Ok, this is simply an explanation of what someone else did, which if you study, doesn't apply to most people. Btw, that guy was already leasing another BMW so there go your hopes of replicating this if you don't already have one.
This sounds amazing and all but if you really think about it, it would have been the same if he had taken out a loan for this car. Without going into too much, let's just simply take his $50/mo payment and multiply that by the average 36-month lease to get $1,800. So a $50,000 MSRP BMW i3 is sitting at roughly $26,800 after all the discounts and credits this buyer gets back (keep in mind that FEDERAL tax credits for leasing an EV is different than outright buying an EV car because the $7,500 tax credit isn't claimable by YOU if you lease it because it's the leasing company that OWNS the car, not YOU). This means that you can get an even greater discount if you take a loan out to buy the car, but anyhow let's just use the $26,800 price of the car after all discounts are applied. If you buy this car for $26,800 and if the estimated depreciation holds true, you would be paying roughly $447/month for the loan instead of $50/mo for the lease, sounds like a big difference right? However, keep in mind that if you pay $447/month for 3 years, that's actually $16,092, which is still a lot more than $1,800. However, you now only owe $10,708. If you are able to SELL the car at the end of 3 years for $25,000 (the estimated depreciation price), then you would pocket $14,292 at the moment of buying this car, thus making your NET out of pocket ($16,092 - $14,292) = $1,800. Short version: the real winning formula here is knowing how to negotiate the price of the car, coming up with discounts and incentives on the car that you like. The method which gets you the car, financing or leasing, is less important. Yes, I fully understand that $50/month is much easier to manage financially than $447/month and the $397 that you don't have to spend out of your pocket every month could be thrown into a high yield investment portfolio instead. In this scenario, you would be saving a lot more.
Basically get the dealer to sell you a new car at the same value as the residual value. Fat chance. There are not enough incentive or manufacture rebates that will come even remotely close to the off the lot depreciation.
Eli - Good question. You can not negotiate depreciation, that’s a pre determined amount. The only wiggle room you have is to negotiate the total sale price of the car which in turn will reduce the amount of depreciation you pay.
Danny Dempsey I'm not familiar by any means but I am also interested in leading the same Lexus. Unfortunately the best deals ended in December so I have to wait now. The Lexus dealer in my region seem so shady nonetheless, so I doubt they would let me try to haggle w these tips. Wonder how I can reduce a 4K down payment they look for.
It’s all about negotiating. There’s WAY too many people who walk in and let the dealership absolutely fleece them on a car lease. No negotiating whatsoever because it makes them uncomfortable to do so, it’s intimidating to many people especially women
@@Syrpens Actually..many people try to negotiate and end up wasting hours sitting with a salesperson who keeps going around in circles..and at the end of the day the lease is no better than their usual ones. They tell their friends this..word spreads..and people stop trying. This video is clickbait..that's all.
Shop hard, buy low is easiest way to save money. Wholesale car auctions or trade ins have biggest savings.
Amazing video . Very educated and detail. You taught like a teacher. Would love to see anything with money hacks. Thanks
Ok, this is simply an explanation of what someone else did, which if you study, doesn't apply to most people. Btw, that guy was already leasing another BMW so there go your hopes of replicating this if you don't already have one.
i leased a i3 for $54 for two years.
How would you go about trying to get the dealerships to sell a new car to the leasing company for a %15 discount? That sounds tough to do☹
This sounds amazing and all but if you really think about it, it would have been the same if he had taken out a loan for this car. Without going into too much, let's just simply take his $50/mo payment and multiply that by the average 36-month lease to get $1,800. So a $50,000 MSRP BMW i3 is sitting at roughly $26,800 after all the discounts and credits this buyer gets back (keep in mind that FEDERAL tax credits for leasing an EV is different than outright buying an EV car because the $7,500 tax credit isn't claimable by YOU if you lease it because it's the leasing company that OWNS the car, not YOU). This means that you can get an even greater discount if you take a loan out to buy the car, but anyhow let's just use the $26,800 price of the car after all discounts are applied. If you buy this car for $26,800 and if the estimated depreciation holds true, you would be paying roughly $447/month for the loan instead of $50/mo for the lease, sounds like a big difference right? However, keep in mind that if you pay $447/month for 3 years, that's actually $16,092, which is still a lot more than $1,800. However, you now only owe $10,708. If you are able to SELL the car at the end of 3 years for $25,000 (the estimated depreciation price), then you would pocket $14,292 at the moment of buying this car, thus making your NET out of pocket ($16,092 - $14,292) = $1,800.
Short version: the real winning formula here is knowing how to negotiate the price of the car, coming up with discounts and incentives on the car that you like. The method which gets you the car, financing or leasing, is less important.
Yes, I fully understand that $50/month is much easier to manage financially than $447/month and the $397 that you don't have to spend out of your pocket every month could be thrown into a high yield investment portfolio instead. In this scenario, you would be saving a lot more.
what do you think you can get for a bmw m4 how much for a lease cheapest? im trying to get one
who knows how much he put down payment
Great video panda..very informative
Please more ! Thanks
The weird thing is, the guy didn’t buy the car and keep or resale it
Would this processs work in regards to the Tesla financing as well being that there is a tax credit incentive?
Basically get the dealer to sell you a new car at the same value as the residual value. Fat chance. There are not enough incentive or manufacture rebates that will come even remotely close to the off the lot depreciation.
What credit score you need to have for this type of lease? And it’s known that dealerships overcharge blacks more unfortunately
Would love to hear more...Great video!
Great info! Do all discount apply to the depreciation. Price or a total price of the car?
Eli - Good question. You can not negotiate depreciation, that’s a pre determined amount. The only wiggle room you have is to negotiate the total sale price of the car which in turn will reduce the amount of depreciation you pay.
The depreciation is based on a percentage of the MSRP.
The more you negotiate off the MSRP, the better the deal for you.
If it's true, love it!!
I would like to do this with a 2019 Lexus es .I currently lease one and it's almost time to turn in. Would I be able to do something similar ?
Danny Dempsey I'm not familiar by any means but I am also interested in leading the same Lexus. Unfortunately the best deals ended in December so I have to wait now. The Lexus dealer in my region seem so shady nonetheless, so I doubt they would let me try to haggle w these tips. Wonder how I can reduce a 4K down payment they look for.
He seems very wealthy
That’s how BMW gets you, good luck getting out of it. Negative equity up the ass.
Leases dont have equity
It’s really easy to get cheap car leases.
Disney Fan please do share because it's not the case in my area.
It’s all about negotiating. There’s WAY too many people who walk in and let the dealership absolutely fleece them on a car lease. No negotiating whatsoever because it makes them uncomfortable to do so, it’s intimidating to many people especially women
@@Syrpens Actually..many people try to negotiate and end up wasting hours sitting with a salesperson who keeps going around in circles..and at the end of the day the lease is no better than their usual ones. They tell their friends this..word spreads..and people stop trying. This video is clickbait..that's all.
o0ou