How to SAVE $5,000 on a Lease: BMW M3

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Күн бұрын

How to Save $5,000 on a BMW M3 is really about arming yourself with some basic math and finding the right dealership willing to accept your proposed discount. This video is a real life technique used to deconstruct a car lease (with very basic math) and how to negotiate a fair price for ANY CAR. Hope this helps! -L
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Пікірлер: 1 000

@samlung2724 7 жыл бұрын

my neighbor saved 25k buying it used.

@CrismariuMihnea 3 жыл бұрын

lol

@guacamolehole9634 3 жыл бұрын

He’s brave buying a used bmw.

@bonchance7705 7 жыл бұрын

227 people tried this but got declined after the credit check LOL!

@UrbanDubsmith 7 жыл бұрын

Kay Lou this needs to be voted up

@MR_FN509 7 жыл бұрын

Kay Lou 😂😂😂

@cowcowcafe 7 жыл бұрын

you must work in the business office lol

@Kons213 6 жыл бұрын

ahahahahahhaha

@2011Savere 5 жыл бұрын

No you don't. Liar.

@HenkkaWRC 7 жыл бұрын

Cars are so incredibly dirt cheap in America. $67,595 for 2017 BMW M3. Here in Finland that same car costs over $125,000.

@djgainsbond 7 жыл бұрын

HenkkaWRC move to usa. and stop complaining then

@Nick210 7 жыл бұрын

HenkkaWRC be grateful. I was in Jamaica earlier this year for vacation, the dealer had an M4 for 18million dollars.

@MrLalasd 7 жыл бұрын

That is a 140k USD

@trippplefive 7 жыл бұрын

Yeah, but regular Americans pay in other ways...like massive healthcare costs , pharmaceuticals and student loans. If you are born into a wealthy family though, then good for you.

@Rob_1515 7 жыл бұрын

HenkkaWRC In canada this car is would be close to 91,000

@LittleMissLiz2009 7 жыл бұрын

first of all thank you so much for making this video, i just recently leased a 2017 540i xdrive M-spec and using this exact math i was able to talk to my dealer and actually ended up saving $6,100 that i then used to option bigger rims and a few other add-ons. THANK YOU GUYS SO MUCH!

@autosleekcarcare2370 7 жыл бұрын

Once again we as the detailing and car community thank you for your valuable information

@AMMO-NYC 7 жыл бұрын

:) we need people buying/leasing cars so we can detail them!

@chrisrefaei 7 жыл бұрын

You should really then be saying purchase in cash what you can afford dont go in to debt trying to impress people at a red light that youll never meet. Act your wage not your age. Awesome video as always. just i'd always pay cash for a vehicle.

@chrisrefaei 7 жыл бұрын

that's why i do both I pay in cash and have 6 months savings of income and invest the rest of my cash in mutual funds

@AMMO-NYC 7 жыл бұрын

exactly

@chrisrefaei 7 жыл бұрын

@ammo NYC Larry I truly love your work and videos You're an inspiration to me. And want you to know deeply im not bashing you by any way of the imagination of this video, you'll be helping someone. Keep it up bro

@SilverBullit001 7 жыл бұрын

For the sake of speed and simplicity, we kept this high level. Yes, a lease is slightly more complicated with money factors, depreciation percentages etc. - but this general guide will get you to a place to start a powerful negotiation.

@tenorjock89 7 жыл бұрын

As someone who has worked in car sales for a couple years I have to say I was pleasantly surprised at the overall tone and accuracy of this video :-) there's a lot of hearsay and rumors about how to get the best deal on a car whether it's a lease, Finance or a cash deal. the way I usually put it to the customer is whatever way you choose to pay for the car we get the same check. thank you Larry for another fantastic video!

@tdubz350 7 жыл бұрын

You can't just divide the discounted price over 36 months. You have a residual value to factor in there buddy!! also there is a money factor essentially interest charged on that savings

@breyton490 7 жыл бұрын

I will be back in 36 months to buy that car...!!

@meekrab9027 7 жыл бұрын

By buying it after I beat it to shit!

@Alumnikiid 7 жыл бұрын

mike p There are millions of used cars on the road alot of then sports cars so clearly the previous owns dont all beat them to sh*t

@Mrsonicslash5 6 жыл бұрын

mike p bmws are fine to beat the shit out

@guillermomora6178 5 жыл бұрын

I bought a 2015 f32, sticker price around 62k, market value of around 35k, but I bought it on winter so I paid 31k. I couldn't be happier. I smile every time I see it.

@angelnikolov7479 3 жыл бұрын

Did you buy it?

@Chuzo1946 7 жыл бұрын

I don't know much about buying new cars, but you can low ball semi used cars that are certified with 10k miles or less easily. You save a ton of money. Last year I lowed balled a VW GTI Autobahn fully loaded from 21k to 18k, spent about two hours negotiating and they wouldn't budge. GM got involved, offered me a "final" deal and even threw in maintenance package for free. I refused and firmly stood by my 18k offer. Deal didn't work out, we shook hands and I left. The next day I get a call from the GM. Sold for 18k. :) Oh btw it had 8k miles.

@bandi7966 7 жыл бұрын

Manual transmission!! You are my hero!

@bmurd45 6 жыл бұрын

Great tip to thoroughly check your car at the dealership, just purchased a new Audi and found two very minor dings on the car, now trying to get the dealership to fix it after driving home. Sound reluctant.

@moneyUWM 7 жыл бұрын

It baffles me on how many "experts" are on here. Maybe a handful ever working in the car business or in a dealership, letting alone having the means or money to actually make an intelligent decision. You buy appreciating assets and lease/rent depreciating ones...and if I can write off my lease payment, not pay for maintenance, and always be under warranty with the newest technology and pay MUCH LESS if I were to finance it...it's the way to go.

@AMMO-NYC 7 жыл бұрын

Jason Mayes bingo

@wwells2448 7 жыл бұрын

Exactly... And if you choose to buy the car out, you now get a 2nd opportunity to negotiate the sales price of the vehicle. My wife was absolutely against leasing vehicles, until I convinced her to lease her 2012 Ford Edge Sport in 2011. We did a 3 year, 15K mile lease. Purchase price was $44K, negotiated down to $40K, monthly lease payment ($0 down) was $401. Residual value (buyout) was set for $22,300. 6 months prior to the lease maturity, we traded in the Edge for a 2014 BMW 335i MSport for $32K. Vehicle buyout was $24,700 at the time, so we had $7300 to roll into a new deal or take as a check. We decided to use the $7300 for MSDs on the BMW and effectively reduce the interest. We now had a 335i lease for $458/month. Too many people don't understand leasing and are quick to say "Leasing is for people who can't afford it" or "Leasing is just renting a car you don't own". Heck, until you've paid the last penny on your traditional car loan, you don't own it either. There is no reason to buy a depreciating asset. And if anything happens to the vehicle under traditional financing, the risk is on you. If your new BMW M3 was involved in an accident, you've taken the hit for the loss of resale value. If you leased it, the lessor (the bank) assumes the risk and it's no financial loss to you.

@Alumnikiid 7 жыл бұрын

Jason Mayes You know you can finance a car thats used. You can get a 2015 M3 w/ all the same technology for about $50k and buy it with a warranty. Save yourself almost $20k. But to each his own, I buy 4-5 year old cars so I dont take the vast majority of the depreciation hit

@moneyUWM 7 жыл бұрын

Of course I do. I'm a Sales and Finance Manager, it's what I do every day :)

@moneyUWM 7 жыл бұрын

Warren Wells yup. But most brands won't let you negotiate the residual at the end. Sometimes there are ways around that as a dealer make you take it how it is.

@MrTickleBean 7 жыл бұрын

How can you properly inspect a wet car under artificial lights? That lease deal wasn't anything to write home about either. That seemed pretty standard at best.

@KariIzumi1 7 жыл бұрын

Joey B it really was. As he said, you'll pay the same amount overall whether you put a large down payment or nothing now. Plus, BMW and MINI both have what's known as a Gap Waiver included into every lease so that if you total the car you can walk away from it or at worst pay a fraction of what one may otherwise pay.

@dionnablue6290 6 жыл бұрын

I got a great deal on a 2018 Kia Optima lease. I haven't watched this video yet, but going at the end of the month and end of a sales quarter definitely helped me a lot. I got $5000 in rebates and incentives, and they upped my trade-in value. It came out cheaper than a used car.

@IainB 6 жыл бұрын

It's nice to see the lease numbers all broken down, nice work. The bottom line is that, just like a traditional car sale, you can negotiate the sale price of the car. Many people don't know that.

@arnakdanielian1038 7 жыл бұрын

That was awesome Larry! Thanks for the video :)

@NicholasG28 7 жыл бұрын

During the inspection at the end, I'm assuming that the car/paint was okay and nothing major was found. But hypothetically let's say you pulled off the plastic film on the paint and there was a major scratch or defect that would require some serious work or even a repaint. How would you go about bring that up to the dealer since it looks like all the paperwork and finances had already been signed, ect. at that point?

@Chuzo1946 7 жыл бұрын

NicholasG28 great question, hopefully we can get an answer.

@toddswenson 7 жыл бұрын

I agree, good question. If everything looks good though, It's as if he intends to own this car. If it's a lease and can be turned in at 36 months, Why does anyone care if it's perfect? I mean really, It was being looked over as if it were going into your living room and never driven. Ammo, I think you're going to need some rehab on that eyeball because your look was either for dramatic effect or dude you strained that thing. At lease end, you're entitled to some normal wear and tear and those paint blems if any wouldn't be a factor at all. As with most stories here on KZfaq that intend to educate I think that there is an opportunity for a "part two". I hate cliffhangers. I would like to know the intentions of the Leasee in this example.

@Krnnerdboy 7 жыл бұрын

NicholasG28 actually in California, if you never drive the car off the lot, the contract can be nulled. I've done it 2x

@JoePhotoOnline 7 жыл бұрын

That's not true anymore. Paperwork Signed = Deal. The whole 'drive over the curb' thing is a long perpetuated myth. The dealer let you out of those deals because they decided to.

@Krnnerdboy 7 жыл бұрын

Joseph Brightenstine that's good to know. however I just did it last week on my 17 x5 bc it looked like it had the fender repainted. and then on my last purchase for my m3, I had them install tint before I would drive it off. they just requested that I drive it off the lot and bring it back. this was at century west BMW in North hollywood

@cardo1111 7 жыл бұрын

Excellent and informative vid, good info on negotiating a lease as well as unpacking a vehicle yourself so the dealer's "prep team" can't hide anything or cover up any transit damage which is much more common than you would think it is.

@fruit4569 7 жыл бұрын

Thank you guys so much I appreciate you❤

@SupErnaTuraL315 7 жыл бұрын

Every instance is different, but I love those of you saying you can't afford a car if you have to finance it. There are many reasons why you're better off. High performance cars are limited production, have massive amounts of R&D which makes them intrinsically expensive. Parts are also expensive. Lease your Hi-po car and have a warranty for when things inevitably break. Depending on your credit, interest rates on car loans are minuscule. A low-risk portfolio nets better gains than your car loan will lose. The rich stay rich investing money, not paying cash for everything and waiting to make more. There's a difference between buying on credit and using credit to pay for things you can afford. Using cash is the most ineffective way to build wealth.

@marksalinger1888 6 жыл бұрын

SupErnaTuraL315 the very rich don't buy those types of cars. If you have big bucks you have someone else drive you or for you. They travel in their own private jets.

@selc2620 7 жыл бұрын

Awesome information, it makes it really easy on how leasing works.

@AMMO-NYC 7 жыл бұрын

Thanks.

@alexcadoret4268 5 жыл бұрын

Did you negotiate the money factor/interest rate? That’s a big part of it that you’re leaving out. Always ask for the base money factor. Dealers typically will not disclose the base rate but you can find it by searching the forums on Edmunds

@ChrisMunz280 7 жыл бұрын

You forgot about interest rates. the whole point of a down payment is so you end up paying less at the end because the down payment is not affected by the interest

@SKEETACR 7 жыл бұрын

Missing the money factor.

@NicoleKe 7 жыл бұрын

SKEETACR Yup and dealer incentives/rebates.

@HlusEditing 7 жыл бұрын

with the depreciation rate and maintenance/breakdown expenses past 3 years especially on BMW especially on "M" - leasing is the smartest decision, as much as i love cars and love to won them, i'd rather lease and swap for a newer body in 3 years.

@UrbanDubsmith 7 жыл бұрын

HlusEditing I have to agree with you 100%. Some cars are only reliable the first 36k miles anyways, and driving a ten year old BMW sounds like a maintenance nightmare. If you always are going to live with a monthly payment, it makes sense to lease *sometimes*

@M4csdtn 7 жыл бұрын

Great informative video Larry. Keep up the good work. These videos separates you from the other detailers and the correct knowledge to back it up

@TofuProductionCinema 7 жыл бұрын

Excellent information, Larry and Jonathan.

@Atlas302 7 жыл бұрын

Don't recall seeing or hearing the annual mileage of the lease. Great video.

@TheDefensivemaniac 7 жыл бұрын

Leasing is the best way to go if your getting a luxury or sports car. People just don't understand how fast a car depreciates in value. From the moment you drive out that dealership your brand new 40 grand car isn't worth that anymore...About 5 years down the line when your bored of it and go to trade it in for something better. You will be shook when you find out that the trade in value of your brand new 40 grand car is only worth 26 grand..ha...Depreciation is a bitch. If your like me who enjoys driving new vehicles. Leasing is the way to go. Best part of it is getting to treat the cars like sluts because there basically rentals. Gives me a sense of joy knowing I'm putting my hard earned dollars to use.

@MarksTech 7 жыл бұрын

too bad if you're like ME, driving a lease sucks since most leases only give you 10k miles..hahahah you're paying nearly top dollar for them to treat you like their bitch and tell you how much you can drive. no thx. I put on 22k miles in one year on my car. no way would I cut that mileage down by half just to show off my small cock by getting a bmw.. then when a Girl calls you up and says 'hey can you pick me up' and she lives more than 30miles away, you'll say 'sorry, can't cause I'm only allowed 10k miles and it adds up' 😂😂😂😂

@Cello69. 6 жыл бұрын

iMarks Tech my lease is sitting outside with over 1600 miles in the “green”. Also earlier this years I traveled to OKC from PA and back. Racked up about 3100 miles. No problem. You see I’m able to do this because because my work commute is only 6 miles round trip. A 30mile excursion for me is nothing. Key words “for me”. Just like a lease is for me and not for everyone. On the other hand someone might only need 100 miles a week (5200 year) but can’t keep dings, scratches, dents and cigarette burns off their vehicles. At turn it that individual will get smashed. Just as if you turned in your lease with 30k over at .24 per mile you’re looking at $7200 in charges. I like driving new cars that’s always under warranty. I don’t need more than 12k miles per year and take good care of my vehicles. That makes me a good candidate for a lease. Not everyone fits the criteria.

@quyuzhou 6 жыл бұрын

there are options for mileage....... lmfao

@razerone49 7 жыл бұрын

Thank u so much for sharing this. I know I've paid way more than I should have on multiple cars I've financed (which in turn has made me despise the car buying process) so helps me in feeling confident in not getting bent over again. Anyways, thanks for taking the time to explain this for everyone👍

@AlbanianSold13r 7 жыл бұрын

Thank you so much, I'm glad this popped into my feed because I will be looking for a lease in 1 week!

@jamesrusso6739 7 жыл бұрын

Still paid too much. Should have discussed the money factor (which was likely not offered at the buy rate), and also for someone who is in a good cash position, you can do multiple security deposits (which you get back, unlike down payment) to further reduce the MF and therefor your payment. Cap Cost + MF + Residual is what you need to know. I always go in and negotiate a price of the car paying cash, and then I discuss options like financing and leasing because I have already established a cap cost at that point.

@tdubz350 5 жыл бұрын

No msds in NY unfortunately

@Magicstockton 4 жыл бұрын

Can you explain this to me in layman’s terms? Please.

@Poorschedriver 7 жыл бұрын

Very surprised at the amount of people commenting who have absolutely no idea about the advantages of leasing a car, and all they have to say is how it's such a bad idea. Unless you want to drive a clapped out 10 year old honda accord, you're going to pay to drive a nice car that's reality. Whether you're paying depreciation on a car you own or lease, nobody can escape it.

@AMMO-NYC 7 жыл бұрын

Audi_ophile Exactly right

@123456bmx 6 жыл бұрын

Audi_ophile 3 years ago I got a 2013 BMW 128i for just a couple bucks short of 7 grand with 23k miles.Insurance auto auctions are a godsend if you want to drive nice cars at pennies on the dollar.

@disneyfan9099 6 жыл бұрын

Audi_ophile True

@weissman1994 6 жыл бұрын

very true. I dont see it being to bad. if you get a new car every three years anyway its not a bad idea to lease. Over his term he only payed 32k to drive a brand new M3 for 3 years. pretty sweet. buying it and driving for three years then selling is more of a risky venture. it could hold value alright or depreciate terribly and he would loose money.

@tschaderdstrom2145 6 жыл бұрын

To me, depends on how long you plan to keep the vehicle against how long it will take you to pay it off, accounting for the maintenance schedule and miles/year. Neither option is wrong, but sometimes one makes more sense than the other.

@adstern9270 7 жыл бұрын

Good info!. one key element i think that was over looked was the allotted mileage over the term of the lease. Typically advertised lease prices are subject to unrealistic yearly mileage allowances. You can increase the mileage allowance but then the payments increase.

@fakez06sean98 7 жыл бұрын

I'm always amazed how folks look at monthly cost and not total costs when working with money.

@coolvalera 7 жыл бұрын

This is incorrect and misleading. Lease consists of Residual value, Money Factor (interest rate) and the only variable is selling price. Your monthly payment consists of actual depreciation+ interest charge+taxes. There is a difference between downpayment and drive off. Drive off consists of 1st payment, DMV fees and an acquisition fee. Often dealer charges taxes in drive offs. Downpayment is a cap reduction, reducing depreciation amount to pay. Higher downpayment= lower payment. Every car has a different lease programs, thats why you often can see a $60k car lease for the same as a 30k car. Yes, you can save money by getting a discount of the selling price and it WILL reduce your payment but its not a simple math of taking a $1000 discount and dividing it by the term. There is always interest rate involved.

@mikes9213 5 жыл бұрын

unreal. you are so correct. Maybe when he says hes good in finance that means that he knows how to only add and subtract on a calc

@SnewJ 7 жыл бұрын

Great info. But also forgot to mention the residual value for the mileage per year for the term which also determines the monthly payment. Was this for a 8k miles per year lease?

@nothinglike1586 7 жыл бұрын

The BMW add was for 3 years / 12K miles a year, so I guess so was his 'deal'.

@FinalFade1 7 жыл бұрын

Great video as always Larry. Keep doing what you're doing!

@mscebold 7 жыл бұрын

Really looking forward to more videos on this car and how to protect a new vehicle. As always, great video! And learning a little about finance is always good - if he isn't a teacher he should be!

@TheLyngas 7 жыл бұрын

Great video Larry. Just a shame he didn't put the money towards a new Giulia QV ;)

@MBisFrenchy 7 жыл бұрын

Rolling taxes into lease payments is only allowed in certain states.

@katodevon 7 жыл бұрын

Great video. Thanks to you and your guest for putting some excellent info out there. Appreciate it.

@icanmanifest 7 жыл бұрын

Good info. One other thing to add, look for all available rebates. I just got $1500 USAA, and $1500 BMW loyalty off a 230i. Made a HUGE difference. It's like putting $3k down. And on a lease really brings the payment down because it comes right off that cap cost. And once ALL that's done. Go to a competing dealer and show them the deal and say I'll buy it here if you'll beat it and they will find a way.

@mriphone1000 7 жыл бұрын

This person I know bought a 06 Trailblazer SS for 45K new and my 06 Tacoma was bought used for 14K, today there worth about the same. He lost 3K a year for a decade and I lost practically a few hundred. I like paying cash and to me, you don't own it until it's paid in full, but I guess people are used to the debt they don't care but I work too hard to not care.

@justthisguy1948 5 жыл бұрын

I see what ur saying yea u got a better deal but his is by far the better vehicle and will always be worth more

@eticket70 7 жыл бұрын

Buying a luxury car is money down the drain! Once the luxury items are obsolete, value of the car depreciates faster than non-luxury cars. Lease is a good way to drive a luxury car and then you give it back before all the expensive parts like a chipped key-fob fail (and you're not stuck with a $3000 repair job)! Learned my lesson once! If you want to drive a luxury or high-end car, better off leasing it! you gotta pay to play as they say!

@7477238 7 жыл бұрын

Leasing makes a ton of sense in that segment. My Uncle recently returned his lease on a 2013 BMW 750i M Sport and good thing because those N63 motors are absolute junk in the long term. Runs great when it works like it should but everyday that was a gamble whether there would be an issue or not.

@MrJoe1627 7 жыл бұрын

This videos gold

@atlas3218 6 жыл бұрын

Picked up an s5 from that dealership a few weeks ago. Great dealership, would recommend to a friend.

@DenisK007 7 жыл бұрын

How would residual value play into the monthly payment?

@thesimplechef4104 7 жыл бұрын

Denis K The higher the residual the better the lease,(lower payment) that is how companies like Nissan or Toyota can run $99.00 lease specials. When the factory incentivises a certain car via a high residual and big rebates the leases are great.

@artagain8977 7 жыл бұрын

Always negotiate a lease off of the invoice price, not the MSRP.

@dawicked2k8 7 жыл бұрын

Artagain I stopped watching when he showed he was working with the MSRP price, Lmao 😂😂😂

@hassaan22 7 жыл бұрын

Can you explain why?

@artagain8977 7 жыл бұрын

With a lease, Capitalization cost is the selling price of the vehicle. It should be negotiated just as if you were buying the car outright. The final price of the vehicle determines what you'll pay for the lease amount. The invoice is what the dealer paid the manufacturer for the car. But they usually get dealer rebates (not to be confused with customer rebates), incentives and kickbacks. That's why it's possible to buy even below the invoice. I've purchased over dozen cars over the years. Extensive research and the ability to walk away is your best weapon.

@rotrmotr 7 жыл бұрын

Artagain How do you get invoice prices?

@silentassasin741 7 жыл бұрын

This will help people in the future. Thanks👍

@bobbylewis2772 7 жыл бұрын

Thanks Larry for this awesome video.

@richardjames26 7 жыл бұрын

Very informative Larry!

@Jiquxa 7 жыл бұрын

I thought I clicked thatdudeinblue's video, because of that blue color

@Camhin1 7 жыл бұрын

Why am I watching this? I live in Australia and don't lease cars.

@AlokSomani 5 жыл бұрын

My favored approach for car purchase negotiations is to ONLY discuss with them in terms of out-the-door price (including tax, license, fees, etc.). At the very minimum, you should be able to get an out-the-door price under MSRP, sometimes thousands under depending on the price of the car, demand, availability, etc.. I got about 11% off my recent car purchase this way, and generally 10-15% with other cars in our family. But you should always go into a negotiation knowing what you want, and what you're willing to pay out-the-door. Dealers will be much more likely to play ball if they KNOW you're willing to buy at that price.

@patel22roshan 7 жыл бұрын

Amazing video Larry

@sjtanman 7 жыл бұрын

I just bought a 2013 M3 That sticker new for 83k I got for 48k with 24k miles

@junito1008 7 жыл бұрын

Very good video...I'm leasing my M4 coupe tomorrow !!

@strangekid35 7 жыл бұрын

junito1008 good luck!

@junito1008 7 жыл бұрын

Ben Unnerstall Thank You !!

@originalswolfsburg9889 7 жыл бұрын

junito1008 how did it go?

@thetimmister 6 жыл бұрын

awesome video! i cant imagine how much money was helped saved lol. started watching your videos about 4 years ago and havent for quite a while. looking forward to catching up!

@mikebarrows9480 7 жыл бұрын

one thing you guys didn't discuss was residual value and the amount leased versus the buy amount at the end of the lease.

@jybarr04 7 жыл бұрын

Oh my god who's paying $879 a month on a car!

@Thewinnerscircle_ 7 жыл бұрын

I'm about to lease a 2017 M3 w/competition package and I'm studying the shit out of this video lol

@inventiveobsession1012 6 жыл бұрын

me too, and i work at a restaurant , how about u?

@Yvaneify 6 жыл бұрын

kind of a late reply but judging from his profile picture, it seems that he got the lease. Are you still working at that restaurant?

@CitarNosis317 6 жыл бұрын

Wow this video only popped up for me now, but thanks for doing such a video. It's superb!

@raptor2126 4 жыл бұрын

This is a very very basic overview of leasing. I negotiated my M4CS lease (MSRP $115k) to $725/month (includes taxes) with $0 down (10k/36m). If done correctly, leasing can really be the best way to get a new car

@BenevolentDictator13 Жыл бұрын

How?

@freakincrazy6932 7 жыл бұрын

He didn't save $5000; because he pays a certain percentage of the total cost say 40% for 3 years. He could've got that car for all in under $750 with multiple security deposit. He's paying way too much.

@fr1j0l170 7 жыл бұрын

freakincrazy6932 you could also do lease to purchase. Where he leases to make payments lower then buys the vehicle at a discounted price. We do it all the time.

@jcotty7 7 жыл бұрын

freakincrazy6932 best way to dodge the insane deppreciation hitd

@terry947 7 жыл бұрын

can you please explain.... im thinking of leasing a 2018 sti...

@gootywooty 7 жыл бұрын

Basically you pay a set amount every month for a lower price (but if you fail to make those payments they'll take your assets as with most loans), however in exchange for those lower monthly payments you don't get to keep the car at the end of the contract and you cannot exceed the annual mileage quota (they will charge to extortionate amounts if you go over). If you decide you want to keep the car at the end of the contract you pay a couple thousand more (basically the rest of the value of the car). Its great if you want to avoid the depreciation of the vehicle and usually comes with all the servicing (parts and labour) included. Think of it as long term renting a car for a lower price. Only benefit of it is that you get a new car to use for that period of time and don't experience the depreciation of it when you come to sell it (good if the car you want is a Jaguar for example), its a great low budget option.

@apt62 7 жыл бұрын

870 is a reasonable deal nothing crazy.

@notelpatsxela 7 жыл бұрын

This maths doesn't work. If you prepay you reduce the INTEREST. Leasing is essentially a form of a loan and interest is loading at the front of any deal. Check a mortgage calculator to see this effect. If you have a $500,000 mortgage with no down payment you will pay A LOT more over the lifetime of the loan compared with a $150k down payment followed by monthly payments. Good morning America

@gcg8187 5 жыл бұрын

Yeah

@modliving 7 жыл бұрын

Awesome video. Applying this technique in the next few weeks.

@okyereis 7 жыл бұрын

cool stuff! just learned something, thanks Larry!

@Gnussbaum 5 жыл бұрын

Who orders an M3 without honeycomb wheels ?

@Mr889236 4 жыл бұрын

Those are the competition wheels and they are 20s some people prefer the smaller 19s

@HockeySavants 7 жыл бұрын

People who are like "I don't get why people lease?? WHY DO YOU WANT A CAR PAYMENT FOREVER" are the same people who are like "bruh I just built the latest gaming PC for $5000 and latest Android/iPhone, no way in hell would I still be using my PC build from last year" Chances are you waste your money on other stuff that we wouldn't otherwise. I'm using a 2010 MacBook Pro with an SSD, I haven't had to buy a computer in years and it runs great, while my friend has bought/built 7 computers in the same time frame....spending around $12000 on phones and computers....but drives the same piece of shit 2005 Mazda he's spent $8000+. It all adds up, and in the end he needs to get a new car.....his car is worth $400....hardly any equity and has to start all over again. He just bought a new car stereo too (dropped $1000 on it), and is looking at a car worth $27,000. So Again.....in the end you spend the money one way or the other.

@samviddo360 4 жыл бұрын

If you do 2 or more leases i think you start losing money vs keeping the single car. But then again who cares about that 5% difference when you get to have fun in a BMW and give it back before it starts giving problems. Use it, abuse it, lose it

@williamfinucane 6 жыл бұрын

might be buying my first new car today, had to come back to this one for a refresh

@lancerebel5516 7 жыл бұрын

Great vid, very informative!!

@nickname1392 7 жыл бұрын

I think people that parrot "wisdom" are hilarious. They lack the fundamental understanding of what might make something a bad idea and simply take it as gospel. Yes a lease can be bad, but it can also be really really good. One thing this video didn't look at (probably because it didn't play a role in the monthly payment) was how much BMW expects the car to be worth at the end of the lease. That number right there is a big factor on whether a lease can be right for you. Google all the info if you're considering leasing a car as a purchase option. And yes leasing a car can turn into a purchasing option.

@marksalinger1888 6 жыл бұрын

Nick Name if you plan on buying the car at the end of the lease, it's almost always better to buy the car. Leasing companies almost never negotiate on the residual value.

@Mattdagreata 7 жыл бұрын

Why inspect the paint? It's a LEASE?

@jlcy8313 6 жыл бұрын

maybe he plans on buying out the car when the lease is over?

@Every14days826 6 жыл бұрын

Mattdagreata exactly for that reason, because he has to return it in said condition. Making sure he doesn’t leave there with faults, he obviously won’t be driving that car daily, it’s probably a weekender

@guitarsword1 7 жыл бұрын

Great information! Tnx guys.

@marcosantonocito8876 7 жыл бұрын

I really enjoyed this video, great information for those people who lease to buy at the end, considering MSRP price has already been adjusted up front which is something that can't be done at the end of a lease .

@dyingangelo 7 жыл бұрын

on today's video rob spaghetti.... oh wait

@dylnbxtr 7 жыл бұрын

From Australia. And not sure what your understanding of a lease is. To me it's basically renting the vehicle, at the end of the term, you hand it back. Is that correct? Cause that just sounds bonkers to me. OR, is it a form of a loan, and rent to own scenario. Where at the end of the lease period, you own the vehicle??

@X11CHASE 7 жыл бұрын

Dylan Baxter it's not bonkers because you're only paying monthly towards the depreciation, not the entire vehicle. This is why you're paying.

@jdalzell3354 7 жыл бұрын

It is a glorified rental but at the end of the lease you have the option to buy for the remainder of they pay out. this usually applies to people who want a new car every 3/4 years. BUT it is an easier way to get into a new vehicle with no down payment if you use the method they do in the video.

@deathrocker53 7 жыл бұрын

It is exactly how you first described it. Youre renting the car. At the end of the term, you turn it back in and walk away. Or you can buy it for the resale price that they put on it, anywhere between 30-60% of the origional value. But you also only get a set ammount of miles to go through. Like 3years 36k miles. If you go over, you have to pay more when you turn it in.

@nickolastiguan 7 жыл бұрын

1. you rent the car for x period, then give the car back. 2. you rent the car for x period, then buy the car at the end of the lease, by paying the residual value.

@MrLalasd 7 жыл бұрын

Nickolastiguan is right ...

@EVILSPAWN1003 7 жыл бұрын

I`m sure the guys at the dealership just LOVED you guys lol. Thanks for great info though

@MrOmerta 6 жыл бұрын

Thanks great video.i made mistakes on my first truck bought from dealer little while ago but next time Ima nail it and get it.

@adam03753 7 жыл бұрын

Kind of petty to start looking for minor imperfections in a mass produced car. No factory will pump out a perfect car -- it's a lease too.. chill out.

@JonnyD3ath 7 жыл бұрын

Adam C you would be suprised how many brand new cars are hit and repaired or badly painted. If i was paying for a $70,000 car you bet your ass id be checking every inch of it!

@UrbanDubsmith 7 жыл бұрын

Adam C chill out? It's still a $70k car, not a Huffy. You're paying to use it, do you want the best one to use or a so-so one? I don't know why people are saying that it's a lease so you don't own it so who cares, it's still a huge expense.

@originalswolfsburg9889 7 жыл бұрын

Adam C indeed. Some cars get damaged when discharging from the vessels at the seaport. Some stevedores are careless and tend to drive stupid fast in tight spaces inside the vessels. Vehicles with damages will get repaired at the seaports in their local prep centers. Not sure if their paint quality is as good as a factory paint job but these shops are approved by OEMs headquarters to make such repairs before leaving the port.

@RyanBeattie 6 жыл бұрын

Nope, he's right... It's petty and frankly, absurd to be checking it with a light like the dealership has any control of these quality of the manufacturing. It's a lease, your going to be returning it in 3 years anyway. What are you going to do if you find a spot on the paint? Exchange it? This isn't a pair of pants kids.

@PigHumanoid 6 жыл бұрын

Adam C they can charge you for scratches and dents at the end of the lease.. chill out.

@Digiphex 7 жыл бұрын

I don't care about a scratch here or there. The car will be going away in 3 years.

@quyuzhou 6 жыл бұрын

and you will need to pay for the paint repair.

@fridder. 7 жыл бұрын

Damn, I really needed this a few months ago haha

@hibakhan2231 7 жыл бұрын

$67000 for a freaking M3?!?!?!?!??! Here in Pakistan, a Camry starts at $95000 😂😂😂

@bitlis1322 7 жыл бұрын

moin

@TheHossCatt 7 жыл бұрын

please upload more often

@ultimaetsolder 7 жыл бұрын

Thats a beautiful color blue!

@wfangnxd117 7 жыл бұрын

Who cares about the paint, sanding, plastic etc when you're leasing. It's not his car. He's renting it from the dealer. It goes back to them.

@mobilePCreviews 7 жыл бұрын

dudes talking about saving money.... on leasing a car.... a brand new car.... -_- wanna save money? buy one with 10,000km on the odo. That's your 5k saved right there and you actually own the thing.

@electrofreak2k7 7 жыл бұрын

Surprised there was no mention of Multiple Security Deposits (MSDs), which lowers the money factor (interest rate), and gets returned to you at the end. Better than Cap reduction.

@MrBipito 7 жыл бұрын

Thank you Larry!

@JimJones-999 7 жыл бұрын

How to negotiate a lease: never ever buy a lease. They are a waste of money.

@hunterkupka3369 7 жыл бұрын

I pay $560 a month $0 down for my '16 f80, msrp was 76k lol

@NicoleKe 7 жыл бұрын

Hunter Kupka No. You don't.

@keanggoh8028 6 жыл бұрын

Hunter Kupka that's a really good deal. Can you please share with me how because I can not find a m3 for that deal and I would definitely like to lease one. Thank you

@giorgiogarciaa 6 жыл бұрын

Maybe a base with absolutely no options, I pay $750 for my lease with Convenience and Executive package with only $2400 for taxes and fees.

@disneyfan9099 6 жыл бұрын

Keisha Nicole He probably does. It’s easy to get great lease deals.

@Blackdimond8000 6 жыл бұрын

He probably got multiple security deposits?

@0SimpleSam 7 жыл бұрын

Ok so what happens if you do find something wrong like a ding or some scratches or light abrasion marks. You've already signed on the price. Do you just go back in and say this what I found, come take a look now let's adjust my price?

@foreigncreations1793 7 жыл бұрын

great stuff man keep it up, new subscriber here.

@venom5809 7 жыл бұрын

If he bought the car he would pay about $1200/month assuming nothing down and no interest. Instead he saves $300 or so a month and also writes the lease payment off his taxes. Over the same 5 year period for a loan he would now save about $18,000. He could take that $18,000 and invest it, say buy a rental house and make $700 to $1000 a month from that house. So to recap by not buying the car he could in fact make money by getting this car, but hey, you guys know better. 😂😉 If he took that same $18,000 and used it as a downpayment to buy a business making a net profit of say $45,000 a year, he could now potentially make $3,000 a month because he leased the car.

@jonchan101 5 жыл бұрын

This is funny. If making an investment was that quick and easy, then everyone would be doing it. It is very hard to invest and there is a potential for a loss. Might as well have some fun with the money you have today at your current youthful age.

@GallagherAutoSpa 7 жыл бұрын

Being that he is in Financial Industry, why didn't he buy the vehicle? He's just renting the car and losing money on it. What's benefit on leasing a vehicle?

@emillindblad3059 7 жыл бұрын

A car is the worst investment ever. No point in owning something that you lose money on. Rather invest the money in something profitable

@disneyfan9099 6 жыл бұрын

Gallagher Auto Spa Cheaper then owning a car.

@jay-arjamon6570 7 жыл бұрын

This is fantastic advice especially since I'm preparing to get an M3 too. What dealership did you go through in New York? I live out in San Francisco, do you have any network partners out here or recommend any reputable dealerships? Thank you!

@HalJurgensen 7 жыл бұрын

Random comment, but just wanted to say we appreciate the 60fps videos!

@Jia1337 7 жыл бұрын

How is leasing a BMW M-series car a mistake? If I was making even 50k a year, I would definitely lease a BMW M3/4 because "Fuck you, I want to and its my money."

@S2kTi 7 жыл бұрын

I promise you 50k a year isn't much money. Certainly isn't leasing an M car money. I mean you could, but heavy monthly payments is how most people stay broke their whole lives. But hey at least you got to rent that nice car for 3 years

@Jia1337 7 жыл бұрын

I agree with you, Mark. It is a very stupid financial decision, so is going out to the movies, buying food at a restaurant, going on vacation, and buying a house larger than two bedrooms.