo XC60 as an alternative - some say a better one at that.
If you have only sent out email #1, then I would continue with the campaign. Email #2 is usually the email that makes a big difference.
03:31 PM ET (US)
Hi Marcus, I am set with email 1 template and reached out to over 50+ Mazda dealerships. I am noticing that some of the actual replies from GMs are kind enough to tell me that Mazda no longer offers leases for 2017 models as of November 2017. I went back to Mazda website and was able to confirm this. Does this mean... back to the drawing board and run my agressive MSRP on the 2018 model? Do I go back an email again all the dealers with new numbers, or should I only work with those who are willing to point out the lease year discrepancy and work with them?
Thank you again PS. Your system is so INFORMATIONAL I feel so confident doing car shopping now :)
03:21 PM ET (US)
I am in week two of the program to try to obtain a 1% lease on a 2018 Jaguar F-Pace. Not one of the 30+ dealerships that I have contacted is anywhere close to anything resembling a 1%, $0 drive-off. They indicate that the car is so new, so hot, that they do not desire to sell/lease at any sort of discount. My research tells me that the MSRP is not terribly bad, but the lease terms are atrocious. They give me near 1% deals on their other models, but the F-Pace is the odd-man-out...am I being snowballed?
04:51 PM ET (US)
I am not sure exactly.
I always get $0 down leases, so I have no experience with security deposits...
With that said:
I am 99.99999% sure you will get your entire security deposit credited against the buyout amount of your lease. That is how it is supposed to work. I have heard a few horror stories about security deposits... again, another reason to NEVER put a penny down on a new car lease.
My fingers are crossed for ya'.
03:54 PM ET (US)
Another question on selling the lease. What usually happens if I have a security deposit that I need to get back? How is that return to me if I sell the lease instead of returning it?
07:12 AM ET (US)
Mileage does not matter if we choose to sell back our leased car (instead of turning it in).
About maintenance. This is another car industry hustle:
They give us the idea that we have to "maintain" our leased car. But they do not go into detail about this. Plus, I have never seen an end-of-lease report include a box for maintenance performed...
For me, I only replace windshield wipers blades and engine oil every 25,000 miles. That is all I do. One time, I returned a Toyota lease with bald tires. Their policy (at the time) was as long as no metal tread was showing through, we were good - no penalty.
07:03 AM ET (US)
First, don't be sorry:>
Next, yes - the MSRP is the combined full prices of both the car and its options/upgrades.
07:02 AM ET (US)
About the dealership wanting you to fill out the credit application after email #1...
Yes, I would use the "Miscellaneous" reply template. Just copy and paste and you are good to go!
08:15 PM ET (US)
Want to catch you before you leave! I have a 36 month lease and you spoke about turning it in earlier and that going over mileage won't make a difference. How many months before should we do that and how does it work? Also, what maintenance needs to be done to the car? My dealership I got the car from is 80 miles away.
06:06 PM ET (US)
I just purchased your system and would like to understand how to calculate the MSRP for email 1. I'm looking at the 2018 Genesis G80 3.8L RWD, the MSRP is $41,750 and option 2 is additional $5000 MSRP.
Do I put $46,750 as the MSRP on email 1?
03:48 PM ET (US)
After sending out my 1st round of emails, I'm recieving lots of responses asking me to fill out their credit application. I dont see a response listed for this scenario, What is a general response for this?
03:45 PM ET (US)
When you read my "Timing" tutorial, we start on Tuesday (in this case the day after Christmas) and should finish up on Thursday - just in time for your trip.
The vast majority of car manufacturers have their last day of the month spilling into the new year on Monday, January 1st. So you will finish everything up then. Some dealerships can even backdate a deal and do the deal a few days after the last incentive day.
Bottom line: you are all good.
Edited 12-18-2017 03:45 PM
03:40 PM ET (US)
Hi, I just purchased your system and have already gathered a list of dealerships to contact. I started sending out emails today, but stopped after a few because I intend to take advantage of next week's offerings. There's one potential problem: I'm planning to be out of town New Year's, starting Thursday morning and going through the weekend. Do you think there's a way to use the system to close a deal next week but receive delivery the following week? Thanks, Gil
07:10 PM ET (US)
You would be right to assume cars(bought the KTL system early Nov. 2017). My legwork will BEGIN the day after Christmas.
Sorry for any confusion,
01:58 PM ET (US)
Thanks for the info - you're likely right! Maybe I could get initial questions answered before 12/25 that way (If I have any). When you say she got hers a few weeks ago and you're about to get yours - do you mean your cars or the system? If I may also ask, assuming you mean your cars - if you're getting your car the day after Christmas have you already done all the leg work (emailing the dealerships, etc. etc.)? Thanks! Katy
01:33 PM ET (US)
If I may, you want to get the KTL system now so you won't be trying to learn "how to" AND "doing it" at the same time( can be overwhelm)trying to do both (at least for us it was). Well worth it... again my wife got hers a few weeks ago, I'm going for mine the day after Christmas.
Hope this helps,
11:15 PM ET (US)
Alright cool. Thank you for replying again. I feel better about it. You being out of pocket the week I'm going to do this does make me nervous so, I'll think about it. I'm itching to get this done, tho. Thanks again!
08:15 PM ET (US)
Yep. I will be off the grid the week after Christmas. Then I am launching a new product when I return.
But there is nothing to worry about, because I have answered just about every question ever asked of me. And posted it on my system.
Katy. With my system, it is impossible to screw anything up. Because we do it all anonymously until the last minute. And if we do not get the exact deal we want, we can stop at any time.
08:05 PM ET (US)
Thanks for responding! Your edit answered my next question which was if thats the best week to get a deal and youre out after 12/31...we cant access you for questions that week right? Its not that I doubt how thorough your system is. I doubt my own ability to not screw this up...
07:30 PM ET (US)
Markus AND MRS. Allen,
my wife wants to know the details... I posted most of the details a few pages back.
"what car did you get..." -Mazda "is it fun..." -beyond fun(we followed Markus's course together) "did it come with extra new car smell:>" -You betcha
06:11 PM ET (US)
Hey Katy W,
Read Yurp's comments below. I am sure it will put you at ease.
There is nothing to be terrified about. If anything, dealing with dealerships on your own should terrify you.
My KTL Leasing System includes a new video diary. I recorded every step of the way. Easy peasy.
Since December of last year, I have personally answered over 1,500 help-desk tickets. And I will continue answering questions here until December 25th. After that, my system will be 100% self service... it will work like crazy (but without my personal guidance).
P.S. Yes. The week after Christmas of this year has December 26th coming out on a Tuesday. That makes it the best week of the year to get a great deal. If you order my system, zoom to my "Timing" section for the details about this special week of the year.
Edited 12-12-2017 06:14 PM
06:06 PM ET (US)
I just read this at the dinner table - my wife wants to know the details... what car did you get... is it fun... did it come with extra new car smell:>
04:34 PM ET (US)
I feel like I've read everything on your blog about car leasing - or everything I could find. I got beyond ripped off when I bought my car (2009 Hyundai Elantra) a few years back. I won't go on and on but - it was a disaster. They outright lied about so many things, I don't know how it's legal. So, I am basically terrified to try it again. I'm completely clueless. I know you have a system that you sell and, I'm not opposed to getting it. That said - I really feel like i could use your personal help. My old car is going to have issues I don't want to deal with and, I think this is the best month to buy/lease? Thanks! Katy
12:43 PM ET (US)
Here's a BIG thank you...
Update: Wife received her car in our driveway from out-of-state dealership a few weeks ago. To say she is thrilled, is a huge understatement. 2 weeks from now, I'll be going after a suv for myself.
Marcus, let me start by saying "GOD SENT YOU FROM CAR DEALING HEAVEN" and I regret dearly not coming across your site before. I just leased a VW ATLAS and was simply disgusted by the mambo-jambo tactics and utterly steal I was subject to. As I was hitting my head against the keyboard regarding down payments. However, I still have hope. I am debating between 2017 Mazda 3 (Sport) vs 2017 Hyundai Elantra GT. Hyundai is making me thirsty for some of this amazing manufacturer incentives which can seriously bring the MSRP down. My biggest concern is that the rent charge will skyrocket due to credit score. However, under Hyundai website I was given the mini version of EQUIFAX (BLACKBOOK) and credit score was a lot higher (630 Capital vs 680 EQ black book). This got me thinking that I wouldn't be able to get a great deal as I had hope to. Am I wrong to assume this? I have considered that these car dealers may "approve" my lease by Dec 28 but later calling and ask to take the lease back first week of January (Read your tutorial on this manouver as well?) Thoughts? JM
01:07 PM ET (US)
I never look at the selling price. Because car sellers lie. They offer a seemingly great selling price, but then inflate other fees (especially the "Rent Charge" - the lease interest payment). I have seen cars discounted over 25% and have the payment higher than the average person off the street can get it.
It is all about a low monthly payment AND $0 cash down.
Instead of negotiating a low price, we set our price and find a dealership willing to accept it.
About your "negative equity" - if you use my system, you can usually leverage the dealers to not only lower your "underwater" issue... but you will get them "roll the underwater issue" into your new lease. Sometimes, we get the dealership to forgive it all - just to get the sale. I cannot guarantee this. In fact, as I have said many times before I cannot guarantee any results.
About December... yes, all my clients are waiting for the Tuesday after Christmas to get that killer deal. The way the calendar works out this year, we are going to get the best prices of the year the week after Christmas and into Tuesday, January 2nd, 2018.
Edited 12-10-2017 01:09 PM
10:46 AM ET (US)
Thanks for the response Markus, I wanted to follow up and correct some info to see if it changes your equation. Im currently leasing a a 2015 dodge charger sxt plus and considering a 2018 charger scatpack with dynamics package.
So they're letting the scat pack go for $35280, which is a great selling price. I just haven't told him about my current lease, which I still owe 6 payments on.
Isn't there a way to include a lease buyout (approximately $4000 negative equity) with the deal or is this not a possibility. I figure since it's December, most dealership would be more flexible.
I was hoping to get some useful advice regarding a lease return.
I'm currently in the 3rd year of my 3 year lease through Chrysler Capital. I have 6 payments remaining (about $2000). I'm located in Southern Ca.
I'm looking to upgrade into a 2018 of the same make and model. The lease quote I received is:
SALE PRICE: 38,450 LEASE REBATES: -3,250
ADJUSTED SALE PRICE: 35,200
36 MONTHS; 12K MILES PER YEAR; TOTAL OUT OF POCKET: 1,000
MONTHLY PAYMENT: 450.13 PLUS TAX = 492.89/MONTH
I haven't yet informed the dealer about my lease return. What's the best way to ask the dealer for a buyout without being taken advantage of?
What about my current tags, they don't expire until June 2018, why can't I keep my tags and save on registration fees?
Any help you can provide would be appreciated.
11:59 AM ET (US)
Also, we were in and out of stealership in about 40 minutes. No stealer-bull, pure paperwork. The F&I guy was shocked that we got to General Manager directly, "the only people that get to him are us(workers) and the owners, you know... true insiders", "don't know how you did it, but, did you reach out to him intentionally?" me ( trying to keep a straight face) "naw, guess it was by luck". the GM came in F&I office to introduce himself which is why it took 40, instead 20 minutes.
11:48 AM ET (US)
Markus, BB and everyone that reads this, I started my email campaign this past Tuesday (Thanksgiving week 2017)as well. I too, received a lot of no more 2017s in stock, we have plenty of 2018s. Wife wanted this particular vehicle, so we went ahead with emails. We had to go in to sign paperwork per F & I guy. (para-phrasing) He told us that they are hammering them in compliance training to watch out for this type of sale. As more people are using this as a form of identity theft. Btw, they will be delivering our vehicle on Wednesday the latest, @ $165 per month for 2018 AWD suv 33/12k. Markus, our rent charge is $10.40.
Folks, this works!!!
- yurp (cool name...yep)
07:52 AM ET (US)
Thanks for asking about my day. I love it when my family gets a day off from school. I hope you enjoyed your Thanksgiving, too.
About your MY17 (mid-year 2017) stuff... I will update this post on Monday.
I will suggest a simply reply email to "pivot."
Holiday shenanigans is stealing my time right now. The weather here in Lancaster County, PA is outstanding - so that too is distracting my work.
Stay tuned for my update.
UPDATE: I just created a new reply template for this scenario - you can find it near the bottom of the FAQs on the email #1 page.
Edited 11-26-2017 06:26 PM
11:27 PM ET (US)
Hey Markus, Happy Thanksgiving!
This past Tuesday i sent out email #1 for 3 different makes (MY17... i am receiving a lot of replies stating "sorry we are not able to help, we no longer have any MY17 in stock, good luck." Often, not even offering me a MY18..what are your thoughts? The FEW lease worksheets i have received reveal a significant downpayment/due at signing amount. How would you suggest responding? I am anxious..can't send out email 2 for any of these vehicles without a legit worksheet.
It is unbelievable that it's common practice for these salespeople to insult potential clients, who are willing to spend 500-600 on a monthly auto lease. Are auto sales now surging and is everyone paying MSRP for vehicles or what!!?
07:01 PM ET (US)
The 1% rule is a guide based on the MSRP full sticker price. So a target monthly price (with taxes included and $0 cash down) on a $43k car is roughly $430 a month.
Again... remember this is a guide. Sometimes we get it for less, sometimes more.
04:19 PM ET (US)
Does your 1% rule count towards the selling price or only the MSRP sticker? Example, MSRP is 43k, but selling price is 37K, does this mean I can lease for $370?
11:41 PM ET (US)
I just saw this question about choosing different car makes...
The cool part of my system is you can use it on any car make here in the good ol' USA - except Tesla.
11:39 PM ET (US)
I appreciate you thinking I am a young entrepreneur - I am approaching 51 years old - been selling my information products online since December of 1997.
I used to offer lifetime guarantees on my stuff until a client of mine gave me a scolding about my "claims."
By the way: I like Dr. Mercola's advice on most health things. And ironically, I use a similar "tanning" system 3 times a week to help me produce Vitamin D. The FTC is in cahoots with the medical industrial complex and likes to shut down people giving real medical advice.
The punchline for me is this: yes, my no-refund policy will cost me. Certainly, a percentage of my potential buyers will not buy because of it. And that is cool, because the stress of worrying about the big ol' FTC droppin' the hammer on me for a "claim" is not worth it.
It sounds like you should pass on my system quite honestly. I do not think you are sold enough to take the leap of faith. And yes, it is a leap of faith, because I could shut down my site (as you suggest) on Monday and move to some warm island. This is 100% true...
If you are looking to feel more comfortable, I HIGHLY recommend breezing through my most popular posts here:
I thought it was quite clear that I am not blogging anymore exactly 5 weeks from now. But, my KTL Leasing System will still work as well 5 years from now as it does today.
Edited 11-19-2017 12:08 AM
11:26 PM ET (US)
Markus I read your post on why you don't provide a guarantee. I also searched for a while on the subject of why making a claim would be illegal and in spite of some legal experience I couldn't find that reference. I also spent quite a bit of time trying to discover a legal entity that could be held accountable if you didn't keep your promises.
I think you clearly provide a great service and body of knowledge that benefits a lot of people so there's no doubt that you have a well-established value stream for many people.
I'm think that there doesn't seem to be anything to handle the scenario that I pay $300 and 2 days later the website or service goes down or doesn't work the way I expected. You don't seem to have a legal presence and I don't see a "GO TO" address or contact information that would be reciprocal for my commitment to pay $300 and in so doing identify myself and my address. I also see a post that says you're leaving at the end of December and it's hard to interpret "leaving" as to whether it means "i'm closing my business" or "shutting down service" or similar interpretations.
Now most young entrepreneurs would take offense at questions like these and interpret them as challenges but I really intend to discover whether I have missed a part of your business or website or blog that would answer my questions and put me at rest. Thank you.
12:42 PM ET (US)
Thanks Markus. With your system can I look into different car makes or do I have to have my choice narrowed down to one vehicle?
11:36 AM ET (US)
Unless you travel a lot with people in the rear seat (and in extreme weather climates), I would look at the Toyota RAV4. Unfortunately, this crossover does not offer climate control in the back... but if you drive solo (or with one partner), it is an EXCELLENT vehicle. The XLE trim should come super close to your budget when you use my KTL Leasing System here:
Hi Markus, I was considering the Nissan Rogue but read that incentives are not good at this time. Id like to lease something comparable within the next month. Any suggestions on a small SUV with a lease under $300 a month? Thank you!
06:45 PM ET (US)
Hey hey Howard,
I just answered your question about BMW leases and timing to get the best deal here:
Bottom line bmw- is it possible to get 0 downpayment? When is the best time to get the beat deal ona lease? End of year? Certain time of month?
01:11 PM ET (US)
Yep, cool name indeed... Yes, KTL customer as of last night. As far as timing goes, tell that to my (Jeep dealer diagnosed, literally drove into the ground, I- ain't-starting) '01 Cherokee in my driveway. Missed my Tuesday morning email blast window due to watching all the videos and reading the highlighted tips... I shall begin at the crack of dawn Wednesday. Looks like there are a few $500 and a $1900 rebate on Autobytel. We do need a second car so the 26DEC2017( a Tuesday, no-less) I'll be sending out another blast.
For now, maybe another Cherokee for loyalty, hmmmm?
12:31 PM ET (US)
Hey hey Yurp (cool name... I think:)...
I am not sure if you are a KTL user or not...
Waiting for the 3rd Monday is so last year. My system now works well for any week of the year. Look for my "Timing" tutorial for the details.
About that Rogue SL Platinum - you would be a rockstar getting that at $300 monthly - that is well, well below the target 1% of the MSRP:
I expect their incentive to go higher exactly a month from now.
12:19 PM ET (US)
Markus, Thanks for creating this service... Many people shall benefit. Unfortunately, can't wait until 3rd Monday, need a car like last week. Would like to keep payments under $300, do you still recommend 2017 Rogue SL Platinum?
05:45 AM ET (US)
I do not know of any other similar search engines...
Thanks for the alert. I have updated my "List" video to reflect this.
My recommendation is to skip the CarGuru's tactic. There are plenty of other dealerships to work with here...
The good news is I finally cracked the code on the hard-to-get Autonation list last week. There were over 300 contacts... and they are now updated on my list of aggressive car dealer lists. (As you might imagine, this took me weeks of intense data entry time to track down.)
Edited 11-05-2017 05:49 AM
10:59 PM ET (US)
Markus, I am trying to populate my dealer lists, however, Cargurus does not appear to provide lot inventory data that it once did...Do you know of an alternative website that will provide the data?
12:37 PM ET (US)
Hey hey Steve,
Remember, it is against US law for me to make any claims of success. I have to tread carefully with your questions:
The only states this will probably not work in is Hawaii, Alaska and Puerto Rico - not enough competition amongst dealers. Generally, my clients like to remain anonymous... so I do not hear all of the success stories. (On the flip side, many want me to feature them on my blog. It is like a badge of honor for them.)
The Toyota Camry SE is just like any other car... so you will get a $0 down lease.
About mileage... we do not negotiate anything. Instead, we ask dozens and dozens of dealerships selling the same car to meet a monthly price - $0 cash down. My system shows you how to come up with this low price. And this includes asking for a higher annual mileage. My system includes an app - just put in your mileage requirements and you are good to go.
About that $209 a month lease - I NEVER look at specials. They are meaningless when you access my system.
10:26 AM ET (US)
I've been looking to lease a vehicle and came across your blog. A couple of questions:
1. Have you had success with your program in Utah? 2. Have you had success leasing a Toyota Camry SE? 3. Does your program provide instructions on how to negotiate a higher annual mileage (more than 12k per year?)
Looking to lease a 2018 Toyota Camry SE. Currenty there is an offer to lease it for $209/month for 36 months with $1,999 at signing.
Thanks in advance for your help!
06:53 AM ET (US)
Jeep has no competition - there is no other "Jeep"-like vehicle on the market right now. The FJ Cruiser was close, but it has been discontinued.
Personally, I would never get a Chrysler, Honda or Subaru product. They focus on marketing their cars... not so great at building awesome cars. All 3 manufacturers pay off "car journalism" with flat-out bribes to write positive reviews of their so-so products.
These days, I am a big-time Volvo fan. INFINITI is great, too. The Nissan Rogue SL is probably the best car for the buck these days.
Hello Markus, What did you mean by Jeep being "the only game in town?" I have heard very mixed reviews on resale value and residual... except for the Wrangler, which is one of the highest on the list! Would you recommend a Jeep Compass over a Honda? Subaru? Just curious =)
05:25 PM ET (US)
I helped Simon via email...
For anyone else with the same question, I updated the video diary section with this question - specifically, the video with my client meeting.
Deleted by author 10-30-2017 05:23 PM
03:16 PM ET (US)
Regarding the incentive date on the email api, what exactly is that for? Based off of your video library interview with the former car dealer, I'm assuming it is that last dealer incentive date, but am not sure. If that is the correct assumption, how do I determine the correct incentive date, as each manufacturer is different? Was this covered somewhere in the training and I missed it? I am looking for a lease for a Honda CRV.
And the bad news is it is especially hard to find a car dealership that is honest and trustworthy. They will blatantly lie and promise a fantastic price... they bait and switch us... then pat us on the back and tell us what a great deal we got from them. I know, I know - frustrating.
09:12 AM ET (US)
I highly doubt you will get it all for $250 a month - $0 cash down.
Car dealerships try to flip cars for $2,000 to $5,000 in profit. So if you see your car regularly selling for 34K, figure upon getting an offer for $2,000 to $5,000 less. This is why I would get appraisals from at least 3 used car dealerships - preferrable one selling Hondas.
Jeep vehicles are the only game in town, so Jeeps are more towards 1.15% to 1.3% of the MSRP (if you use my KTL leasing system)... a lot more if you try to do it all yourself.
For every $1,000 needed to be rolled into a new lease, count on roughly $30 a month extra to your payment (if you go with the standard 36-month lease).
11:55 PM ET (US)
CURRENTLY A DEALER IN PORTLAND HAS OFFERED
ME THE FOLLOWING
MY CAR 1K DOWN AND 111.00 PER MONTH FOR 36 MONTHS
36K ON THE THE TOTAL MILES
IT IS A FORTE KIA
MY CAR 750.00
OR MY CAR AND 139.00 NO OUT OF POCKET MONEY
WHAT DO YOU THINK?
11:55 PM ET (US)
Thank you for your prompt response! The nearest Carmax is 8 hours away =) I do see they have them listed at 34k on their website with more miles than mine has though. I have been trying to sell it privately for 2 months with no success (at lower than $34k). I will ask the used car dealerships and see what they will buy it for, but if they sell it for $34k, it is doubtful they will give me that much for it. I'm thinking I DO need to roll the negative equity into the new lease. Since I have already been talking to the dealer, would I be better off going somewhere else? Or come back to them and start fresh with my new knowledge? So let's say I get the price of the Jeep to 23800 with 0 down and monthly payments of 238. Then I would add in the negative equity to the monthly payments, right? or would I try to get them to absorb it? I don't know what they make on a car that has an MSRP of $28,930... but I'm pretty sure they could sell my Honda for $34 and that would zero out for them. I would be happy with no down and $250 a month and they pay off my car. Is that reasonable?
11:49 PM ET (US)
WHERE CAN I GO TO A CAR MAX IN VANCOUVER WASH?
I HAVE A 2015 HONDA EXL ACCORD 4 CYLINDER
189 HORSEPOWER AUTO WITH 10, 700 MILES
LEASE IS UP FEB 11 2018
LEASE PAYMENT IS 357.00 PER MONTH
VIN NUMBER 1HGCR 2F8 2FAO 932 33
LEASE PAYOFF 17 406.27
UNTILL NOV 4
RESIDUAL AT THE END OF THE LEASE 16, 374. 40
NEED YOUR HELP
HAVE REALLY BAD EYE SIGHT WITH WEB = SITES ETC.
REALLY NEED YOUR HELP ON THIS
JUST WANT PEOPLE TO BE FAIR AND HONEST
09:53 PM ET (US)
Hey hey KRV,
I NEVER put any money down. Never. That will save you at least $2,000.00 in cash.
I would ignore any advertised offer as car dealerships are the masters of magical illusions and (almost) never honor their advertised low price...
About your Honda - you owe $34,000, but you can sell it privately and (or sell it to any used car dealership) and try to close the underwater gap. If you have a CarMax nearby, I would start there and get an appraisal. It will take about 40 minutes. It is painless. And you might be surprised (in a good way) with their offer. If you have some time, get multiple appraisals/offers for your trade. You will not get the same offer twice... and again, you might be pleasantly surprised by an offer.
I recommend against trading in a car with a dealership unless you need to roll negative equity into the new lease. If this is the case, always treat the new lease and the trade-in as a separate deal. That is, never let a dealership know you have a trade-in until you agree on a low monthly price (and get it in writing via a lease worksheet).
09:39 PM ET (US)
I am looking at leases in Montana and one option that I have is a 2017 Jeep Compass 4x4. The MSRP is $28,930 and they have given incentive offers down to $24,186 on their website. The autobytel site says there are a total of $4750 in incentives. I am trading in a 2015 Honda Pilot that I am upside down in (owe 34k) and they are saying they can give me a payment of $251/mo with a down payment of $2500 and then roll in the remainder of the Pilot. I have two questions. One: what monthly payment should I settle for in light of the Honda Pilot and with no down? Two: would I be better off going to a Honda dealer and looking for a trade there toward a lease? I do need a 4x4 as I have a pass to drive in the winter. Thank you for your time! This website is VERY helpful!
09:27 AM ET (US)
I got your question about your lease-end situation.
I will break your answer into 2 different posts. And I will try to have those answers for you over the next few days.
Stay tuned. I will update this when it is complete.
My current lease on a 2015 Nissan Altima is up on 12/01/2017 and my last payment will be automatically debited on 11/01/2017. I have had an inspection and will have a lease end balance of wear/tear charges for a broken fog lamp $230, chipped windshield $55, disposition fee ~$300. I am considering the following vehicles: 2017 BMW x5, 2017 Mercedes GLE 350 4MATIC and 2017 Lincoln MKX I visited dealerships and test drove all three vehicles and email battled with BMW before finding your program :( All of the dealers have told me they would pay off the remainder of my current lease, however, I will not able to execute your programs email #1 until Tuesday November 21st. By then I will have already paid my last payment. My questions: Would the dealership then pay the remaining balance of my note and take my current vehicle at time of new lease signing? Am I correct in shopping for MY2017 rather than MY2018 at this time of year? (I don't see a lot of inventory for either MY for the three vehicles and the incentives are currently better for MY2017) Since I have already been in contact with dealerships I should use a different name in my future throwaway email correspondence, correct?
Thank you for your time and assistance.
03:10 PM ET (US)
Hey hey Jared,
I do not understand why people like the Honda CR-V or Toyota Highlander. Neither has a soul. Lots of plastic. TERRIBLE nav/info screens. Very overrated vehicles. I could go on and on...
Captain's chairs - another overrated featured in my humble opinion. After long road trips, our children have nowhere to "lay down". With bench seating, they use the center armrest as a prop up. I get the need to separate, but a good "real dad talk" does the trick for me.
If you insist, the new Buick Enclave fits the bill this year. It has everything we want in a car - including captains chairs. But again, it just came out last week - and the incentives are not there right now.
The Volvo XC90 is just awesome. Great bang for the buck. And if you can wait until the week after Christmas, you could get a heck of a deal.
You can (usually) roll over negative equity into a new lease. The amount depends on your credit score (I just launched a new product about this here: https://myamazingdiscoveries.com/credit-building-secrets ). Generally speaking, anything over FICO 761 for underwater rollovers is a cinch. Anything less than FICO 761 could be a bit tougher. Desperate car dealers have the ability to use funny math on the lease agreement to make it happen.
About your current lease... figure upon a 9 cents-per-over "hit" to the resale value of your GMC. In simple speak, I think you can break even (or even make over $2,000) by selling it privately. Or be a little underwater flipping it to a dealer.
If you have the time, wait to use my system on the last Tuesday of December of this year. You might find a super desperate dealer to get you that XC90 at 1% of the MSRP AND break even on your old lease at the same time.
Edited 10-19-2017 03:11 PM
01:49 PM ET (US)
Thank you for the reply. One last question...We currently lease a 2015 GMC Acadia Denali, lease is up in April or May 2018, but we are already 4k miles over and it's only October! The residual is $31,090. I read your section on 'selling' your leased car (for a potential profit). My question is...from your advice it seems like we'd need to wait a while to get a 2018 Traverse or VW Atlas until prices soften up. Therefore, it really only leaves us with the Highlander and XC90. We have 3 kids, and although both SUV's are nice, the Highlander is a little small and the XC90 is super nice but has no captains chairs (big deal for us, but 'maybe' workable). Any suggestions on what we should do regarding the old lease and a potential new one? Waiting until May seems like perhaps a bad idea?
FYI - you were right...all the replies we got on the '18 Traverse were silly... 1.4%-1.5%
Edited 10-19-2017 01:50 PM
09:58 AM ET (US)
The fast answer is all-new models are hyped up and usually come in 30% higher during their first year.
I am working on a detailed blog post about this. Stay tuned for an update.
I'm looking at a 2018 Chevy Traverse High Country and a 2018 VW Atlas Premium. Both are brand new platforms/body styles within the past 1-5 months. Will this make it harder to get the 1%?
Today I sent out 48 emails to dealers for the Traverse HC and so far no lease worksheets...just 3 partial quotes embedded in the email, of which I have replied to as you recommend. In fact I've replied to all the emails as suggested. I'll keep you posted on how it goes tomorrow and the next day.
Being they are so new, am I 'expecting' too much? $51,000 for roughly $500-$525/mo? So far everything is $725 to $900.
Lastly, I've gotten quite a few 'google voicemails' and on almost everyone of them there is no email. Even when I try to look up their name on the internet, there is nothing but the dealer contact info. The reason I ask, is most of the 'local' dealers are the ones leaving messages with no email.
10:26 AM ET (US)
Good morning Leasing two cars...
I give my thoughts on multi-car lease discounts here:
I plan to purchase your program around December this year when I plan to sell my two existing used cars and lease.
Is there anything in your program about getting deals on leasing two vehicles together for a discount? I dont even know if such a thing exists or if its always better to negotiate one vehicle at a time.
My wife and I would stay in one make if that helped us get a discount.
Edited 10-14-2017 07:33 AM
06:45 AM ET (US)
Hey Diane Jackson...
I would flip it separately.
01:12 AM ET (US)
Is it better to flip both cars together or separately; one is a Mercedes and the other an Infinity? Sent from my iPad
I would like to find out how to lease a Honda CRV 2017 brand new for a monthly payment of $300 with no down payment and a high residual rate of 55% or more. Sincerely yours thank you. My email is. [email protected]
2018 Volvo XC
09:44 PM ET (US)
Even though this is a little bit off-topic, I want to leave a message for those shoppers, such as myself, who just found this website and its owner Markus. I want to say that I, like probably most others, was cautious in the beginning, everything seemed too good to be true, maybe even a scam, but I've done my own research, found other Markus' projects (check them out and you will find a lot of helpful information/tips not just on cars, but travel and other topics).
Thank you, Markus, for tons of helpful information that I haven't been able to find anywhere else and for your quick responses!
I signed up for the system Markus created (it was easy to sign up, which is a plus) and started digging in. To be continued...
03:08 PM ET (US)
Hey 2018 Volvo XC...
I need to scold my sys admin about the privacy page (that would be me). Fixed. Thanks for that.
And yes... my clients all have new email addresses (and phone number, too). Because dealers like to ambush us (as you probably are seeing). I have extensive tutorials on this within my system.
2018 Volvo XC
02:41 PM ET (US)
2018 Volvo XC
12:16 PM ET (US)
Got it! Thanks!
Should I create a new email address, so that in case some of the dealerships I've already contacted are on your list, I start fresh with them?
12:10 PM ET (US)
My pleasure to help, 2018 Volvo XC...
I would pick any one of the cars in your list.
See which dealerships come close to your asking price...
Then at the end of the process, write a custom reply asking for lease worksheets on all 3 cars.
Generally, the dealerships with the most aggressive price on one vehicle will be equally aggressive on another vehicle that they sell.
2018 Volvo XC
11:54 AM ET (US)
Thank you for such a quick and descriptive reply!
Is it possible to inquire about three different cars with your system?
I'd like to see which one will be a better deal: 2018 Volvo XC60 T8 Inscription eAWD Plug-in Hybrid 2018 Volvo XC90 T8 Inscription eAWD Plug-in Hybrid 2018 Volvo XC90 T6 Inscription AWD
Will I be able to inquire about all three at the same time (send three similar emails at the same time or combine into one?) or will I have to wait before inquiring about the next one (won't dealerships be thrown off by the similar text of the emails?)?
I'm in no rush, but would like to know I'm getting the best deal.
I have been looking into leasing a new 2018 Volvo XC60/XC90 T5/T6/T8 for a few months now. I reside in Los Angeles, California. And I have contacted 10-12 Volvo dealerships around LA since then. Only a couple of them agreed to provide 10% off MSRP plus any available incentives at the time of arrival (for a special order). But based on those incentives, that 10% off might not (and most likely won't) get me at 1% like your system.
I read your recent Leasing a new car mid year vs all-new model which is cheaper? post.
*** My first question: Do I understand it right that getting a better deal on 2018 XC90 should be easier as it's basically the same as 2017 while 2018 XC60 is all-new?
I tried to get a better deal on XC90, but haven't been able so far.
Your How to lease a 2018 Volvo S90 T6 at $597.11 monthly $0 cash down post suggests I might be able to.
*** My second question: Does your system only work for in-stock vehicles?
As I previously mentioned, I was looking for particular builds, I haven't seen a single in-stock vehicle in the exact build I want, but there a few that just have a different from what I want interior color and maybe a few unneeded for me features, and I can be okay with that if I get the car at 1%.
*** My third and last question for now: Do you think it's possible to get 2018 Volvo XC90 T6 Inscription (~$71,000 MSRP) for around 1%?
I understand you can't make any claims, but still...
P.S. Thank you for the abundance of the information (I have read a few of your posts, but not all yet). And if it all works out, I could provide a testimonial.
11:15 PM ET (US)
I am in a lease now that expires in May 2018. My lease car is a 2015 SRX Cadillac, but the payoff is more than it is worth. I am looking for a pull ahead program with GM. Will I get a good deal on the pull ahead program? Or should I just turn in my lease, which is in excellent condition, and then do your program sending emails to various dealers.
Thank You in Advance, Ricky Swecker
04:44 PM ET (US)
My pleasure to help out, DianeJ.
04:31 PM ET (US)
Thank you so much for the quick response. I have two leased cars to flip so I am totally interested in purchasing your plan if it will help me get two new vehicles.
06:37 PM ET (US)
Hi Diane - I wrote an entire tutorial on how to flip your end-of lease car here:
i try to lease jetta....they want me to pay 250 dollars/month with 0 dollars paid at up front and I want to pay 150 dollars without paying up front and I said i can't afford to pay more than that and he said 230 is minimum.....if i want to take it 80 dolallars/month, i have to pay 5500 dollars upfront for tax, freight, title etc etc....isn't that too much?!?
04:16 PM ET (US)
Thanks Markus. Appreciate the quick response!
03:34 PM ET (US)
I updated this page with all your questions about my KTL Leasing System:
Hi Markus, I have been reading through your blog for the last couple of days and have a few questions. Hopefully, I haven't missed them anywhere. If I purchase your product today, will it be updated to reflect 2018 models? Will you still be available by phone/email to answer questions? Also, I see you say that miles overage is not a big deal because in many cases people flip their cars. What if I don't end up finding a good deal to flip? I'd like to negotiate a lower price for going over miles upfront and have an allotment of 15K miles per year, is that feasible with your 1% rule? Finally, I've heard a lot of people have issues when returning a car at the end of their lease because dealers nickel and dime them for any minor damage to the car, do you share and advice for dealing with this if you plan to return the car? Thanks so much!!
I am interested in your Car leasing program, however I read that you are closing the blog on December? My current lease expires next June and I am preparing ahead of time and see what my options would be. Are you still offering this system? Is it a membership per year? how does it work? I would like to use this system to get the best deal possible but I don't know how. Could you help?
How to lease a 2018 Honda Odyssey no money down lease payment $550.O0 likewise 2018 redesign year with new safety features, is it best to go 2018 or 2017 model? In nys
Edited 09-17-2017 09:14 AM
10:58 PM ET (US)
Everything I have read about the Ad Valorem Tax in Georgia, on a lease car, currently has the driver having to pay the amount the vehicle was worth at purchase. That puts it at about 1500. I just do not get how they can do this but I see the Governor has passed a bill starting in January, that has the driver now paying on the value of the amount of months the lease will be. I am so pist,I think might stop driving and just let it sit at my apartment and bike everywhere till January. I just do not get the old bill vs. the new bill and all the confusion.
10:37 PM ET (US)
Hey hey Meghan,
The truth is you stumped me.
I do not know for sure how it is going to work.
My best guess is you will be charged your state's sales tax on the Cap cost (selling price), not on the much lower Residual Value - throughout your entire lease.
I highly doubt your leasing company will switch it on January 1st to the lower payment.
If it were me, I would not worry about it. On a Corolla LE, it might be an extra $15 a month in extra taxes for the "priviledge" of driving in the great state of Georgia.
Now if you were getting a super duper expensive car, it might be worth waiting the 3.5 months until the first of the year.
10:22 PM ET (US)
Markus, Hey I just moved to GA and am confused and a little obsessed with trying to understand this ridiculous ad valorem tax Georgia hb 140 changing in 2018. So, if I registrar a car NOW, before 2018, I have to pay this expensive fee on my lease car, about 1,500-2,000 I think,2016 Toyota Corolla LE. But come the new year, it is changed to every month and the total months being leased?
Thank you Markus!
Edited 09-15-2017 10:26 PM
03:36 PM ET (US)
And right now, I feel the 2018 Volvo S90 is one of the most under-rated luxury cars out there.
I am a cross-over fan. But if I was not, I would get the S90 out of all the cars available in that class.
Edited 08-30-2017 03:45 PM
03:25 PM ET (US)
Looking at the Volvo S90, it's pretty darn close to the 440i Gran Coupe - which is what I had my eye on. Pretty much the same price with all the features as well, but bare bones, you do end up getting more car for the price. BMW certainly has that name draw and the allure of precision engineering. I've been driving a BMW for quite some time so there is some bias, but I think it's opened my eyes to what more is out there as opposed to just looking at car buying with blinders on. You seem very knowledgeable and extremely helpful. I think I'll give it a shot and see what you have to offer. Pretty much pays for itself in the end if it works out, which I hope it does. I am always looking for ways to beat the system that is setup and rigged against us, so why not!? Anyway, thanks for the reply.
11:02 AM ET (US)
I just replied to your question about all-new vs. last year's model here:
I stumbled across your sight while trying to find "true" dealer cost vs invoice cost comparisons and I felt somewhat deceived there. I have read through most of your posts and you seem very knowledgeable. I know the value is there if your product works the way you say it does, which I can believe it does. I am in the market for a 2018 440i xDrive with the M Sport package and a few other options packages which bring the total MSRP from $51,500 up to $63,885. They currently have a rebate on lease discounts ranging from $2,000 to $3,500 locally (SoCal). Would this program be able to help me on this car? I noticed below you indicated on newer models it's tough to get this kind of a deal. Should I shoot for the 2017? Does it help that it's the end of the month? Thanks!
Edited 08-30-2017 07:45 AM
06:40 AM ET (US)
Hey Chris N...
I just replied to your question about the Volvo V90 here:
Hi, any insight on a Volvo V90.? MSRP AROUND 53,000 but lease is 721 per month plus over $4000 at signing. Are they kidding. Can a deal be had on this car or is it a waste of time. I would never shell out this amount for something that lists at $53,000. Any advice?
10:40 AM ET (US)
I answered your question about sales tax collection here:
I'm registering my leased car in Florida the dealership in ny collected sales tax on the term of the lease 36 months plus the amount of rebates that I got I don't think that is correct I think they should tax me only on the monthly lease amount being it will be registered in florida
03:54 PM ET (US)
Hey Kendrick and "Credit needed"...
Your timing is almost magical.
I am putting the finishing touches on a new infoproduct about rebuilding credit. It works hand in hand with my KTL leasing system...
I thought it would have been released last Friday, but Summer got in the way - my family convinced me to take some time off this week.
In simple speak, bad credit wipes out any savings from using my leasing system.
Dealerships scam us when we have less than excellent credit by charging us double - even triple the interest rate.
The good news is I have several proven techniques to help quickly boost our credit scores - no matter how bad our credit is.
Stay tuned here. I will update this over the next couple of days as Summer winds down and my family goes back to school.
Edited 08-15-2017 03:55 PM
08:19 PM ET (US)
Ive always been baffled about leasing a car, but I would like to know how does your credit have to be, poor, moderate, excellent, what is totally unacceptable?
03:51 PM ET (US)
If my credit is bad can I still get a zero down sign & drive lease?
07:08 PM ET (US)
Hey hey Ramon,
I answered your question about lease auto insurance and lease GAP coverage here:
Hello I just need to understand more clearly about the insurance issue of leasing a car. When you BUY a new car you must have full coverage insurance. Is it the same with a lease scenario? I'm confused about whatever GAP insurance is and if it even has anything to do with the FULL COVERAGE required by the Lender. Thanks... R...
07:23 AM ET (US)
Yes. December 25th is when I move onto my next big project.
By then, I will have answered every single question asked to me about car leasing...
Hi Markus, Your posts are interesting and honest. I am new to US and new to leasing system. I am planning to lease a car and sell it or come out of it after year and half. Will you help me to sell my leased car after a year and half of use? ( You said, you will stop this after December 25th. I am worried. )
Have a good time. Madhu
09:59 AM ET (US)
Hey rezrugger... I have GREAT news about turning in your leased car - you might get cash back:
Hi Markus, What should I do if im leasing a car now and need to turn it in? Will your system work this situation? Thank you in advance!
12:00 PM ET (US)
Thank you! I was planning to get a lease in October, I stumbled on your blog and read all of your articles in the past 3 days. I am definitely going to invest in your system, thanks for sharing the knowledge!
11:46 AM ET (US)
I just wrote an extensive post answering your question here:
I'm a full time grad student 27 y/o with one more year to go. I want to get the 2017 Honda Civic EX and with your system I'm confident I can get one for $200/mo with no down payment. I wanted to know your thoughts about single payment lease? I think it would increase my chances of getting approved. My Fico score is 730 and I have student loans and 5-6 credit cards with 30k limit less than 10% utilization. However, since I dont have a real income other than my student loan, I wasnt sure about my approval.
11:36 AM ET (US)
Chana - the bill is for your first lease payment.
With true sign and drive, the dealership pays the leasing company these fees for us.
10:38 AM ET (US)
This part is still unclear: "We get a bill or coupon book in the mail a few weeks later. (The lease paperwork states when the first payment is due usually 30 days after taking delivery.)"
What is the bill for? Will I still need to pay all those fees?
10:16 AM ET (US)
Good morning Chana...
You are referring to a sign and drive lease.
My clients get a TRUE sign and drive lease - we get the car and no money exchanges hands. Then we get a coupon book in the mail for first payment due.
I have a tough one for you. Any tips or advice for finding a lease on a 2017 Ford Raptor? I've been told by my local dealer that they will not lease a Raptor currently and they are asking for a markup over MSRP.
06:47 PM ET (US)
Sometimes you win with CarMax, sometimes you don't.
SUVs hold their value way more than sedans these days.
I would just return it to the dealer.
Now is actually the perfect time to get into a lease. Read my tutorials this weekend... get everything ready for early next week.
Edited 07-14-2017 06:48 PM
03:00 PM ET (US)
Thank you! My husband took the car to Carmax and was quoted 13k while our residual is 17k! The car is only 2 years old and had 21k miles. Is there any hope to flip it, or should we just return it to the dealer?
We are seriously considering purchasing your program. Are we almost out of time to get what we want, being that the 3rd Monday of the month is this upcoming week?
Thank you so much for your detailed and quick response! I'm leaning more towards the Pacifica, but the Sienna has a lease special this month so I'm told, so I was looking into both. I have a few more questions about your program:
1) Will the 1% of MSRP price work for 12k miles? 2) Have you had any clients purchase a minivan with success? 3) Are you available to help throughout the process if needed? 4) I'm confused about how long we gain access to the program. It says unlimited access and then it says updates for a year. Does that mean that in 3 years' time, we will need to pay for the program again?
1) Do you think I would be able to flip it for a profit at this point? 2) I'm looking to lease a sienna xle or pacifica touring-l with 12k miles. Will your program help me get a good price with 0 down at this point? I'm being quoted 1500-3500 due at signing wherever I call.
Thank you for your time.
10:43 AM ET (US)
Does your KTL leasing system work with Tesla?
10:00 PM ET (US)
Do you have a question about car leasing?
If so, submit one by click "Post a new message".
I try to answer each question as fast as they come in and post them at my blog here: