Full Tutorial: HOW TO LEASE A CAR WITH $0 DOWN 2020

even the apology


all right so you might have seen my car

entire vlogs but I have been driving a

Volkswagen Jetta for almost five years

now it's a car that are about five years

ago for $12,000 I was happy not to incur

a car payment but recently it's been

giving me some issues not anything major

but the cost to fix those issues was

about half the value of the car so not

wanting to front those fees and not

wanting to let the car depreciate

further I took the car to CarMax

they gave me a great deal ended up

selling it there it was actually beyond

anything that I expected usually dealing

with the huge car Lots is a nightmare

I'm not paid by car max to say any of

this it was just a great experience so

then I was left with the decision as to

what to get next so I was thinking about

you know a Honda Accord Toyota Camry

something along those lines something

that I can buy with cash a couple years

old because I don't buy brand new cars

it is one of the fastest depreciating

assets that you can buy so I was poking

around for a car like that but on the

side I would open up a browser go to

BMWs site and build my own custom m3

with the features and the colors that I

like black on the outside red on the

inside that's a must now a lot of car

enthusiasts do this obviously you go in

a car site and build the car that you

want but the m3 is a special car to me

ever since I was a kid you know some

kids have posters of Lambos some kid I'm

gonna put this down for a second alright

so some kids have posters of Lambo some

of the posters of Ferraris for me ever

since I was a kid I had posters of the

m3 I was obsessed with this car I used

to read every article that came out in

every car magazine about the m3 so I

started looking at m3 lease deals and as

you would suspect the deals that are

advertised on BMW site is something

anywhere between five to ten thousand

dollars down depending on the dealership

here in Southern California and over a

thousand dollars a month for a payment

I'm an economical guy I'm a smart money

guy I didn't want to get fleeced like

that but yet I always heard of people

who have gotten great lease deals and

there's even a lot of websites dedicated

to that and I wondered how the hell do I

do that so I studied what goes into a

lease I obsessed over this for three

nights straight and what I learned was

extremely eye-opening and I'm gonna

share that with you guys I'm gonna take

you through every single step of the way

and show you exactly how

to get the lease of your dreams and how

I negotiated a zero down payment on a

2018 m3 I will go through all of those

numbers and all of those steps with you

and hopefully by the end of this video I

will be on my way to San Francisco where

the m3 that I negotiated is sitting on

the lot so I'm gonna fly to San

Francisco finish the deal pick up the

car and hopefully drive it back to LA

let's go all right guys I'm back at my

desk so before I go through the process

of exactly how I negotiated a zero down

payment lease on my m3 we have to spend

a few minutes talking about exactly how

a lease is structured now don't worry I

didn't know any of this before either it

took me hours of meticulous research

over a few nights and now you get to

watch this little video and take

advantage of my blood sweat and tears no

but trust me this will all make sense

once I show you the visual

representation of the lease calculator

so keep that in mind all right don't get

intimidated by these terms and numbers

first of all let me just get out of the

way that leasing is not renting what

you're paying for is the depreciation of

a brand-new vehicle and a nice one at

that but depreciation is the difference

between the MSRP or the retail price and

the residual value which is the value of

the car at the end of the lease the more

of a discount you can get off of the

MSRP and the higher the value of the

residual is at the end of the lease the

lower your monthly payment will be so

that's what you're gonna aim for now

unfortunately you can't negotiate the

residual value that's something that is

set by the manufacturer you have

absolutely no control of that but what

you can control is the MSRP and the cost

of the car that you get so in order to

get the best value on your new lease

let's go through the terms that you need

to know first of all MSRP what is the

MSRP that is just the retail price of

the car cap cost cap cost is the cost of

the vehicle after lease credits rebates

down payment etc which we are not paying

we're not putting down a down payment

remember that the lower this is the less

your monthly payment will be these

credits rebates and incentives these are

any incentives that are offered by the

dealer or the manufacturer this changes

every month and it differs between

manufacturer between BMW Lexus etc so

you might

determine the commercials get a $3,000

rebate on your brand-new mercedes-benz

you'll want to find out about every

single lease credit and incentive

possible because the dealer might not

wilfully tell you about every single one

obviously they're trying to extract the

most money out of you right but they are

obligated to give it to you so I'll show

you in a second how to find out about

every single possible lease credit for

the car of your choice for that period

of time money factor the money factor is

simply just the interest charge for the

lease it looks like a weird number

because we're used to looking at APRs

but for simplicity's sake you can

multiply it by 24,000 to get an

approximate APR value and again this

will make sense once we look at that

calculator in the final term you need to

know about is the residual value we

talked about this briefly but the

residual value is basically the value of

the car after the lease is over this is

again something you have no control over

same thing as the money factor that is

set by the manufacturer okay so now that

you know exactly how a lease is

structured and again we'll go over the

leasing calculator in a second I'm gonna

walk you through now the exact steps

that I took in order to get the lease

deal on this m3 so the first thing that

you have to do is go to a site like there's even a site called

true car comm you can go to either or

and there's many of these sites around

now but basically it shows you what the

invoice price is or the the dealers cost

is of the car that you're looking for

right before they put the markup so not

the MSRP which is the retail value but

what the true price of the car is so

let's go ahead and conduct a search for

the car that we want right now so we're

gonna pick a BMW we're gonna go m3 2018

because this is a brand new lease all

right so this is the base MSRP this is

without any options and let me just tell

you right now that the closer to the

base that your car is obviously the the

cheaper your lease payment will be so a

lot of new buyers get duped into add-ons

right that's how the dealer makes some

of its money some of its markup is

trying to sell you on as many packages

and options as possible for me the m3

you know on its own just the base m3

comes with so many options already

and really all I care about is the

engine but it comes with so many options

already that I didn't care about the

executive package and and all this other

stuff so I was I was okay with getting

finding an m3 that was as close to base

as possible so this is for the base

model this is the retail price and if

you come down here on Edmonds and you go

to build and price here's all the

packages that I was talking about now it

was a nice to have for me to have a

black m3 I wanted black with the red or

they call it orange interior right so

this those are the only options that I

wanted this other stuff I didn't care

about and I wanted a manual write a

stick shift so and that was something

else to play to my advantage is that

manuals are not as sought after as

automatics right so they tend to sit

more on the lot so there's a little more

room for negotiation but it's not a must

it just something that did work to my

advantage in this case so once you get

that you want to get the true pricing of

that car and you'll see that for the m3

with the options that I picked right a

bumped it up a little bit to a 69

thousand the invoice price is sixty-five

thousand one hundred right and they're

saying that the true market value for

the zip code that I'm in is around 66

672 so keep that in mind so this is

already right off the top this is the

price that you can get now obviously

this is not going to work with every

single dealer but if you hit up enough

dealers you will get a couple of biters

and I'll show you the real-life

exchanges that I've had with the dealers

on when I was negotiating this price so

keep that in mind next now that you know

what the true price is you want to look

for a car around this price right so we

want to look for at base model m3 or as

close to base model m3 as possible that

is around this MSRP so you can conduct a

search on Edmunds or an auto trader any

any really any reputable site that has a

large inventory of the car that you're

looking for in your area and obviously

you know the wider that you expand your

search the chances of finding your exact

car are higher now I'm going to San

Francisco to pick up my car but that is

obviously a luxury so I did find one

that was within dry

but it wasn't the exact color that I

wanted and because I did find one in the

color that I wanted and I had the luxury

of the dealer agreeing on the negotiated

price I decided to go with that one so

obviously the larger your search is the

chances of you finding your car are a

lot higher so use Edmonds Auto Trader or

any reputable site where you can search

for your car so in this case I used

Edmonds and this was the car that I saw

the car that I picked was black but this

was the first one that caught my eye

because of the price and as you see it's

47 miles away from me so on Edmonds

they'll have the base price and then

once you hit reveal it will email you

what the dealer is actually willing to

let that go for right so once I hit

reveal price I got an email from Edmonds

this is the exact email for that exact

car that you just saw and they were

willing to let this go for 64,000 895

this is even less than the true car

price or the Edmonds true price that we

got right remember that was 66 something

so this is actually really close to

invoice it might be even under invoice

so I knew I had that in the bag now as I

said before I found the car in the exact

color combination that I wanted that was

a manual and there was only one on the

entire West Coast and it was in San

Mateo which is close to San Francisco

okay now we're ready for step three once

you found what the true car price was

and you found a car that matched the

MSRP and the sale price that we were

looking for step three is to go to a

lease forum now lease hacker has a forum

as well as Edmonds has a lease forum you

can go to any of them but it essentially

what you're trying to find out are the

terms that we discussed in the beginning

right so money factor residual and most

importantly a list of the lease credits

that are in play for the car that you're

looking for during the time that you're

looking for it right

so I found my this is this is actually

my post right here I said hi what's the

money factor residual and lease or

loyalty credits if any for a 2018 m3

36,000 miles 10,000 miles a year and my

zip code now there are moderators who

seem to be working in the car industry

because they know these numbers for

every single car so he was

on the back he or she responded back to

me the money factor point zero zero one

six six again this is the interest and

we'll plug these into the calculator in

a second fifty seven percent is the

residual of the car these things you

cannot control right now he or she lists

the lease credits there's a three

thousand dollar lease credit from BMW

for this month and a thousand dollar

loyalty meaning if you have leased a BMW

before and I have a four series then you

get a thousand dollars off now there's

one other credit which I found out from

a friend is a five hundred dollar Costco

lease credit right so if you have a

Costco membership they'll take an

additional five hundred dollars off of

the price reducing your cap cost and

remember we want to get the cap cost as

low as possible so three thousand plus a

thousand that's four thousand plus the

five hundred that's forty five hundred

dollars off of our lease we have the

money factor we have the residual we

have our our sale price now it's time to

go to work

step number four go to the lease hacker

calculator I will leave this link in the

description this right here is your

resource right this is the money shot

right here this is your negotiating tool

this is what you'll be able to take to

the dealers and show them exactly what

you should be paying for the lease and

not the [ __ ] that they tell you so

I'm going to go and plug in the numbers

that we just talked about all right so

this is the MSRP of the m3 that I found

in San Francisco it's a little bit more

because it has the red leather interior

and the black paint and it has a couple

of other options that I didn't even care

about like apple carplay etc so sixty

nine eighty four or five the true car

price the sale price was sixty five six

forty that's six percent off of the MSRP

now going back to the forum the money

factor remember was point zero zero one

sixty six the residual is fifty seven

percent so that's what I plugged in here

the document fee acquisition fee these

things you cannot avoid most likely

there will be these prices I know

differs I think from state to state but

it will be around these numbers right so

eighty dollars document fee 925

acquisition fee miles per year ten

thousand you obviously want to select

more if you're going to drive more but

that's how much I drive on average

thirty six months down payment this is

the important part

I said zero down payment I don't want to

put nothing down right tax incentives

4500 this is the information that we got

from this boss over here on this lease

form there's three thousand dollar lease

credit a thousand dollar loyalty and

remember the five hundred dollar Costco

rebate so putting that all together

that's forty five hundred that is

reducing forty five hundred off of this

MSRP that we already have a six percent

off sale price from because we did our

research on true car or an Edmunds etc

so you have that residual value again we

got this from our homie on the lease

form this is something you cannot

control this is set by being W and it's

a different number for each car it's

different for the m2 or the six series

is different for a Lexus etc so 57

percent license registration you cannot

avoid this sales tax in my area because

California is a cup state I'm just

kidding but sales tax is nine percent

you plug all those numbers in here is

what you get for your monthly payment

787 one have you heard of anybody walk

into a dealership say I'm not putting

any money down and I'm gonna pay 787 a

month obviously because I live in

California there's tax on this if you

live in certain states your monthly

either won't be taxed or will be taxed

at a different rate now drive-off is

different than down payment because

drive-off includes registration fees

your first month's payment and because

i'm in california taxes but essentially

no down payment i will have to give them

1754 other things but it's not has

nothing to do with a down payment for

the car these are things that i cannot

avoid especially because i live in

california lease hacker score this is

that the higher this is the better the

leases i've done this on a million cars

and i've never managed to get over seven

i've gotten you know usually in the low

sixes sometimes below six but this tells

me that this is one hell of a deal right

here disposition for you again something

you cannot avoid and it tells you what

you are leasing the total for so these

are the numbers that we have here so

this is this and once you start talking

these numbers right so you want to get

familiarised a little bit with this once

you start talking these numbers with the

dealership they're going to

they're not even gonna argue with you

it's been my experience I've walked into

the dealership in Irvine where there was

that white m3 I walked in I said hey I

know the money fact there was point zero

zero 166 I know this is the the real

price I know that the tax incentives I'm

gonna get four thousand five hundred off

there I don't want to put any money down

this is exactly what my monthly payment

should be yes or no that is exactly what

you're going to do and that brings me to

the next step step 5

time to negotiate your lease so you take

these numbers you go ahead and you email

or walk into the dealership and I'll

show you the email that I sent to BMW

Irvine for this white BMW and then

essentially I took that email and used a

little bit of creativity forward that

forwarded that email to the BMW

dealership in San Francisco and said hey

these this is what they're offering me

if you don't say yes I'm gonna go pick

up this be the the white m3 even though

I really really wanted the black one

with the red interior I said you know

I'll settle for for the white one that's

fine I'm getting a hell of a deal

luckily they said yes and by the end of

this video you will see me go to San

Francisco to pick up this car and you'll

see here is the email that I sent to BMW

Irvine I just said on the m3 for August

there should be $3,000 at least credit

thousand-dollar loyalty a $500 Costco

membership credit Edmonds price was 64

blah blah blah so if we applied the

above credits basically I just went

through everything that I got from the

lease hacker calculator and from the

true car price and from the lease forum

and put that all together and started

negotiating away easy as that all it

takes is a little bit of knowledge I

didn't know any of this stuff a few days

ago right I just spent a couple of hours

every night obsessively going over

exactly what a lease deal is and finding

all these resources again for which I

would leave links in the description

took that use that as weapon got the car

that I wanted I hope this helps you I

did not find a comprehensive tutorial on

YouTube on how to lease a car so

hopefully this helps you if it does go

ahead and leave a thumbs up subscribe if

you're into trading content stocks

crypto etc for sure subscribe because

that's what the channel is mostly about

but I throw a little bit of travel

in there as well if you have any

questions leave a comment and I will

respond and now the moment of truth let

us go and get this car we're on our way

to meet the uber literally the Sun is

not up I thought the Sun would be up by

now I guess it is only five o'clock but

on our way to San Francisco to catch a

plane to go pick up the car

well I've nowhere to put them so I just

put them on my face


made in San Francisco on our way to pick

up the choir at the dealership but first

what's first


that's good all right we just got to the

dealership about to go in hopefully

finish the deal upon this in three if

they let me film inside I will show you

the paperwork in all of the numbers that

I talked about earlier all right guys so

they didn't let me film inside the

dealership too much that's

understandable however I did take a

picture of the contract that I signed

with them here is the printout and this

just shows you a breakdown of the

numbers that we talked about previously

including the MSRP the sale price the

total rebates the residual etc and

you'll see here the most important thing

is that we didn't put a cash down

payment the monthly payment is almost

exactly what we calculated from the

lease hacker calculator now they did do

some minor moving of the numbers as you

could see the total rebates is 3,500

instead of 4,500 but they took that

thousand off of the MSRP and included it

in the discount now dealerships will do

that from time to time in order to

satisfy certain numbers on their books

and certain goals etc but this has very

little effect on the deal itself right

you're still putting zero down your

total drive off is still the same which

is just the first month the tax on the

cap cost reduction and the registration

and dock fee and the monthly payment

here is around 787 which is what we

calculated from the lease hacker

calculator obviously because I live in

California once again that includes tax

depending on the state that you're in

this payment might be different but the

gross payment is 787 before tax