How to Negotiate The LOWEST Car Lease Payment (Step by Step)

Six steps to get the LOWEST car lease payment! This method works for ANY car out there. I also explain the math behind car leases, why it makes sense to NOT put ANY money down, and talk about rebates/additional fees.
Calculator Used In Today's Video: beacons.ai/humphreytalks/free...
Reddit Post in Today's Video: / in_order_to_get_the_lo...
Other Links:
edmunds.com/
cargurus.com/
leasehackr.com/
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Timestamps:
0:00 - Start Here
1:19 - 1. Decide on Terms and Make & Model
1:52 - 2. Figure out Residual Value
4:56 - 3. Finding the Money Factor
5:36 - 4. Calculate Your Estimated Monthly Payment
8:48 - 5. Call Dealers and Gather Info
11:02 - 6. Rinse & Repeat
11:13 - Why Put $0 Money Down?
12:04 - Rebates for the BEST Deal
12:30 - What's Due At The Dealer?
12:52 - Final Thoughts
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😺 WHO AM I: I am not a cat. My name is Humphrey Yang, I've built multiple businesses and am passionate about Personal Finance, Investing, among other things! If you're trying to build a solid foundation of financial literacy, learn to invest, or become financially free - then I'm here for you!
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PS: I am not a Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for.

[@tomatuvm]

Hey I wrote that post, thanks for the shout-out! Couple errors in your explanation. Capitalized cost isnt the price you negotiate, it's the final sales price you negotiate plus everything else. You'll want to negotiate sales price separately with the dealer, then confirm the cap cost only includes the fees and accessories that you want. Also, there's no way you'll get 20% off MSRP these days. You'll be lucky to get msrp. Would love to chat about it on your show. There are also a few more pitfalls to avoid that didn't exist when I wrote the post. Also, I can share a more comprehensive calculator if you're interested.

[@juvejuve1717]

Please share

[@JWSedona]

Do you have a YT channel?

[@pauljones9150]

Do it

[@gamingwitharlen2267]

It is very possible to get below MSRP even 5 months ago. Today if you get lucky you can get 20% off, but more possible/easier on evs and expensive trucks.

[@peteduhaime9689]

I'm looking to lease a 2024 trail boss, and have about 3 mo left on my current lease , which has approx 5k to 7k of equity. I will not disclose my current lease until I get a final $ on the cap cost. Then I can know exactly how much equity they will give me towards my new lease

[@ThreeTwentyTech]

Your channel has been my go-to place to find all my personal finance and money making/saving tips. You deserve all the success you have, Humph! 💪🏻

[@humphrey]

Thanks for the continued support 320

[@YarevAguilarMusic]

I just got my Honda pilot Touring from the dealer got a 7k discount which it was hard but they agree with me and 2000$ for fees and first lease payment. First time I went with out the knowledge they wanted 5000 down with 500$ discount and payment of 695$ a month 😂 I left the dealer . Went to another dealer after watching your video lowered 2k they also wanted 5k down but I told them I would think about it. Went next day and told yes and I did all the numbers in front of them and they were impressed they wanted 5k and after I did the math my 5K were not in the numbers I did. I left and I contacted a car broker he was going to get me a 2024 EXL pilot for 500 month a 2500 for first payment and broker fee, call the dealer the same day and told them a car broker gave me a better price and payment but never told them it was a EXL. They call me next day saying they will give me the same price as the car broker with 0 down payment. This video save me 5k on down payment. It works but you have to be good in numbers to show the dealer that your not stupid! At the signing the manager didn’t even talk to me😂😂😂

[@ajachaney37]

I bet! Honestly I just want a million bucks to just buy the car right away and not do all this stuff. I bet it was annoying 😂😂💀💀💀

[@yrnsuli53]

Bro this is great; happy for you my guy. The manager didn’t even look at me got me in tears😂😂

[@Pj-ps2zn]

Bro got a touring for cheaper than a exl 😭 btw I just got a Acura mdx tech lease for cheaper than a pilot exl 💀

[@juanplus3324]

I've always wondered how car leasing works. Now I have a proper tool to negotiate. Thanks so much!

[@TeamBreeze2557]

Humphrey, you’re truly the goat !! Appreciate ALL of your content. Highly informative & knowledgeable. You’re out here doing gods work for real. THANK YOU !

[@alexcienfuegos3411]

I just watched a 45min video about the same thing. Your video is a lot more simple, easy to follow and understand. Thank you

[@annieban4839]

Perfect timing!! I’m in the process of getting my first car after building my credit so this is great info! :D

[@jeremymassey3680]

By far, the most well explained video on car leasing negotiating video. Excellent Job!

[@briarrhea4980]

Liked and subscribed! The fact you share the spreadsheet so I can play around with it is just awesome.

[@BruceChodorov]

Useful spreadsheet. Great explanation and negotiation suggestions.

[@JamesJosephFinn]

The calculator has a crucial error. The RV is a percentage of MSRP; not cap cost. (Edit, to be clear: Cell C11 should be C2 * C5. Whereas you currently have C11 as C4 * C5)

[@mahdikhemakhem5927]

I really appreciate how genuine your content is. I enjoy watching someone as calm and collected as you explain things in a way that makes sense, instead of going on a rollercoaster ride with a scam/hype youtuber. Thank you for all the good videos and advice :) !

[@investwithtisan8421]

Always provide great contents. I love how this channel always provides valuable money tips.

[@igorkoske8376]

Residual Values are NOT set by the dealer but by OEM of the bran’s Captive Lender and it’s none negotiable! Also lease rate what’s called Money Factor is also set by OEM’s Captive Lender and it’s also SET IN STONE but dealers can mark them up so it’s crucial to know what’s called Buy Rate Money Factor or Retention Lease Rate in order not to get overcharge on rate and ultimately overpay because markup Money Factor will drive your payment higher.

[@46foryounger]

yup that's right because the money factor the dealer was quoting me was 20 points higher than the mf the moderator provided on edmunds and he said the dealer upped the mf by 20 points. The deal will try to say oh the bank sets the money factor but it was marked up by the dealer. but I also though the mf factor can be lower due to your credit score that is what I read so not sure how that falls in line with what you are saying.

[@CharlesHam1906]

I enjoyed this replied much more by defining mf as mother fudger

[@stonebody]

Terrific information and delivery Thanks HY

[@himanshuagrawal8455]

Great content as always.. Nice to know and learn all these things in such a easy way.. Thanks and keep it up 👍🏼

[@humphrey]

Thanks Himanshu my man

[@newmoneynate]

This is awesome man!! I’m actually looking into leasing a 2022 civic haha so this was perfect

[@kerry1383]

I’ve seen a hundred of these lease negotiation videos. This is by FAR the most simple to understand and the best explained. Well done sir; the spreadsheet is a win win.

[@Rawrued]

This is such a great video I wish I watched this when I leased my Subaru Forester two years ago. I was wondering if you could do a video of going from a lease to financing the same leased car?

[@BW4EIRE]

Great video! Thanks.

[@racerxny1380]

Excellent video, very informative!

[@palomahealing5073]

Great video! You map it out easy and all makes sense🥰🥰🥰

[@masoodjamily]

Thank you so much you are absolutely 100% correct this video is not just an eye-opener but lowballing a dealer is the only way to get the car Of your dream. They rip us off every single day with every deal. it is our right to lowball them…❤️❤️❤️

[@JT-xp3in]

Humphrey - this is fantastic. Subscribed

[@humphrey]

Thanks Jossy. Appreciate it

[@JohnSmith-mb6nl]

Oh Humphrey, I've been watching you since the early AMC days. Just typed into YT lease deal negotiations and you popped up. I'm glad to see you have stuck true to yourself bro. Love your stuff, keep at it.

[@denysb]

Thanks for the calculator. I just got one. The only thing that is missing for me now it a lot of dealers asking for a one-time downpayment on top of the monthly lease payment. Will try to update it in my copy

[@brick9922]

Thank you for creating this content

[@notanotherusername]

This was extremely helpful you weren’t kidding when you said you won’t have to watch any other videos lol thank you for explaining this so well

[@CB1K.998]

Great video! I love how applicable your videos are to my life :)

[@humphrey]

Glad you like them!

[@RaviWadan]

Great video, Humphrey! Leasing is the way to go!

[@Mai_Tai_Meyers]

Very helpful thank you!

[@jamesfreeland5895]

Very good info, thank you

[@fongthao7134]

Oof. That was a lot of information. Definitely going to need to rewatch this later in the future. Thanks Humphrey! 😊

[@Gforu81]

I really wish I had watched more of these videos before getting very screwed on a lease ...my bad. Live and learn..

[@thebeddoctor4273]

Just leased a hyundai tucson ultimate trim. It took a while but they discounted it down to 28k and saved me a ton on my lease payment. I think because the new redesign came out helped but it was still like 8k off

[@LaynoProd]

gems 🙏🏽💎 thank you Humphrey

[@ULTIMATEhouseTV]

thank you, im about to negotiate my lease on friday!

[@cadetdiaz]

Thanks for the great 😊 and awesome tips

[@gregholt6412]

Very Good Info

[@justinscher1]

This is SO awesome!!!!

[@marvinrodriguez5252]

New to your page and this video made me feel like a smart man 😂😂

[@elvisperez5174]

Thanks for the straight forward information and tips..I’ll definitely apply this on my next lease negotiation

[@Fogshane]

Thank you!!!!

[@olesyakoktyan6713]

Great video. Thank you. Would you recommend purchasing gap insurance when leasing a car?

[@RogueLeaderBlue]

Aaaaand BOOM! THIS was valuable! Thank you for a step by step guide, spelled out clearly. I’m going to mail this negotiation. The car I want will be mine. 🎉

[@humphrey]

Glad it was helpful!

[@tinly1]

Great info! Just wanted to add that the residual value varies month to month. Also, it’s best to deal directly with the fleet manager or an auto broker instead of going through a sales rep

[@juanbarajas8031]

How do you found an auto rocker?

[@slange]

@@juanbarajas8031 leasehackr

[@anilkumarkrishnappa7775]

Your Video is really nice and I got many information I needed before meeting the dealer. Can you also share calculation for financing a car?

[@libertynow4047]

What about the contract itself and the ability to sell the lease to a third party at the end of the term? Great video. Thanks

[@ekkthree]

Perfect timing to run across this video. I always walk into the dealership thinking I know what I'm doing but the terminology always goes over my head. I love how the lease specific terms are effectively just substitute words for the same things when financing. Really clears things up

[@Playingwithproxies]

Hope you don’t lease that’s a terrible deal for you if you did. Buying is always the better deal.

[@krizy444]

Great video! I just did this for a car I want to lease but need to order (because theres such a lack of inventory right now) and the response I got back was that the MF and residual change monthly, so they couldn't agree to anything until the car came in. Is this true? That they change monthly?

[@DerekGilmore-tm2bq]

Hello Humphrey, I found this video very helpful Q how do it get your spreadsheet ? Thank you

[@pocholoangelobulanhagui9625]

Great video!! My only question is how can you leverage lowering the monthly payment after factoring in credit score and 0 down payment? I understand that it's important to set a low cap cost, at least lower than MSRP, but how could I negotiate to lower the monthly payment if I put 0 down and I have 'fair' credit score, (no cosigner)? Thanks!!

[@kirkdunn1379]

You can use this method for financing as well.....works extremely well....they 2 key factors is it shows you know what your doing and always be polite (even if they are trying to hose you!....they cant make you sign so its all up to you anyway) The one you got pissed off @ might be the one to call you back and ok your original offer! Avoid walking into dealerships!.....do everything online it text/ phone....it takes less time, gives you an advantage and you can contact way more dealers... Its a knowledge, patience, and options game....the more you have on all of these the better your results I have used this methid and did very well everytime But yeah it takes work, still came out way ahead if I calculate the hrs vs thousands I saved...

[@Sun_shyne]

What are your thoughts about buying versus leasing ? Thank you 😊

[@mig3872]

Great info thank you. Is there also something called Adjusted Cap Cost? And is that where they add those misc fees onto the cap cost?

[@erickarlosG]

Nice video. Helpful content. Where do I find the spreadsheet?

[@pmomalley]

Thanks so much. This explains a somewhat complex financial transaction into a understandable process that I can take to the dealership. Regarding the $7,500 EV lease cash back from VW and Audi... can I just reduce the capital cost by $7500. From what I got from the dealership, the don't do it that way. The split it up betwen the capital cost and other parts of the lease...

[@Danielm316]

Thank you for this video. So what are those lease drive off amounts or deals they put out and what are reasonable amounts for the fees? And do I need to get gap insurance?

[@Rommie26]

Buying at the end of the year is the best advice I give to people That’s when dealers are trying to get rid of their current stock for next years models so they’re gonna give you a good deal

[@humphrey]

Thanks Romeo! Great tip

[@briangalloway3684]

end of the season is not the best time actually.... its the end of any month. also this rebate thing doesnt work for honda as they do not and will not ever issue rebates

[@highrollerxx]

I have a question, dealerships around me does not wiggles for Cap Cost due to low in supply n high demands. What can I do??

[@ssummersquared]

Does the calculator take into consideration any downpayment factor? The monthly payments I'm seeing generated by the calculator are in line with what dealerships are quoting for ~5k down

[@adamg.1845]

Great video I currently have a Mazda, CX five 2021 Lease is up in February 2024 Wish I saw this before I leased I’ll have to go back and figure how good or bad I did negotiating this lease! So since I am going to be trading this car in for another CX five, am I at a disadvantage using these tactics since I’m trading in a CX five that I previously have leased? Thanks!

[@Chauuder]

Hi, Humphrey! Thank you so much for this video! I literally watched it 2 days ago, and within a day was able to implement it and snag a deal. Just got a 2023 Kia Niro EX Touring today (MSRP $32,900, with markups $5k-7k at different dealerships) for a price of $32,500 out the door. No down payment, so the monthly is $500. This was the first time I had spoken to dealerships on my own because I've always been intimidated and thought learning how to do all of this would be too difficult. I'm glad I stumbled on your video because you explained everything clear as day and made me feel knowledgeable and taken seriously. Subscribed!

[@humphrey]

That’s awesome. This video should be more relevant as time passes and prices come back down to earth

[@yrnsuli53]

Bro your the best I’m getting 12000 below msrp right now appreciate you bro

[@niksf6165]

Very informative. Thank you! What is “Due at signing”? Is it it different than down payment?

[@Ian-ru7rj]

Due on signing is dealer fees, first month payment, and doc fees. It’s in addition to the down payment. So when pricing a lease, you might have a down payment of $2k, but owe $3k on signing ($2k plus first month plus fees)

[@jesurunsounds]

nice video im thinking of leasing a car then buying it out at the end to make payments affordale in the beginning is this a good idea? also do u have a similar video on best way to buy a car ?

[@mjclaudianava5397]

Thank you. very informative content. I am based in Canada- toronto. Looking to lease a mazda cx 5. how do i find out the residual value? is it the same around north america ?

[@RJ_331]

I had a dealer lie to me about the interest rate. I suggest that you do your own calculations for the money factor once you figure out the payments and residual.

[@atuljoshi1990]

good stuff...aren't most cap costs higher than msrp these days due to the market?

[@brianandbarikelly5349]

Interesting video. Thanks. How will the tax rebates recently given to non-US ev manufacturers. The leasing company can apply for the $7500 rebate. How do we negotiate at least some of that savings back to us?

[@roguewave41]

Any updates to negotiate lease for 2023?

[@karakolden6819]

Any advice on using this formal in this market. Most dealerships in my state have little to no inventory so I need to order a vehicle. Does this affect the cap cost?

[@ZKTheGreat]

LOL another great video in theory but in practice no one is getting 15% of MSRP now a days. Dealers think they're diamonds right now. Right now, most cars have mark ups too.

[@andrebaylan8105]

I just have a question, your vid shows the residual value amount to be on the agreed selling price and not the msrp, so which is it actually based on?

[@mathew9851]

thanks dad

[@Glad2BGolden]

Do you have a link to an editable lease calculator ?

[@t8knovr]

Hi Yang and thank you so much. However, how do they figure residual for new model cars such as the 2023 Toyota Crown Limited. It has as MSRP of $50, 792 and the vin is JTDAAAAF4P3014793. What would be a good lease for 36 months and 10 miles? Thank you

[@AndreCoronado-cq7qs]

When getting the cap cost, wouldn’t you deduct the percentage, whatever it may be, from the msrp in addition to the estimated taxes and fees?

[@KeeGlizzy]

That’s the best Arizona

[@sgtcaldwell8039]

will dealers go 15% to 20% in the current market? I live in Los Angeles County CA currently

[@rafaelgomez1989]

🎉FANTASTIC VIDEO ...● IS THE CAPITALIZATION PRICE = SELLING PRICE ??? TY

[@davidjondoh8671]

Nice work. Suppose I want to trade my used vehicle to initiate the lease? It is valued around $7500. I see that you recommend $0 down to lease, but I need to sell my used vehicle but I'm not crazy about negotiating a sale with strangers.

[@nellielee2915]

Also I notice you base the calculations on 10,000 miles, I always ask for 15,000 miles, would you do a video using 15,000 miles I'm going to stay with Kia but I'm going back to a car for awhile to try and get a monthly payment less than $200. Thanks

[@Flowers.photoss_]

Can you do a similar video for financing a car!!!!

[@tomkumar1833]

Great info Mr. Yang. Have a need for my situation verification. 830 Credit Rating. MSRP sticker with delivery and a $600 fee on the vehicle of interest is $$36649. I want to ask for a Cap Cost of $31,151 which is 85% of the MSRP. Moving forward on the lease I have a owned trade in Edmunds shows worth $3,500. To get to the amount financed in the lease do I take the $3,500 off of the $31,151, and then work the rest of the spreadsheet?

[@LaudvekkysGrooveLab]

How do I lease a 2018 car? Is it possible to lease a used car from a dealership?

[@GpieTheEntertainer]

maybe i'm doing it wrong, but i did this with a dealer and got called out on how the numbers aren't adding right, etc. this is the response i got from a BMW dealer while looking at a 230i with MSRP of $42,700 (bmw said residual is 54% which i inputted as .54 in the calculator. not sure where her 58% is coming from): "I am calculating off the quote of the 10k, 3 year residual, which I quoted at $805 a month. So the one thing that I don't believe you did was you have to add the adjusted cap cost of the vehicle to the residual, then times by the money factor, it is not an APR. $46631+23058=$69689 * .00216 = $150.52 You also have given yourself a 58% residual with your calculation. So minus the residual to the cap cost, divided by 36 months, Your payment comes to $654.80, you then ad the finance of $150.52 $23058-$46631 = $23573 / 36 = $654.80 payment+ finance 150.52 = $805.32"

[@jeffjones6497]

Lemme get that cloud lamp breh.

[@robward155]

Isn’t the lease interest rate (MF) a function of your credit score? And are the taxes, fees and delivery charges additional.

[@stephenjohn904]

there is no mention of money down on the boiler plate letter that you showed. is that by default $0 or should that be written explicitly?

[@DanUeyama]

Would like to know the additional costs to buy/lease a vehicle and the difference of car insurance companies

[@georgiejr69]

Great video..new to leasing so learning a lot. Can the taxes, government fees and others be included in the monthly lease payment? Advertisement of car dealership says "$$$ down is required " - what does this consist of?

[@mysterel1575]

I'm pretty sure he said that if the interest rate is low enough, go ahead and roll those costs in.

[@juanbarajas8031]

I like talk to you either in person or on the phone

[@ltsky311]

Looking at your example and taking the MSRP and multiplying by the Residual percentage would actually give you $16,639.35, as it should be calculated off the MSRP as its what the Manufacturer is saying it will be worth. I looked at your lease calculator it appears that the cell that calculates the residual value is multiplying Cap cost by the residual value. and not the MSRP by the residual value.

[@BkJ4son]

Very important question, my credit score isn’t amazing, somewhere around 650. You say 0 money down but would that be the same for someone in my case with my score? Or should I expect to put money down because of my score. Basically, what’s the penalty of leasing with a score like that? Sorry if that’s confusing.

[@TM-qc5oz]

Is the Capitalization cost inclusive or exclusive of sales tax ?

[@MattMcGrathOfficial]

Where would you subtract any dealer cash or rebates on your spreadsheet? From the cap cost or MSRP?

[@Shakashack2022]

Hello, new here. How do we run these numbers at the dealership before having a hard inquiry on my credit report? Is this whole paper negotiation process done BEFORE running my credit, bcuz I want to shop around first & keep my score high. Thanks!

[@timmarder4715]

Since the car market is very expensive right now, shouldn't we use the estimated inflated cost that edmunds suggests instead of the MSRP to base the negotiations? I feel like if we try to base anything off MSRP in the state of the market right now, the dealers will laugh in our face for not understanding the circumstance that the auto industry is in. Am I correct to think this?

[@maryenagross4360]

I wish i saw your channel before i got my car. I got ripped off for sure 😢