Leasing: How To Get A Good Deal?

 
Leasing a vehicle can be a good idea for several reasons. Especially if your you're someone who wants to access to the latest automotive technology and newest inventory to date. That said, regardless of whether this is your first time or your fifth time leasing, you want to make sure you're getting the best deal possible. Here's how to know if your getting a good deal on a lease using what's commonly known as the "1.25% leasing rule" : 

The 1.25% Rule

The 1.25% leasing rule is a quick and easy to follow guideline that will help you gauge whether or not the dealership is trying to give you a good deal on your lease. Allowing you to gauge whether this is a deal worth considering, or if you should simply walk away. 

The percentage is based on the selling price, money, incentives, residual value, and other factors. That being said, this rule is considered a great rule of thumb for consumers who want a rough estimate for their lease without getting into detailed calculations like you would if you were trying to calculate your monthly payment during a purchase.

How It Works

- Multiply the vehicles MSRP by 1.25%. If your monthly payment is lower than or around this number with 0 money down, then this means your getting a good deal on your lease. If the number is significantly higher then this, you may want to start negotiating or walk away. (Please keep in mind that even with 0 money down, you'll want to add in the additional fee's that come with leasing such as your security deposit, acquisition fee, disposition fee, as well as any other fee's that come with going against or terminating your lease.)

Formula:
  • MSRP x 1.25% = Ball Park Monthly Payment

Examples
Here are some great examples for some extra help:


Good Deal:
Dealership Offer: $500/month

  • $42,000 x 1.25% = $525 <---- Only $25 Above Estimated Calculation


Bad Deal:
Dealership Offer: $850/month

  • $56,000 x 1.25% = $700 <---- $150 Above Estimated Calculation


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Give as a call at (888) 656- 5791 to start your leasing journey today!



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