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Ask me anything about car leasing

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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.

More math

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
Markus AllenPerson was signed in when posted
06:28 AM ET (US)
Hey Marty,

About this:

> 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.

- markus

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.

Markus AllenPerson was signed in when posted
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.

- markus
06:35 PM ET (US)
Hi Markus:

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.
Markus AllenPerson was signed in when posted
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.

- markus
John H.
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.
Markus AllenPerson was signed in when posted
11:28 AM ET (US)
Hey Linda,

I appreciate your question. You can contact me directly from the "Help" tab... look for the link at the bottom.

- markus
Linda Tyler
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?
Markus AllenPerson was signed in when posted
10:08 AM ET (US)
Hey Linda,

Welcome aboard.

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.

- markus
Linda Tyler
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.
Linda Tyler
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
Markus AllenPerson was signed in when posted
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!

- markus
Linda Tyler
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
Markus AllenPerson was signed in when posted
03:43 PM ET (US)
Hey Linda,

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.

- markus

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.
Linda Tyler
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!
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