This summary of the video was created by an AI. It might contain some inaccuracies.
00:00:00 – 00:17:25
The video provides a comprehensive guide on car leasing and purchasing, with an emphasis on BMW vehicles. The speaker shares personal experiences and lessons learned, highlighting the drawbacks of purchasing cars such as rapid depreciation and costly repairs, which led them to prefer leasing. They offer detailed strategies for negotiating leases, including utilizing dealer incentives, residual values, money factors, and effective email communication to avoid dealer markups. Key tips include looking for cars that have lingered on dealer lots for better discounts, leveraging manufacturer incentives, and understanding the importance of the residual value and money factor in lease calculations. Transferring leases is also covered, with BMW noted for its smooth process. The speaker stresses being courteous to dealers, timing purchases for the end of the month or year for better deals, and building long-term relationships with dealerships. Additionally, they advise against putting money down on leases to avoid financial losses if the car gets totaled. The video closes by mentioning the sponsor, Avalon King, and promoting their ceramic coating product.
00:00:00
In this part of the video, the speaker discusses their experiences and lessons learned with car leasing and purchasing. They recount how their first car, a 2007 BMW, quickly depreciated and required expensive repairs, leading them to prefer leasing. Their first lease, a 2014 BMW 3-series, wasn’t the best deal due to their inexperience. They explain the benefits of leasing, such as transferring maintenance responsibilities to the dealership, and the importance of getting the best deal. They advise looking for cars aged on the dealer lot, former loaner cars, or those with minor damage for better discounts. They also mention considering cars with high residual values and low money factors, and note the potential for government subsidies with electric cars. Finally, they highlight the advantage of living in a market with many dealerships, such as Long Island, which offers more opportunities to find good deals.
00:03:00
In this part of the video, the speaker discusses strategies for successfully negotiating car leases. They emphasize the importance of being prepared and serious when sending lease hacking emails to car dealerships, suggesting that contacting multiple managers with a clear intention to purchase can yield better responses. The speaker advises starting with the car’s MSRP and invoice price to determine the pre-incentive discount before applying additional manufacturer incentives. They explain the importance of understanding the money factor (interest rate) and residual value, noting that resources like the Edmunds forums are invaluable for obtaining this information. The speaker highlights that different car brands have varying interest rates and recommends using forums to get accurate lease deal data specific to the car model.
00:06:00
In this part of the video, the discussion focuses on the intricacies of leasing a car, particularly the aspects of transferring a lease. It emphasizes understanding the base money factor and residual value, which are crucial for calculating the monthly payment inclusive of local sales tax. Key points include the necessity to verify if a leasing company allows transfers and under what conditions, as some may keep you liable for part of the remaining payments. The speaker shares personal experience, highlighting BMW for its smooth lease transfer process facilitated by online credit applications and document signing. Additionally, advertising strategies for lease transfers are discussed, with forums and sites like SWA Police being effective platforms. Finally, it is advised to avoid walking into dealerships directly to negotiate, instead recommending email communication to bypass typical dealer markups on the money factor.
00:09:00
In this segment, the speaker explains the importance of understanding base rates and incentives when buying a vehicle. Dealers often show significant discounts on car prices to entice buyers, but these discounts can be deceptive. For example, a dealer might offer a $10,000 discount on a $40,000 car, implying a great deal. However, they might mark up the money factor, generating extra profit for the dealership without the buyer’s awareness. The speaker emphasizes checking if the lease terms meet the “one percent rule”—paying 1% of the MSRP per month with zero down, which is generally a good deal. They also mention leveraging residual values and lease incentives from forums to choose the best vehicle deal, especially if one is flexible about the car model. Finally, building relationships with dealerships over time can also be advantageous.
00:12:00
In this part of the video, the speaker shares insights on securing good deals when purchasing cars. They emphasize being nice and valuing the dealer’s time as dealers often deal with a lot of difficult customers. They suggest starting negotiations in the last week of the month and, if possible, waiting until the end of the year to buy a car for the best deals. The speaker recounts a specific experience where they secured a significant discount on a BMW 4-series by leveraging the car’s less desirable specifications, dealership incentives, and timing. They achieved around 16.8% off MSRP before incentives, illustrating how combining dealership discounts, manufacturer incentives, and timing can lead to substantial savings.
00:15:00
In this segment, the speaker discusses the intricacies of leasing BMWs, including dealership pricing tactics and leasing advice. They explain that some dealerships might offer substantial discounts if a car is difficult to sell in their market. The speaker advises against putting money down on a lease due to the risk of losing that money if the car is totaled. Additionally, they caution viewers not to expect the same deals month-to-month due to fluctuations in manufacturer incentives, money factors, and residuals. The speaker also promotes Avalon King’s ceramic coating, sharing their positive experience and encouraging viewers to support the channel’s sponsor through a discount code.